New Delhi: Inflation is a challenge amid declining demand for two-wheelers. Hero Enterprise Chairman Sunil Kant Munjal said that the automotive industry is going through a turbulent transition and now a need has been felt to convert it to electric vehicles.
Munjal expressed confidence in electric vehicles to further the growth of the automotive industry. “The motor vehicle industry is in the midst of a turbulent transition. The concept of electric vehicle is not new, it has been known for almost 100 years now. But since huge investments have sunk in the industry, the need for big automotive companies to switch to EVs has not been felt.” He also said that electric vehicles have started well in the country.
He further adds, “These are early days for EVs. We don’t know where it will end or what technology it will end in, but it will certainly be a very interesting race to watch. Now people are saying that big companies have big resources, and they have the capacity to deliver the processes.”
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Munjal said, “When a company popularized electric cars, the need to change the industry was felt. Awareness was always there, but the need for change was not felt. That’s when they turned and then started doing self-introspection on how they work and looked at the technologies they could develop and get outside.”
On the market scenario during and after the Covid-19 pandemic, Munjal said the industry witnessed a sharp revival post-Covid. After the economy opened up, demand picked up across the board. Munjal said: “Inflation is coming back, the prices of electric energy, especially crude oil, are going up.
Munjal further said, “The metals and minerals, earlier increased to unbelievable levels and are now decreasing. Timing is unusual for the industry as there are many conflicting signals affecting the actual operation of the economy. We all used to say that we have a contingency plan, buffer has been created but no one had planned for it. No one had imagined such a situation.”