Government Incentives for electric bikes must be focused on manufacturing and financing side says Mr. Teppi Seki director of Terra Motors India

Top Quote EVHUB Team had a chance to interview with Mr. Teppi Seki, Director for Terra Motors India operations. Terra motors is Japan based Electric vehicle company with its manufacturing foot prints in other parts of Asia. Mr. Seki shared about his company and insights about electric vehicle business in India. End Quote
  • Sheboygan, WI (1888PressRelease) August 22, 2015 - Mr. Seki, Can you please share some information about your company ? What is the story behind its inception?

    Mr. Seki : We are No.1 Electric two &three wheelers from Japan. Our vision is 'Leading innovations with Electric Vehicles in creating a clean and sustainable society'. We have business operations in South East Asia and South Asia. Terra's mission is to create the sustainable world with innovations. We designs and manufactures electric two-wheelers and three-wheelers with our well experienced Japanese engineers. Especially, our core technology is power train system including battery, charger, motor and controller. Our production plants are in India, Bangladesh, Vietnam and Japan.

    Despite the disadvantages of lead acid battery technology, still Indian electric bike business is powered by SLA batteries. What is forcing this to happen? In your view, what has to be done to implement high power and long lasting lithium based batteries in India market?

    Mr. Seki: India is most price sensitive sensitive market with strong local manufacturing company. Li battery is still difficult to penetrate except the battery financing model or technology breakthrough.

    EVHUB comment: Out of the two options suggested by Mr. Seki, financing model is only feasible way to get the Li battery technology to India. Research is currently on to minimize the cost and maximize the power density which may require time to realize.

    What are the gaps you find in India electric bike market vis-a-vis other countries in customer demand and Government Perspective?

    Government is keen to support to the electric vehicles. Last April, subsidy was restarted and some states has already giving the tax reduction. In customer perspective, E-bike is still depending on the subsidy because IEC engines scooters can start from very reasonable prices. We feel, E-rickshaw is now booming in India and now they formalize the policy. This product will pick up and will be new public transportation standard very soon.

    How do you feel about current ecosystem in India for electric bike business? How far the government incentives is of advantage for business growth?

    Mr. Seki: The Demand side incentive which government has given is actually temporary. This policy for EV is the subsidy for customer side which is temporary in nature. After the policy is discontinued, the demand will reduce and sales will stop. This has been happening in India over years. My opinion is that the government needs to support the key components development for sustainable demand creations. or they need to be ready for the special financing scheme to customer.

    EVHUB comment: Currently government is giving subsidy based on the sale of the electric vehicle products. As per Mr. Seki, the incentives must be on manufacturing side, for instance the steps to reduce the operating costs of manufacturing by giving cheaper resources like land, power. As per EVHUB, government can consider the financing incentives to the entrepreneur by giving the finance aid for lesser annual interests.

    Currently EVHUB getting many inquiries about business opportunities in electric bikes domain , What is your suggestion to aspiring entrepreneurs who are passionate to working in electric bikes domain.

    Mr. Seki: Please do not give up and survive.

    EVHUB Comment: In 2008 there were more than 100+ electric bike companies in India and currently only hand full of companies survived. Hence as per Mr. Seki, one who won't give up despite odds in the business will survive.

  • FB Icon Twitter Icon In-Icon
Contact Information