Electric vehicle fire incidents unlikely to impact long-term EV gross sales: Crisil

As an instantaneous perspective, individuals may debate whether or not electrical automobiles are protected or not.

By : HT Auto Desk
Updated on:
13 Apr 2022, 11:00 AM

File photo of an Ola Electric scooter catching fire in Pune  (HT_PRINT)
File photograph of an Ola Electric scooter catching fire in Pune  (HT_PRINT)

Since the beginning of summer season season within the nation, there have been a number of incidents of electrical automobiles catching fire. However, these incidents are unlikely to have any long-term impact on the gross sales of battery-powered fashions within the nation, although there may very well be an instantaneous notion that whether or not these automobiles are protected or not, credit standing company Crisil has mentioned.

In a latest incident reported from Nashik in Maharashtra, a gaggle of 20 of 40 electrical scooters caught fire whereas being loaded in a container. Earlier in March, about 4 incidents of electrical scooters catching fire have been reported, together with scooters from manufacturers like Okinawa and Ola. The incident reported from completely different locations within the nation prompted the federal government to order a forensic investigation.

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These incidents can have a near-term impact which is somewhat damaging for the phase. “But over the long-term, I don’t think this is going to be an impediment (in EV sales). This is a new age industry and any such industry will find teething issues,” mentioned Hemal Thakkar, Director at Crisil.

He added that globally the EV trade has seven to eight gamers who dominate the market whereas in India there are some 25-30 corporations and startups, that are into the manufacturing of two- and three-wheeler EVs. “So, of course, the kind of process they have at their end they will also go through the learning curve. And the industry will take some time to attain maturity,” he mentioned.

As an instantaneous perspective, there may very well be formation of a notion that whether or not these automobiles are protected or not,” he mentioned, including that the federal government has already began an unbiased probe into the fire incidents in order to discover out the trigger or cause behind these incidents.

(with inputs from PTI)

First Published Date: 13 Apr 2022, 11:00 AM IST

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