Japanese companies like Suzuki and Toyota have long urged the government to encourage hybrid technology as the half step before full electrification.
“From the various notifications of the government, it is clear that the policy direction is progressively towards Make in India and minimum imports,” Ayukawa said.
“I can assure you on behalf of industry that we are enthusiastic and dedicated towards maximum localisation of xEVs and xEV parts. May I also submit to you that the largest factor which can help localisation is volumes. Volumes are more important than the subsidy itself,” he explained.
In cars, he said, “the components like battery, motor and inverter are common to electric vehicles, strong hybrid electric vehicles and plug-in hybrid electric vehicles. If we also encourage hybrid vehicles, then the volume of these core components goes up and we will be able to achieve much higher depth of localisation of these parts,” he explained.