Davos 2023: CNBC Interview with Sudarshan Venu, TVS MD
Sudarshan Venu, the joint managing director of TVS Motor Company, likely discussed the impact of government subsidies on the electric vehicle (EV) industry during the 2023 Davos event. Government subsidies can have a significant impact on the growth of the EV industry by providing financial incentives to consumers to purchase EVs, thereby increasing demand and driving down the cost of production. Subsidies can also get companies to put money into making new EV technology and infrastructure.
But it's important to remember that the long-term success of these subsidies often depends on government budgets and policies, and removing subsidies can hurt the industry.
Sudarshan Venu
According to Venu, the company has invested significantly in a range of new EV products, including scooters, premium motorcycles, three d electric bicycles for the European market. He also mentions that the company invested over Rs 1,000 crore (approximately equivalent to USD 137 million) last year and plans to maintain a similar level of investment in the coming years. This indicates TVS's commitment to the EV market and its confidence in the growth potential of this industry.
Government subsidies for EVs and their effects on the sector
Venu responded when asked about India's 25–30% market share going electric over the following 5–7 years: "The government subsidy is vital for the industry till a certain threshold volume is achieved." Sudarshan Venu, Managing Director of TVS Motor Company continued by saying that in addition to this, he believes that with more partnerships, particularly on the battery side and sell side, prices would decrease as capacity rises.
"Today, this is why government subsidies are required, and so, as this decreases, new cell and vehicle formats are released, and capacity is increased in India through the production linked incentive (PLI) scheme, I think there will be a significant volume of electric at which point the industry will become self-sustaining," he said.
He emphasised that as we move forward, there will be bigger scale, newer format battery needs, more capacity being added in the cell area, and lower cell costs, which is the main reason for the subsidies.
"So I believe that in some years the sector will actually become a self-sustaining normal as a result of the confluence of these elements, with increased domestic production and the PLI that's been announced.
