The Federation of Indian Industry (FII) has urged the Haryana government to make Gurgaon and its outlying neighbourhoods a manufacturing centre for electric vehicles.
The FII stated in a letter to Chief Minister Manohar Lal Khattar that because the area was already a major hub for automobile manufacturers, Maruti, Honda, Suzuki Motorcycles, Hero MotoCorp, and TVS, it would be more leisurely for these companies to expand their operations into the electric segment if adequate policy support is provided.
“The automobile business is rapidly evolving, and the emphasis is shifting toward electric automobiles.” Government policies and investor flow are among many reasons for the momentum behind electric vehicles. Major market participants already present there, it will be beneficial for both, industry and government, stated Director-General of FII, Deepak Jain.
Converting this area into an EV manufacturing hub will take less time as current industries will not have to worry about establishing new units or plants elsewhere, added Deepak Maini, FII General Secretary in Haryana.
Overall, it will assure reciprocal expansion of the industry and the state’s GDP, alongside creating more job opportunities, he added
Leaders of the industry believe that transforming Gurgaon into an electric car centre will alleviate the problem of spare parts to a large extent. “There is a high reliance on countries such as China for spare components,” said JN Mangla, president of the Gurgaon Industrial Association.
Establishing Gurgaon as an EV manufacturing epicentre will also encourage the growth of auxiliary businesses. Therefore, the dependencies on imports for spare parts will come to an end.
Stating that the future is going to be electric, Mangla aspires that the future of the automobile sector in Gurgaon to be electric as well.
Yogesh Munjal, CMD of Munjal Showa Limited, a member of Hero Group also supported the concept, “We believe that the area should be transformed into a manufacturing zone for electric automobiles.”
He further expressed that, the city has a sufficient production base, capable workforce, and technological necessity. In addition, ancillary sectors will grow, and the country can invest heavily in EV manufacturing.
However, one of the directors of major vehicle manufacturers opposing the idea brings to notice that, residential prices are high in Gurgaon, which is a determining factor in the remuneration for the workforce. Furthermore, issues such as groundwater scarcity are not in the best interests of EV enterprises.
The director considers the southern part of the country to be more preferable for EV growth as land is inexpensive, and other factors are also advantageous.
