Lockdown Extension to Have Adverse Impact on EV Sector: SMEV

SMEV has said the lockdown extension is the right move, however, there will be an adverse impact on the operations of its members for the next 1-2 months.

The Society of Manufacturers of Electric Vehicles (SMEV) has said that the extension of the lockdown is the right move in the circumstances, however, there will be certainly an adverse impact on the operations of its members for the next 1-2 months.

Describing the situation as a testing time for the EV industry, SMEV Director General Sohinder Gill said it is also time for its members to conserve cash, take care of workmen and utilise this time to plan ahead.

“Looking at the current situation in the country, the extension of the lockdown is the right move. Though there will be certainly an adverse impact on the operations for the next 1-2 months, I believe that we will be able to save lives of thousands and emerge as a healthier nation,” Gill said in a statement.

He further said, “this is the testing time for the EV industry which is at nascent stage and I appeal to all the stakeholders to conserve cash, take care of our workmen and utilise this time to plan ahead.” Gill expressed confidence that “the industry will be able to spring back into action to recover the losses due to this shutdown.”

On the morning of April 14, 2020, the last day of the previously announced lockdown of 21 days, Prime Minister Narendra Modi announced the extension of the ongoing nationwide lockdown till May 3, 2020, with an aim to combat the COVID-19 pandemic.

Recently, research firm Wood Mackenzie had released a report where it predicted a 43 percent contraction in the global EV industry by the end of 2020. For a sector that was just building up some serious momentum, the crisis couldn’t have come at a worse time. The big hope now is that government stimulus plans will continue to push for more electrification of the transportation sector. Global electric vehicle (EV) sales closed at 2.2 million in 2019. This number is expected to drop by 43 percent to 1.3 million by the end of 2020.