"For a newcomer, this is a good chance to establish a modern, innovative brand image," the source said, although they added the company would need more clarity on policy before deciding whether to launch electric vehicles in India.Earlier this year SAIC set up a local unit called MG Motor which is finalising plans to buy a car manufacturing plant in western India. But emulating China's success could be tough.Electric vehicles are expensive due to high battery costs, and car makers say a lack of charging stations in India could make the whole proposition unviable.The proposed policy focuses on electric vehicles, and is likely to also include plug-in hybrids. "For full electric vehicles, the economic gap remains huge and the charging infrastructure needed does not exist," said a spokesman at Tata Motors. The company makes electric buses and is working on developing electric and hybrid cars.DELAYED PLANSMost automakers have focused on bringing in hybrid models that are seen as a stepping stone to electrification. "If the government will be aggressive on electric vehicles and not support other technologies, companies will need to rethink investments," said an executive with an Asian carmaker.

Source: Times of India May 24, 2017 03:12 UTC