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Sunday, March 16, 2008

GE to foray in Electric Vehicle market

When one sits back and thinks, if we can produce high speed bullet trains, than why not high performance electric cars. Why not even decent mobikes? Agreed bullet trains run on electric lines and any EV will have to be battery operated. But, is it really that difficult? The answer here is simple -- the oil lobby.

For years now the cash-rich oil companies have made tie-ups with carmakers around the world to prevent them from investing in technology that will all the use of energy source alternative to petrol and diesel. Unsurprisingly, no big company ever commits big on a completely electric vehicle. Yes, they are bringing out the hybrid ones and is probably left to the trouble of next generation. There are small companies which do come out with good products, but they are far behind in providing the required technology and performance of these cars due to lack of resources and also pseudo demand for petrol and diesel cars.

A very good example is that of Tata motors (of Nano fame). Recently, Tata motors announced the introduction of the electric version of their Ace truck. But, Ratan Tata was quick to say, "Tata will not be a major player in electric vehicle segment." Now, whether that was a deliberate ploy only time will tell.

But all this is set to change. The fearless GE - General Electric has entered the arena and the rules are going to change this time. GE has reportedly invested in electric vehicle maker Think and battery makers A123Systems. Now, GE is a company which produces drinking water from sea water. The oldest company to be listed on the Dow Jones index. A huge giant!


If GE thinks, GE does. Of course, you need to show them the profit and they will do anything that it takes. GE philosophy has long been to be either number 1 or number 2 in the business or just get out of that business. Now, it will be worth watching how GE twists its muscle in the electric vehicle segment.

And, did I tell you GE calls itself the green company with ecomagination! Now, if and when this venture succeeds, will this car match the price of a Nano or a Tiny? I doubt. GE's products have always been over-priced as they vouch for cutting edge technology and superior quality. While that may be true, but they have always had a policy of 40% margin. So mass market never suit them. Will that change or not only time will tell.

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