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India EV sales account for 2.5% of annual car sales

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India EV adoption faces challenges

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Maruti plans to set up fast chargers in top 100 cities

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Tata Motors, Hyundai to set up 500 and 600 public

chargers,

respectively

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PM Modi invites investments in India's mobility sector

(Recasts to add details of EV plans by Hyundai and Tata Motors)

By Aditi Shah and Nandan Mandayam

NEW DELHI, Jan 17 (Reuters) -

Hyundai, Maruti Suzuki and Tata Motors

used the India auto show to unveil ambitious plans to

expand their electric vehicle charging network to address the

issues that are putting customers off making the switch.

The five-day auto show in New Delhi starting on Friday

saw carmakers show off their new EVs and India's Prime Minister

Narendra Modi make a case for more investment in the world's

third-biggest market, where automakers are desperately trying to

increase sales and where Tesla has long-delayed its

plans to enter.

Fuel-guzzling cars still dominate India's roads, with EV

sales rising, but still accounting for just 2.5% of annual

sales.

Maruti Suzuki on Friday announced plans to install fast

charging points in India's top 100 cities - one every 5-10

kilometres (3.1-6.2 miles) - and consider launching a battery

rental service, while Tata Motors and Hyundai said they will set

up 500 and 600 public chargers, respectively.

Maruti also announced plans to expand the charging network

in cities and provide roadside assistance all over India if a

battery runs out.

Anxiety over batteries draining without a charging spot

nearby is a big issue for customers in the country.

"We will leverage our vast network to provide fast charging

support," Maruti CEO Hisashi Takeuchi said at the show, where it

also launched its first EV - the e Vitara SUV.

Maruti is also considering a battery rental service to

address what many view as a major obstacle to EV adoption in

India.

The move comes after India's Tata Motors last

year started luring consumers with free charging and steep

discounts, while rival MG Motor also launched a battery rental

plan.

At the New Delhi auto show, electric vehicles will be centre

stage, with models from Vietnamese entrant Vinfast on

display, alongside domestic brands Maruti and Mahindra &

Mahindra, as well as global rivals BYD,

Toyota ( TM ) and Hyundai.

Modi courted investors by saying the government was willing

to provide support for companies seeking to expand in the

nation.

"This is the right time for you for a large investment in

this sector," he said.

India's auto industry, which grew by about 12% last year,

will expand further as a result of factors including its large

youth population and rapid urbanisation, Modi said.

But there have been challenges. India plans to expand EV

incentives to automakers and relax its policy which was

originally designed following lobbying by Tesla, which has still

not entered the market, Reuters reported in November.

(Additional reporting by Kashish Tandon and Sakshi Dayal;

Writing by Indranil Sarkar and Aditya Kalra; Editing by Kate

Mayberry, Ros Russell and Louise Heavens)