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Niti Aayog asks 2W makers to draw up plan for EVs

11/07/2019 | Author: Autoguide | 0 Comments Back To Home   < Previous News   |   Next news >

Officials hold meet with company executives

The NITI Aayong has asked scooter and motorbike manufacturers to draw up a plan to switch to electric vehicles, days after they publicly opposed the Government's proposals saying these would disrupt the sector. 
 
Officials of the Government’s policy think-tank met executives from companies including Bajaj Auto, Hero MotoCorp and TVS on June 21, giving them a timeline to come up with the plan, news agency Reuters reported quoting one of the executives.
 
The think-tank has recommended that only electric models of scooters and motorbikes with engine capacity of more than 150cc must be sold from 2025, sources told Reuters.
 
Automakers, said the report, opposed the proposal and warned that a sudden transition, at a time when auto sales have slumped to a two-decade low, would cause market disruption and job losses.
 
During the June 21 meeting, Government officials reportedly argued that switching to EVs is of national importance so the country does not miss out on the global drive towards environmentally cleaner vehicles. 
 
But industry executives responded that a premature switch with no established supply chain, charging infrastructure or skilled labour in the country could result in India losing its leadership position in scooters and motorbikes.
 
Executives from EV start-up Ather Energy, ride-sharing firm Ola and officials from the Society of Indian Automobile Manufacturers also attended the meeting.
 
The current push could disrupt the market order for two-wheelers and open up avenues for local start-ups, analysts say. Scooter and bike start-ups like Ather, 22Motors and Okinawa are already making in-roads in India.
 
“It is extremely critical that we make the transition to electric quickly lest we get wiped out by another global wave," Mr Tarun Mehta, CEO and co-founder at Ather said. 
 
NITI Aayog is working with several ministries on recommendations, which are part of an electrification effort to help India reduce its fuel import bill and curb pollution.
 
The proposals also include incentives for local production of batteries, an increase ownership cost of gasoline cars and forming a policy to scrap old vehicles. 
 
 

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