The Niti Aayog made a proposal to transform the ICE two-wheelers and three-wheelers to 100% electric vehicles (EVs). The three-wheelers by 2023 and two-wheelers by 2025. Hero, TVS & Bajaj against NITI Aayog’s EV transition decision.
Hero, TVS & Bajaj against NITI Aayog’s EV transition decision
Many automakers didn’t like the decision taken by the government’s think tank Niti Aayog. Last week, Niti Aayog has asked the auto industry body Society of Indian Automobile Manufacturers (SIAM) and conventional automakers of two-and three-wheeler to give the roadmap within two weeks for the transition to electric mobility
They aggressively answered its proposal. They gave their own reasons and comments against the proposal.
TVS Motor Co and Bajaj Auto
According to TVS Motor Co and Bajaj Auto, Changing from conventional two-wheelers to 100 percent electric is “not like Aadhaar, not a software and print cards” and such transition is completely uncalled for.”
Bajaj Auto Managing Director Rajiv Bajaj
Bajaj Auto Managing Director Rajiv Bajaj also said, “we believe 100 percent transition is completely uncalled for”.
TVS Motor Co-Chairman & Managing Director Venu Srinivasan
“This is not like Aadhaar, not software and print cards. You have to set up a whole supply chain, and migrate from the current supply chain,” TVS Motor Co-Chairman & Managing Director Venu Srinivasan said.
Hero MotoCorp
Similarly, the Hero MotoCorp said it was “deeply concerned by the potential repercussions of Niti Aayog’s approach of completely banning two-wheelers up to 150cc that are powered by Internal Combustion Engines (ICE)”
“Instead of imposing the adoption of EVs (electric vehicles), it would be ideal to have a healthy mix of policy, market dynamics, and customer acceptability,” the country’s largest two-wheeler maker said.
EV Adoption
The companies said that all the stakeholder’s concerns must be taken into consideration instead of imposing the adoption of EVs.
The moves taken by NITI Aayog is impractical and stakeholders do not have much experience in the EV field and imposing the adoption of EVs in a limited time is impossible.
Srinivasan said that it is impossible with 20 million vehicles, USD 15 billion in sales, 1 million employees will be affected. A black or white, zero-one change is impossible.
An abrupt and sudden change will affect the employment to millions, an ecosystem of vendors, OEMs, dealers, spare parts manufacturers, and mechanics as well. The millions of lives are depended on the automotive industry added the automotive industries.
However, the adoption of electric vehicles is much important as it reduces the pollution levels from the country which is causing many deaths and severe health problems in people. Let us see how these companies will adopt electric vehicles.
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The responses from the auto makers to Niti Ayog is sad to read, instead they must have come-up with the support they need from government in order to arrive at achievable roadmap. I haven’t seen any fixed date announced by Niti Ayog for the complete transition however it has asked for roadmaps. every roadmap comes with some additional support which companies need.
My suggestion to Niti Ayog would be to allow startups some support and also abolish the nexus of giant two wheeler makers in terms of FAME benefits which smaller companies cannot take, as their is a body which governed by these big companies by whose clearance fame benefits are permitted. Instead government can come-up with simpler homologation process and cheaper not the current huge cost. and simpler method of availing FAME Benefit to make it competitive environment. Startup will show the way, and I am sure it will give them tough competition to these giant and they have to come-up with aggressive strategies. Why government do not provide equal opportunity to only EV manufacturers. ? they at-least don’t have the same excuses. : Piyush Mishra