NEW DELHI (Reuters) – indian federal think-tank, has asked for a scooter and motorcycle manufacturers to draw up a plan to make the switch to electric vehicles, the day after they are out in public against the proposals of the government, saying that she would interfere with that of the sector, two sources told Reuters.
FILE PHOTO: A young boy prepares to charge his electric scooter outside of his home in Ahmedabad, India, on December 30, 2018. REUTERS/Amit Dave/File Photo
Niti Aayog officials met with executives from companies including Bajaj Auto, Hero MotoCorp and TVS for late on a Friday, giving them two weeks to come up with the plan, in accordance with one of the managers.
The think-tank, which is chaired by the prime Minister, Narendra Modi, and is playing an important role in the decision making process, recommended that only the electric models of scooters and motorcycles with an engine capacity of over 150cc is to be sold as of the year 2025, the sources told Reuters.
The car manufacturers are against the proposal and cautioned that the transition, at a time when the auto sales slumped to a two-decade low, and would lead to market distortion and job losses.
In India, it is one of the world’s largest two-wheeler markets, with sales of over 20 million scooters and motorcycles in the previous year. Over the course of Friday’s meeting, officials also argued that the shift to a Service of the national interest, so that India is not to be missed in the global drive towards eco-friendly clean vehicles, which is one of the sources said.
But industry executives suggested that an early switch, with an established supply chain, charging infrastructure or a skilled labor force in India, it could result in India losing its leadership position in scooters and motorcycles, the second source said.
“It was clear, pulled out of positions,” said the source, adding there were “strong opinions” at the meeting.
Bajaj, Hero and the Niti Aayog did not respond to a request for comment, while TELEVISION declined to comment.
Niti Aayog will work in conjunction with a number of other government departments on the recommendations made as part of an electrification effort is to help India to reduce it’s fuel import bill and curb pollution.
The proposal also includes incentives for the production of batteries, an increase in the ownership cost of petrol and cars in the form of a new policy for scrap metal, old vehicles, according to the records of the proceedings seen by Reuters.
The panel has, in addition, measures such as the application of taxi aggregators such as Uber and Ola to convert 40% of their fleet be electric in April 2026, Reuters reported.
The directors of EV start-up, Ather Energy, the ride-sharing company, the Country and the officers of the Society of Indian automobile manufacturers (SIAM), an industry trade body, will also be present at the meeting, the sources said.
The proposals will be India’s second attempt to switch to EVs. In 2017, the proposal is an ambitious plan, especially for an electric car, but have cut back after facing resistance from the auto manufacturers.
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The pressure can lead to a distortion of the market for two-wheelers and are opening the doors for local start-ups, analysts say.
A Scooter and a bike, and start-ups like Ather, 22Motors, and All have been very busy with the roads in India.
“It’s very important that we have to make the switch to electric soon so that we don’t get wiped out by a global wave,” Tarun Mehta, chief executive officer and co-founder at Ather said.
Report) Aditi Shah; additional reporting by Aftab Ahmed, edited by Alasdair Pal, and Clelia Oziel