A Niti Aayog report has recommended that the country completely transition to electric vehicles by 2030. The government think tank has proposed that all three-wheelers and two-wheelers with less than 150 cc capacity be phased out by 2025 and 2030, respectively.
However, major automobile companies like Hero MotoCorp, Bajaj Auto, and TVS Motor Co have all hit out against the government, saying the move is too sudden and difficult to implement.
Niti Aayog is aiming to eliminate Indias carbon emissions entirely and move towards greener technology by phasing petrol and diesel vehicles. The Supreme Court has also banned the sale of non-Bharat Stage VI (BS VI) by 2020.
NDTV reports that Niti Aayog is proposing financial incentives like subsidies up to Rs 2,000 crore if companies are able to make good progress towards zero emissions. The think tank said that more investment in the electric vehicle sector will also create lakhs of direct and indirect jobs.
Niti Aayog has also proposed plans like an e-Highway that will push electric vehicle sales and encourage its use.
While environmentalists have welcomed Niti Aayogs shift towards electric vehicles, the automobile industry has been up in arms about it. Hero MotoCorp, Bajaj Auto, and TVS Motor Co all expressed concern about the swift change.
Auto companies deeply concerned
Hero MotoCorp (Hero Honda), an Indian two- and three-wheeler manufacturer, released a statement that said the automobile industrys future needs to be taken into consideration.
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, said Hero MotoCorp.
TVS Motor Co Chairman & Managing Director Venu Srinivasan said Niti Aayogs plan is too ambitious and does not realise that electric vehicles need a whole supply chain.
Hero MotoCorp said, An abrupt and sudden changeover will disrupt the entire ecosystem of vendors, OEMs (original equipment manufacturer), dealers, spare parts manufacturers, and mechanics, as well as other stakeholders, thereby impacting the livelihoods of millions of people dependent on the industry.
Instead, the automobile giant has recommend a gradual, phase-like transition to electric cars that allows companies to “find the path of least resistance”.
Bajaj Auto Managing Director Rajiv Bajaj added that a 100% transition is completely uncalled for and targeting two- and three-wheelers but not four-wheeled cars makes it an incomplete initiative.
Indias push for electric vehicles
India has started to see more engagement in the electric vehicles sector. In the 2019 fiscal, India bought 7,50,000 units of EVs, including two- and three-wheelers and passenger cars that will not only be cheaper but also more fuel- and energy-efficient for the country in the long run.
Companies like Mahindra Electric and Piaggo have been leading the move in this regard. Piaggo has invested at least Rs 200 crore in electric three-wheelers. Even Bajaj Auto and TVS Motor Company have announced more investment in EVs.
Government’s electric steps
Business Standard reports that, by one estimate, the value of the EV market by 2030 will be a huge Rs 42,000 crore. The government has also launched the National Electric Mobility Mission Plan 2020 and Scheme for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles at a cost of Rs 10,000 crore.
The government will also pass the newly amended Motor Vehicles Act that has not been updated since 1988.
The amendments include higher fines in the thousands for drunken driving, driving without a licence, breaking speed limits, using a device while driving, and not wearing seat belts. The Act also established a Motor Vehicle Accident Fund to ensure victims of road accidents are compensated.
Aadhaar will become compulsory for new driving licences and vehicle registrations, and drivers will need to buy a compulsory six-month insurance plan for certain accidents.
In another unique update, automobile supplies who sell outdated or dysfunctional models will be held liable. Such defunct vehicles will be called back and the vendor will incur a Rs 500 crore fine.
Karnataka, Telangana, Andhra Pradesh, Maharashtra, Kerala, Uttar Pradesh, Uttarakhand, and the Delhi-NCT region are all making huge strides towards zero emissions and more EVs through investment, increasing access to public transport, lines of credit to EV companies, and more.
Niti Aayog has given the automobile industry two weeks to come up with a plan to phase out two- and three-wheelers by 2030.
Rhea Arora is a Staff Writer at Qrius