Auto Industry yet to Submit EV Transition Study to Niti Aayog

The auto industry is yet to submit its report on the road map to the transition of two- and three-wheelers to fully electric vehicles (EV) to Niti Aayog

The auto industry is yet to submit its report on the road map to the transition of two- and three-wheelers to fully electric vehicles (EV) to Niti Aayog, according to a senior government official.

At a meeting with industry representatives in June last year, the Niti Aayog had asked the industry to come back within two weeks with concrete steps towards the transition but manufacturers had stated they would need a minimum of four months to work on the same. Hero MotoCorp, Bajaj Auto, TVS Motor Co, and Honda Motorcycle and Scooter India (HMSI) have opposed the Niti Aayog’s plan to push for 100 percent electric vehicles by completely banning conventional two- and three-wheelers.

Tata Sons Chairman N Chandrasekaran had also stated that migration to EVs needs to be planned to ensure that the entire ecosystem is ready through a multi-year road map.

“The migration to EV is important in our journey for sustainable mobility. But it needs to be planned to ensure that we have the entire ecosystem ready,” Chandrasekaran had said in a statement. “What the government and industry must do is build a multi-year road map together, with milestones that could help all the players understand shared objectives, build capabilities and infrastructure and minimise any surprises along the way.”

“At the meeting in June, for concrete steps towards the transition to electric vehicles, the auto industry had said that they will get a study done by an external agency and the recommendations will be shared with the government in four months. But, so far, they have not submitted their recommendations to the Niti Aayog,” the official told.

The auto industry has been opposing the proposal by the Niti Aayog to push for full conversion to EVs for ICE three-wheelers by 2023 and two-wheelers of 150cc and below by 2025, saying a transition was completely uncalled for and could jeopardise the industry.

In an interview with a business daily last year, Prime Minister Narendra Modi had asserted that India has a large market and big enough policy space to ensure the growth of both internal combustion engine vehicles and EVs, and there is no need to speculate about the growth of either of the two.