Leading Two Wheeler Manufacturers On Collision Course With Govt On 2025 Electric Mobility Roadmap Sans ICE Vehicles

The electric mobility road-map envisioned by NITI Aayog, the premier think-tank of the Union Government, under which two- wheeler manufacturers are expected to junk internal combustion engine (ICE) and completely transition to electric vehicles (EVs) by 2025, has invited the ire of leading players like Bajaj, TVS and set them on a collision course with the government, The Hindu Business Line reported.

The proposal has come under heavy criticism from the auto industry, which feels that the targets are impractical, especially in the context of low supply chain capabilities in this technology, low spread of the infrastructure needed to enable this massive roll-out, and the impending implementation of the Bharat VI emission norms from 1 April 2020, which itself will be a huge cost for the industry.

During the meeting that NITI Aayog-called last week with two-wheeler companies on the electric plan, it argued that switching to EVs is of critical importance so that India does not miss out on the global drive towards environmentally cleaner vehicles.

Urging the manufacturers to join the efforts to usher in an electric revolution in the country, while citing China as a good model to benchmark, NITI Aayog had reiterated its stance that the internal combustion engine (ICE) need to go.

The proposed road-map appears to be facing fierce resistance from the entrenched players in the two wheeler manufacturing space.

The Hindu Business Line quoted Rajiv Bajaj, the managing director of Bajaj Auto as saying “What revolution? What ban? Doubtless electric has great merit but keep in mind that the progressive ban by China on ICE vehicles made it possible for the Indian two- and three-wheeler industry to exploit large global markets”.

Claiming that Indian two-wheelers had set the global benchmarks for emissions and mileage, Bajaj questioned the rational for sun-setting an industry operates that is currently employing over one million people and exporting over three million vehicles.

Bajaj also noted that if e-bikes/scooters were to be affordable, the present battery cost of $250/kWh would have to come down to $100/kWh levels. While welcoming the sops and subsidies for electric vehicles, he pointed out the staggering economic cost involved in effecting even a subsidy supported transition to EVs.

According to Bajaj’s estimates, a whopping Rs 250,000 crore would have to be spend even assuming Rs 1 lakh per vehicle subsidy on an estimated 25 million two-wheelers.

The Hindu Business Line report also quoted Venu Srinivasan, Chairman of TVS Motor Company, pointing out that transition to EVs will just shift India from “oil dependence to being dependent on imported lithium cobalt and other rare elements-based motors and batteries would not help the balance of payments situation.”

According to Srinivasan, electric two-wheelers will not be an option either as they cost 80 per cent more than engine-based bikes.