NITI Aayog’s proposal to stop the registration of internal combustion engine (ICE)-driven three-wheelers by 2023 and two-wheelers under 150cc by 2025 has a lot of people in the automobile industry in a tizzy. While I understand the point of view of my colleagues in the automobile industry, I feel the need of the hour is a change in the mindset – of the industry and of the consumer.
We are one of the largest two-wheeler markets in the world, with sales exceeding 21 million units, and the last major change we had was when we moved from two-stroke engines to four-stroke engines. This was in the late 1990’s when mobile phones weighed as much as a brick, internet speeds were in Kbps and Virat Kohli wasn’t even a teenager. For an industry which is at par with the best of the best in the world, it is a surprising fact. Yes, there have been incremental changes in terms of fuel economy and mildly cleaner tech but it is far cry from what one would have expected.
What we need is a major disruption in the way the two-wheeler industry thinks and functions in India. We need to do all we can to develop world-class technology, a world-class ecosystem and offer world-class products to our consumers. Having spent a good part of the last five years meeting companies all over the world, I am quite confident we can do this. We are a unique market and that coupled with our domestic demand, is our edge. Unlike mobile phones, which can be manufactured anywhere in the world and sold in India, two-wheelers for India need to be made for India. This can be potentially a huge entry barrier for international EV companies to come to India and naturally a big boon for Indian manufacturers. All it requires is a mindset change.
My colleagues from the automobile industry may well question me here and say even if we were ready to change, is the consumer-ready? My simple answer is, the consumer will be ready when we offer a product which is value for money and at par or better than an ICE product. It is incumbent upon the industry to allay the consumer’s concerns regarding EV’s and there are ways to do it now. Range anxiety is the first concern and we at Revolt are offering four ways to make it simple for a consumer to keep the bike charged. Design and sound, or the lack of it, were complaints against EV’s and we offer a good-looking motorcycle with four choices of sound. I could go on and on, but my point is we listened to the consumer, put our heads together and came up with solutions.
This is not to say the consumer does not require a change in mindset. However, I feel, the pollution levels in our metro cities is a huge factor that is making the consumer think. Vehicular pollution is a major contributor to this pollution and zero-emission vehicles are the way forward. The consumer needs a nudge, in the form of a right product, and I am optimistic of the change in their mindset.
No change of this magnitude happens without the right policy framework and one of my favourite examples of this is Norway. The Norwegian EV success is governed by the per vehicle value of the subsidization scheme and its simplicity. Norway doesn’t make electric vehicles cheaper, it makes ICE vehicles expensive. Taxation on ICE vehicles turns into incentives for electric vehicles, whether powered via batteries or fuel cells. There is no registration tax on used car sales, no annual ownership tax, and no fuel tax. Road tolls are fully or partially exempt, ferry fares are strongly reduced, bus lanes are mostly open to EVs, public parking fees are waived and there is plenty of free charging for EVs.
The Government of India has announced an outlay of ₹10,000 crore for phase II of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME 2) scheme. The centre has sanctioned ₹8,596 crore for incentives, of which ₹1,000 crore has been earmarked for setting up charging stations. Registration tax on EV’s has already been waived off, which is another step in the right direction. To my mind, the right policy framework will accelerate the entire cycle of market development, EV awareness and infrastructure development. The stronger and simpler the incentive, the stronger the market response and the sooner the government will be able to reduce subsidies.
If NITI Aayog decides to enforce the 2025 deadline for two-wheelers under 150cc, I strongly urge the industry and the consumer see it as a positive move and not a restriction. It could be the push we need as a country to realise the potential we have, to be a leader in the EV space and help our environment.
Change is always tough but I think we should accept the future is electric, it is just a matter of time.
Author:Â Rahul Sharma is the founder of Revolt Intellicorp Pvt Ltd. A mechanical engineer by education, he believes in electric mobility as the way forward for the global automobile industry. Drawing his inspiration from Steve Jobs, Rahul also indulges in art and sports.
Disclaimer:Â The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of The Indian Express Group or any employees.
