India’s electrification journey is to be about two-wheelers and three-wheelers. It has to be our two-wheelers and three-wheelers because 80 percent of the total sales for vehicles is really about two-wheelers and three-wheelers in India right now, said Amitabh Kant, Sherpa of G20 at ACMA’s 62nd Annual session.
Kant added that “we need to target the next four years. To my mind, here is to target 100 percent electrification of these two segments, go 100 percent electrical two-wheelers and three-wheelers and keep the size and scale of two-wheelers, three-wheelers vehicle manufacturing and their entire value chain of components.”
This estimation is contrary to the projection stated in the report released by ACMA and McKinsey on the Future of Mobility. According to the report, about 60 percent of two-wheelers will be electrified by 2030 on the current adoption rate. Even on aggressive estimates, about 75 percent of two-wheelers can be electrified by 2030. Similarly, electric three-wheelers will take another 8 years to be fully electrified.
He also added India should emerge as a global champion of electric two-wheelers and three-wheelers.
The Indian economy is growing rapidly and is one of the fastest growing economies in the world. During his speech he said, “if you accelerate the pace of growth to that level, you are aiming to be close to a $13 trillion economy by the time you turn 100 in 2047, and this cannot be done without the automotive component industry, which has been a very key driver of India’s growth story.”
The automobile sector and the automotive component industry’s growth at a very rapid pace is critical as per Kant.
Kant said India’s urbanisation process has just begun. “And the urbanisation process has ended across the United States of America, centred across Japan, extended across Europe, and India has just begun. And in the next five decades, 500 million Indians will move to urban areas. So, the challenge for India is really to create two Americas with the next five tickets to America with the next five details and create a Chicago in a very sustainable manner every two years, a new Chicago every two years,” he signed off.