Following the government’s proposal banning sales of non-electric three wheelers by 2023 and two-wheelers of less than 150cc by 2025, auto industry body SIAM on Sunday opposed the idea, terming it as impractical and untimely.
Society of Indian Automobile Association (SIAM) president Rajan Wadhera said the government’s ambition needs to be tempered with a practical approach without needlessly disrupting the automotive industry.
“Such unrealistic expectations and policies would only adversely affect the world’s number one two/three-wheeler industry but may not help in making EVs acceptable to the customer and the market,” Wadhera said. The ministry of road and transport is reportedly in consultations with NITI Aayog and other stakeholders proposing that all three-wheelers and all two-wheelers below 150cc will need to go electric by 2023 and 2025, respectively.
A steering committee headed by NITI Aayog chief executive Amitabh Kant has in its report laid out a road map.
Wadhera pointed out that the auto industry is already leapfrogging to BS-VI emission norms in the shortest time-frame ever with investments of close to Rs 80,000 crore.
And even before this investment is recovered, added Wadhera, the government is planning another impractical regulation. “In the current scenario, any policy to accelerate the transition to EVs would lead to a policy-induced disruption which could result in significant damage to the auto industry,” he added.