Honda says adoption of electric vehicles a big challenge in India, industry needs time

By: |
Updated: June 26, 2019 4:10:47 AM

In a statement, the company said the government needs to look at the impact on employment, cost of technology and availability of raw materials, among others.

honda, automobile sector, automobile industryHonda Motorcycle & Scooter India said adoption of electric vehicles was still a major challenge in India and the industry needs more time to stabilise after the switchover to BS-VI norms.

A day after Bajaj Auto and TVS Motor criticised government think tank Niti Aayog’s proposal to ban non-electric two- and three-wheelers, Honda Motorcycle & Scooter India said adoption of electric vehicles was still a major challenge in India and the industry needs more time to stabilise after the switchover to BS-VI norms.

In a statement, the company said the government needs to look at the impact on employment, cost of technology and availability of raw materials, among others. “Due to multiple factors including vehicle cost, riding performance, range and infrastructure, customers’ adoption of EV is still a major challenge,” the company said.

The government wants to ban all three-wheelers by 2023 and two-wheelers – for vehicles with a capacity of up to 150 cc – by 2025. Smaller bikes and scooters account for over 80% of the sector. Niti Aayog, at a meeting with the industry on June 21, asked the two-wheeler firms to suggest within two weeks steps for the transition by 2025.

Also read: The great Indian EV dream: Electrifying vision, sobering reality

On Monday, TVS Motor chairman and MD Venu Srinivasan and Bajaj Auto MD Rajiv Bajaj expressed concern over the potential loss of jobs, cautioning the ‘Make in India’ move could be seriously undermined. “I am shocked because internal combustion engine (ICE) of Indian two- and three-wheelers that are the global benchmark for low emission and high fuel efficiency must be banned within the next few years with scant deliberation on where the unemployed are to go or from where the electricity for charging is to come,” Bajaj said.

Hero MotoCorp said the move by Niti Aayog is coming at a time “when two-wheelers manufactured in India will have the world’s cleanest emissions, along with the world’s highest fuel-efficiencies, effective April 1, 2020”.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop