New Delhi: Signalizing a faster transition ofelectricvehicles, the government is expected to sell only the electric three-wheelers from April 2023, while all new two-wheelers with engine capacity up to 150cc driving out of the showrooms may have become operational by electricity from April 2025.
The radical recommendations of a high-level government panel are aimed at the reduction of vehicular pollution as these two segments, with annual sales of over 2 crore units, traffic on Indian roads by three-quarters of more than for traffic. The movewill not affect vehicles registered up to the cut-off date as they continue to ply. The four-six year transition window has been made to ensure that auto industry, which is pumping in large amounts of money to manufacture BS-VI compliant vehicles from April next year, sources said TOI
The inter-ministerial steering committee led by Niti Aiyog CEOAmitabh Kantis likely to deliver delivery vehicles and school and city buses for similar deadlines, although the suggestion auto industry to the palatable is not possible, which doles for pitching.
Government not looking to offer concessions to automakers
The committee has also pushed for doubling direct subsidy for electric three-wheelers to Rs 20,000 per kilo watt hour for making them as affordable as they are on fossil fuel. Besides, the government is looking at the stringent fuel efficiency norms for new petrol and diesel vehicles, while offering financial and other concessiones for the electric segment.
The power ministry has been tasked with finalizing the framework forcarbon credittrading mechanism to complement the corporate average fuel efficiency (CAFE) norms, which will compile with automobile manufacturers to the norm. Similarly, the transport ministry is working on a roadmap for staggered transit of electric vehicles in each segment by 2030.
In September 2017, the automobile industry created an uproar when transport and highways ministerNitin Gadkarisuggested that the government will bepushingauto sector alternative fuel to move Work on charginginfrastructurehas begun
Officials, however, said the switch to electric mode was an opportunity for the Indian auto sector to emerge as a global hub considering the large market opportunity that the country offers. In any case, the existing facilities can be used to export automobiles from the country. “Our companies can take the lead as three of the four largest two-wheeler manufacturers in the world are Indian players,” said an official. The large volume also offers the opportunity to develop a strong component base in the country, another official added.
However, the government is not looking to offer any concessions to automakers Instead, the sops will be reserved for battery manufacturers, where the current share of Indian players is estimated at 5% or so. With the help of benefits through the FAME scheme, battery manufacturers can capture 81% of the value creation Sources said the thrust on electric two- and three-wheelers would result in about 50,000-crore investment in battery manufacturing and storage by 2025.