INSUBCONTINENT EXCLUSIVE:
days after they publicly opposed the government's proposals saying they would disrupt the sector, two sources told Reuters.Niti Aayog
officials met with executives from companies including Bajaj Auto, Hero MotoCorp and TVS late on Friday, giving them two weeks to come up
with the plan, according to one of the executives.The think-tank, which is chaired by Prime Minister Narendra Modi and plays a key role in
policymaking, had recommended that only electric models of scooters and motorbikes with engine capacity of more than 150cc must be sold from
2025, sources have told Reuters.Automakers opposed the proposal and warned that a sudden transition, at a time when auto sales have slumped
to a two-decade low, would cause market disruption and job losses.India is one of the world's largest two wheeler markets with sales of
national importance so the country does not miss out on the global drive towards environmentally cleaner vehicles, one of sources said
But industry executives responded that a premature switch with no established supply chain, charging infrastructure or skilled labour in
India, could result in India losing its leadership position in scooters and motorbikes, the second source said."There were clearly drawn out
positions," said the source, adding there were "strong opinions" at the meeting.Bajaj, Hero and Niti Aayog did not respond to a request for
comment, while TVS declined to comment.ELECTRIFICATIONNiti Aayog is working with several other ministries on the recommendations, which are
part of an electrification effort to help India reduce its fuel import bill and curb pollution.The proposal also includes incentives for
local production of batteries, an increase ownership cost of gasoline cars and forming a policy to scrap old vehicles, according to records
of government meetings seen by Reuters.The panel has also suggested measures such as directing taxi aggregators like Uber and Ola to convert
and officials from the Society of Indian Automobile Manufacturers (SIAM), an industry trade body, also attended the meeting, the sources
said.The proposals are country's second attempt for a switch to EVs
In 2017 it proposed an ambitious plan mainly for electric cars but rowed back after facing resistance from car makers.The current push could
disrupt the market order for two-wheelers and open up avenues for local start-ups, analysts say
Scooter and bike start-ups like Ather, 22Motors and Okinawa are already making in-roads in India."It is extremely critical that we make the
transition to electric quickly lest we get wiped out by another global wave," Tarun Mehta, CEO and co-founder at Ather said.
