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New Delhi: India should aim for a 100 percent transition to electric two-wheelers in the next 5-7 years and make India a manufacturing hub for electric vehicles (EVs), said Tarun Kapoor, Advisor to the Prime Minister, PMO on Tuesday. Speaking at the ‘FICCI Roundtable on Electric Mobility,’ Kapoor emphasized the significance of this transition for India’s energy security and environmental concerns.
Kapoor highlighted the government’s commitment to driving the EV sector, not only to increase the presence of electric cars, buses, and two-wheelers on the road but also to establish India as a global manufacturing hub. He acknowledged the strong presence of leading players in the Indian auto sector, stating that transitioning to EVs should be a relatively straightforward process.
“In case of 2-wheelers, we should aim to transition close to 100 percent in the next 5-7 years, and there is no reason why we can’t do it,” Kapoor said. “The price has come down slightly as India is a very price sensitive market and therefore, the price has to come down further. The support from government including subsidies, taxes and policy reforms will not take us beyond a point but it is the industry who must take it forward,” he asserted.
Kapoor also addressed the adoption of electric vehicles in public transport, announcing that the government will introduce policies to ensure most Indian cities have electric public transportation instead of relying solely on diesel vehicles. He assured the industry of significant government support in this endeavor, stating, “You can look forward to very large support from the government so that not only will we see a transition from diesel buses, but we will see more and more electric public transport which is currently missing.”
Furthermore, Kapoor urged the industry to invest more in battery manufacturing and the entire value chain associated with it. He emphasized the need for innovation and reducing dependence on lithium batteries. Kapoor stated, “Battery manufacturing requires more innovation and not being dependent on lithium batteries only.”
Kamran Rizvi, Secretary, Ministry of Heavy Industries said that Indian automobile industry is a matter of pride for the country. He stated that electric vehicle sector in India has great chance to become a leader and urged the industry to focus on making batteries lighter and reduce the dependence on rare earth magnets which are currently being imported.
“EVs present a great chance for India to compete with the world and let us ensure that the Indian EV story become the global EV story,” added Rizvi.
Industry representatives at the roundtable expressed their support for the FAME II subsidy scheme, seeking its extension for another five years across various electric vehicle segments, including two-wheelers, three-wheelers, four-wheelers, and buses.
Briefly, Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) India scheme started on April 1, 2019, for a period of three years. It was eventually extended for a period of two years up to March 31, 2024.
The total outlay for FAME Scheme Phase II is ₹10,000 crore. It is aimed to incentivize buyers of electric vehicles to enable wider adoption, which may be encouraged as a purchase price.
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