There is a lot of stress within the auto industry over talk that the government may ban (ICE) three-wheelers by 2023 and less than 150 cc two-wheelers by 2025
The automotive industry is passing through an extremely challenging phase with downbeat sales across all segments. The woes of the industry are only going to be further compounded by never-ending talk that the government is mulling a ban on internal combustion engine (ICE) three-wheelers by 2023 and less than 150 cc two-wheelers by 2025 in a bid to facilitate faster adoption of electric vehicles (EVs).
The sheer mention of the ban in media circles has sent the industry in a tizzy. The auto industry body - the Society of Indian Automobile Manufacturers (SIAM) as well as the country’s leading two-wheeler makers Bajaj Auto, TVS Motor Company among others have voiced strong opposition to the government move terming it ‘unrealistic’.
The EV industry in India is still in a nascent stage and there is a general perception that fast-forwarding the adopting of electric vehicles is a step in the right direction, but by imposing a ban on ICE two-wheelers and three-wheelers without practical roadmaps will only hurt the ‘already bleeding’ automotive industry. There are apprehensions that the ‘ban move’ could create consumer discontent and derail the country’s auto manufacturing that supports four million jobs.
On the adoption of EVs, there is widespread industry feeling that the government must adhere to a well laid-out roadmap and a practical time frame for its rollout of EVs. Adequate EV charging stations and access to it have a long way to go and given this scenario it is imperative that a comprehensive roadmap is the need of the hour and not hurriedly conceived one.
Although this could not confirmed officially, it is learnt that the government has been engaging in backroom talk with industry stakeholders and appears to have taken the robust industry opposition to the ban on engine (ICE) three-wheelers by 2023 and less than 150 cc two-wheelers by 2025 seriously and is now doing a ‘rethink’.
The government is learnt to have assured the industry that no such blanket ban will be imposed. Only time will tell whether the government has looking beyond slapping a blanket ban on (ICE) three-wheelers and less than 150 cc two-wheelers.