ACMA has emphasised on the need for a calibrated roll-out of e-mobility in the country, especially for the two and three wheelers segments. Government of India wishes to fast track the rolling-in of e-mobility for two-wheelers and three wheelers – hundred percent e-three wheelers by 2023 and hundred percent e-two wheelers below 150cc by 2025 and according to ACMA, the move could be highly disruptive for the auto component industry.
The industry body is appreciative of the thrust given to localisation in the PMP (Phased Manufacturing Program) announced simultaneously with the FAME-2 (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) scheme of the Government of India dated March 08, 2019. However, it points out that the auto component industry in India is facing challenge of meeting the stringent deadlines of transitioning from BSIV to BSVI and a host of safety norms and there have poor vehicle sales for close to a year now that has the industry worried.
Ram Venkataramani, President, ACMA, said undue haste, without giving adequate consideration for localisation, could lead to rising imports, a phenomenon that is rapidly gaining ground with increasing electronic content in vehicles. Therefore, a pragmatic approach for the government would be to create a stable, long term road-map in consultation with the industry to ensure a smooth evolution rather than a disruption, he added.