India should aim to electrify 100% of its two-wheelers and three-wheelers within the next four years, stated G20 Sherpa Amitabh Kant. He also stated that India can be a global leader in these two segments.
These segments make up 80% of domestic automobile industry volumes. This statement is made amid the rapid electrification trend these two segments have experienced in recent years. In FY22, 2% of the market was made up of electric two-wheelers.
“Go for 100 per cent electrification in two-wheelers and three-wheelers, go for size and scale, get the entire value chain of components to need to build them, so that India emerges as a global champion of electric two-wheelers and three-wheelers,” said Kant at an event of the Automotive Component Manufacturers Association of India (ACMA).
India’s journey to electrification will be about two-wheelers as well as three-wheelers since 80% of vehicle sales in India are in these two segments. Kant stated, “We must target that within the next four years there is 100% electrification in these two segments.”
India must create an ecosystem to lower costs and prevent EVs from becoming a global market. He said that the government has been pushing the policy in terms of the PLI (production-linked incentives) scheme. No matter how much the auto industry loves it, disruption is coming.
“There is an electric revolution that will take place, which will make electric vehicles more affordable, accessible and inclusive. Citizens will take to them whether you like it or not.”
It would not be just about EVs, but also how people can get to public transport, as other countries, including the US, have done. He said that the next round of tenders (for electric buses), will be for 15,000 buses. These buses were sourced from different metro areas.
The IT sector could be an incubator for e-mobility. Therefore, auto companies must work closely with IT companies. He said that the e-mobility revolution would be driven by artificial intelligence, electronics, and automation. IT companies will play an important role in this.
Even though prices are falling, the demand for long-lasting, safe and reliable batteries is increasing. Kant stated that the EV industry faces two major challenges: high-interest rates, and high insurance costs.