No Deadline for Auto Makers To Go Electric, Says Indian Govt

The country’s auto sector is facing issues and pushing the deadline eases their strategy for the next few years.

Electric Vehicles in India: With the auto industry facing unsold inventory, the government looks to ease its concerns.

(Photo: Reuters)

The Centre has not set any deadline for transition to electric vehicles, as highlighted by the Union Minister for road transport and highways Nitin Gadkari on Wednesday.

The comment assumes significance as government think-tank Niti Aayog in June had asked conventional two- and three-wheeler makers to suggest within two weeks concrete steps for transition towards electric mobility keeping in mind the 2025 deadline.

Replying to a question, Gadkari has said, "There is no such deadline."

The Niti Aayog has suggested transition to full electric vehicles (EVs) for three-wheelers by 2023 and two-wheelers with an engine capacity of less than 150cc by 2025.

Leading two- and three-wheeler makers had opposed the proposal, stating that the transition was totally uncalled for which would hurt the industry and trigger job loss.

They had called for deliberations with all stakeholders before the adoption of EVs instead of imposition of such green vehicles.

The auto sector is already facing a slowdown in sales in the past few months.

Around two lakh jobs have been lost across automobile dealerships in the country in the last three months as vehicle retailers attempt to tide over the impact of the unprecedented sales slump, industry body FADA (Federation of Automobile Dealers Associations) had earlier said.

Pressing for adoption of cleaner vehicles, a government official had earlier said that India has already missed electronics revolution and semi-conductor revolution, therefore it should not miss out on the electric mobility revolution.

But with major intervention of the government requested by the auto manufacturers to stem the downfall of the industry, the push is likely to be eased, so that buyers can look to invest in existing fuel-based cars, which itself is making a shift from BSIV standard to BSVI emission norms from 1 April next year.

(With PTI inputs)