Bajaj TVS And Hero MotoCorp Against 100 Percent Electrification

India's top three two-wheeler maufacturers, Hero MotoCorp, Bajaj Auto, TVS Motor Co lashed out at Niti Aayog's plan to push for 100 per cent electric vehicle, saying such a transition is completely uncalled for and could jeopardise the industry. They made the statement on Monday.


According to livemint, hey said that that changing from conventional two-wheelers to 100 per cent electric is "not like Aadhaar, not a software and print cards", the companies said concerns of all stakeholders must be taken into consideration instead of imposing adoption of EVs.

Venu Srinivasan, Chairman & Managing Director, TVS Motor Co. said, "This is not like Aadhaar, not a software and print cards. You have to set up a whole supply chain, and migrate from the current supply chain.


Expressing similar thoughts, Hero MotoCorp said, "We are deeply concerned by the potential repercussions of Niti Aayog's approach of completely banning two-wheelers up to 150cc that are powered by Internal Combustion Engines (ICE)."

The Niti Aayog asked auto industry body Society of Indian Automobile Manufacturers (SIAM), and other conventional two-and three-wheeler makers to suggest within two weeks, concrete steps towards transition to electric mobility keeping in mind the 2025 deadline.

Hero MotoCorp said, "The move by Niti Aayog comes at a time when two-wheelers manufactured in India will have the world's cleanest emissions, along with the world's highest fuel-efficiencies, effective April 1, 2020."

"Instead of imposing the adoption of EVs (electric vehicles), it would be ideal to have a healthy mix of policy, market dynamics, and customer acceptability," the company added. 


Rajiv Bajaj, Managing Director, Bajaj Auto said, "We believe 100 per cent transition is completely uncalled for".

He had mentioned earlier that the move was impractical and came at the wrong time, considering the scale involved, while stakeholders do not have any meaningful experience with any of the pieces of the EV puzzle and that too a time so close to BS VI implementation.

Mr Srinivasan said, "A black or white, zero-one change is not possible with 20 million vehicles, USD 15 billion in sales, one million employees, the whole thing is not thought through. I hope saner thoughts will prevail and people will think through the real implications of all this."

Hero MotoCorp also said mandating a new technology by banning the existing one is likely to jeopardise the industry.

"Considering the significance of the automotive industry that provides employment to millions and is a significant contributor to the country's GDP, the proposed ban could also have massive consequences on the economy," the company added.

"An abrupt and sudden changeover will disrupt the entire eco-system of vendors, OEMs, dealers, spare parts manufacturers, and mechanics, as well as other stakeholders, thereby impacting the livelihoods of millions of people dependent on the industry," it said.

Appealing to the government and relevant authorities to be carefull about their approach and take into consideration the concerns of all the stakeholders, Hero MotoCorp said, "A phase-wise introduction will not only allow for a smooth transition but also enable all involved parties to understand, accept and if required, make course-corrections in their approach towards EVs."

Thoughts About The Top Two Wheeler Manufacturers Against 100 Percent Electrification

We agree with the manufaturers. Enforcing 100 percent electrification is retarded to say the very least. There are millions that will lose their jobs overnight if the government pushes for this move. We hope they come up with a solution that keeps every one in the game. 

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Article Published On: Tuesday, June 25, 2019, 18:29 [IST]
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