ACMA: Full shift to e-mobility for 2Ws, 3Ws by 2025 highly disruptive for component industry

The government's proposed move towards mandating sale of electric two-wheelers (under 150cc) and three-wheelers has yet another industry stakeholder voicing its concerns. The Automotive Component Manufacturers Association. 

ACMA, the apex body representing the interest of the auto component manufacturing industry in India, says that it is committed to support the government of India’s intent of ushering in electric mobility to address the dual challenges of rising pollution in Indian cities as also the need to reduce the dependency of the automotive sector on fossil fuels.

However, referring to recent media reports that the government aims to fast-track rolling in of e-mobility for two-wheelers and three-wheelers (100% e-three wheelers by 2023 and e-two wheelers below 150cc by 2025), ACMA says the move could be highly disruptive for the  component industry. 

Emphasising the need for a calibrated rollout of e-mobility in India, especially for the two- and three-wheeler segments, Ram Venkataramani, president, ACMA, said: “ The automotive component industry in India is facing one of the severest challenges at this juncture. While on one hand it is faced with the daunting task of meeting the stringent deadlines of transitioning from BS IV to BS VI and a host of safety norms, on the other poor vehicle sales for close to a year now has the industry worried. It is to be noted that India is the only country in the world to have bypassed a generation of technology as its commitment to produce vehicles with better emissions.”

“The auto component industry in India is a shining example of ‘Make in India’; the industry with over $55 billion (Rs 381,975 crore) in turnover, exports a-third of its production to the developed countries, with engine and transmission-drive accounting for its bulk. The industry, dominated by small and medium enterprises (SMEs), creates employment for more than 30 lakh personnel. Whilst the auto component industry whole-heartedly supports the government of India’s intent of ushering in e-mobility and has already started to prepare for it, a 100 percent transition in the next few years would translate into decimating the existing vibrant ecosystem of this unique industry."

"Undue haste, without giving adequate consideration for localisation, could lead to rising imports, a phenomenon already rapidly gaining ground with increasing electronic content in vehicles. Therefore, a pragmatic approach for the government would be to create a stable, long-term roadmap in consultation with the industry to ensure a smooth evolution rather than a disruption,” added Venkataramani.

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