Only electric 2-wheelers may be sold in country after 2025

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  1. Niti Aayog has proposed that in the next six to eight years,India’s entire two-wheeler industry should go full electric.The proposal is aimed to curb pollution and reduce India’s dependency on fossil fuels.
  2. The Niti Aayog has also pushed for doubling direct subsidy for electric three-wheelers to Rs 20,000 per kilowatt hour to make them as affordable as those that run on fossil fuel.
  3. Besides, the government is looking at prescribing stringent fuel efficiency norms for new petrol and diesel vehicles, while offering financial and other concessions for the electric segment.
  4. The government has set an ambitious target in 2017 to electrify all new cars and utility vehicles by 2030 but resistance from the auto industry forced it to scale back the plan.The government now expects electric vehicles to make up 15% of all new sales in five years from less than 1% currently.
  5. Indian Government has also launched Faster Adoption and Manufacturing of Hybrid & Electric vehicles in India(FAME India) to encourage Electric Vehicles.
  6. FAME is part of the government’s two-pronged strategy to place India as a key driver in the global mobility revolution.The strategy is (a)boost domestic manufacturing by insisting on minimum of 50% local content in e-vehicles and (b)create massive size and scale for electric vehicles in the country to make the investments made in the sector viable.
  7. The FAME II is an expanded version of FAME I,launched in 2015 which aimed to support hybrid/electric vehicles market development and Manufacturing ecosystem.

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