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- Automotive industry has opposed the government’s proposal to ban sales of non-electric three-wheelers by 2023 and two-wheelers of less than 150cc by 2025 terming it as an impractical and untimely move.
- Recently,Union Ministry of road and transport in consultations with NITI Aayog had proposed that all three-wheelers and two-wheelers below 150cc will need to go electric by 2023 and 2025 respectively.
- However,Society of Indian Automobile Association(SIAM) has opposed the idea by terming it as impractical and untimely as that would only adversely affect the world’s number one two/three-wheeler industry but may not help in making electric vehicles acceptable to the customer and the market.
- SIAM said that the automotive industry is currently facing multiple challenges including shifting to BS-VI emission norms in the shortest time-frame ever with investments of close to Rs 80,000 crore.
- It stated that the government should rather carry out wider consultations before finalisation of goals and timelines for electric mobility.
- Indian Government has also launched Faster Adoption and Manufacturing of Hybrid & Electric vehicles in India(FAME India) to encourage Electric Vehicles.
- 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.
- 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.