Automotive Component Manufacturers Association of India (ACMA) emphasized the need for the calibrated roll-out of e-mobility in the country, especially for the two and three wheelers segments. The industry body is highly appreciative of the thrust given to localization in the PMP (Phased Manufacturing Program) announced simultaneously with the FAME-2 (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) scheme of the Government of India on March 08, 2019, said, Ram Venkataramani, President ACMA.
“The auto 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 BSIV to BSVI 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 by-passed a generation of technology as its commitment to producing vehicles with better emissions,” said Venkataramani.
ACMA cited recent media reports that the Government of India wishes to fast track the rolling-in of e-mobility for two-wheelers and three-wheelers – hundred percent e-three wheelers by 2023 and hundred percent e-two wheelers below 150cc by 2025.
This could be highly disruptive for the auto component industry, the association said.
“The industry, dominated by small & medium enterprises, 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 hundred percent transition in the next few years would translate into decimating the existing vibrant eco-system of this unique industry. Undue haste, without giving adequate consideration for localization, 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 road-map in consultation with the industry to ensure a smooth evolution rather than a disruption”, added Ram.