Indian government puts pressure on local two-wheel manufacturers

India is among the largest, if not the largest, two-wheel markets in the world, selling 20 million two-wheelers in 2018. The Indian government of the newly re-elected Narendra Modi, had presented the plan of Niti Aayog who was speaking of banning the sale of new petrol two-wheelers from 150 cc and below, until 2025.

Of course, if you calculate the huge cost of transition, as soon as this was heard, the major manufacturers rushed to describe the government’s plan as unattainable, at least in terms of the specific date.

Now, the people of Niti Aayog (with the president of the Modi himself) met with representatives of Bajaj Auto, Hero MotoCorp & TVS but also with representatives of the Indian  government and people from electric Start-up companies, giving them a period of 2 weeks to Present their own plan for the transition to electrification.

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The Indian government believes that the quickest possible transition to electrification is of strategic and national importance, so that India can be at the forefront of the global transition to electric vehicles.

On the contrary, companies believe that the changeover in 2025 is premature, will be damaging to them, and it will result in India losing its leadership position on gasoline-powered scooters.

Niti Aayog’s proposals include incentives for local production of batteries, taxes on petrol vehicles, and the policy of scrapping and destroying old vehicles. At the same time, the Indian government will ask Uber & Ola to convert their fleet by 40% to electric powered by April 2026.


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