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ACMA emphasizes on calibrated roll out of e-mobility
Economic Times, 12 Jun '19

In response to the government's plan to completely shift to electric two and three-wheeler segments by 2025, the Indian auto component body Automotive Component Manufacturers Association of India (ACMA) underlined that the move could be highly disruptive for the auto component industry and therefore, should be introduced in a calibrated manner.

As per some recent media reports the government has the ambition to fast track the introduction of e-mobility for two-wheelers and three wheelers in the country. It proposed 100% electrification in three wheelers by 2023 and in two-wheelers below 150cc by 2025.

The apex body said that the auto component industry is already undergoing a massive change massive change due to implementation of BS-VI.

Emphasizing on the need for a calibrated roll-out of e-mobility in the country, especially for the two and three wheelers segments, Ram Venkataramani, President ACMA mentioned, " 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 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 by-passed a generation of technology as its commitment to produce vehicles with better emissions."

He further said that whilst the auto component industry strongly supports the government's intent of ushering in e-mobility and has already started to prepare for it, a 100% 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.

At present, the total turnover of Indian auto component industry stands at US$ 55 billion. The industry exports a-third of its production to the developed countries, with engine and transmission-drive accounting for its bulk and employs more than 3 million personnel.