NITI Aayog urges two-wheeler manufacturers to plan on switching to Electric Vehicles

The NITI Aayog (National Institution for Transforming India), a policy think tank of the Government of India was established to achieve sustainable development goals and to foster the involvement of State Government in India.

The NITI Aayog (National Institution for Transforming India), a policy think tank of the Government of India was established to achieve sustainable development goals and to foster the involvement of State Government in India. 

The NITI Aayog officials met the executives from companies like Bajaj Auto, Hero MotoCorp and TVS late on Friday suggesting that only electric models of scooters and motorbikes with engine capacity of more than 150cc must be sold from 2025. This suggestion takes on significance since India does not wish to miss out on the global drive toward environment-friendly vehicles. 

India's federal think tank also recommended the scooter and motorbike makers to devise a plan to switch to EVs, just days after they publicly opposed the Government's proposal saying that it would disrupt the sector. However, automakers opposed the proposal and warned that a sudden transition, at a time when auto sales have slumped to a two-decade low will cause market disruption and job losses. It is to be noted that India is one of the world's largest two-wheeler markets with a sales of over 20 million scooters and motorbikes, last year. 

Industry executives cited that a premature switch without any established supply chain, charging infrastructure or skilled labour in India could result in the country losing its leadership position in scooters and motorbikes. According to sources, the executives from EV start-up Ather Energy, the ride-sharing firm like OLA and officials from the Society of Indian Automobile Manufacturers (SIAM), an industry trade body were also at the meeting. The panel discussion has also suggested taking measures of directing taxi aggregators like Uber and Ola to convert 40 percent of their fleets to electric vehicles by April 2026. It is to be noted that this is the second attempt from India to switch to EVs. In 2017, it proposed a plan for electric cars but rowed back after facing objection from car makers. 

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