Industry

Transition of automobiles towards electric mobility inevitable: Niti Aayog CEO

NITI Aayog CEO Amitabh Kant. File   | Photo Credit: Kamal Narang

The transition of automobiles towards electric mobility is inevitable and it is for the auto industry to make the change and drive it to make India a global leader in electric vehicles (EVs), Niti Aayog CEO Amitabh Kant said on August 25.

Speaking at the annual convention of auto industry body, Society of Indian Automobile Manufacturers (SIAM), Mr. Kant said that in the next two years the cost of batteries will fall even further thereby bringing down the upfront cost of acquisition for consumers. "At Niti Aayog, we are taking all measures to boost innovation, efficiency and investments in the automobile sector, especially to bring down the initial upfront cost of EVs to the consumers. I am stressing on EVs because I'm a strong believer and a firm believer that this transition is inevitable," he asserted.

He further said, “we are a centre for compact car manufacturing. If we do not innovate, and if we do not make a radical transformation, we will lose this opportunity to become a leader in electric vehicle manufacturing.” “Global battery costs have been declining, much faster than anticipated and therefore, EV economics have become favorable as battery costs decline”, he added.

"The writing is on the wall, and it's for the industry to make the inevitable change and drive it, and lead it, and make India a leader in the transition of mobility across the world," he said.

The country has the potential to be the "champion" of two-wheelers, three-wheelers and four-wheelers and long distance transport, including commercial vehicles with new technology of the future, he said.

Mr. Kant asked automobile manufacturers to expand investments in research and development to support electric mobility, which includes vehicle systems integration, motors and controls, power electronics and charging infrastructure.

Stating that India is a highly price sensitive market and Indian consumers are cost conscious, Mr. Kant said innovative business options such as battery swapping and leasing will reduce the upfront cost of batteries. He added that India has immense potential to be a battery manufacturing leader of the world.

"Despite the fact that we do not have nickel, cobalt and lithium, we can add up to 81% of value of batteries in India," Mr. Kant said, adding that the government has also restructured the FAME II scheme to make it even favourable for electric two-wheeler consumers by reducing the upfront cost.

Leading two-wheeler manufacturers have reported a four-fold increase in sales, in the past three years in India around 5.17 lakh EVs have been registered in the market, Mr. Kant said.


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Printable version | Jan 22, 2022 5:08:41 PM | https://www.thehindu.com/business/Industry/transition-of-automobiles-towards-electric-mobility-inevitable-niti-aayog-ceo/article36094093.ece

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