Niti Aayog Asks ¡®Where Are EVs?¡¯, Bajaj, TVS Ask ¡®Where Are The Batteries?¡¯

A face-off that has dire consequences is turning out to be quite funny to observe from the sidelines. In its rush to bring in electric vehicles (EVs) in India, Niti Aayog has directed India's major two-wheeler makers to present a plan within the next two weeks which will reveal their roadmap to introduce EV products in their portfolio. Industry players have not taken it very enthusiastically though, blaming the government panel for a half-hearted effort.

Niti Aayog officials and the Indian automobile industry leaders recently met to discuss the electric mobility roadmap for the country. Surprisingly, there was not a single lithium-ion battery manufacturer present in the meeting, as mentioned by Rajiv Bajaj - Managing Director, Bajaj. Considering that the batteries are a crucial part of EVs, being the costliest embedded part, the lack of any global manufacturer present in the meeting hints at a lack of foresight on Niti Aayog¡¯s part.

For now, India, like most of the other countries around the world, is importing lithium-ion batteries from China for its electric vehicles. A considerable increase in the number of EVs necessitates a large scale homegrown production of these batteries to bring down the overall cost of the end product.

(Representative Image: BCCL)

Also read: After GST Relief, Electric Vehicles May Soon Be Exempt From Road Tax Too

This highlights another, and potentially a bigger problem. As mentioned by Venu Srinivasan, Chairman of TVS Motor Company, such a rapid transition to electric vehicles would only increase India¡¯s dependence on China. China is currently the leading producer of ltihium-ion batteries as well as electric vehicles. To import one or the other would only lead to the same effect. Also, there is a very high probability that through the government¡¯s push for EVs, Chinese auto players will swarm the Indian market with their EV products, which will likely be cheaper than what the Indian companies will be able to come up with.

To tackle this, Srinivasan suggests ¡°more time to study this subject and plan a transition.¡± He elaborates, ¡°We have to deeply study the carbon emissions equation, impact on investment and employment and foreign trade balance as our export competitiveness will be eroded,¡± said Srinivasan,¡± as quoted by BusinessLine.

The stand-off

Another crucial move planned by Niti Aayog includes phasing out the IC engine vehicles in the process. Industry players are divided on this. Rajeev Bajaj, for instance, told BusinessLine ¡°What revolution? What ban? Doubtless electric has great merit but keep in mind that the progressive ban by China on ICE vehicles made it possible for the Indian two- and three-wheeler industry to exploit large global markets.¡±

(Representative Image: BCCL)

Also read: Indian Car Makers Want Govt. To Promote Alternate Fuel And CNG Along With Electric Vehicles

He makes absolute sense for many of the industry players, further asking, ¡°Why ban an industry which is world-class? If we are employing one million people and exporting over three million vehicles, what are we talking about?¡±

This, in no way implies that the OEMs are anti-EVs. Instead, they question Niti Aayog¡¯s anti-ICE stance. Also, with the BS-VI norms set to be in effect from April 2020, the question arises whether promoting EVs, while phasing out IC engines would negate the impact of the improvised vehicles.

Bajaj mentions that while the BS-VI transition is planned and has a high ¡°degree of certainty¡±, the roadmap for EVs is quite vague in comparison. ¡°We are talking about taking it to 100 per cent when barely 0.01 per cent has been implemented so far,¡± he said.

That being said, Niti Aayog's urgency to promote EVs with the best of their efforts cannot be misjudged. India has an alarmingly high pollution levels in its major cities, with 14 out of world's 15 most polluted cities being in India. While transportation is not the only one to blame for this, it does contribute majorly to the cause. Any haste towards making the situation better in such a case cannot be criticised. However, we can just hope that it is planned better in the future, taking into consideration what the industry players have to say.