The government on Wednesday called on the auto component industry to invest some of its profits in research into technologies such as electric vehicles and alternative fuels as the country faces challenges such as pollution after the use of diesel and petrol.
Speaking at the 62nd Annual Conference of the Automotive Component Manufacturers Association (ACMA), Road Transport Minister Nitin Gadkari He also urged the industry to increase localization and focus on building safer roads.
“Pollution is a big concern because of diesel and petrol, we are facing a lot of problems. 35% of pollution is caused by fossil fuels, so I appeal to the automobile industry to introduce flex fuel in India,” Mr Gadkari said.
Minister said that the government is working on development India NCAP To bring Indian vehicles at par with global vehicles in terms of safety. “Most car manufacturers export vehicles with six airbags… but in India, they are hesitating because of the economic model, I just ask a simple question that you are not thinking about the life of a poor person who Using a car?”.
“It’s time for all industries to accept new technology, a lot of import industries can accept the challenge you need to research how to reduce imports, some of our profits in future research Invest … Therefore, EVs, especially two wheelers I think within two years the cost of one [ICE] Two wheeler and electric two wheeler will be the same,” the minister said.
Speaking in a separate session, Commerce and Industry Minister Piyush Goyal said that the government will seriously look into any automobile manufacturer putting pressure on component manufacturers to import components from preferred suppliers instead of localizing them.
“If a company – Indian or international – is forcing you not to localize and forcing you to import from a certain set of its own suppliers … that I am informed by various people I will be happy to give you a hug,” said Mr. Goyal.
The minister further said that given the opportunity, the auto component industry – which recorded a record exports of $19 billion in the last financial year – should aim to grow it five-fold to $100 billion by 2030.
apart from this, G20 Sherpa Amitabh Kanto Said that India should aim for 100% electrification of two wheelers and three wheelers in the next four years as these segments will lead the country’s green mobility revolution.
“India’s electrification journey should be about two wheelers and three wheelers as they currently account for 80% of the total vehicle sales in India. There will be an electric revolution that will make electric vehicles more affordable, more accessible, more inclusive, and whether citizens like them or not, and export markets will be all electric,” Mr Kant said.
However, he acknowledged that The EV sector still faces challenges When it comes to financing these vehicles. “First of all, I think there is a very high interest rate and we need to bring down the low interest rates for electric vehicles. There are a lot of collateral and insurance charges, which need to be reduced,” Mr. Kant said.
Mr Kant’s comments come as a report jointly prepared by ACMA and McKinsey, released on Wednesday, said that electric two-wheeler sales in the country are expected to grow at a faster rate and accounted for 50% and 70% respectively. of total sales by 2030.