Ather, Greaves Cotton dump EV association SMEV, choose Siam
ELECTRIC TWO-WHEELER PLAYERS OUTSIDE SMEV SAY THEY HAVE INVESTED IN R&D AT THE VERY OUTSET
Leading electric two-wheeler manufacturers — Ather Energy and Ampere EV by Greaves — have shifted allegiance to the Society of Indian Automobile Manufacturers (Siam), dominated by internal combustion engine (ICE) vehicle makers. The two companies were earlier key members of the association of electric vehicle makers — Society of Manufacturers of Electric Vehicles (SMEV). The two companies have confirmed the move.
With incumbent players like Bajaj Auto, TVS Motor, and Hero Motocorp already members of Siam and the largest player in the space — Ola Electric — choosing to stay away from any association, this collective group accounted for over 60 per cent of all registrations of electric twowheelers in November.
The big guns in SMEV include Hero Electric and Okinawa (which is also a member of Siam), apart from other medium and smaller players that include Tork Motors, Okaya, Lohia Auto, among others.
SMEV was set up primarily for electric two-wheeler players and start-ups in this space. Its membership restricts the entry of companies that have ICE operations and use petrol.
Two-wheeler companies outside SMEV hold views which do not align with the association. For instance, the localisation level in Ather Energy makes its battery packs higher than 75 per cent. So any extension demanded by SMEV for companies to reach 51 per cent localisation to be eligible for subsidy is irrelevant.
Ola, for instance, is agnostic on the extension of the subsidy scheme. As one of the largest research and development (R&D) investors in the twowheeler industry, which are in high double-digit numbers of its revenue, it is ready for any withdrawal of subsidy.
For a company that makes its own battery packs, it hopes to control the technology and the manufacturing of cells by the end of next year.
Electric twowheeler players outside SMEV say they have invested in R&D at the very outset. They argue that with a little bit of re-engineering, manufacturing frames in-house, and efficient control of investors, one can easily bridge the ~40,000-50,000 subsidy per vehicle offered by the government.incumbent operators have a contrarian view.
A senior executive of an incumbent two-wheeler company says subsidies merely encourage assemblers masquerading as manufacturers to make poor-quality products in the market by taking advantage of the government handout.
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