‘Auto sector will bounce back in big way’
NEWDELHI: The slowdown in the automobile industry is temporary and it will bounce back soon, Amitabh Kant, chief executive (CEO) of NITI Aayog, said. India cannot remain isolated from the shift to zero-emission standards, and must take the leadership in the electric vehicle (EV) revolution, he said on the sidelines of the 2020 Auto Expo. Edited excerpts from an interview:
What do you think is the fundamental reason behind the slowdown in the automotive industry?
We are witnessing a transformational shift in the mobility domain, where the world is shifting towards shared and connected forms of transport. Morgan Stanley, in its report, said India will be a key driver of shared, connected and zero-emission mobility. The report also states that nearly 35% of miles travelled in India, by 2030, would be shared. Cities across the world are also grappling with high levels of congestion and are increasingly promoting the use of public transport by citizens.
Any changes in the mobility landscape should be viewed through this prism. The slowdown is only temporary. The automobile sector
Now that the government has said there is no deadline for transition to electric mobility, what is the roadmap towards the shift? Do you think comments such as banning twowheelers below 150cc has created confusion in the market and hurt sentiments?
The shift towards zero-emission mobility is an inevitable transition happening across the world, and India cannot remain insulated from it. With the growing focus on climate change and global warming, it is essential that India must move fast and take a leadership position in the global electric mobility revolution. India currently is home to some of the most polluted cities of the world and automobiles, which contribute to nearly 30% of the pollution, must shift towards zeroemission mobility.
Do we expect more support from the government to give a push to electric mobility?
The government is already offering a number of incentives. Manufacturers such as Hyundai and Tata have rolled out EVS. In fact, Tata Nexon EV was launched last month. So, they certainly believe in the idea. The government will continue to support the EV segment. The two-wheeler segment is particularly attractive and all stakeholders must come together to facilitate the evolution of the EV segment in India.
Auto industry stakeholders say that FAME II scheme is valid for three years, which does not guarantee stability in the EV policy. Do you think the auto industry is justified in its demand to ask for a stable, long-term EV policy?
A long-term policy in a constantly evolving industry would not be a very good idea. The response to each policy should drive the formulation of a new policy or the evolution of the existing policy. It would be unjustified to have a long-term policy without being certain of the potential response of the stakeholders towards it. FAME II (faster adoption and manufacturing of hybrid and electric vehicles II) can be continued or evolved nearer to its end date based on the response it would have received till that point in time.