In his speech, Kant advised EV makers to drive more penetration without burning cash.
06 Apr 2024 | 9670 Views | By Prerna Lidhoo
G20 sherpa and former CEO of NITI Aayog Amitabh Kant advised EV makers not to create a low value brand, but one for the aspirational middle class, at the second Ather Energy Community Day in Bengaluru.
In his speech, Kant advised EV makers to drive more penetration without burning ...
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G20 sherpa and former CEO of NITI Aayog Amitabh Kant advised EV makers not to create a low value brand, but one for the aspirational middle class, at the second Ather Energy Community Day in Bengaluru.
In his speech, Kant advised EV makers to drive more penetration without burning cash. "My advice is don't create a low-value brand, create a brand for the aspirational middle class. If 70% of India moves on two-wheelers, only 5% of the scooters are electric. ICE is a dead technology according to me. The future has to be electric," he said.
Kant also called Ather's family electric scooter Rizta an example of a make-in-India product that's "got better technology than a small car."
"It's a great make-in India scooter and a great example of innovation of R&D, and young entrepreneurship in India. The focus is on comfort and safety with a lot of storage space," Kant said at the Community Day, which saw a host of tech-enabled products including India's first smart helmet the Halo.
In his speech, Kant advised EV makers to drive more penetration without burning cash. "My advice is don't create a low-value brand, create a brand for the aspirational middle class. If 70% of India moves on two-wheelers, only 5% of the scooters are electric. ICE is a dead technology according to me. The future has to be electric," he said.
He added that like America was made for fossil fuel vehicles, India can be the champion of the world in electric two-wheelers and not only make for the country but also export it to the world.
The auto sector accounts for 35% of the manufacturing and 7% of the GDP, he points out. "The world is moving away from combustion engines to electric vehicles," he said.
Our target should be very clear that we would be the biggest manufacturers and exporters of electric two-wheelers," he said.
Kant added that disruption in the sector will be much larger, with close to Rs 55,000 crore for PLI in the automobile sector, the FAME scheme and a push in battery manufacturing. "We should target 100% electrification in two and three wheelers by 2030," he said.
Kant's words come at a time when the FAME II subsidy ended on March 31. As per the interim budget, the central government had slashed the budget allocation for FAME Scheme by nearly 44% to Rs 2,671 crore for FY25. This affected the industry growth and adoption rates to a great extent as EV makers had to resort to price hikes. FAME III is likely to be a part of the main budget in July.