Advocacy group, Centre for Business, Industry & Trade Advocacy, [C-BITA] that has been actively working on and analysing the impact of policy on the Indian EV Ecosystem has today in a letter to Minister, MHI pointed out that two of MHI’s recent decisions might have caused an irretrievable opportunity loss to India’s E2Wheeler targets. CBITA believes that withholding subsidy amounting to Rs 1200 Crores was the first blow, while slashing the subsidy could have been the second one.
In its letter to the Minister, MHI, CBITA indicated that the department is responsible for missing out on a crucial period of growth in the trajectory of EV adoption, which will be difficult to replace even with the promise of future sales. Mass transitioning from internal combustion engine (ICE) vehicles to EVs, along with achieving national targets for zero-carbon emissions, has been significantly delayed due to these actions, ironically perpetrated by the agency responsible for effectively driving this transition.
Aishwarya Gupta, spokesperson for CBITA said,
“The MHI may attempt to showcase an upward growth in sales in the future but their actions over the last 18 months have not only dealt a body blow to India’s e-mobility ambitions but has also decimated Niti Aayog’s vaunted targets for the country’s e2wheelers sales. India’s EV sector needed consistent support during its nascent journey to promote sales and encourage EV adoption – it has suffered irreparable loss of value due to these actions. The opportunity loss, the visible gap in real terms vis-à-vis the potential sales lost is only too stark to miss”
Commenting on a graphic scale, which showed Niti Aayog’s projections for 2025 standing at 5.17 million, and the current and projected sales lagging behind at 1.5 million, the advocacy group pointed out that “the damage caused by the early-stage slump created by the MHI’s actions cannot be undone merely by projecting future growth”.
The wide chasm that has been created in the industry requires immediate and comprehensive efforts to bridge the chasm, it said.
CBITA urged the MHI to re-evaluate its approach and work collaboratively with industry stakeholders to foster an environment of innovation, investment, and support. This can collectively reignite the growth of the EV sector and propel India towards achieving its ambitious e-mobility goals.