During Friday’s meeting, government officials argued that the switch to electric vehicles was of national importance so India does not miss the global trend towards more environmentally friendly vehicles.

Niti Ayog, India’s central think tank, has given scooter and bicycle makers 2 weeks to work out a plan to switch to electric vehicles, sources told Reuters. The ultimatum comes days after Niti Ayog publicly opposed the government’s proposals, saying it would disrupt the industry. Niti Aayog officials met with executives from companies such as Bajaj Auto, Hero MotoCorp and TVS on Friday evening, giving them two weeks to work out the plan, according to one of the executives.

Led by Prime Minister Narendra Modi, Niti Ayog plays an important role in policymaking. Sources told Reuters that the think tank recommended that from 2025 only electric models of scooters and motorcycles under 150cc be sold in India. Opposing the proposal, automakers had warned that a sudden transition like this, at a time when auto sales are at their lowest for two decades, will cause disruption and also result in loss of business. jobs. India is one of the world’s largest two-wheeler markets with sales of over 20 million scooters and motorcycles last year.

During Friday’s meeting, government officials argued that the switch to electric vehicles was of national importance so that India did not miss the global trend towards more environmentally friendly vehicles, said the one of the sources. But industry executives responded that premature change without an established supply chain, load infrastructure or skilled workforce in India could cause India to lose its leading position in scooters and motorcycles, the second source said. “There were clearly protracted positions,” the source said, adding that there were “strong opinions” at the meeting. Bajaj, Hero and Niti Aayog did not respond to a request for comment, while TVS declined to comment.

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