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EV Deadlines May Disrupt Industry: Auto Component Manufacturers

Recently, the Indian government proposed the electrification of two-wheelers and three-wheelers in the country. Currently, the Indian automobile industry is going through several kinds of changes. As you know, the vehicle manufacturers are facing the challenge to meet the deadline for the transition from BS IV to BS VI as per the new safety norms by the government. There are other issues including the poor vehicle sales in the recent months for the automobile manufacturers. So, let’s know what is going on in the automobile industry due to these new norms for electrification of two and three-wheelers in the country. Now, the Automotive Component Manufacturers Association of India also say that EV deadlines may disrupt industry because of the current and upcoming challenges for the automobile manufacturers.

According to ACMA, it will be highly destructive for the industry to bring the deadlines for electrification of the vehicles and country by the Indian government. According to the new terms, the government is planning to ban the internal combustion engines in the two and three wheelers in the country. They proposed the replacement of internal combustion engines of three wheelers by the year 2023. They also proposed to replace the internal combustion engines of all the two-wheelers having the capacity below 150 cc by the year 2025. It is definitely one of the big news for auto component manufacturers in the country and it will definitely affect the whole automobile industry at a larger scale for sure.

Challenges related to the replacement of two and three-wheeler engines:

As you know, the government proposed the transition from BS IV emission engines to BS VI emission engines for the manufacturers of automobiles in the country and it will be applied from 1st April 2020. In this kind of situation, auto component manufacturers are facing several types of challenges for sure. With this task of meeting the deadline for the transition of engines from BS IV emission engines to BS VI emission engines. They are also facing the challenge to manufacture the vehicles as per the new safety norms. There is another big challenge for these automobile manufacturers to meet the sales targets because they are having poor sales from several months.

When we talk about the news of the automobile industry, it is definitely a big decision of the Indian government. President of ACMA said that the auto component Industries facing several types of challenges and this new decision of the government will definitely disrupt the industry. It should be noted that India is a country where we have by-passed a complete generation of technology in the automobile industry for the production of vehicles having better emissions.

According to ACMA, they support the decisions of the government to promote electric mobility how to face the challenges of increasing pollution around the world. It is also beneficial to reduce our dependency on fossil fuels for vehicles. However, they also accepted that it will affect more than 30 lakh employees in the auto component industry and it will definitely affect the whole industry at a large scale. Therefore, it is one of the big auto news at the present time that is being discussed by all the manufacturers of the automobiles.

The automobile industry in the country is definitely one of the best examples of the success of make in India program with more than 55 billion USD in turnover. At the present time, India exports about one-third of the automobile production to the developed countries. In this kind of situation, if government things about 100 % transition of the automobile industry in the next few years, it will definitely affect the current ecosystem of the whole industry. Therefore, proper time is required for it due to the other challenges that the industry is facing at the present time. It is very important for the government to create a long-term and stable roadmap with proper consultation for the industry to ensure smooth and better evolution without any kind of disruption. 

It is definitely big news that is in trend in the whole automobile industries because of such kind of challenges. The whole industry is under pressure to meet in such kind of tight deadlines for the new safety norms, the transition of engines having BS IV regulations. And this kind of situation, most of the automobile manufacturers are recommending to go with a practical and well-planned roadmap for these new terms for electric vehicles in the country. This kind of deadline will be very difficult to meet for all the manufacturers in the industry.

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