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Motorbike makers drop on NITI Aayog’s EV transition move

Reuters | Updated on June 24, 2019 Published on June 24, 2019

All auto makers in India facing demand slowdown, due to lack of credit and high insurance costs. Representative image   -  Bloomberg

NITI Aayog has asked bike manufacturers to draw up a plan to switch to electric vehicles

Shares of Indian motorcycle and scooter makers like Bajaj Auto Ltd, Hero MotoCorp Ltd and TVS Motor Co Ltd fell between 2.3 per cent and 3.2 per cent. Auto index was trading 1.2 per cent lower in the Sensex and 0.28 per cent lower in the broader market.

NITI Aayog, chaired by PM Narendra Modi, has asked bike manufacturers to draw up a plan to switch to electric vehicles. Bike makers have publicly opposed the government’s plan to go electric. Bajaj terms the initiative “impractical,” while TVS says it will “risk derailing auto manufacturing in India”.

Also read: Why kill ICE bikes in the electric rush, ask Bajaj and TVS

All auto makers in India are facing demand slowdown, due to lack of credit and high insurance costs. Earlier this month, Reuters reported that India planned to order taxi aggregators like Uber and Ola to convert 40 per cent of their fleet of cars to electric by April 2026.

Related news: Ola to focus on electric two/three-wheeler, for now

Published on June 24, 2019
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