India must target full electrification of 2, 3-wheelers in 4 years: Kant

80% of vehicle sales are in those segments, says the country's G20 Sherpa as he hails 'electric revolution'

India must target "100 per cent electrification" of two- and three-wheelers in the next four years, said G20 Sherpa Amitabh Kant on Wednesday, adding that the country can become a global champion in the two segments.

The segments account for 80 percent of the domestic automobile industry's volumes. His statement comes amid the rapid electrification trend the two segments have seen in the recent past. Electric two-wheelers accounted for two per cent of the total market in FY22.

"Go for 100 per cent electrification in two-wheelers and three-wheelers, go for size and scale, get the entire value chain of components need to build them, so that India emerges as a global champion of electric two-wheelers and three-wheelers," said Kant at the 62nd annual session of thfae Automotive Component Manufacturers Association of India (ACMA).

India's electrification journey is going to be about two-wheelers and three-wheelers because 80 per cent of vehicle sales are in the two segments. "We need to target that in the next four years, there is 100 per cent electrification of these two segments," said Kant.

The market for EVs "will explode" and India needs to build an ecosystem to bring down costs and ensure that growth does not come through imported parts and aggregates. "Government has pushed the policy as far as the PLI (production-linked incentive) scheme is concerned," he said. Whether the auto industry likes it or not, disruption is just around the corner.

"There is an electric revolution that will take place, which will make electric vehicles more affordable, accessible and inclusive. Citizens will take to them whether you like it or not."

The focus would not just be on EVs but also on moving people to public transport like other parts of the world, except the US, had done. "The next lot of tender (for electric buses) that we are planning to put out will be for 15,000 buses, which we have pooled from various metro cities," he mentioned.

The IT sector can be an incubator for electric mobility and therefore, the auto companies need to work with the IT companies in a big manner. "Coming e-mobility revolution will be powered by electronics, artificial intelligence and automation so IT companies will play a major role," he said.

The demand for safe, long-lasting, and efficient batteries is rising even as prices fall. Two primary challenges for the EV sector are high interest rates and insurance charges, said Kant.