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Policy predictability is needed to make investment plans for accelerating electric mobility in the two-wheeler segment, according to electric two-wheeler maker Ather Energy Chief Business Officer Ravneet S Phokela.
The company, in which Hero MotoCorp is a significant investor, expects 100 per cent electrification of the domestic two-wheeler market by 2030 even as it prepares to start exports to an India-like market in the near future.
With the FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme coming to an end in March next year, Phokela said Ather is happy with the government support and the current levels of subsidy but hoped that it would be extended for another three to five years for acceleration of EV adoption.
“Two requirements, extend the period of time and importantly, let there be policy predictability,” he told PTI when asked about the company’s wishlist for FAME III.
Ather Energy had planned to set up a third plant with a capacity of 10 lakh units annually but so far has not finalised a location.
“Should I make a 1 million plot or half a million plot? Whatever might be the structure (of subsidy), don’t change it. Please make it predictable, so that we can make investments,” Phokela said.
Market cannot sustain on artificial pricing, he asserted.
The company is also open to the idea of reducing the subsidy structure with each passing year, he added. From June 1 this year, the subsidy provided under FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme applicable on electric two-wheelers was reduced.
The heavy industries ministry capped incentives for electric two-wheelers at 15 per cent of the ex-factory price of vehicles from 40 per cent earlier and fixed demand incentive at Rs 10,000 per kWh for electric two-wheelers.
On Ather’s export plans, Phokela said while there have been interest from overseas market, the company had “resisted the temptation” so far to focus on the opportunities in the domestic market but “we will start exporting soon enough and if all goes well, we want to make an announcement as early as next two months”.
When asked which market the company is looking at, he said,”We’re looking at a market which is slightly more similar to India, which just makes it easy to take the first step outside.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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