Ensure adherence to a uniform policy and emphasize the “Made in India” approach, advises the chair of FICCI EV panel in light of Tesla’s interest.

FICCI has suggested to the government the inclusion of small electric cars for incentives within the FAME scheme.

Emphasizing the importance of maintaining the Make in India initiative, Sulajja Firodia Motwani, Chairperson of FICCI EV Committee, urged a consistent policy amid Tesla’s request for special incentives.

Motwani, CEO of Kinetic Green, stressed the need for a comprehensive ecosystem to foster electric vehicle growth.

She advocated for ongoing incentives to support EV demand and lobbied for extending incentives to electric cars priced up to Rs 20 lakh in the third phase of the FAME India scheme.

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Motwani expressed a firm stance on maintaining the current Make in India policies, emphasizing the importance of avoiding reversals as local investments in manufacturing have already commenced.

She highlighted the risk of manufacturers reverting to importing components if policy consistency is not upheld. Regarding Tesla’s potential entry into the Indian market.

Motwani acknowledged the possibility linked to significant investment but stressed the necessity for clear and consistent policies to avoid confusion and ensure adherence.

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Motwani stressed the need for enduring and unwavering policies, stating, Make in India is crucial, and policies should maintain long-term consistency instead of abrupt duty reductions.

Emphasizing the importance of India’s focus on local manufacturing, she highlighted that sustained commitment to Make in India is essential to foster long-term competitiveness.

Motwani warned against the risk of relying on materials from other countries, stating that without a steadfast approach, India could end up with electric vehicle users but sourcing production materials externally.

FICCI EV panel chair Sulajja Firodia Motwani stressed the importance of maintaining a consistent “Make in India” policy amidst Tesla’s interest in setting up a factory in the country. She highlighted the need for a holistic ecosystem to foster electric vehicle growth and advocated for ongoing incentives to sustain EV demand. Motwani emphasized that any reversal of Make in India policies could lead to manufacturers importing components, risking dependence on other countries. She also urged clear and consistent policies for premium car makers like Tesla entering the Indian market, emphasizing the importance of long-term competitiveness and avoiding confusion in policy implementation. Additionally, FICCI has proposed including small electric cars for incentives under the FAME scheme, with recommendations for the third iteration targeting private cars up to Rs 20 lakh.

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Motwani emphasized the necessity of sustaining demand incentives for the next 3-5 years until significant reductions in battery prices occur.

She highlighted the opportune moment for in-depth inter-ministerial discussions on the electric vehicle segment, suggesting the establishment of task forces to strategically plan ecosystem development for the next five years.

Motwani stressed the importance of involving all stakeholders to ensure the continued momentum in demand is complemented by a well-established and collaborative ecosystem.

Q: Why is there a push for consistent “Make in India” policies in the electric vehicle (EV) sector?

The emphasis on consistent policies aims to promote local manufacturing, preventing a potential shift back to importing components from other countries.

Q: What is FICCI’s proposal regarding small electric cars under the FAME scheme?

FICCI has proposed including small electric cars for incentives under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) scheme.

Q: Why does Sulajja Firodia Motwani stress the importance of a holistic ecosystem for EV growth?

A holistic ecosystem is seen as crucial for the overall development of the electric vehicle segment, fostering sustained growth beyond individual incentives.

Q: What is the suggested timeframe for continuing demand incentives according to Motwani?

Motwani suggests maintaining demand incentives for the next 3-5 years, particularly until battery prices experience significant reductions.

Q: How does Motwani propose to plan for the future of the EV ecosystem?

Motwani recommends establishing task forces to facilitate deeper inter-ministerial dialogue and strategic planning for the next five years, involving all stakeholders.

The FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) India scheme was introduced on April 1, 2019, to promote electric vehicles in the public and commercial transport sectors.

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