New Delhi: Shares of automakers fell by up to 3 percent on Monday after NITI Aayog asked industry body SIAM along with conventional two and three-wheeler makers to suggest within two weeks, concrete steps towards the transition to electric mobility.
The scrip of Eicher Motors fell 3.05 percent, Bajaj Auto declined 1.97 percent, Hero MotoCorp 1.28 percent and TVS Motor 0.62 percent on the BSE.
"With declining auto sales, lack of supply chain for electric vehicles, no charging infrastructure, the transition to BSVI efficient standards, auto companies are facing a tough time juggling between weak revenues, dented margins and re-investment required to build 2 and 3 wheelers to match with the latest norms.
"The pressure to switch when they are already facing a tough time will impact their margins further," said Umesh Mehta, Head of Research, Samco Securities.
Changing from conventional two-wheelers to 100 percent electric is "not like Aadhaar, not a software and print cards" and such transition is completely uncalled for, according to TVS Motor Co and Bajaj Auto.
Strongly objecting to NITI Aayog's proposal to transition to electric vehicles for three-wheelers by 2023 and two-wheelers by 2025, the two companies said the policy has not been made with adequate study and diligence.
"This is not like Aadhaar, not a software and print cards. You have to set up a whole supply chain, and migrate from the current supply chain," TVS Motor Co-Chairman & Managing Director Venu Srinivasan told PTI.
When contacted for comments, Bajaj Auto Managing Director Rajiv Bajaj said "we believe 100 percent transition is completely uncalled for".
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Updated Date: Jun 24, 2019 19:25:08 IST