Shares of automakers slide up to 3% on proposal over electric vehicles transition

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

Press Trust of India June 24, 2019 19:25:08 IST
Shares of automakers slide up to 3% on proposal over electric vehicles transition
  • Shares 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

  • 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

  • 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

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.

Shares of automakers slide up to 3 on proposal over electric vehicles transition

Representational image. AFP.

"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".

Updated Date:

also read

Passenger vehicle wholesales drop 41% in Sept as chip shortage impacts production
India

Passenger vehicle wholesales drop 41% in Sept as chip shortage impacts production

As per the latest data by Society of Indian Automobile Manufacturers (SIAM), two-wheeler dispatches to dealers also witnessed a dip of 17 percent at 15,28,472 units, compared to 18,49,546 in September 2020.

Stellantis teams up with Samsung SDI to produce batteries in the US for its electric cars and SUVs
News & Analysis

Stellantis teams up with Samsung SDI to produce batteries in the US for its electric cars and SUVs

Samsung and Stellantis will set up a "joint production body" in the United States to produce "EV battery cells and modules", with production starting in 2025.

Haryana EV Policy 2021 set to be notified by November, formulated to be the ‘best in the country’
News & Analysis

Haryana EV Policy 2021 set to be notified by November, formulated to be the ‘best in the country’

Haryana Deputy CM Dushyant Chautala said the government is working to ensure the policy being formulated for electric vehicles is the best in India.