Auto industry hails PM's assurance

New Delhi: Auto industry players on Wednesday welcomed Prime Minister Narendra Modi's assurance that conventional engine vehicles and electric vehicles (EVs) can co-exist in India, saying it would encourage investment and job creation in future.

Society of Indian Automobile Manufacturers President Rajan Wadhera said the assurance is completely in-line with SIAM's recommendations that all relevant technologies should co-exist in India's journey towards sustainable mobility.

He also called for a long-term roadmap for all futuristic technologies, which instils confidence to the industry to get going. Expressing similar views, TVS Motor Company Chairman Venu Srinivasan said, "the recent clarification by the Prime Minister that ICE and electric vehicles will both be encouraged is a strong step to encourage investment and employment in the automotive sector in India".

This will provide reassurance to millions of people across the supply chain, ranging from component manufacturers to original equipment manufacturers (OEMs), dealers, mechanics and associated people across the country, he added.

Srinivasan further said a technology agnostic approach that encourages all options is very important for a developing country like India, which is dependent on fossil-based sources for much of its power. "Also with some of the other measures announced towards increasing liquidity, this clarification will provide the stability to ensure India continues to remain one of the leading investment destinations in the world," he said.

Toyota Kirloskar Motor Joint Managing Director N Raja said the PM's statement has given a lot more confidence and clarity and will help the auto industry in efforts to come out of the ongoing sales slump. "Now with this clarity, people who were thinking of delaying purchases, what we called as fence sitters, can come forward. It will help in improving the market," he said.

In an interview with a business daily, Modi had asserted that India has a large enough market and big enough policy space to ensure growth of both internal combustion engine vehicles and EVs, and there was no need to speculate about the growth of either of the two.