Auto industry heaves a sigh of relief as PM Modi assures co-existence of ICE, EVs

FE Bureau
Prime minister's assurance that both internal combustion engine (ICE)-based automobiles as well as electric vehicles (EV) can co-exist is indeed a welcome note, said Rajan Wadhera (File photo)

The auto industry has heaved a sigh of great relief over the Prime Minister Narendra Modi's assurance that both the internal combustion engine (ICE) vehicles and EVs can co-exist and grow in India and there was no need to speculate about the growth of either of the two.

Prime minister's assurance that both internal combustion engine (ICE)-based automobiles as well as electric vehicles (EV) can co-exist is indeed a welcome note, said Rajan Wadhera, president, SIAM, in a statement on Wednesday. Critics like Venu Srinivasan too personally welcomed the prime minister's assurance.

Prime minister in his recent interview with a business daily asserted that India being the largest market, both the ICE and electric vehicles can co-exist and can grow together.

Rajan Wadhera said, this is completely in-line with SIAM's recommendations that all relevant technologies should co-exist in our journey towards sustainable mobility, and hence would call for a long-term roadmap for all futuristic technologies, which instils confidence to the industry to get going. SIAM along with other bodies like ACMA, FADA have sought rate cut, incentives to offset the slowdown blues over a period of time in the automotive industry.

In a press statement, Venu Srinivasan, chairman, TVS Motor Company, said: "The recent clarification by the prime minister that ICE and electric vehicles will both be encouraged and grow 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 OEMs, dealers, mechanics and associated people across the country."

"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. It will also help Indian companies to be globally competitive. This approach will give further fillip to the prime ministers visionary 'Make in India' programme."

In his latest press meet here in Chennai, Venkatram Mamillapalle, country CEO and managing director, said: "Though the government's move on electric vehicles a welcome step, India requires to have co-existence of ICE and EV, and I strongly believe that the government will assure the ICE industry with a positive rate cut as well as incentives to stem the downfall."