Economy | 2016-12-25 14:17:00

How the Electric Two-Wheeler Sector Strengthens ‘Make in India’ and ‘Atmanirbhar Bharat’ 

Domestic Manufacturing Boost

  • Encourages local production of electric two-wheelers, reducing dependence on imports.
  • Supports indigenous manufacturing of key components such as motors, controllers, and chassis.

Localization of Supply Chains

  • Promotes domestic supply chains for batteries, electronics, and EV parts.
  • Reduces vulnerability to global supply disruptions, especially from East Asian markets.

Technological Self-Reliance

  • Stimulates R&D in battery management systems, power electronics, and EV software.
  • Encourages innovation by Indian startups and MSMEs in the EV ecosystem.

Employment Generation

  • Creates skilled and semi-skilled jobs in manufacturing, assembly, servicing, and R&D.
  • Strengthens ancillary industries such as charging infrastructure and recycling.

Support to MSMEs and Startups

  • Provides opportunities for MSMEs to enter EV component manufacturing.
  • Aligns with government initiatives like Startup India and Production Linked Incentive (PLI) schemes.

Import Substitution & Forex Savings

  • Reduces oil import dependence by shifting to electric mobility.
  • Lowers foreign exchange outflow in the long run.

Policy Alignment

  • Complements government schemes such as FAME, PLI for Advanced Chemistry Cells (ACC), and National Electric Mobility Mission.
  • Strengthens India’s green industrial strategy.

Export Potential

  • Positions India as a manufacturing hub for affordable electric two-wheelers for global markets.
  • Enhances India’s competitiveness in the global EV value chain.