Hero MotoCorp responds to Niti Aayog's 150 cc two-wheeler move

The country's largest two-wheeler maker Hero MotoCorp on Monday said it is deeply concerned by the potential repercussions of government think-tank Niti Aayog's approach of completely banning conventional two-wheelers up to 150cc stating such a move could jeopardise the industry. Asking the government and relevant authorities to be cautious in their approach, the company said concerns of all stakeholders must be taken into consideration.

"Instead of imposing the adoption of EVs (electric vehicles), it would be ideal to have a healthy mix of policy, market dynamics, and customer acceptability," Hero MotoCorp said in a statement.

The company said it was "deeply concerned by the potential repercussions of Niti Aayog's approach of completely banning two-wheelers up to 150cc that are powered by internal combustion engines (ICE), especially when two-wheelers manufactured in India will have the world's cleanest emissions, along with the world's highest fuel-efficiencies, effective April 1, 2020."

It further said mandating a new technology by banning the existing one is likely to jeopardise the industry.

The company was reacting to the Niti Aayog's proposal to transition to EVs for three-wheelers by 2023 and two-wheelers with an engine capacity of up to 150 cc by 2025. Considering the significance of the automotive industry that provides employment to millions and is a significant contributor to the country's GDP, the proposed ban could also have massive consequences on the economy, the company added.

"An abrupt and sudden changeover will disrupt the entire eco-system of vendors, OEMs (original equipment manufactures), dealers, spare parts manufacturers, and mechanics, as well as other stakeholders, thereby impacting the livelihoods of millions of people dependent on the industry," it said.

Appealing to the government and relevant authorities "to be cautious in their approach and take into consideration the concerns of all the stakeholders", Hero MotoCorp said. "A phase-wise introduction will not only allow for a smooth transition but also enable all involved parties to understand, accept and if required, make course-corrections in their approach towards EVs."

The company said it is technology-agnostic and has also been working towards developing EVs, both internally and through external associations.

Stating that the company supports the government's vision of a more sustainable and environment-friendly future, Hero MotoCorp said it along with the entire two-wheeler industry -- was making considerable investments in migrating to the next generation of emission norms and alternative mobility solutions.