Auto parts makers warn of job losses in sudden Electric Vehical shift
As India heads tow the rds adoption of an-all electric vehicles (EVs) regime by 2030, some Auto parts makers raise concerns that the move could cause tremendous job losses on the market. According to Automotive Aspect Manufacturers Connection of India (ACMA), the country may lose as much as 15 lakh jobs in vehicle parts sector exclusively following the country has followed EVs regime.
The umbrella body of Auto parts makers says companies have been spending huge amounts on plans to change to Bharat Stage or BS-VI compliant vehicles. The BS-VI norms will be executed in 2030 and at that time all the vehicles should comply these norms.
“Such investments need to be amortised over a period of at least 10 years for a reasonable rate of return,”group said. The concerns over job losses come in the backdrop of the central government that is promoting these environment-friendly vehicles to curb rising pollution levels.
For doing that goal, the government is also requesting auto designers to transfer towards making electric vehicles by 2030 and it is focusing on a roadmap for the development of EVs, according to the reports. The players in the auto parts industry have conveyed to the government they can’t spend money on the EVs effort as they dread for job and business deficits in the sector.A report conducted by ACMA and German talking to organization Roland Berger says 34.5 percent of two-wheelers running on Indian roads could be changed into battery-powered vehicles by 2025. However, the analysis suggests EV penetration in buses section will rely upon incentives distributed by the government, in line with the report says.
The analysis also suggests cost for shopping a battery would also drop by 30-35% by 2025 and traditional power train component manufacturers should start growing EV technology or risk ceding the floor to Chinese OECMs.
Source- First Post