Huge Loss! E cycles’ exclusion from export policies may cost industry ₹10,000 crore | Make In India
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Huge Loss! E cycles exclusion from export policies may cost industry ₹10000 crore | Make In India,Trainsome,Make In India,Made In India,Electric cycles made in india,Bright Ideas,EV manufacturing in India,Made In China,Simple One scooter launch date,cheapest elelctric cycle in India,Highest range of electric cycle,Hero Lectro,Hero Electric Cycle,Electric Bicycle,Biggest Make In India Update,Exclusive manufacturing news,Cheapest electric two wheeler list,India
Link- https://www.hindustantimes.com/cities/chandigarh-news/ecycles-exclusion-from-export-policies-may-cost-industry-10-000-crore-in-5-years-hero-cycles-101633373291566.html
E-cycles’ exclusion from export policies may cost industry ₹10,000 crore in 5 years: Hero Cycles
Hero Cycles chairman Pankaj Munjal says the government had snubbed e-cycle manufacturers from major export polices such as faster adoption and manufacturing of electric vehicles in India which will result in Indian companies losing export orders to the European Union
The exclusion of electric cycles from all major manufacturing and export promotion policies has dashed the Indian cycle industry’s hope to displace China as the world leader in e-cycle manufacturing, as they may lose orders approximately worth ₹10,000 crore over the next five years.
Hero Cycles chairman and managing director Pankaj Munjal on Monday said the government had snubbed e-cycle manufacturers from major export polices such as faster adoption and manufacturing of electric vehicles in India, Phase II (FAME-II) and production-linked incentive (PLI), which will result in Indian companies losing export orders to the European Union, even as the bloc reduces its dependancy on China.
“The EU levies a heavy anti-dumping tariff on e-bike imports from China that may go as high as 83%. It had initiated a re-shoring of e-bike production in 2019. The estimated re-shored e-bike production was 9,30,000 units with countries such as Portugal, Poland, France, Bulgaria, Italy and Romania grabbing more than 80%. With quality products at a competitive price, Indian manufacturers are poised to grab this opportunity to secure the migrating business. However, we are losing out on the policy side, which would have helped the industry to take advantage of the shrinking share of China and the far-East as suppliers of e-bikes to the EU,”Munjal said.
Hero Cycles had started manufacturing electric bicycles three years ago. The company had invested around ₹300 crore on a state-of-the-art factory, ₹400 crore on establishing a vendor base and ₹300 crore in the UK for exporting the bikes to international markets.
“The e-bike market in the EU is 50 times that of India. E-bike sales in Europe are expected to grow five times in the next decade. India has the second largest bicycle making capability in the world and lower import duty will help to increase exports to the UK. Besides, generalised systems of preferences benefits are given to many Indian products in the UK, but not to bicycles that attract an import duty of 14%. Therefore, to remain competitive globally, India must lock a deal to bring down import duties on bicycles,” added Munjal.
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