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VISION
To move completely towards Electric Vehicles (EVs) by 2030.
India is the world’s 5th largest auto market. The Indian government’s vision is the most ambitious electric-car transformation in the world. It will be renewable energy revolution.
IMPACT:
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India’s oil bill will reduce by $60 Billion
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Emissions will reduce by 37%
WHY THIS VISION
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As per the commitment in Paris climate agreement, India needs to bring down its share of global emissions by 2030
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Many Indian cities are among the world’s most polluted and vehicle pollution is the one of the major causes for this.
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India is depending heavily on importing fossil fuels – 82% of its oil is imported and $85 Billion is the estimated spend on Oil imports in 2018. Most of this goes to the Auto industry
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Today, just about 22,000 EV units—a mere 2,000 of them being four-wheelers—are sold annually in India. The National Electric Mobility Mission Plan, launched in 2015 to achieve fuel security, wants sales of electric and hybrid cars to hit six to seven million by 2020
Actions by the Government
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In 2015 India launched a scheme - Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), to promote clean fuel technology cars.
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A National policy for Electric Vehicles will be announced and rolled out by Dec 2017. This will set the standards and specifications for vehicles. It will also provide guidelines and ways to encourage the indian population to change their vehicles to Electric.
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The Indian Renewable Energy Ministry has been appointed the nodal agency to help buy 10,000 Electric cars in 2018 to replace existing government vehicles
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The state governments in India are also making their own plans in this regard. Examples:
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The south state of Karnataka approved a policy to promote research & development in electric mobility. It has now made it mandatory to have charging points and pods in all high rise buildings
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The west state of Maharashtra had waived various taxes for EVs when it became India’s first state to have an electric mass mobility system—in May, taxi aggregator Ola began operating 200 EVs, including taxis, buses, e-rickshaws, and auto-rickshaws in the state’s Nagpur city.
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MORE NEEDS TO BE DONE
The Indian government needs to do the following to achieve the Vision 2030:
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Battery cost: Electric Cars are expensive mainly due to their costly batteries. Due to this Indian consumers will not want to buy Electric Cars. So the Indian government needs to subsidise battery and lithium imports or encourage these companies to manufacture in India. The government also plans to set up a lithium-ion battery-making facility under Bharat Heavy Electricals.
Already battery prices have reduced from $600 per battery unit in 2012 to $250 in
2017. They should further reduce to $100 by 2024.
By 2025 Electric Cars are predicted to cost the same as petrol cars.
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Infrastructure: There are only 100 or so charging stations across India which makes it difficult for car owners to do long travels. So Electric Cars can only by used within city limits. Whereas in China, they plan to install 100,000 charging stations by 2020 covering 202 cities. India needs to plan and invest similarly in more charging stations if it wants to achieve its vision.
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Indian buyers: India is price conscious market. Value is everything. Convincing Indians to buy EVs will not be easy. Both the government and manufacturing companies need to give the Indian consumers the value they expect from Electric cars. No doubt that companies like Tesla are making a beeline for the Indian market, and India’s uber rich have begun pre-ordering the Tesla Model 3, even before the product is launched in India.
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Manufacturing in India : The Indian government needs to encourage local brands of Electric Cars to be manufactured in India as well as subsidise manufacturing for foreign companies. This will bring down the price of the car and encourage Indians to buy them.
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Speed of Cars: The top 2 India made battery powered cars have a top speed of 85kms per hour which is not enough. More research and action needs to done to increase speed.