New Delhi: India stands as a frontline warrior in the global battle against climate change, confronting challenges like rapid urbanization, a burgeoning population, and escalating energy consumption. With 87% of its oil being imported, and a substantial bill attached, the transportation sector singularly consumes 40% of this oil.
The pressing need to expedite the adoption of electric mobility in India is accentuated by the prevailing geopolitical situation and the nation’s commitment to combat climate change. The road transportation sector, contributing over 12% of India’s energy-related CO2 emissions, underscores the significance of transitioning to Electric Vehicles (EVs).
The challenges
However, the adoption of electric vehicles in India encounters various challenges that hinder widespread acceptance. High upfront costs, primarily due to expensive batteries, make EVs less affordable, hampering consumer adoption. Limited model availability and variety, coupled with a lack of consumer awareness and education, further restrict consumer choices and understanding of EVs.
Range anxiety, driven by concerns about limited travel distances and insufficient charging infrastructure, remains a significant barrier. The inadequate charging infrastructure, particularly in non-metro cities and rural areas, raises concerns about charging point availability and recharging times. Challenges related to charging times, battery technology, and infrastructure, along with safety concerns and policy inconsistencies, create uncertainties in the market.
Collaborative efforts
Addressing these multifaceted challenges requires collaborative efforts to enhance charging infrastructure, promote awareness, standardize technologies, and establish consistent, supportive policies to propel EV adoption in India.
India’s commitment to achieving 30% electrification of the vehicle fleet by 2030 is supported by various steps, such as increasing demand incentives for electric two-wheelers, reducing GST on EVs and chargers, introducing green license plates, and advising states to waive road tax on EVs. However, the need for a comprehensive approach is evident.
The ongoing FAME – II scheme benefits must be extended or retained beyond March 2024, with specific attention to the 2W and 3W sectors, playing a crucial role in achieving 30% EV penetration by 2030. With a substantial rural population, India presents a massive market for EV promotion.
The way forward
Looking ahead, a holistic approach is the continuation of subsidy for electric vehicles in the country under FAME scheme. Continued government support through subsidies is crucial for the two-wheeler and three-wheeler segment, necessitating a reevaluation of pricing and enhanced financing. Robust policies, ongoing subsidies, and mandates are required for light and heavy commercial vehicles to reduce carbon emissions. EVs should be brought under the Priority Sector Lending (PSL) category until the 30 per cent penetration target fixed for 2030 is achieved.
Charging infrastructure development should be incentivized, encouraging private players and ensuring efficient grid management with solarisation of EV charging stations, significantly reducing additional GHG emissions associated with traditional battery charging methods. Retrofits, crucial for transforming polluting vehicles into zero-emission vehicles, need subsidy support. Battery Swapping can benefit from reduced GST, subsidies, and regulatory clarity.
Favorable policies hold the key to unlocking India’s electric mobility potential, fostering a robust electric mobility ecosystem. India’s commitment to developing new policies to attract EV manufacturers aligns with global efforts to combat climate change, positioning the country as a key player in the rapidly expanding EV market.
As India leads the way, these policies have the potential to accelerate the adoption of clean and sustainable mobility solutions, reducing emissions, and propelling the nation towards its net-zero emissions goal. India’s journey toward net-zero is not just a pledge; it signifies an ambitious leap into a sustainable future, with electric mobility at its core.
(Disclaimer: Mayur Karmarkar is the Managing Director of International Copper Association, India. Views are personal.)
