By emphasising the benefits of electric vehicles, critically examine the measures taken by India thus far to promote the transition to electric vehicles in India.
An EV operates on an electric motor instead of an internal combustion engine and has a battery instead of a fuel tank. In general, EVs have low running costs as they have fewer moving parts and are also environmentally friendly.
- Reduce Air Pollution and health issues caused by it
- Reduced dependence on petroleum
- Better for the environment
- Reduced number of moving parts and hence longer running life
- Reduced Noise Pollution
- National Electric Mobility Mission Plan NEMMP: to achieve national fuel security by promoting hybrid and electric vehicles in the country. There is an ambitious target to achieve 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards.
- FAME: FAME India Scheme [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] was launched in 2015 with the objective to support hybrid/electric vehicles market development and manufacturing ecosystem. The scheme has 4 focus areas i.e. Technology Development, Demand Creation, Pilot Projects and Charging Infrastructure.
- The Phase-II of FAME seeks to give a push to EVs in public transport and seeks to encourage adoption of EVs by way of market creation and demand aggregation.
- Government has set a target of electric vehicles making up 30 % of new sales of cars and two-wheelers by 2030 from less than 1% today.
- To address the shortage of availability of minerals, Memorandums of Understanding (MoUs) have been signed with countries rich in materials such as lithium, rare earth materials, and others.
Positives of government initiatives
- The private sector has appreciated the inevitability of the dominance of the EV.
- Companies like Amazon, Swiggy, Zomato and Ikea are deploying EVs for deliveries.
- Car manufacturers like Mahindra are partnering with consumers like Ola, while Tata Motors is partnering with Blu Smart Mobility in moves that will ensure more EV delivery and ride-hailing services.
- The EV market in India is projected to reach $700 million in 2025, a dramatic jump from $71 million in 2017 — a 10-fold increase in under a decade.
Where the initiatives must focus on
- Charging infrastructure in India
- Battery making factories
- Creating of skilled workers
- Building technology for making semi-conductors and controllers
- Increasing RnD
- Creating the Closed-Loop Mobility Ecosystem
- The proper coordination of the three pillars of the EV industry, namely urban planning, transportation, and power, will aid in the systematic adoption of EVs.
- Mobility solutions that are affordable, accessible, inclusive, and safe are key strategic levers for rapid economic development and improved ‘Ease of Living.’
- Curriculum and skill development strategies in education should be updated to meet the needs of the various industries.
- Stabilizing the policy environment by focusing on tax incentives and non-fiscal incentives can assist the business attain economies of scale by addressing demand uncertainty.
How to structure:
1) Explain what electric vehicles are
2) Give the benefits of electric vehicles
3) Critically examine the measures
4) Suggest way forward
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