Net zero by 2070: India's shift to e-mobility
By committing an economy to a 1 billion tonne reduction in predicted carbon emissions by 2030, India's net zero objective for 2070 demonstrates the intention to undertake decarbonization. The inter-sectoral contributions of states, industries and companies will be essential in accomplishing this aim, even though this lays out a clear path for India to take.
In India, the transportation sector is one of the major emitters. India must prioritise this area if it is to reach the net zero goal. Without quick electrification of vehicle fleets, emissions associated with transportation will soar by 2050, significantly hastening climate change. Critical actions, such as the following, are urgently needed to create an EV ecosystem in India.
- Infrastructure fees for business parks and public roads
- Medium and long-haul freight as well as the electrification of last-mile delivery, powered by renewable energy
Government at work: Strengthening policy backing
The Indian government has created the conditions for quick uptake of electric mobility. To support reaching the target of 30% EVs by 2030, a clever combination of purchase reductions across a variety of vehicle categories, lower road taxes, and scrapping and retrofit incentives is needed. The cost of oil imports, rising pollution, and India's international responsibilities to combating climate change are the driving forces behind its recent measures to quicken the transition to e-mobility.
1. Demand incentives for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II)
Around 160,000 EVs had received demand incentives totaling $75 million USD under FAME II as of November 2021. More than 6,300 e-buses, 2,870+ EV charging stations in 68 cities, and 1,576 charging stations on nine expressways and 16 motorways have all been approved by the incentive programme. All this could hasten the adoption of electric two-wheelers, three-wheelers, and e-buses throughout the nation.
2. Production-linked Incentive (PLI) Programme
The Indian government launched a 2.4 billion USD PLI project for ACC storage manufacture in May 2021 to build a local manufacturing capacity of 50 GWh of ACC and 5 GWh of "niche" ACC capacity. This would increase capacity, localise the EV supply chain, and reduce dependency on imports. Reliance, Hyundai, Ola, and M&M are just a few of the well-known Indian companies that have submitted bids totaling roughly 130 GWh.
To promote the production of electric and hydrogen fuel cell vehicles, the central government also authorised 3.4 billion USD for automobiles and automobile components in September 2021.
3. State policies on EV
EV-specific policies have been enacted by several states. Incentives on the supply side include:
- Subsidy for a capital interest
- Refunds for stamp duties
- Tax exempt status
- Refund for state goods and services tax (SGST)
- Offering interest-free loans will encourage EV manufacturers.
There are financial incentives, exemptions from road tax, and registration fee reductions on the demand side.
The governments of Delhi and Maharashtra have made announcements about initiatives to hasten the adoption of EVs. By 2024, EVs in Delhi are expected to account for 25% of all new vehicle registrations. By 2025, 10% of all new vehicle registrations in Maharashtra will be electric vehicles.
Companies setting the bar high: Ambition and action
Exide and Amara Raja Batteries, two well-known producers of automotive lead-acid batteries, are pioneers in focusing fresh investments on environmentally friendly technologies like lithium-ion batteries. In response to the opportunity offered by India's EV industry, business leaders like OLA Electric, Ather Energy, and Mahindra Electric are rapidly growing their market presence.
- Due to soaring demand, Ather Energy plans to produce 1 million electric scooters annually.
- A 2 billion USD investment was made by Ola's "Future Factory" to produce 10 million electric scooters annually.
- TPEML, a recently established EV subsidiary of Tata Motors, was created to manufacture, design, and develop EV-related services.
- Together with Mahindra Group, Hero Electric produces more than 1 million electric two-wheelers annually.
In addition, EV100 members, who are dedicated to a 100% switch to EVs by 2030, are setting the demand side
- To hasten the switch to electric vehicles in the last-mile delivery sector, Flipkart has teamed with Hero Electric, Mahindra Electric, and Piaggio.
- Initiated by Dalmia Cement, the e-trucks initiative aims to deploy 22 electric trucks by 2022.
- The JSW Group has a new EV policy that enables incentives for employees to buy electric two-wheelers or four-wheelers up to $300,000.
Even though the government and private sector are now aware of the enormous benefits of EV adoption, more work needs to be done to accelerate the switch to EVs in India. The demand for the uptake of sustainable transportation must be fueled by the Indian corporate sector. They can also effectively transform outmoded processes by inspiring fresh business concepts.
By increasing EV demand, influencing legislation, and promoting mainstream adoption to make electric transport the new normal by 2030, initiatives like EV100 are extending the frontiers to create a conducive climate for the transition to e-mobility. The ability of EVs to reduce emissions will continue to increase as India's energy infrastructure becomes more environmentally friendly and new ways to obtain clean electricity surface.