09 Nov 2022
The discussion around sustainability and climate-related issues has been intensifying over the last few years and is currently gaining even more momentum as deliberations at the COP27 conference, being held in Egypt from 6 to 18 November this year, gain pace. As we look at mitigating the effects of climate change, adopting green practices, low carbon technologies and climate-friendly mobility solutions are need of the hour.
The Road to Sustainable Mobility
The growing demand for clean mobility and corresponding growth in the adoption of EVs could disrupt the automotive scenario this decade. The efforts towards the same have already been initiated by the Government and automobile manufacturers. As a part of the UNFCCC COP21, also known as the Paris Agreement of 2015, India shared its vision of reducing the carbon emissions of its Gross Domestic Product by 33-35% over 2005 levels by 2030. To meet this global commitment and mitigate the severe impact on environment due to carbon emissions, the Government is keen to ride on the EV bandwagon.
As EVs continue to gain popularity among masses, the EV market in India is expected to touch $2 billion by 2023. To further drive its efforts towards EV adoption, the Government has turned the Delhi-Chandigarh highway into an EV-friendly route by equipping it with 20 solar-based EV chargers. The demand for electric two-wheelers and three-wheelers is expected to grow to 50% and 70% respectively by 2030.
An increasing number of Indian consumers have been expressing interest in electric and hybrid vehicles. Lower fuel costs, environmental concerns and better mobility experiences are the key factors that are encouraging the consumers to make a shift to EVs.
The Government is also boosting the EV revolution by providing incentives for both manufacturers and consumers, while investing heavily in the EV sector in India.
The challenges and possible solutions for EV adoption in India
One of the major challenges in EV adoption was high battery price. However, new advancements and introduction of latest technologies are providing a range of solutions and making electric vehicles feasible for the masses.
Furthermore, inadequate charging stations and long charging times also act as roadblocks. However, to overcome this issue, many auto OEMs are collaborating with third-party companies to set up charging stations at a pan India level.
The bottom line
Electric mobility is the future of India and is all set to disrupt the auto industry in the country. Considering the climate commitments made in the past, the Government is pushing for the adoption of the EV concept across the country. This year’s Union Budget also focused on promoting EVs as a means of transportation as the Government announced plans to implement battery swapping policy and formalize interoperability standards. The existing incentives under FAME II scheme (INR 10,000 crore) and the PLI schemes for ACC (INR 18,000 crore) are also expected to boost the demand for electric vehicles. In the short term, it is anticipated that the EV revolution will reduce India’s oil imports but in the long term, this move will pave the way for a clean, green India.