Electric Vehicle & India’s incentivising policy

In a latest development, the Delhi government, under its Electric Vehicle (EV) policy, has decided to incentivise passenger and cargo e-cycles having a speed of less than 25 km/hr.

• India's EV sector has been rapidly growing over the last few years as both Central and state governments have been taking initiatives to promote adoption of EVs.
• The rapid increase in petrol and diesel fuel prices has further pushed consumers to look for alternatives such as EVs.
• With the hiked prices, the Indian government is also religiously pushing for the introduction of Electric Vehicles (EV).

What Are Electric Cars?

• An Electric Car (EV) is essentially an automatic vehicle with an electric motor powering it.
• Type of batteries: Electric vehicles are powered by battery electric power. Different types of batteries are available in the market.
  • They include: Lithium-Ion batteries, Solid state batteries; Nickel-Metal Hydride Batteries, Lead-Acid Batteries, and Ultracapacitors.
  • However, Lithium-ion batteries are the most efficient and preferred.

• Different types of EV:
  
  

• India’s National E-mobility Programme aims to provide an impetus to the entire e-mobility ecosystem that includes electric vehicle manufacturers, charging infrastructure development companies, fleet operators, service providers, etc. 
• Union Government formulated “Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India”, popularly known as FAME India scheme on April 1, 2015 to give boost to EVs.
• FAME I Scheme focuses on
  • Demand Creation
  • Technology development
  • Charging Infrastructure
  • Pilot Projects
• India aims to switch 30% of private cars, 70% of commercial vehicles, and 80% of two and three-wheelers to EVby the year 2030.

• FAME II Amendment: While FAME-I incentivised private vehicles, FAME-II focuses on public transport in 10 cities.
  • Under FAME-II scheme, the government has increased the subsidy rate for electric two-wheelers in order to reduce the price gap between petrol-powered two-wheelers and electric ones.
• PLI Scheme for Auto Sector:to promote domestic manufacturing of electric and fuel cell vehicles and drones in India, the Union Cabinet approved Rs 26,058 crore production-linked incentive (PLI) scheme.
• Scrappage Policy: aims to phase out unfit and polluting vehicles in an environment-friendly manner.

• Car manufacturing companies such as Mahindra and Tata Motors are partnering with mobility companies Ola and blue smart mobility respectively, to boost EV delivery and ride-hailing services. 
• Further, delivery companies like Swiggy, Amazon, Flipkart, Zomato, and Ikea are deploying EVs for deliveries. 

• Controlling Pollution:According to World Air Quality Report 2021, India is home to 11 of the 15 most polluted cities in Central and South Asia in 2021.
• Mitigating diseases: The air pollution induces deadly diseases ranging from asthma to cancer, to heart disease and lung illnesses, particularly for children, elderly people, and pregnant women.
• Mitigating Climate Change: help India in its commitment to the Paris Climate Agreement and fulfil INDC.
• Reducing oil import: EV adoption will ensure energy security and reduce oil dependency in turn import bill.
• Less Maintenance: EVs requireless maintenance due to less moving parts and less fluids to change.
• Internal combustion (IC) engines also cause noise pollutionin cities.

• One-stop solution: EVs are touted as a one-stop solution to many problems in India. These include those related to air pollution and steep oil import bill that depletes our foreign exchange reserves.

• Limited usage: Electric engines provide only limited mileage with long battery recharging time.
• Costly affair: Electric vehicles are costlier than the conventional vehicles due to high price of the lithium-ion batteries. Moreover, maintenance costs due to emerging technology and lack of skilled man power will be higher.
• Dependence on fossils: Despite being classified as green cars, the toxicity of EV batteries is high and electricity generation is still dominated by fossil fuels.
• Increase in accidents: Silence can be a disadvantage leading to accidents in some cases as people are unlikely to hear the noise if they are coming from behind them.
• High maintaining cost: Moreover, maintenance costs due to emerging technology and lack of skilled man power will be higher.

• Lack of manufacturing units: India lacks battery cell manufacturing with high import dependence on Japan, China, Korea and Europe.  
• Lack of infrastructure: Lack of charging infrastructure also poses a big challenge. Recharging of batteries consumes a lot of time that may be inconvenient for the buyer.
• Interrupted electricity supply: Uninterrupted supply of electricity will also be an issue in the adoption of EVs especially in remote and underserved areas.
• Lithium crisis: India does not have infrastructure or technology to manufacture chips or Lithium-Ion Cells.

• Focus on effective research: The need of the hour is to increase R&D in EVs to developindigenous technologies for quick-charging batteries and lowering cost.
  • In this context, focus must be on Fuel cell EVs which are powered by hydrogen and emit only water vapour and warm air.
• Cooperation: International cooperation with like-minded countries such as UK and USA must be encouraged.
• More awareness: Public need to be sensitised and educated to bust myths and promote EVs within the Indian market.
• Advancement in electricity generation: Need for shift in the electricity generation from fossil fuels to renewable resources to facilitate the growth of electric cars.
• Strengthening charging infrastructure: Establishing of charging stations especially in places such as tech parks, Public bus depots, societies, and multiplexes. In Bangalore, some malls have charging points in parking lots.
• CSR: Corporates should be encouraged to invest in charging stations via Corporate Social Responsibility.
• Focus on raw material: Creating a robust supply chain by entering into agreement with countries rich in lithium reserves such as Australia, Chile, Bolivia, etc. to ensure uninterrupted supply.

• Norway tops the list with 75% share of plug-in electric vehicles.
• UK and France are aiming for 100% electric cars by 2040.
• New Zealand provides $8,625 off a new electric car, or $3,450 off on a used electric car.
• China and the US constitute more than half of electric cars in the world

With a population of 1.3 billion people and scarce resources, mass transition to EVs is not an easy task. Electric mobility can help India achieve its INDC targets, reduce oil import dependence, and ensure energy security. Therefore, sustained efforts and robust policies, and public-private collaboration are needed to achieve the target of green future.