Looking at the developments of the past few years, it’s safe to say that the future for automobiles is 100% electric. And India is all geared up to make the transition with its ambitious goals, including constructing the world’s longest EV highway by the end of 2022 under the newly formed Atal Harit Vidyut Rashtriya Mahamarg (AHVRM) project. Numerous automobile manufacturers in India have announced plans to ramp up their focus on electric vehicles in the coming years. According to a report by consulting firm RBSA, the Indian EV market is expected to be worth $150 million by 2030, after growing at a compounded annual rate of 90%. The story of electric vehicles in India goes back to 1996 when Scooter’s India Pvt Ltd came up with the three-wheeler electric vehicle named VIKRAM SAFA. Today, aligned with its climate goals, the government has taken an initiative toward building an Electric Vehicles Policy Framework. The Union government’s flagship scheme for promoting EVs, Faster Adoption and Manufacturing of Electric vehicles (FAME), is currently in its second phase with a total budget of Rs 10,000 crore. The government has also permitted PSUs to offer land to private organisations to set up charging stations with floor prices of Rs1/kWh. To give an impetus to the EV ecosystem in India, Finance Minister Nirmala Sitharaman put forth a battery swapping policy to support manufacturers in the recent Budget. With the hike in fuel prices and greater awareness regarding clean energy, around 11 Indian states have launched initiatives to promote the adoption of EVs. Data shows that among Indian states, Uttar Pradesh tops the list with 2,55,770 registered EVs, followed by Delhi with 1,25,347, Bihar with 58,104, Karnataka with 72,544, and Maharashtra with 52,506 registrations. But there are some obstacles along the way of India’s EV transition. Elon Musk’s Tesla has been tussling with the government as its plan to enter the market is currently on hold due to high import taxes on EVs. Moreover, recent headlines about EVs exploding have led to safety concerns among people. In the past month, there have been six such cases. Currently, a team of independent experts has been assigned by NITI Ayog to investigate these incidents. Union Minister Nitin Gadkari had announced that strict action would be taken against EV companies if they are found to have been negligent in terms of following safety protocols. While the footprint of EVs in India’s automobile industry grows steadily, there’s still much work to be done in terms of establishing a robust network of charging stations and improving upon government policies to make the transition more seamless.
10 May 2022
Purnima Priyadarshini
