Electric Vehicles In India Facing Challenges & Prospects
According to Indian journalist Vandana Gomber, India is fast moving towards electric vehicles, a sign of a turning point in its 'clean energy policy'.
In 2017, Minister of Transport Nitin Gadkari surprised the automobile industry (and the world) when he announced that he would take India to full electric cars by 2030.
He said at a conference: 'Whether you like it or not, I will do it. I will not ask you, but I will show it by force. '
It was a very high-strung goal, as neither France nor Britain have yet been able to say so, and they hope that at least by 2040, traditional vehicles will be eliminated.
Gadkari and his Bharatiya Janata Party (BJP) government later reduced their plan to bring electric passenger vehicles from 100% to 30%.
Industries also feared pressures and job losses due to the government's reduction in its target.
The government has now decided that it will focus on lower levels of vehicles, namely two-wheelers (whose sales are higher) and three-wheeled rides (for example Rickshaw).
According to the Indian automobile industry, in the financial year ended March, 2 million 12 lakh motorcycles and scooters and 34 lakh passenger vehicles were sold. Seven million rides of three wheels were sold against them.
The new plan is to have only three wheelers in the country by 2023 and by 2025 only two wheeled electric vehicles will be operated by 2025.
There are probably two major goals of the government, one to overcome pollution and the other to be at the forefront of emerging industries.
India's Finance Minister Nirmala Sitharaman said in her budget speech earlier this month that 'India wants to become a global hub for electric vehicles production'.
The government's economic survey, released just one day before the budget, envisioned an Indian city that emerged as Detroit's central city in the United States.
But since India does not have as much capital and infrastructure as China's global leader in electric vehicles, it will be a challenge for India to generate competitive advantage even for the production of electric vehicles.
According to recent data, sales of New Energy Vehicles (NEVs) or Electric and Hybrid Vehicles in China in 2018 have seen a clear increase.
India may have learned some lessons from China where the government has set a limit on the sale of electric vehicles in heavily polluted and densely populated cities to boost sales of electric vehicles. In addition, Beijing has also set a limit for the sale of electric vehicles. Even now car makers in China have to make sure that a certain part of their production is based on zero smoke vehicles.
But there are also many encouraging indicators in India.
Charging stations are being set up in government offices, malls and even in palaces. Government companies like India Heavy Electrical and Energy Efficiency Services are planning to set up charging stations soon. The latter company plans to build 10,000 stations in the next two years.
Apart from this, newer models of electric vehicles are also coming to the market, while with the advent of several models of electric motorcycles, ride sharing services are now using electric vehicles.
The government is also offering benefits on the manufacture of electric vehicles and batteries so that economic development can be promoted and local production under the Make in India program.
The low cost of batteries can boost the electric vehicle plans in India and make electric vehicles relatively less expensive compared to other fuel powered vehicles. There is an added bonus of clean air as well.
Thus, India will move towards electric vehicles in its own specific style and at its own specific speed.
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