The transport sector is a major contributor towards greenhouse gas emissions in India. By adopting electric mobility there will be a significant reduction in the CO2 emissions. Let us discuss the role of electric mobility in achieving India’s commitment to Net Zero emission.
Role of electric mobility
In India, the transportation sector is one of the major carbon dioxide emitters. India must prioritize this industry if it has to reach the net zero goal. Without immediate electrification of vehicle fleets, emissions associated with transportation will soar by 2050, significantly hastening climate change.
It is not feasible to continue on the current path of introducing increasingly more cars that use expensive imported fuel and clog up already crowded cities that suffer from infrastructural constraints and severe air pollution. Cities in India will suffocate.
The global climate goal set forward by Paris Agreement to cut carbon emissions in order to minimize global warming is what is driving the push for EVs. A possible global solution for decarbonizing the transportation sector is the shift to electric mobility.
As the nation imports almost 80% of its total need for crude oil, or over $100 billion, it is also anticipated to help improve the overall position of energy security. In terms of job generation, the drive is also anticipated to have a significant impact on the local EV manufacturing sector. EVs are also anticipated to reinforce the grid and aid in accommodating increased renewable energy penetration while maintaining secure and stable grid operation through a variety of grid support services.
Government policies to promote electric mobility
To support reaching the target of 30 percent EVs by 2030 purchase reductions across many vehicle categories, lower road taxes, scrapping and retrofit incentives is implemented by the government. 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 accelerate the transition to e-mobility.
1.Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) – Demand incentives
More than 6,300 electric buses, 2,870 electric car charging stations in 68 cities, and 1,576 charging stations on nine expressways and 16 motorways have all been approved as part of the incentive program. It could accelerate the adoption of electric two-wheelers, three-wheelers, and electric buses throughout the nation.
It offers demand incentives for vehicles, which helps to lower the price at which they are purchased. The incentive granted by FAME II had been raised from Rs 10,000 per kWh to Rs 15,000 per kWh. That is a 50% increase.
As of December 2021, the top states that have registered the most electric vehicles (EVs) in India are Uttar Pradesh (2,58,105 EVs), Delhi (1,26,111 EVs) Karnataka (72,018 EVs), Bihar (58,655 EVs), Maharashtra (53,159 EVs) under FAME II scheme.
2.Production-linked incentive (PLI) Scheme
The Indian government launched a 2.4 billion USD PLI project for ACC storage manufacture in May 2021 in order to build a local manufacturing capacity of 50 GWh of ACC .This would increase capacity, localize 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.
PLIs are essentially company financial incentives to increase their output. This makes it easier to provide the items to customers at a lower price. The electronics industry will be greatly impacted by this plan, which will also help the nation advance in this field. This program offers various advantages to EV manufacturers, including a direct subsidy to consumers who buy EVs. Under this plan, cell battery and automobile component sectors are also included.
3.State EV policies
To assist national initiatives relating to electric mobility numerous states have implemented their own EV regulations to enhance a sustainable future. State policies exist in 50% of the states. The state EV policies include:
- Financial incentives for EV purchases, exemption from road taxes and car registration fees, and low loan interest rates for EV purchases.
- Initiatives to buy more electric vehicles are also included for last-mile delivery services and public transportation.
- Infrastructures for producing batteries for EVs and accompanying charging infrastructures are being built.
Companies that promote electric mobility
- Exide and Amara Raja Batteries, both well-known producers of automotive lead-acid batteries, are pioneers in focusing fresh investments on environmentally friendly technologies like lithium-ion batteries.
- 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.
- 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.
- To accelerate the switch to electric vehicles in the last-mile delivery sector, Flipkart has teamed with Hero Electric, Mahindra Electric, and Piaggio.