ELECTRIC VEHICLES:TO ACCELERATE THE ENERGY TRANSITION IN INDIA

To accelerate the energy transition in India, there is a need to deliver commercial EVs in the economy.

What is Energy Transition?

1. The gradual shift from fossil fuel-based energy systems to cleaner, greener, renewable energy sources.
2. Transition from oil, natural gas, and coal to wind and solar energy, as well as lithium-ion batteries.

India’s Energy Transition in EVs

1. In COP 26, India has committed to achieve net-zero emissions status by 2070. Also, to lower its emission intensity by 45% from 2005 levels by 2030.
   1. This explains India’s commitment to accelerate EVs in the Indian market.
2. India is the third-largest automobile market. As per NITI Aayog, by 2030 India will have:
   1. 80% of its two- and three-wheelers as EVs.
   2. 40% of its buses as EVs
   3. 30% of its cars as EVs
3. As per the Ministry of Road Transport and Highways, the sale of EVs in 2022 has reached a million units. This is 300% more than the 2021.
   1. India’s one-third of EVs sold were electric three-wheelers.
4. As per the Economic Survey 2023, the electric market in India has a 49% compound annual growth (CAG) rate. This reflects the huge potential of the EV market in India.
   1. It is projected that the annual sales of EVs will be 10 million by 2030.
   2. It is set to become a $206 billion market by 2030.

Need for EVs in India

1. Vehicle emissions release greenhouse gases (GHG) like nitrogen oxide (NOx), particulate matter (PM) and volatile organic compounds (VOC).
   1. Curbing these GHGs will help reduce the impact of global warming and climate change.
   2. It will reduce the risk of respiratory and cardiovascular diseases and thus improve public health.
2. Rather than being dependent only on fossil fuels, India is now focusing on a mix of clean energies.
   1. This will reduce the vulnerability of fluctuations in oil prices and thus increase India’s energy security. This will make its electricity grid more resilient.
3. India being the fifth largest economy needs technological development and job creation. The growth in the EV sector will India develop technologies and employment generation.
4. The development in research & development (R&D) will benefit the automobile sector, create energy storage, and increase grid stability, battery manufacturing and charging infrastructure.
5. The EVs will decrease operating costs and require lesser maintenance costs as compared to the fossil-based vehicle.

Government Initiatives

1. Implementation of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) has provided subsidies, tax rebates, preferential financing, and exemption from road tax & registration fees.
2. EVs are also part of India’s production-linked incentive (PLI) scheme, in which the manufacturer will be provided incentives with an increase in production.
   1. This increased production will help India to increase its domestic capacity and also its exports.
3. The government has also launched a Vehicle Scrappage Policy (VSP) where old diesel and petrol-powered vehicles will be scrapped. In return, the government will provide incentives to the individual to accelerate this transition.

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