Electric Vehicles: Future Of Sustainable Transportation

E-mobility is the most effective solution to develop import substitution, and make cost-effective, indigenous, pollution-free mode of transport.

• The use of electric vehicles is increasing in the country. As per the e-vahan portal of Ministry of Road Transport and Highways, at present there are about 8.77 lakhs active electric vehicles are on Indian roads as on 08.12.2021.

Need

• Transport is a major user of energy and burns most of the India’s petroleum resources. This creates air pollution, including nitrous oxides and particulates.Air pollution is the fifth leading risk factor for mortality worldwide.
• Transport is a significant contributor to global warming through emission of carbon dioxide.
• Transport is the second largest consumer of energy after industry at 28%. India depends on oil import to meet its energy needs, thereby increasing import bill and affecting energy security.

Benefits

India’s transition to electric mobility will provide sustainable transportation as electric vehicles have following benefits:

• Reduce Pollution: Electric vehicles, being eco-friendly, curb local air pollution and improve air quality. It is envisaged that Low carbon scenario with ‘highest’ EV penetration shows 50 percent drop in PM 2.5 by 2035.
• Reduce GHG Emissions: Electric vehicles help to curtail greenhouse gas (GHG) emissions as they emit almost negligible amounts of carbon dioxide.
• Energy Security: India is dependent on oil imports to meet its energy needs. Thus, adoption of electric vehicles can help India to reduce its import bill and current account deficit. Further it can ensure energy security of India.
• Economic Development: Transition to electric vehicles will create new markets and industries and boost employment opportunities.
• Local Supply Chain of EV Components: Prospects for future demand in EVs would bolster investor sentiments, leading to development of local supply chain for EV components.
• Advantages of Development of Battery Manufacturing Ecosystem: Growing battery manufacturing ecosystem will create huge competitive advantages in mobility, consumer electronics, and support a stable and resilient electricity grid that can absorb increasing shares of renewable energy.
• Operational Advantages: Higher efficiency, lower fuel cost and lower operational cost make EVs economical.
  • EVs are much easier to drive and maintain than internal combustion engine (ICE) vehicles
  • The lack of a combustion and mechanical drivetrain makes EVs much quieter

Challenges

• High Costs: High vehicle prices are one of the major bottlenecks in adoption of EVs. Battery constitutes approximately 40% of the upfront cost of an EV.
• Inadequate Charging Facilities: The facilities and support for charging infrastructure are not adequate.
  • Lack of policy support for workplace charging
  • Delay in installation of charging infrastructure
  • Lack of focus on developing private charging infrastructure. Except Delhi no other state provides subsidy in development of private charger infrastructure.
• Additional Charge in Seeking Electricity Connection is borne by Applicant: As per the existing Supply Code of many States, the cost of upgradation of electricity network is required to be borne by the applicant. The network upgradation cost includes cost of 33/11 kV lines, Substation bay, transformer cost, etc. that increases the cost economics of development of charging station significantly.
• Lack of Active Participation by Institutions: There is no proactive participation of financial institutions in promoting electric mobility in India.
• Inefficiency in EVs: Lack of awareness, high charging time and limited travel range of EVs make them less attractive to consumers.
• Limited Production Capacity: As the domestic market is tuning to the transition, there has been limited capacity for production of localized components for electric vehicle.

Initiatives

The various initiatives taken by the government to promote electric vehicles in India are as follows:

• Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME INDIA) scheme was launched by the Ministry of Heavy Industries in 2015 to promote the adoption of electric/ hybrid vehicles (xEVs) in the country. Currently, phase- 2 of the FAME India Scheme is being implemented for a period of 5 years with effect from 1st April, 2019, with Rs 10,000 crores (US$ 1.34) as the budgetary support.
• GST on the electric vehicles and the chargers/ charging stations has been reduced from 12% to 5% and from 18% to 5%, respectively.
• NITI Aayog has launched ‘Shoonya Program’—an initiative to promote zero-pollution delivery vehicles by working with consumers and industry. The campaign aims to accelerate adoption of electric vehicles (EVs) in the urban deliveries segment and create consumer awareness about the benefits of zero-pollution delivery.
• The Indian Space Research Organisation (ISRO) has commercialized indigenously developed lithium ion battery technology and has selected 14 companies for transfer of technology.
• The NITI Aayog has taken an initiative to provide a Model Concessionaire Agreement (MCA) document for introducing Electric-Bus Fleet in Cities for Public Transportation on Public-Private Partnership (PPP) mode on Operational Expenditure (per km basis) Model rather than paying upfront capital cost.

Possibilities and Prospects

• Facilitate extensive support for research, development and demonstration of technologies using raw material abundantly available in India, to find alternatives and reduce dependence on scarce natural resources required for EV manufacturing.
• Policymakers will have to strike a balance between promoting localization while making EVs economical.
• Invest in creating charging infrastructure, to build ecosystem for EVs.
• Discoms could Build, Own and Operate installations, which would include the make-ready components as well as the charging equipment itself, resulting in a single regulated entity building out and owning the electric infrastructure and vehicle charging equipment.
• Designing a suite of interrelated EV policies can ensure that policies are aligned rather than contradictory and provide automakers additional flexibility in meeting policy requirements.
• The government should assist the industry in realization of localization targets with support in implementation.
• Support local manufacturers and workers in catching up with the electric vehicle technology by providing funds to the manufacturers and facilitating skill development for the workers.