The Indian automotive market has seen an unprecedented rise in all vehicle segments over the last few years. However, it remains dominated by the most affordable 2-wheelers, 3-wheelers, and the non-premium 4-wheeler. Although these vehicles require fossil fuels for their locomotion, there is a gradual transition from the existing transportation format to electric mobility. This gradual transition coincides with the energy transition that is currently happening on a global scale. Even though the Indian utility electricity sector is still reliant on coal for its daily energy, there is still a thrust towards clean energy with a comparatively lesser carbon footprint. In addition to the technical feasibility, the economic and environmental issues are important factors for consideration.

Since India has committed to reducing emission intensity by 33- 35% by 2030 from 2005 levels on the COP21 Summit held in Paris, it is imperative to opt for an alternative transportation format in sync with India’s accelerating economic growth, increased urbanization, travel demand and country’s energy security. Electric mobility is crucial in reducing India’s dependence on other countries for oil (a little over 198 million tonnes of crude worth $62.7 billion in 2020-21) and the overall pollution caused by the tail-pipe emissions of gasoline-driven vehicles. It also has a cascading effect on the economy. It augments entrepreneurial and employment opportunities in battery technology, mining, recycling, swapping, motor control, and design charging infrastructure. India, a power surplus country with rapid growth in the installed capacity of clean energy sources (renewable energy capacity in India increased by 250 % from 2014 to 2021), can aid the seamless transition to sustainable electric mobility

Policy thrust

The Government of India has been aggressively promoting the growth and penetration of electric vehicles through several forward-thinking schemes, policies, and regulations. It has approved the FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) – II scheme with effect from 1st April 2019 for three years with a budget outlay of Rs. 10000 crores, most of which is targeted towards demand incentives. Some of them include

• exemption from registration,
• capital subsidies,
• subsidies for batteries and certain vehicle segments,
• reduction of Goods & Services Tax (GST) on Electric vehicles from 12% to 5%,
• A claim of Income-tax deduction on the payment of interest for loans availed for the purchase of Electric vehicles.

Since the aim is for mass adoption and to ensure affordable and sustainable public transportation, this scheme caters mainly to public transport and commercial segments (for last-mile connectivity). The state-level policies have also been rolled out from 2017 onwards contouring on three primary issues:

• Incentives for ensuring consumer demand
• Incentives for setting up charging infrastructure
• Incentives for the industry

The India Roadmap – Opportunities and Challenges

The most visible benefit of owning an electric vehicle is the low lifecycle cost, as compared to gasoline-driven vehicles. This presents a favourable scenario to India as it is mostly comprised of middle-class and low-income groups. The maintenance is also easy owing to more than 50 % reduction in the moving parts as compared to the existing internal combustion engine vehicles. Besides, there are no tail-pipe emissions for an electric vehicle owing to which the carbon footprint is negligible. This enforces the sustainability aspect as well. But some inherent challenges hinder the penetration of electric vehicles in India. Due to the scarcity of charging infrastructure, range anxiety remains a major issue, as the commuter is bothered about the vehicle’s capability to reach the destination from the source. This has, in turn, created a negative perception. The capital cost continues to be high owing to the battery technology. India continues to import raw materials (lithium-ion) as well as batteries for electric vehicles. This issue can be addressed utilizing battery mining and recycling. Additionally, the FAME scheme does not cater to low-speed electric two-wheeler segments and lead-acid battery-powered electric vehicles. The existing potential can be tapped to ensure greater penetration of electric vehicles in India, thereby providing a more sustainable mobility option.

Dr. Mohan Krishna S,
Associate Professor,
Department of Electrical and Electronics Engineering