ELECTRIC VEHICLES IN INDIA – ENVIRONMENT

News: India’s electric vehicle market grew 223% in 2022

 

What's in the news?

       The firm expects the EV market in India to grow to over 300,000 units in 2025, with a compound annual growth rate (CAGR) of 59%.

 

Advantages:

1. Cut in greenhouse gas emissions:

       It will curtail greenhouse emission fully.

       Unlike fossil fuel engine vehicles, EVs produce zero tailpipe emissions.

2. Cost Savings:

       Electric vehicles have lower operating costs, as electricity is generally cheaper than gasoline or diesel.

3. Noise Pollution:

       Electric Motors function silently, and produce much less noise compared to IC Engines.

4. Fuel fluctuations:

       Unlike crude oil, there is a minimum level of price fluctuations in electric vehicles.

5. Low operating cost:

       Electric vehicles have lower fuel costs and require less maintenance than traditional gasoline-powered vehicles.

 

Challenges:

1. Import dependence:

       Most of the Electric vehicle’s battery components are imported.

2. Lack of infrastructure:

       Lack of infrastructure for electric vehicles like charging stations is a major issue.

3. High initial cost:

       Even though the government provides Incentives, the initial purchasing cost is very high.

4. Range issue:

       Still some concerns are there about the range issue.

       It can only be used at short range distances.

5. Long time for Charging Batteries:

       The battery charging time is much longer than the time taken for refuelling the ICE vehicles.

 

GOVERNMENT MEASURES:

1. FAME scheme:

       It was introduced to incentivise people to purchase electric vehicles at an affordable cost.

2. NEMMP:

       The National Electric Mobility Mission Plan was launched in 2020, which aims to have at least 30% of vehicles on Indian roads be electric by 2030.

3. Production linked incentive scheme:

       The government started a Production Linked Incentive (PLI) scheme to boost domestic manufacturing and attract global companies to invest in making electric vehicles.

4. National Mission on Transformative Mobility and Storage:

       Government aims to drive strategies for transformative mobility and Phased Manufacturing Programmes for electric vehicles, electric vehicle Components and Batteries.

 

WAY FORWARD:

1. Creation of phased manufacturing program:

       Creating a Phased Manufacturing Program (PMP) to localize production across the entire electric vehicle value chain.

       Coordination with key stakeholders in Ministries/ Departments/states to integrate various initiatives to transform mobility in India.

2. Sort out range issue:

       The range anxiety problem can be addressed by increased battery efficiency and expansion of charging points.

       Battery efficiency can be improved by further research, and expansion of charging points need greater investments.

3. Policy reforms:

       Stabilizing the policy environment by focusing on tax breaks and non-fiscal incentives might assist to alleviate demand uncertainty, allowing the business to reach economies of scale.