essay on electric cars in india

Essay on Electric Vehicles in India

Students are often asked to write an essay on Electric Vehicles in India in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Electric Vehicles in India

Introduction.

Electric Vehicles (EVs) are a revolutionary technology in India’s transportation sector. They are vehicles powered by electricity, instead of petrol or diesel.

Benefits of EVs

EVs are eco-friendly, reducing air pollution and global warming. They are also quieter and cheaper to maintain than traditional vehicles.

Challenges in India

India faces challenges in adopting EVs. These include lack of charging infrastructure, high costs, and limited driving range.

Government Initiatives

The Indian government is promoting EVs. They have introduced subsidies and are planning to create charging stations.

250 Words Essay on Electric Vehicles in India

Electric Vehicles (EVs) are rapidly emerging as a sustainable alternative to traditional fossil fuel-based vehicles. In India, the adoption of EVs is driven by the urgent need to curb air pollution and reduce dependency on oil imports.

The Indian government has shown a strong commitment to promoting EVs. The National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) schemes have been instrumental in providing subsidies and incentives for EV adoption.

Challenges and Opportunities

Despite the positive outlook, several challenges persist. The lack of charging infrastructure and high upfront costs of EVs are significant barriers. However, these challenges also present opportunities. The development of charging infrastructure can stimulate job creation, while reducing EV costs can be achieved through local manufacturing and economies of scale.

Future Prospects

The future of EVs in India looks promising. With a growing middle-class population, rising environmental awareness, and proactive government policies, the adoption rate is expected to rise. Technological advancements such as battery swapping and fast charging are further expected to boost the EV ecosystem.

In conclusion, while the journey of EVs in India has just begun, it holds immense potential for transforming the country’s transportation landscape. The key to success lies in addressing the challenges head-on and leveraging the opportunities that this transition presents.

500 Words Essay on Electric Vehicles in India

The advent of electric vehicles in india, policy framework and government initiatives.

The Indian government has been instrumental in driving the EV revolution. The National Electric Mobility Mission Plan 2020 and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) schemes are key initiatives that provide financial incentives for manufacturing and deploying EVs. The government has also reduced the Goods and Services Tax (GST) on EVs from 12% to 5% to encourage adoption.

Challenges to EV Adoption

Despite these positive steps, the adoption of EVs in India faces several challenges. The high upfront cost of EVs, lack of charging infrastructure, and range anxiety are significant barriers. Additionally, the Indian consumer’s preference for high-speed and long-range vehicles, coupled with the limited availability of such options in the EV segment, has further slowed down adoption.

The Role of Battery Technology

Opportunities in the ev ecosystem.

The EV transition is not just about vehicles; it’s about creating an entire ecosystem. This shift presents opportunities in various sectors like energy, infrastructure, and services. For instance, renewable energy can be integrated with charging infrastructure to ensure green charging. The rise of EVs also opens up avenues for new business models like battery swapping and charging station networks.

Electric vehicles are the future of transportation in India. While the road to electrification is fraught with challenges, the potential benefits in terms of environmental impact, energy security, and economic opportunities are immense. The success of the EV revolution in India hinges on a holistic approach that addresses policy, technology, and consumer behavior. As the country embarks on this transformative journey, it will require the collective effort of government, industry, and citizens to ensure a sustainable and inclusive electric mobility future.

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The Future of Electric Vehicles in India: Opportunities and Challenges

Raghav Bharadwaj

Head of Strategy and Leadership

As one of the world's largest automobile markets, India's country-wide electrification will be a turning point for the entire world and the country itself. Driven by the  Indian government's push towards sustainable mobility , growing consumer demand for new technologies, and the emergence of private players with an interest in EV technology, the future of electric vehicles in India looks promising.

However, the country continues to grapple with several challenges in its pursuit of full EV adoption, namely with the low number of charging stations and high upfront costs of EVs. 

In this article, we focus on the following three questions:

• What is the state of the Indian EV ecosystem?
• What challenges and opportunities lie ahead? 
• What can India learn from other countries?

India's EV Market Is on a Rapid Growth Trajectory

India is one of the world's largest markets for two- and three-wheeled vehicles, ranking among the global top five for private cars and commercial vehicles. 

According to  JMK Research , a staggering 455,733 EV units were sold in FY2022. India's  Ministry of Road Transport and Highways  also claimed that 1,334,385 electric vehicles in India were on the road as of July 2022. 

These numbers are sure to increase, with central and state governments, as well as private sector players, actively pushing for greater electrification on Indian roads. 

India Sets Ambitious Targets

According to Union Minister Nitin Gadkari, the Indian government intends to achieve the following EV mix in India by 2030:

To reach these ambitious targets, the Indian government has created policies and programs like  the National Electric Mobility Mission Plan (NEMMP) , a broad plan to encourage the adoption of electric vehicles in India. The aim is to reduce India's dependence on crude oil. 

The Indian government has also formulated the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme. This plan should facilitate greater adoption rates in the coming years. The Finance Minister of India has also  announced a reduction in customs duty and taxes  for the 2023 budget. This will help boost the domestic production of lithium-ion batteries that power electric vehicles. 

Many state governments like Assam, Telangana, Tamil Nadu, and Gujarat have also  created attractive policies and programs  to incentivize EV manufacturing in their respective territories. 

As a result of these strategies, private players have begun entering the EV market, setting the stage for the further adoption of electric vehicles in India. India's success will also have a significant, positive impact on the rest of the world. 

India's EV Adoption Will Be a Global Win

According to the International Energy Agency (IEA),  global EV sales in 2021 doubled from the previous year  to 16.5 million EV units sold worldwide. India also announced that EVs will represent at least 30% of all road traffic by 2023. Though a modest target, a 30% adoption rate will have global ripple effects, both environmentally and economically.

For starters, India is the world's  third-largest oil importer , but the transition to EVs will significantly reduce its oil dependency, disrupting global oil markets. If India can meet its ambitious adoption targets, the country will create a model that other emerging economies can replicate. This, in turn, will have further impacts on oil markets as the dependency on this fossil fuel decreases.

Additionally, with  India's population of 1.4 billion  and its rapidly growing economy, the country is certain to be an influential player in the global EV market today. The full adoption of electric vehicles in India will represent a major step in the right direction toward sustainable development in worldwide mobility.

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Environmental Opportunities for India

The shift towards electric vehicles in India will have a significant impact on the environment. Currently, the transportation sector in India is a major contributor to pollution. Take the capital, New Delhi, for example, where  two- and three-wheelers contribute 50% to the surface PM 2.5  levels. 

India's transportation sector also accounts for  about one-fifth of the country's total energy use . In light of these numbers, EVs can have a huge impact on India's environment in the following areas. 

1. Reducing Air Pollution

Within India alone, vehicular traffic contributes to 27% of total air pollution and  claims 1.2 million deaths  annually. EV adoption in India will therefore significantly reduce the negative global environmental impacts originating from Internal Combustion Engine (ICE) vehicles. 

2. Reducing Noise Pollution

Noise pollution is also a major challenge in India due to the rapid urbanization increasing the need for vehicles. According to the  2022 UNEP report , five Indian cities feature in the world's noisiest cities. Though vehicles are not the only source mentioned in the report, EVs are likely to bring down the noise levels because they don't have the mechanical valves, gears, or fans common to ICE vehicles. 

3. Improving Operational Efficiency

From a fuel efficiency standpoint, petrol or diesel cars convert only  17 to 21% of stored energy while EVs can convert 60% of electrical energy  from the grid. Clearly, this shift to electric vehicles in India can improve the efficiency of fuel production and optimization. It will bring down the operational costs for end-users, thereby increasing demand for EVs. 

Besides the above environmental impacts, the adoption of EVs in India will also present many economic opportunities for the country.

Economic Opportunities for India

In addition to representing significant progress towards a cleaner and greener future, locally, the full electrification of India will benefit businesses, investors, and consumers alike. Below, we highlight several of the most compelling opportunities. 

1. Fleet Operators

Fleet operators like Amazon, DoorDash, and BigBasket can reduce their operating costs by switching to EVs. According to  Weforum.org , the Total Cost of Ownership (TCO) for a two-wheeler in New Delhi is Rs 2/km when it's run on petrol. This cost comes down to Rs 0.52/km when switched to EVs. Undoubtedly, the operating costs go down by more than half for fleet operators. Maintenance costs will go down as well. 

However, shifting to EVs is happening at a much slower pace when compared to Brazil or the US. Electric vehicles in India are still unfavored because of the high upfront costs, unestablished reseller value, and lack of trust in the new technology. 

To address these concerns, the government is providing tax incentives to reduce upfront costs. Meanwhile, first mover companies are providing  robust and reliable charging solutions  that will boost confidence in this new technology.

The EV industry provides enormous opportunities for OEMs to build cost-competitive auto products for India and the rest of the world. Research shows that OEMs can  produce a 5.7% higher value addition to every EV by 2030 . As a result, the Indian government is pushing for indigenization of the supply chain under the Atma Nirbhar plan to support OEMs to develop the EV ecosystem.

Furthermore, efforts from companies in India are underway to help OEMs build a  charging app using SDK development tools , and provide access to features like navigation, vehicle diagnostics, and keyless control. All these measures help OEMs offer on-the-go charging for their drivers and accelerate the shift to EVs.

3. The Real Estate Sector

EVs create multiple opportunities for real estate investors, realtors, and property developers, as this industry requires the  construction of EV manufacturing units, industrial areas, and charging stations . Another key aspect is the development of retail infrastructure around EV charging stations, as it takes an average of 15 to 20 minutes to charge an EV. 

A  report by Colliers  shows that the EV industry will require 1,300 acres to set up 110 GWh battery manufacturing capacity by 2030. The country will also need 13.5 million square feet for charging stations by 2025. These numbers reflect the ample opportunities available for every player in the real estate space.

4. Consumers

India's young and dynamic population is looking forward to embracing new technologies as the country is experiencing a  growing trend in upward mobility . As individuals become more affluent, their socioeconomic status continues to improve, and they are better positioned to purchase EVs.

To meet the growing demand, the government and other innovative players in India's EV space are spearheading efforts to add more charging points to EV charging networks. This includes offering software solutions that make daily charging accessible. 

Multiple players are also  partnering with businesses and government agencies  to build innovative solutions that positively impact the EV industry, leveraging India's qualified talent pool. According to  Nitin Gadkari , the Union Minister of Road Transport and Highways, the EV industry is likely to create five crore new jobs, and India's young talent pool is well-poised to ride this job growth. 

Despite these many opportunities, the country still has to address significant challenges before reaching full adoption of electric vehicles.

The Challenges for India

Realizing India's EV potential is not without its challenges. The journey towards widespread EV adoption in India is slow and plagued with hurdles to overcome. In the following sections, we examine the key challenges hindering EV adoption in India. We also explore possible solutions that can help the country overcome these obstacles to enable a faster, more efficient country-wide adoption of EVs.

1. Lack of Clean Energy

Much of India's  electricity is generated from burning coal . That said, relying on coal to generate power for all the EVs would defeat the purpose of reducing carbon emissions through EV adoption. That's why India is exploring other energy generation sources, like solar, wind, and nuclear energy, as mentioned in Nitin Gadkari's speech in the  7th edition of the ETAuto EV Conclave . The government is also actively pursuing research and development in the areas of biofuel to power EV manufacturing units.

These measures from the Indian government provide trust and opportunities for private players to leverage innovation and technology to build EVs faster and at a lower cost. In turn, this will bring down upfront costs for end-users, thereby leading to greater adoption of electric vehicles in India. 

2. Underdeveloped Charging Infrastructure

Infrastructural issues stand against India's quest for full EV adoption. EVs require different charging and maintenance infrastructure than traditional ICE vehicles because of the differences in engine and other working parts. But India's current charging infrastructure may not be enough to handle the increased demand for EVs. 

At the time of writing this piece, India has  934 charging stations , most of which are located in urban areas. In comparison,  China had 1.8 million electric charging stations  as of 2022. Building bigger batteries and fast-charging stations will mean investing in high-speed, commercial-grade chargers. This, however, requires  significant capital investment . 

The government is working with private players to boost the presence of charging stations. The  Ministry of Power  is providing a slew of financial and non-financial incentives to build EV charging stations. For example, the ministry is adopting a revenue-sharing model for land use and setting affordable charging rates for both operators and users.

In addition, private entities in the sector are working with municipal, state, and central entities to help  install EV stations and charging points . They are also collaborating with operators to create a Charger Management System (CMS) to monitor the operations of these stations and streamlining the entire charging process. 

3. Suboptimal Battery Technology

An EV's driving range is limited, making it difficult for drivers to travel long distances without recharging. Besides limited charging stations, battery capacity, aerodynamic drag, and vehicle weight also compound the problem. This is because current batteries are small, and have low voltage capacities, so they aren't enough to increase EV propulsion and travel longer distances.

To address this problem, private players must innovate to create batteries made of lightweight materials, with higher energy density, and that use renewable sources for charging. The government is providing the necessary impetus in the form of  tax credits . 

The national government is also promoting the manufacturing of batteries in India with the  National Mission for Transformative Mobility and Battery Storage, 2019 . It is also providing companies with the technical know-how and business environment to improve the battery technology for EVs.

4. Persistent Resistance to Change

Indian consumers are still resisting the adoption of EVs, despite their long-term economical and environmental benefits. This stems from a lack of awareness of EVs and a general reluctance to embrace new technologies, especially in rural areas.

But players in the Indian market must come together to address consumers' concerns. They should also build a supportive ecosystem to promote the widespread adoption of EVs in India. This can be done through the development of more affordable EVs, the expansion of charging infrastructure, and the creation of awareness and education programs to educate consumers about the benefits of switching to EVs. 

What Can India Learn from Other Countries' Success?

Power, infrastructure, and financing all are primary antagonists in India's EV adoption story. But the country can take cues from others already making inroads towards full EV adoption. The countries leading global EV adoption paint an interesting picture.

The top countries in the graph above are all wealthy countries in northern Europe. Combined, they don't even represent 3% of India's population. This may lead us to believe that their success will be impossible to replicate in a much more diverse and densely-populated country, like India. 

However, China comes in second and turns that argument on its head. Let's delve into what different regions have done for EV adoption and what India can learn from these efforts. 

The EU, EFTA, & UK

In 2021,  electric car registrations  in the EU-27 region was 1,729,000, up from 1,061,000 in 2020, representing a 17.8% increase. All EU countries, including Norway, which has the highest number of registrations in a year, offered financial incentives like tax reductions and exemptions. 

India is also offering tax incentives along the same lines. And with favorable government policies and the presence of first-mover companies, the country will be able to  improve the adoption of EVs in the next three to five years . 

According to the China Association of Automobile Manufacturers (CAAM),  China sold 6.89 million EVs in 2022  alone. It also boasts the largest electric car fleet in the world: 4.6 million + electric cars on roads in China. This  success story  is attributed to generous government support as well as intense domestic competition, both of which fueled innovation and reduced car prices. 

In comparison, India is also offering support, but the domestic market is not robust and competitive yet. But that is expected to change in the coming years as the impact of the current policies becomes more widespread. In the meantime, the government must continue to encourage innovation and investments. 

EV car sales in the US represent 5.8% of all vehicles sold , up from 3.2% a year ago. However, the overall sales fell by 8% in 2022 when compared to 2021. Experts believe that stricter requirements for claiming federal incentives, high car prices, and concerns about raw materials for batteries were the cause of the decline. That said, the EV car industry is still huge in the US, and it grew due to government investments and policies. Innovation by leading players like GM and Tesla also added to the appeal.

In comparison, the Indian government is significantly pushing towards greater adoption of EVs, with incentives and investments. However, it must enhance the pace of innovation and technical expertise. To do that, the government should create more educational centers of excellence. It must also stop federal funding in a phased manner after considering the macroeconomic factors. 

With the right mix of policies, awareness, investments, infrastructure, and technology, India will certainly take key lessons from these countries to drive full EV adoption.

Smart Digital Solutions Will Be A Key Driver for India's EV Ecosystem

The future of electric vehicles in India holds great promise and is poised for significant growth in the coming years. With supportive government policies, increasing consumer awareness, and advancements in EV technology, the country is well-positioned to embrace this shift toward sustainable transportation. 

The increasing demand for EVs is also leading to an expansion of charging infrastructure and the development of locally produced battery technologies. The automotive industry in India is also poised to play a major role in the global shift towards EVs, with the country having the potential to become a leader in this space. 

Private companies play a critical role in offering smart digital solutions that will contribute to infrastructure development while acting as a bridge between government agencies and end-users. Initiatives from these companies will help fleet operators make the shift to EVs and OEMs to provide seamless driving experiences to their customers. 

Collaboration with local governments will also help expedite the construction of charging stations, along with creating greater awareness among Indian customers. This will contribute to the rapid growth of the EV industry. 

It is therefore up to both the public and private sectors to continue working together to make India's ambitious goals a reality. The right combination of innovation and investment has the potential to accelerate the adoption of electric vehicles in India, transforming the country's transportation landscape and contributing to a cleaner, greener future.

For more information about the future of electric vehicles in India, please see the  FAQ  and  Resources  sections below.

Bureau of Energy Efficiency: E-Mobility

Learn more about the general E-Mobility space from the  Ministry of Power . 

E-Amrit: Accelerated E-Mobility Revolution for India's Transportation 

See  what the government is doing  to support the transition to electric vehicles in India. 

SECTION 80EEB: Tax Deductions 

Find out  which tax deductions are available  for electric cars in India. 

Bolt.Earth: Official Website

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Consumers are driving the transition to electric cars in India

India is poised to embrace a future of electric vehicles (EVs): 70 percent of tier-one Indian car consumers state that they’re willing to consider an electric car for their next vehicle, as compared to the record-high global average of 52 percent. Even though the Indian internal-combustion engine (ICE) vehicle market has seen an increase in recent years, 1 Brajesh Chhibber and Nitesh Gupta, “ The Indian automotive industry: From resilience to resurgence? ,” McKinsey, March 3, 2021. the rapid transition to electrification signifies a decisive inflection point for the country. Driven by a shift in global climate policies, central and state governments have introduced initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme to speed up the adoption of EVs. In addition, several cities have introduced access regulations for ICE vehicles to reduce air pollution and improve traffic conditions.

About the authors

At the same time, EVs have become increasingly accessible. Incumbent car manufacturers have announced ambitious product-portfolio electrification targets. Newcomers have launched models specifically designed for India’s urban environments. And the total cost of ownership for EVs, which is historically an obstacle for EV purchasers, achieved parity with ICE vehicles. As a result, EV market penetration is projected to grow to 10 to 15 percent by 2030, 2 Estimate from McKinsey Electrification Model as of July 2023. Does not include impact of potential change in FAME regulations. creating a significant opportunity for OEMs, financial institutions, grid operators, and other stakeholders.

Methodology

To better understand consumer sentiment about vehicle electrification in India, we surveyed people across income levels and spanning regions in India (see sidebar, “Methodology”). Their responses reveal both an appetite for and concerns regarding electric vehicles, including the importance of sustainability, charging infrastructure, and the evolving purchase journey in the online space.

Consumers are largely on board with EVs because sustainability is increasingly important

About the mckinsey center for future mobility.

Consumer sentiment suggests the transition to electric cars will gain momentum. The vast majority of people are eyeing EVs for their next car purchase, with a clear preference for full battery electric vehicles (49 percent) over plug-in hybrid electric vehicles (21 percent) (Exhibit 1). These preferences align closely with our research on electric two-wheelers, which showed that 86 percent of consumers would consider buying an EV compared to 69 percent who would consider an ICE vehicle. A number of factors are contributing to this appetite for EVs, with potential purchasers noting the impact on the environment (67 percent), lower total cost of ownership (26 percent), and reduced engine noise (26 percent) as the biggest benefits of driving an EV.

Indeed, an overall concern for sustainability is influencing Indian consumers’ desire for EVs, with sustainability being the number one priority in car-buying and mobility-usage habits. In fact, sustainability is increasingly influencing consumer decisions across the board in India: 75 percent of Indians are starting to change (or have already changed) their behavior and consumption patterns based on sustainability considerations. Of these changes, engaging with and becoming more loyal to sustainable brands (27 percent), positively advocating for sustainable products and services (23 percent), and trying sustainable products and services more often (20 percent) are the most common.

Sustainability is among the top five criteria people factor in when considering a car, along with safety, brand, and costs (Exhibit 2). The desire for zero-carbon vehicles is also evident in the dominant two-wheeler market, in which this preference was one of the top three purchase criteria.

Convenient charging points and long-term test-drives will accelerate adoption

Alongside all this momentum for sustainable mobility, there emerge real concerns that could influence uptake, including battery life and safety, purchase price, charging time, and reliability of technology. Better availability of charging points is one of the biggest factors influencing the shift toward electric mobility. Perceived charging infrastructure readiness is low: more than 75 percent of all surveyed consumers feel that India is not yet well set up in terms of charge points (Exhibit 3).

Indian consumers show almost equal affinity for public and home charging (58 percent and 42 percent, respectively) despite appreciating the latter as being cheaper, more convenient, and more accessible. However, only 55 percent of consumers have access to home charging, while another 30 percent would be able to upgrade their home setup accordingly. But even though Indian consumers have limited access to home charging, this will likely not hinder EV adoption. Two-thirds of Indian consumers would buy an EV even if they could not charge at home. But similar to what we found in our research on electric two-wheelers, 38 percent of consumers feel their nearby areas lack a sufficient network of charging infrastructure. Hence, investing in both public and home charging is critical for further EV adoption. The biggest factors influencing where people choose to charge in public are charging speed (49 percent) and costs (41 percent), followed by the safety of the location (28 percent). In fact, most people are willing to pay 10 to 20 percent more for the convenience of fast charging.

Another significant factor influencing potential EV purchasers was the test drive experience. Of the people who are currently skeptical about purchasing an EV, 24 percent said the test drive experience presents an important tipping point in the overall purchase journey. Thus, OEMs can consider implementing long-term test rides (over the course of seven to ten days) with the convenience of at-home services to eliminate customer anxiety while adopting new products and technology.

Other major factors that could lead to higher EV adoption are vehicle safety improvements and providing better servicing infrastructure. Furthermore, an increase in fuel prices and a better understanding of the total cost of ownership of EVs might nudge more customers toward EVs.

The transition to electric cars will change the purchase journey

As the transition to EVs unfolds, the landscape for buying and selling cars is changing dramatically. Indian consumers are open to buying cars online and want to interact with brands through a simplified, digital process that provides more flexibility and convenience. The majority of Indian customers are ready to perform most of their car purchase journey digitally. More than 70 percent of consumers are starting their journey online, and about 40 percent of consumers are willing to make purchases online. However, about 90 percent of the same consumers need a physical touchpoint with an OEM or dealer. This applies to highly individual exchanges such as test-drives, services, answering questions about the vehicle, or negotiating best deals.

Across each major touchpoint of the purchasing journey, people who prefer to engage via websites and apps show a strong preference for engaging with OEMs rather than a dealer or third party (Exhibit 4). This indicates an emergence of hybrid direct-to-consumer models, with car dealers continuing to play a pivotal (but evolved) role in the overall purchase and post-purchase journey.

Flexible ownership options are also becoming more popular with Indian consumers. While most consumers (about 79 percent) still prefer an outright purchase for their next car, they are gradually opting for more-flexible ownership options such as car leasing, subscriptions, or pay-per-use models.

Shifting ownership preferences, stemming from a desire to access higher-value assets and have more flexibility and convenience, are opening new market opportunities for flexible ownership options, such as leasing. Our global survey revealed that consumers in other geographies are willing to switch brands for flexible vehicle purchase, indicating that the time is ripe for market players to adapt.

Consumer appetite for EVs has implications for mobility stakeholders

These trends raise important considerations for different stakeholders in the mobility ecosystem as they work to meet consumers where they are in their journey toward EVs.

In many cases, electric cars could become an important pocket of growth for car manufacturers. The contribution of electric cars to overall revenues may become more significant in the future as consumer pull accelerates and governmental measures become even more favorable. With a fast-growing market open to innovations in car purchasing (for example, via online channels) and usage (for example, fully leased), electric cars may provide an entry opportunity for new players. At the same time, car dealers may need to adjust their sales and service offerings to accommodate the growing demand for electric cars, including expanding their technical knowledge and digital capabilities to deliver omnichannel experiences. Supplier stakeholders such as grid operators will most likely experience an increased demand for electricity and may need to upgrade and expand the existing infrastructure and integrate new technologies to optimize the use of the electrical grid. And cities will be crucial players in shaping the EV transition, providing the infrastructural conditions for charging needs and implementing effective policy measures.

Indeed, the shift to electric cars in India has implications far beyond only OEMs and could be an integral part of progress toward a more sustainable India.

Tushar Goswamy is a consultant in McKinsey’s Chennai office, Alexander Grausam is a consultant in the Munich office, Bhavesh Mittal is an associate partner in the Bengaluru office, Timo Möller is a partner in the Cologne office, Felix Rupalla is an associate partner in the Stuttgart office, and Prabhmaan Thapar is a consultant in the Delhi office.

The authors wish to thank Jaidit Brar and Nitesh Gupta for their contributions to this article.

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Essay on Electric Vehicles: The Future of Transport, Benefits of Electric Vehicles uses, Electric Vehicles

Electric Vehicles, essay on electric vehicles, benefits of electronic vehicles (EVs), paragraph on electric vehicle, article on electric vehicle (EVs), electric vehicles essay.

Essay on Electric Vehicles 

Today when the world is thriving to use day by day new technology everywhere, Electric Vehicles must be the future means of transport. Pollution , growing demand for fuel, Global Warming , promoting eco-friendly means of transport are some of the reasons for promoting electric vehicles.

Electric Vehicles

Electric Vehicles are means of transport that consume eclectic energy as fuel instead of traditional fuels such as petrol, diesel, and CNG. These vehicles may be powered through a collector system by electricity from off-vehicle sources or maybe inbuilt with a battery, solar panels, fuel cells, or an electric generator to convert fuel to electricity. Electric bikes, electric cars, electric rickshaws, etc are some examples of electric vehicles. Most of the trains including metros are already running worldwide through electricity.

Need of Electric Vehicles

These are following factors which creates urgent need for use of electric vehicles:

• To reduce pollution
• To conserve non-renewable natural resources
• To reduce import of petrol and diesel
• To promote use of renewable energy
• To reduce global warming
• To fulfill the need of growing demand of more means of transport .

The world population is increasing drastically day by day and the demand of means of transport also growing proportionally. Thus demand of fuel is also increasing.  Too much smoke comes out from traditional vehicles this cause air pollution which take many lives every year.

Benefits of Electric Vehicles uses

We all are living in an advance era of technology. Advancement of technology always helps for betterment of human life. Use of electric vehicles are very beneficial for human as well as for environment in many ways. Some of these are given below:

• Electric vehicles run from electricity and doesn't emit smoke thus it is very helpful for reducing the pollution which causes many types of life threatening disease.
• Smoke is also one of the major causes of global warming. Thus using electric vehicles will reduce global warming.
• Petrol, Diesel and CNG are non-renewable natural resources of energy. Over-use of these fuels is not good for nature also. Thus use of electric vehicles can be very helpful for conservation of these natural resources.
• Today when advancement of technology growing rapidly electric vehicles are new means of transport to fulfill the larger demand of people growing day by day.
• Electric vehicles are eco-friendly. Use of electric vehicles is good for environment as well as human life.
• Electric vehicles are new technology. This sector will grow day by day which will generate lot of employment in this field.
• Electric vehicle will reduce the dependency of a nation on petroleum export countries.
• This will reduce the import cost of petrol, diesel like fuels and thus it will help in growing the economy of the country.
• Cost of electric vehicles is also low if we compare the recurring expenditure on petrol and diesel used in traditional means of transport .

Government initiative towards use of Electric Vehicles

As electric vehicle is cheaper in long run and also environment friendly, Government is continuously promoting the use of electric vehicles . Since long time many trains including metros have been running on electricity. Indian Railways trains are now almost running on electricity. Electric bike, electronic car, electronic rikshaw are already in market. Now people should use more electric vehicles in place of traditional petrol & diesel vehicles. Government has started campaign to promote use of electric vehicles. Some rebate on taxes and subsidy on purchasing the electric vehicles, are also provided by the Government. Recently Delhi Government has launched ' Switch Delhi ' campaign to promote the use of electric vehicles. Essay on Electric Vehicle PDF Do of this Essay:  Click Here .

'Switch Delhi' Campaign

Recently Delhi Government has launched 'Switch Delhi' campaign a Jan Aandolan to promote use of electric vehicles . This initiative has been taken by Delhi Government to cut down air pollution caused due to smoke emitted by traditional petrol & diesel vehicles. Earlier in August 2020 Delhi Government introduced Delhi EV Policy. Under this policy Delhi Government provides waiver on road tax, benefits up to Rs.1.5 lakh on four wheelers and more.

Electric Vehicles are the future of means of transport. It becomes more necessary when we think about the growing pollution , pollution born disease and global warming . We must use electric vehicle keeping in mind the above points including the environment and also promote the use of electric vehicle.

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A Study on an Automobile Revolution and Future of Electric Cars in India

International Journal of Management (IJM), 11 (3), 2020, pp. 107–113

7 Pages Posted: 29 Apr 2020

Dr. Anoop Pandey

Bharati Vidyapeeth University - Institute of Management

Dr. Sanjay Manocha

Assistant Professor, Bharati Vidyapeeth Institute of Management & Research (BVIMR), New Delhi, India

Dr. Pankaj Saini

Date Written: April 4, 2020

The introduction of electric vehicles marks the beginning of the end for conventional motor vehicles. The main reasons for switching to electric vehicles are the need to reduce polluting emissions from engines and dependence on expensive fuels. By the end of 2016, the global inventory of electric vehicles had exceeded two million. The increasing acceptance of electric vehicles is the result of several factors: technological progress, increase in storage capacity of traction batteries in connection with lower costs, increase in public and government charging equipment. Incentives. The two EV technologies that are currently at the forefront are battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). This document gives an overview of the different EV technologies, their characteristics, their limits and their challenges in their mass use as a replacement for conventional vehicles. In this new era, electric vehicles have attracted considerable attention as an ecological means of transport by sellers, buyers and researchers, which has led to a series of intensive and in-depth studies. There are many thoughts on battery consumption, infrastructure and charging points for electric vehicles. This document takes into account the obstacles and the gains that the world will experience after the complete arrival of electric vehicles. The paper successfully introduced aspects of electric vehicles, including studies of government policies, charging methods, key techniques, charging effects and solutions to related problems in a concise manner. In view of the discussions on the current scenario of electric vehicles, a brief report on the important facts concerning the entry of electric vehicles has been created.

Keywords: Plug in Electric Vehicle (PEV), Battery Electrical Vehicle (BEV), Transformation, Pollution, Technology, FAME

Suggested Citation: Suggested Citation

Anoop Pandey (Contact Author)

Bharati vidyapeeth university - institute of management ( email ).

A-4, Paschim Vihar, Rohtak Road Pqaschim vihar New Delhi, ND 110063 India

Assistant Professor, Bharati Vidyapeeth Institute of Management & Research (BVIMR), New Delhi, India ( email )

New Delhi India

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The road to the future of electric vehicles in India

The road to an electric vehicle future still has a few potholes, but these challenges can be fixed.

Updated - March 19, 2022 08:42 pm IST

Published - March 18, 2022 02:57 pm IST

India offers the world’s largest untapped EV market, especially in the two-wheeler segment. With several automakers rolling out EV vehicles at a rapid pace, the penetration of these vehicles has increased significantly in the past few years. As per a recent study, electric vehicles (EVs) market is expected to be worth around at least ₹475 billion by 2025. The penetration of electric two-wheelers is projected to reach up to 15% by 2025 from 1% currently.

As business activities gain pace and the Indian economy rebounds its way in 2022, the auto industry is set to enter a new phase of growth, innovation and investment. However, the road to the future of EV is battling various challenges. While the government is aggressively promoting EV adoption in India, the inadequate infrastructure, lack of high performing EVs and high upfront cost is causing a major hindrance for its mass adoption.

Capital cost has always been a major factor in the EV purchase decision, with 63% of consumers believing that an EV is beyond their budget. The lack of adequate charging infrastructure in our country is a huge barrier to increased EV penetration. Compared to traditional petrol stations, charging stations are harder to find, normally limited by investment costs and difficult infrastructure development enabling people to charge where they usually park, at home or at work, which presents its own challenges, such as dealing with multi-tenant buildings, grid-connection management, and charging slot availability. It is anticipated that there will be a shortage of nickel, and scaling up lithium production would be a challenge, leading to supply shortage that may cause manufacturers to use lower-quality mineral inputs, adversely affecting battery performance.

India recorded a power supply shortage of 1,201 million units in October 2021 — the highest in 5.5 years due to a crunch in coal stocks available with thermal plants. To have revolutionary switch to electric vehicles, our country needs to address the basic issue of power shortage. Lack of constant power supply in villages and smaller towns and metros like Delhi and NCR having major breakdowns for hours at a stretch. Summers is likely to affect the EV switch on a large scale, maximum EV users will be two and three wheelers and this consumer does not get power supply 24/7.

EV revolution is presently focused on metros where the consumer has range anxiety because of a daily travel of 100km, whereas the actual consumer is in tier-II and tier-III, where the travel radius is 15-20km; here a consumer can ride 150-180km after electrification without the worry of a recharge or looking for a swapping station.

There are a range of potential market barriers that limit the ability of EV industry to rising demand an underdeveloped charging ecosystem continue to impede a higher penetration in the two-wheeler consumer segment. The absence of robust manufacturing ecosystem for the materials associated with the EV revolution, coupled with the concentration of the supply chain in certain regions, is likely to draw these issues into still sharper focus in the coming years.

The government introduced a slew of measures in line with ‘Make in India’ campaign to incentivise manufacturers to produce components locally and build a structured policy framework as India is heavily dependent on China for lithium supply chains constraining the widespread deployment of EVs. Recent policies that were introduced, including battery swapping policy, aimed at an encouraging move towards green energy generation and decentralisation of energy distribution is likely to create a well-established EV infrastructure across the country, while instilling customer confidence in riding EVs on Indian roads. The battery swapping model for supplying power has side-stepped the lack of charging infrastructure but the future is likely to see a mix of both models.

However, India does not have infrastructure or technology to manufacture chips or Lithium-Ion Cells; until we have the basic infrastructure in place it is a challenging road ahead, with increase in dollar prices and volatile import situation due to rising tensions.

Currently, the EV market is fragmented with independent dealerships which make it difficult to create proper infrastructure for second-hand sales. Moreover, warranties, quality and strength of the vehicle vary significantly. Vehicles many times lose form because of rough use, or the battery degrades. At present there is hardly any formal infrastructure for sale of used vehicles. Shortage of global semiconductors further creates supply chain issues and promote localisation of commodities for automotive OEMs (Original Equipment Manufacturer).

However, large OEMs are making initiative to venture into EV components market to reduce reliance on imports and meet the 50% localisation criteria to access government subsidies.

A substantial infrastructure that is affordable, accessible and serves all consumer groups coupled with strong financing ecosystem, policy incentives, and technological advancements is likely to poise the EV market for significant growth in the coming decade.

The writer is founder, Ignitron Motocorp Pvt. Ltd.

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Electric Vehicles

Last updated on July 31, 2024 by ClearIAS Team

India is currently the fifth-largest vehicle market in the world and has the potential to become one of the top three soon.

The Paris Agreement ‘s global climate agenda is the driving force for the demand for electric vehicles (EVs). It aims to cut carbon emissions to reduce global warming.

Vehicles that run entirely or mostly on electricity are referred to as electric vehicles. Electric vehicles are particularly environmentally friendly. They consume little to no fossil fuels, have fewer moving components that need to be maintained, and have minimal operating expenses.

India needs a transportation revolution. And shift towards the Electric Vehicle is a positive step in this direction.

Table of Contents

Benefits of Electric Vehicles

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• Electric vehicles (EVs) require less maintenance because they have fewer moving parts.
• They are an alternative to combustion engines powered by fossil fuels, which discharge harmful greenhouse gases into the atmosphere. India has pledged to reduce the intensity of GHG emissions by 33% to 35% below 2005 levels by 2030.
• The adoption of electric vehicles is consistent with India’s pledge to lower carbon emissions and provide renewable energy sources more support.
• EVs are economical and unaffected by escalating geopolitical tensions or rising oil prices.
• They can lessen India’s reliance on the gulf countries for fuel imports.
• It provides a catalyst for future innovation in mobility- and hybrid-based technologies.
• EV production will benefit regional industries and expand India’s homegrown manufacturing sector.
• Setting up new production and charging systems infrastructure will improve skill-building programs and create more jobs. Thus providing employment.
• It will aid in bringing more effective transportation, such as e-rickshaws, which may be advantageous for rural economies.
• There is a demand for more environmentally friendly and sustainable transportation solutions due to rising urbanization .

Challenges of Electric Vehicles

• The government first prioritized car standardization with FAME . However, this effort was neglected in favor of an emphasis on manufacturing.
• In India, the average price of an electric vehicle is roughly INR 13 lakh, which is significantly more expensive than the INR 5 lakh average for fuel-efficient vehicles.
• It is quite expensive to set up the infrastructure for charging these vehicles, buy the land for charging stations, and buy the components.
• India depends on China for its electric vehicle parts because China is currently the world’s largest exporter of those parts.
• The manufacturing of such vehicles requires highly technical abilities, which are now in short supply in India. These abilities must be developed on a vast scale.
• The installation of charging infrastructure is challenging in several areas of India due to the inadequate electrical supply.

Government Initiatives

• FAME India : As part of the program, 11 cities are receiving subsidies to introduce electric buses, taxis, and three-wheelers.
• National Electric Mobility Mission Plan 2020: By 2020, it aims to deploy 5 to 7 million electric vehicles nationwide, indicating the importance of government incentives and collaboration between businesses and academia.
• Concessions on the GST: The government levies a 5% GST on electric vehicles. On the other hand, it charges a GST of 28% on internal combustion automobiles.
• Go Electric Campaign: At the beginning of 2021, the government launched the Go Electric campaign to promote the use of electric vehicles and kitchen appliances and to ensure the nation’s energy security.

2024: The Union Government has approved a scheme to promote India as a manufacturing destination so that e-vehicles (EVs) with the latest technology can be manufactured in the country.

• The policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers.
• This will provide Indian consumers with access to the latest technology, boost the Make in India initiative , and strengthen the EV ecosystem by promoting healthy competition among EV players leading to a high volume of production, economies of scale, lower cost of production, reduced imports of crude Oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment.

The policy entails the following:

• Minimum Investment required : Rs 4150 Cr (∼USD 500 Mn)
• No limit on the maximum Investment
• Timeline for manufacturing : 3 years for setting up manufacturing facilities in India, starting commercial production of e-vehicles, and reaching 50% domestic value addition (DVA) within 5 years at the maximum.
• Domestic value addition (DVA) during manufacturing:  A localization level of 25% by the 3 rd  year and 50% by the 5 th  year will have to be achieved
• The customs duty of 15% (as applicable to CKD units) would be applicable on vehicles of minimum CIF value of USD 35,000 and above for a total period of 5 years subject to the manufacturer setting up manufacturing facilities in India within 3 years.
• The duty foregone on the total number of EVs allowed for import would be limited to the investment made or ₹6484 Cr (equal to incentive under the PLI scheme) whichever is lower.
• A maximum of 40,000 EVs at the rate of not more than 8,000 per year would be permissible if the investment is USD 800 Mn or more. The carryover of unutilized annual import limits would be permitted.
• The Investment commitment made by the company will have to be backed up by a bank guarantee instead of the customs duty forgone
• The Bank guarantee will be invoked in case of non-achievement of DVA and minimum investment criteria defined under the scheme guidelines

Way Forward

The NITI Aayog has suggested priority and non-priority lanes and designated parking places for charging automobiles.

Urban Planning is required. Area-wise integrated planning of public transportation, promotion of electric vehicles (EVs) and renewable energy sources, with flexible electricity pricing and tools for monitoring and controlling the Smart Grid.

Battery management and handling regulations from 2001 are strictly enforced to limit any adverse effects on the environment.

Plans for skill development and education curriculum should be updated to meet industry standards.

The Make in India program can help with the production of EVs and the parts that go into them. In fact, according to some studies, this might boost the nation’s GDP over the following years.

Other initiatives that could aid in scaling up EVs in cities are local plans for EVs, subsidies, designated parking, and associated incentives.

Electric vehicles can significantly contribute to the global effort to prevent climate change by contributing to the reduction of emissions and reliance on fossil fuels. India has evolved into a global leader on the issue of climate change. Since transportation accounts for 80% of emissions, a gradual transition to electric vehicles is essential for a sustainable environment.

Read:  Vehicle-to-grid technology

Article written by Chetna Yadav.

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Electric Vehicles: The Advantages and Challenges

• 23 May 2023
• 15 min read
• GS Paper - 3
• Achievements of Indians in Science & Technology
• Mobilization of Resources
• GS Paper - 2
• Government Policies & Interventions

This editorial is based on EVs are crucial for decongesting our cities which was published in The Hindu Business line on 21/05/2023. It talks about importance of Electric Vehicles and their potential benefits.

For Prelims: Lithium , Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme , Vehicle Scrappage Policy , Production Linked Incentive (PLI) scheme

For Mains: EVs: Advantages, Challenges, Way Forward and Government policies

There can be no denying that the era of electric vehicles (EVs) is well and truly upon us. With zero tailpipe emissions, EVs are a direct cure for air pollution and will also help reduce oil imports .

There has been a significant rise in the production and sales of electric vehicles in recent years. Many major automobile manufacturers have invested heavily in EV technology, launching a wide range of electric models to cater to the growing demand. This increased availability and diversity of electric vehicles contribute to the notion that the era of EVs is indeed underway.

Advancements in battery technology and infrastructure have played a crucial role in accelerating the adoption of EVs. The development of more efficient and affordable batteries has extended the driving range of electric vehicles, reducing range anxiety for consumers. Additionally, the expansion of charging infrastructure, including public charging stations and home charging solutions, has improved the convenience and accessibility of EVs for drivers.

Furthermore, governments and policymakers around the world have shown a strong commitment to promoting electric vehicles as a means to address climate change and reduce emissions.

Why are EVs crucial?

• Unlike fossil fuel engine vehicles, EVs produce zero tailpipe emissions.
• EVs help reduce carbon dioxide (CO 2 ) and other pollutants that contribute to air pollution, smog, and global warming.
• This has a direct positive impact on public health, as cleaner air reduces the risk of respiratory and cardiovascular diseases.
• This reduces vulnerability to fluctuations in oil prices and enhances energy security by reducing reliance on fossil fuel imports.
• These advancements not only benefit the automotive sector but also have broader applications, such as energy storage for renewable energy sources and grid stability.
• Electric mobility creates jobs and innovation in battery manufacturing, renewable energy , and charging infrastructure.
• Moreover, EVs have fewer moving parts and require less maintenance, resulting in reduced servicing and repair expenses over time.
• Shared mobility refers to the use of vehicles as a service rather than as a personal asset. This can reduce the number of vehicles on the road and the need for parking space.
• Compact design refers to the use of smaller and lighter vehicles that can fit more easily in urban spaces. This can also reduce congestion and emissions.
• Innovative and futuristic smart EVs for shorter intra-city distances, day- trips, and the like would not need a bigger battery. That means less time to recharge and lower cost.

What are the challenges for EVs?

• This cost difference is primarily due to the expensive battery technology used in EVs.
• The lack of a robust and widespread charging network makes it inconvenient for EV owners, especially for those living in apartments or without dedicated parking spaces.
• Although EV ranges have been improving, there is still a perception that EVs may not offer sufficient range for long-distance travel, particularly in a country with vast distances like India.
• The batteries in EVs degrade over time, which can lead to a decrease in range.
• India currently relies heavily on imports for battery manufacturing, leading to supply chain challenges.
• The charging time of EVs is longer than the refuelling time of conventional vehicles, which affects their convenience and usability.
• Limited Model Options: Currently, the availability of electric vehicle models in India is relatively limited compared to conventional vehicles. The market needs more options in various segments, including affordable EVs, to cater to diverse consumer preferences and requirements.

What are some government initiatives to promote EV adoption?

• The Faster Adoption and Manufacturing of Electric Vehicles (FAME)scheme II, which provides incentives for EV manufacturers and buyers. These incentives include subsidies, tax rebates, preferential financing, and exemptions from road tax and registration fees.
• The National Electric Mobility Mission Plan (NEMMP), which sets out the target to achieve 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards by providing fiscal incentives.
• The National Mission on Transformative Mobility and Battery Storage, which seeks to create a comprehensive ecosystem for the adoption of EVs and support the establishment of giga-scale battery manufacturing plants in India.
• The Production Linked Incentive (PLI) scheme , which provides incentives for the manufacturing of electric vehicles and components.
• The Vehicle Scrappage Policy , which provides incentives for the scrapping of old vehicles and the purchase of new electric vehicles.
• The  Go Electric campaign aims to create awareness on the benefits of EVs and EV charging infrastructure.
• India is among a handful of countries that support the global  EV30@30 campaign , which aims for at least 30% new vehicle sales to be electric by 2030.
• The Ministry of Power, in its revised guidelines on charging infrastructure (MoP Guidelines), has prescribed that at least one charging station should be present in a grid of 3 km and at every 25 kms on both sides of the highways.
• The Ministry of Housing and Urban Affairs has also amended the Model Building Bye-laws, 2016 (MBBL) to mandate setting aside 20% of the parking space for EV charging facilities in residential and commercial buildings.

What should be the Way Forward for India to adopt EVs?

• Reduce the initial cost of owning an EV by providing subsidies, tax incentives, and financing schemes for both consumers and manufacturers.
• Increase the choice of EVs by encouraging innovation, competition, and collaboration among Original Equipment Manufacturers (OEMs) , start-ups, and other stakeholders.
• Encourage domestic manufacturing of EVs and related components through incentives and supportive policies.
• Raise the awareness among the public by launching campaigns, portals, and platforms to educate them about the benefits and incentives of EVs.
• Improve the electricity distribution and supply by investing in renewable energy sources, smart grids, and energy storage systems.
• Reduce the charging time of EVs by developing fast-charging and battery-swapping technologies and standards.
• Expand the EV charging infrastructure by creating a network of public and private charging stations across the country with adequate quality and accessibility.
• Enhance the service centre and repair options for EVs by training and certifying technicians, mechanics, and dealers for EV maintenance and servicing.
• Encourage government institutions, including public transport authorities, to adopt EVs in their fleets. This would create a significant demand for EVs, stimulate the market, and demonstrate the viability of electric mobility.
• Recent, lithium discovery in Rajasthan could be crucial for this.

India has set a very ambitious target to achieve net zero by 2070 at UNFCC COP26. To achieve this goal, EVs have a crucial role to play. While EVs themselves produce zero tailpipe emissions, the overall environmental impact of electric vehicles depends on the source of the electricity used to charge them. If the electricity is generated from renewable sources like solar or wind, the environmental benefits are maximized.

Discuss the potential impact of electric vehicles on the transportation sector and the environment. Evaluate the challenges and opportunities associated with their widespread adoption.

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Q. In the cities of our country, which among the following atmospheric gases are normally considered in calculating the value of Air Quality Index? (2016)

• Carbon dioxide
• Carbon monoxide
• Nitrogen dioxide
• Sulfur dioxide

Select the correct answer using the code given below:

(a) 1, 2 and 3 only (b) 2, 3 and 4 only (c) 1, 4 and 5 only (d) 1, 2, 3, 4 and 5

• National Air Quality Index (AQI) is a tool for effective communication of air quality status to people in terms which are easy to understand. It transforms complex air quality data of various pollutants into a single number (index value), nomenclature and colour.
• There are six AQI categories, namely Good, Satisfactory, Moderately Polluted, Poor, Very Poor, and Severe.
• Carbon Monoxide (CO), hence, 2 is correct.
• Nitrogen Dioxide (NO 2 ), hence, 3 is correct.
• Sulphur Dioxide (SO 2 ), hence, 4 is correct.
• Ozone (O 3 ),
• Ammonia (NH 3 ),
• Therefore, option b is the correct answer.

Q. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (2016)

• The Agreement was signed by all the member countries of the UN and it will go into effect in 2017.
• The Agreement aims to limit the greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2ºC or even 1.5ºC above pre-industrial levels.
• Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.

(a) 1 and 3 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3

Q. Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (2021)

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World EV Day: Is India ready to embrace ‘affordable’ electric cars?

• You may or may not like an electric car but priced well or even outright aggressively, even the most stringent critic of battery power in mobility is likely to take note. Question then is - how affordable should an affordable electric car really be…

Change is the only everlasting constant of our times. And in the world of mobility, change is being powered by battery-powered vehicles that are taking over global roads gradually. India is hardly a pariah when it comes to electric vehicles (EVs) but in what is the world's third-largest vehicle market - behind only China and the US, the rate of adoption for electric cars in particular has been rather tepid. Ever wondered why?

Also Read : Check out all electric cars in India

India may be the world's third-largest vehicle market in terms of sales but vehicle penetration among the masses is still one of the lowest for any strong economy on the face of the planet. Government estimates highlight around 26 four-wheelers for every 1,000 people here, significantly lower than 580 for every 1,000 Americans, 183 for every 1,000 Chinese and 280 for every 1,000 Mexicans. And while the pace of car sales has increased manifold in recent years, the low car-to-population ratio has meant that even EV penetration has been rather microscopic.

Also check these Cars

EVs, EVs everywhere, not one priced well to buy?

The Indian car market has a fair share of options for anyone interested in driving home in an electric car. But most are not exactly affordable. The most-affordable electric car in the country at present is the MG Comet at ₹ 7 lakh (ex-showroom), followed by Tata Tiago EV at ₹ 8 lakh (ex-showroom). But these are entry-level variants of entry-level models that do not offer much beyond the claim of zero tailpipe emissions. Besides, the small car segment in the country is anyway de-growing and anything bigger will cost more.

Tata Motors has the largest EV portfolio for any car manufacturer at present with its range starting from Tiago EV and covering Punch EV , Tigor EV , Nexon EV and Curvv EV . Pricing of these models, depending on variants, are between ₹ 11 lakh and ₹ 22 lakh. JSW MG Motor India too has a respectable lineup with Comet EV , ZS EV and will soon launch its Windsor EV which is likely to be priced below ₹ 20 lakhs.

Also watch: MG Comet EV: First Drive Review

But several experts and market analysts are mostly convinced that electric cars in India won't take off until plethora of options under ₹ 10 lakh are brought out. And for that, scale is extremely important. Maruti Suzuki - often accused of playing the EV game slow - only recently announced it will intriduce six all-electric models in the country by 2030. But even with the announcement, there was a word of caution. “The ability to rapidly expand the acceptance of such cars would depend on the pace of infrastructure development and reduction of the cost of electric cars. This has to largely come from localisation of production and better technology," RC Bhargava, Chairman at Maruti Suzuki India Limited, has said previously.

How much would you pay for an electric car?

The introduction of Maruti 800 in the 1980s triggered a car revolution in India. And a similar product - with battery power - could trigger an electric car revolution in India.

When the 800 was first launched in the country, it was priced at nearly ₹ 50,000. At the time, Bajaj Chetak - the most popular scooter in the market here - was priced at around ₹ 10,000. The car was five times the price of the scooter. Going by this, an absolutely basic electric car ought to be priced at around five times the price of a popular electric scooter at present. If a Honda Activa currently starts at ₹ 60,000, would an electric car at under ₹ 5 lakh excite you enough?

The above is an apples vs oranges vs mangoes vs papaya comparison, and is only indicative. An electric car or scooter is far more expensive to manufacture than comparable alternatives with engines. And yet, experts agree that ₹ 5 lakh to ₹ 7 lakh is a very sweet spot for an electric car to be in for mass adoption and could allay fears about range and charging infrastructure.

Isn't this what is powering electric scooters in the country? The Indian EV movement at present is being powered by electric two-wheelers that are closing the price gap with models with internal combustion engine. And while two-wheelers, unlike cars, are essentially intra-city commute options and therefore range and charging may not be as big a factor, affordability is a big factor influencing potential buyers at the purchase stage and could also be a shot in the arm for electric car market.

Can India afford subsidies?

If you have been eying an EV for some time, you absoutely must have heard of FAME - Faster Adoption and Manufacturing of Electric Vehicles. A policy aimed at quickening the pace of EV adoption, it was first launched in 2015 and FAME I has a bidget outlay of Rs. 895 Crore while FAME II had a budget outlay of ₹ 10,000 crore. In a nutshell, the scheme aimed to provide financial subsidies to anyone buying an EV.

But while incentives for buying an EV is feasible, can India truly subsidise personal mobility options?

Nitin Gadkari, Union Minister of Road Transport and Highways, recently said that EV makers do not need subsidies any more, pointing to falling battery costs and low GST to back his statement. “Consumers are now choosing electric and compressed natural gas (CNG) vehicles on their own and I do not think we need to provide much subsidy for electric vehicles," he said at a September 5 event. (Read more here )

It is also, however, argued that not having subsidies will dull enthusiasm for such vehicles. The third phase of FAME is already in the works and H D Kumaraswamy, Minister of Heavy Industries, has confirmed its launch this year itself. Its exact nature and details will have a strong impact on the future trends that the Indian EV market sees in the times to come.

Check out Upcoming EV Cars in India .

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India introduces new EV incentive scheme, excludes subsidies for electric car buyers

Credit: AFP

India has introduced a new electric vehicle (EV) scheme offering incentives for commercial EVs, electric two-wheelers (E2Ws), and electric three-wheelers (E3Ws). The scheme, which replaces FAME II, allocates most of its subsidies to e-buses, while electric cars do not receive any incentives under this program.

According to the Press Information Bureau of India, on September 11, the Indian government introduced a new scheme, PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM eDRIVE), designed to accelerate the adoption of EVs in the country. The scheme, implemented by the Ministry of Heavy Industries, allocates INR109 billion over two years.

To incentivize the purchase of EVs, the government is offering subsidies and demand incentives for E2Ws, E3Ws, e-ambulances, and e-trucks. This will support the acquisition of 2.479 million E2Ws, 316,000 E3Ws, and 14,028 e-buses.

The scheme allocates INR43.91 billion to acquire 14,028 e-buses by state transport agencies and public transport operators.

The scheme allocates INR5 billion to deploy e-ambulances, promoting comfortable patient transport. Performance and safety standards for these e-ambulances will be developed in collaboration with relevant government departments.

Addressing the range anxiety of EV buyers, the scheme promotes the installation of electric vehicle public charging stations (EVPCS). A total of 22,100 fast charge INR for e4Ws, 1800 for e-buses, and 48,400 for e2W/3Ws will be installed in selected cities and along highways.

The PM eDRIVE scheme aims to reduce the environmental impact of transportation and improve air quality by providing upfront incentives for electric vehicle purchases and facilitating the establishment of necessary charging infrastructure.

Meanwhile, according to Autocar India, details on the subsidies per vehicle and localization requirements will be provided in an upcoming government notification. Ashwini Vaishnaw, Union Minister of Information and Broadcasting, emphasized that localization is crucial to the scheme, highlighting the importance of developing domestic technologies and supply chains.

Source: Ministry of Heavy Industries of India, September 2024

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PM E-Drive scheme announced in India, replaces FAME II

The new subsidy scheme does not cater to electric or hybrid passenger cars and SUVs.

Published On Sep 12, 2024 11:48:00 AM

11,324 Views

The scheme supports electric two-wheelers and three-wheelers, but not hybrid and electric cars.

The government of India has announced a new PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme. This new scheme will supersede the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME II) scheme, which expired in March this year, but with a smaller outlay.  

• PM E-Drive has an outlay of Rs 10,900 crore for two years
• Scheme covers electric two-wheelers and three-wheelers
• Electric, hybrid cars not part of PM E-Drive scheme

PM E-Drive: what does it offer?

The PM E-Drive, under the Ministry of Heavy Industries, is a two year scheme that has a total budgetary outlay of Rs 10,900 crore. This scheme will provide subsidies on the purchase of electric two-wheelers, electric three-wheelers, electric trucks and buses as well as electric ambulances. Apart from these, the scheme will also support 88,500 electric vehicle charging sites. Unlike the previous schemes, however, the new PM E-Drive scheme however does not provide subsidies on the purchase of electric or hybrid cars and SUVs. “Subsidies/demand incentives worth Rs 3,679 crore have been provided to incentivize e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses,” the government said.

The scheme comes with a provision for procuring 14,028 electric buses by state transport units and other public transport agencies, for which Rs 4,391 crore has been set aside. PM E-Drive qlwo proposes the installation of 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for electric buses and 48,400 fast chargers for electric two- and three-wheelers with an outlay of Rs 2,000 crore.

Further details regarding the quantum of subsidies per vehicle and the localization level required will be available once the government comes out with a notification on the scheme. 

Two-wheelers accounted for 56 percent of the electric vehicle sales in the last financial year, while three-wheelers constituted 38 percent. Affordability and limited charging infrastructure have been major hurdles in the faster adoption of electric vehicles.

The subsidies given on the purchase of electric vehicles are instrumental in driving the early-stage adoption of electric vehicles as incentives help in reducing the upfront cost of the vehicle. Most of the electric vehicle OEMs have been advocating the need for subsidies to continue till the market matures. 

FAME Schemes: a backgorund

The first phase of the FAME scheme, which had an outlay of Rs 895 crore, was introduced in 2015 for five years ending in 2018. It was followed by FAME II, rolled out in 2019 with an initial outlay of Rs 10,000 crore for three years ending in 2022. The scheme was later extended to March 2024 with an  additional outlay  of Rs 1,500 crore. 

FAME 2 had a target to support 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric four-wheelers and 7,000 electric buses. The scheme supported 11.70 lakh two-wheelers, 1.30 lakh three-wheelers, 16,631 four-wheelers and 4,766 buses.

After the expiry of FAME 2 in March, the government launched a temporary  EMPS 2024  with an outlay of Rs 500 crore. The EMPS was initially valid for four months till July 31 but was  extended  till September end. The outlay was also boosted to Rs 778 crore.

Unlike the FAME 2 scheme, EMPS provides incentives only to electric two- and three-wheelers, that too at a reduced level. Electric four-wheelers were not included in it. The scheme had a target of 5.61 lakh electric vehicles, comprising 5 lakh electric two-wheelers and 60,709 electric three-wheelers. With inputs from Kiran Murali

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