India is making a big push for electric vehicles, signalling a turning point in its clean energy policy, writes energy writer Vandana Gombar.
In 2017, Transport Minister Nitin Gadkari shocked the automobile industry (and the world) when he announced that he intended for India to move to 100% electric cars by 2030.
“I am going to do this, whether you like it or not. And I am not going to ask you. I will bulldoze it,” he said at an industry conference.
That was an ambitious target given that even the UK and France were hoping to phase out conventional combustion-engine cars only by 2040.
Mr Gadkari and his Bharatiya Janata Party or BJP-led government eventually diluted their plans for electric passenger cars – from 100% the target is now down to 30%.
A pushback by the industry and the fear of job losses were among the reasons for the government to do so.
The government has now decided to focus on the segment below cars: two-wheelers, where sales are much higher, and three-wheelers (largely auto-rickshaws).
In the financial year that ended in March, about 3.4 million passenger cars were sold in the country against 21.2 million two-wheelers, according to data released by Indian automobile manufacturers. The number of three-wheelers sold totalled 0.7 million.
The new proposal is to have only electric three-wheelers operating in the country by 2023, and only electric two-wheelers by 2025.
The government seems to have two dominant objectives – to control pollution and take the lead in an emerging industry.
India wants to become a “global hub of manufacturing of electric vehicles”, Finance Minister Nirmala Sitharaman said in her budget speech earlier this month. The Economic Survey, a government forecast, released a day before the budget envisaged an Indian city possibly emerging as the “Detroit of electric vehicles” in the future.
But it will be a challenge to create a competitive advantage in electric vehicle manufacturing, or even a market for them, given that India does not have the infrastructure or deep pockets that the world’s current leader in electric mobility, China, has.
China is the world’s largest electric vehicle market. It has the world’s largest network of charging stations for such vehicles and is also the world’s largest manufacturer of batteries. And according to recent figures, sales of New Energy Vehicles (NEVs) – including electric and hybrid models – increased substantially in 2018 in China.
