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Electric Mobility Gets a Boost in India

electric mobility India

Even as the world faces the challenge of climate change, world leaders had come together to sign the Paris Accord in 2015. India and China are seen as major players in overcoming this challenge as it is these two fast-developing countries which will consume most of the hydrocarbons in the coming decades. India is already doing its bit for the future. Towards this end, electric mobility has been given a massive push by the government. The results are also encouraging.

To further the agenda of electric mobility in the country, the inter-ministerial committee for Electric Vehicles has sanctioned 5,645 electric buses for intracity operations in 65 cities and intercity operations to 8 state transport undertakings.

Sowing the seeds of electric mobility mission

The government of India unveiled a vision document on the National Electric Mobility Mission Plan 2020, in 2013. In 2015, Prime Minister Modi, recognising these problems, took an early start and launched FAME India Mission in order to check problems on all three fronts i.e. dependence on oil import, loss of FOREX and CO2 emission.

The FAME India scheme is meant to support the development of the market for hybrid/ electric vehicles market — not just through purchase-sale incentives but also via its manufacturing ecosystem.

Nurturing the mission

To further ease and promote the manufacturing and sales of electric vehicles in the country, the GST council has recently announced its decision to cut GST on electric vehicle from 12% to 5%. And, it has also cut GST on EV chargers from 18% to 5%.  This has brought cheer to the EV manufacturers community.

Electric vehicle sales in India

Source: Auto NDTV and Autocar

According to Society of Manufacturers of Electric Vehicles (SMEV), more than 95% electric vehicles on Indian roads are low-speed electric scooters (less than 25km/hr) that do not require registration and licenses. However, with more push from the government, the sale of electric car or 4-wheelers is bound to grow.

Government of India is planning big as far electric mobility is concerned. One of its transformative plans includes a complete switch to electric  3-wheelers segment from 2024. Currently, diesel or CNG run autos are prominently seen on Indian roads to ferry passengers within the city limits. If they can be replaced by electric  vehicles, this will go long way in checking pollution in the country and help in the achievement of India’s own intended nationally determined contribution (INDCs), a pledge that it has taken at COP-21 Paris.