Boosting Electric Vehicles Penetration in India: Immediate Action is a Must

Recurring instances of alarming air quality levels in major Indian cities particularly at the onset of every winter highlight the need for sustained action from all the stakeholders; the government, industry, think tanks and academia, civil society etc. Road transport contributes to around 20 to 30% of urban air pollution, depending on the vehicle population and movement pattern in the city.  Vehicle electrification stands as a forefront technological advancement, crucial for achieving zero-tailpipe emissions, and plays a pivotal role in the global effort to decarbonise the road transport sector. However, despite the government’s proactive policy on electrification of road vehicles, the overall share of Electric Vehicles (EV) amongst all registered vehicles is still just 1%.

Many state governments introduced policies that included exemption/lowering of certain taxes and upfront subsidies on the purchase of EVs, which helped increase sales. But with the tenure of these policies ending and no fresh subsidies in sight, EVs might witness a slowdown in sale. Although many manufacturers have introduced innovative features and a plethora of conveniences in newer EV models, government agencies and manufacturers need to look at alternate strategies to increase the share of EVs owned.

Current interventions by state and local governments, inter alia, also include the replacement of old diesel/CNG public buses to electric buses. This has been largely beneficial as newer fleets not only improved the quality of service but also reduced tailpipe emissions.

Given phenomenal increase of two-wheelers and four-wheelers in cities it is imperative to electrify these vehicles on priority. Both push and pull measures are required to hasten the electrification of passenger road vehicles by the local, state and central government.  The local governments may   identify low emission zones and levy congestion charges in selected areas of the city. Additionally, state and local authorities can look at other non-fiscal incentives such as providing prioritized parking spaces in public parking zones for EVs with reduced parking rates.

Central and state governments can also identify certain sectors with high potential for EV uptake such as FMCG (Fast Moving Consumer Goods) or last-mile delivery aggregators and incentivize them for converting their entire fleets, phase-wise; ensuring that all new purchases should be electric vehicles only. Additionally, vehicles owned and hired by the large businesses, industries and government agencies should be also  electrified by giving special incentives. As consumer confidence is crucial to ensure EV adoption, an innovative strategy would be to standardize charging infrastructure while ensuring adequate availability and spread.

Many entrepreneurs in the private sector are also coming forward with their EV penetration targets and various strategies supporting the government’s initiatives. For instance, e-commerce giants like Amazon have pledged $2.65 million to develop shared charging stations and transition to 5,500 EVs by 2030, while Flipkart currently has 10,000 EVs in its last-mile delivery system and hopes to achieve the milestone of 100% electrification by 2030. In the FMCG sector, Coca-Cola is currently engaged in increasing its EV count from 2000 to 5000 by 2024 to reach its net-zero target of 2050, while Dominos has partnered up with Revolt Motors to electrify its fleet of delivery vehicles.

Various vehicle OEMs like JSW MG Motors have also come forward with interventions to educate and raise awareness amongst the public such as its EVpedia platform for information dissemination, apps such as eHUB by MG and EZ Charge by Tata Motors provide information to users on charger location, specs and availability, in addition to helping plan trips with suggested stops.

Additionally, research institutions, academia and civil society organizations (CSOs) can collectively improve EV uptake and usage through campaigns. Examples such as the e-FAST platform which is an initiative by NITI Aayog with WRI India and Shoonya campaign by NITI Aayog and RMI along with partners like TERI, are examples of successful campaigns by CSOs in collaboration with government think tanks which would help public understand the overall benefits of electrification.

A holistic approach to incentivization and awareness creation can help governments at various levels improve EV penetration in the correct segments of the market and accelerate its adoption in urban spaces. This would make our cities cleaner and more breathable by reducing the contribution of the transportation sector to air pollution.

About Abhishek Koka: Abhishek Koka is a Project Associate in the Transport and Urban Governance Division at The Energy and Resources Institute (TERI). As a transport planner and researcher, he brings extensive experience in policy, strategic planning & data-based analysis and research. His domains of interest include public transport, railways, logistics, transportation infrastructure and commuter experience improvement. At TERI, he currently works on projects focussing on green shipping and logistics. Abhishek holds a master’s degree in Transportation Sciences with a specialization in Transport Planning and Policy from Universiteit Hasselt, Belgium, and a bachelor’s degree in architecture from Dayananda Sagar College of Engineering, Bangalore.