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India’s sees slower shift to electric vehicles by 2030

Auto News - Published on Thu, 12 Jul 2018

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Bloomberg reported that India’s shift to electric vehicles (EV) has to be “gradual,” a government adviser said, signaling that the country may have further watered down its ambitions of having green vehicles comprise about a third of its fleet by 2030.

India needs to push for EVs in a consistent manner over a long period of time and ensure that automobile jobs stay unaffected as the country moves toward battery-driven vehicles, Mr Amitabh Kant, NITI Aayog Chief Executive Officer (CEO) said in New Delhi. Cheaper EVs, whose costs are likely to be at par with internal combustion vehicles by 2026, will push their adoption even without subsidies.

Mr Kant said at a BNEF conference on the future of energy and mobility “I’m against a policy where you drive electric vehicles through large subsidies. That’s not sustainable.”

BNEF expects EVs to comprise about 7 per cent of sales in India by 2030 as cheap fossil fuel-driven cars dominate the market and state subsidies for electric vehicles are absent. That is well below Modi government’s aim to have more than 30 per cent of vehicles run on electricity by 2030. That ambition was undermined by the transport minister’s stance earlier this year that the country can achieve its goals without a guiding policy.

According to Shantanu Jaiswal, the New Delhi-based research head for BNEF India “While the inflection point for higher EV adoption in India will come from a fall in battery prices, expected around 2030, India does need subsidies for the next five-seven years as the upfront cost of owning an EV is much higher than an internal combustion engine.”

Mr Kant said that the country’s policy should be geared toward electric two-wheelers, three-wheelers and public transportation as it has a relatively low rate of car ownership. The government also needs to support the creation of charging infrastructure.

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Posted By : Nanda Koijam on Thu, 12 Jul 2018
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