India plans to go fully electric by 2030

Article by Christian A., on May 5, 2017

India is working towards a sustainable future by selling only electric vehicles by 2030. As the Indian government is looking to manage its current pollution and environmental issues, Piyush Goyal, India’s minister for renewable energy said that they will be introducing electric vehicles in such a big way. In this regard, the minister also cited an example about the Indian government’s ongoing initiative in reducing the use of energy through LED lights.

In the hopes to completely get rid of vehicles with internal combustion engines, the government is considering innovative ways in encouraging consumers to buy an EV without the necessary subsidies. In spite of these, Goyal also made it clear that they have not finalized anything so far.

The minister however proposed that consumers could buy EVs with no down payment. Instead, people could pay for the vehicle’s cost by installment based on the savings they get out of petroleum. This type of payment scheme is the same to what the Indian government has already attained via the Domestic Efficient Lighting Programme. Under this strategy, the energy efficiency firms were tasked to sell their LED lamps at a fraction of the current price in the market. The homeowners will then pay for the total amount by installment through their monthly electric bills.

In spite of the Indian government’s very big plans for the future, the consumers have not expressed their interest in terms of electric mobility. So far at least. This could be very well due to insufficient basic infrastructure that support electric vehicles in the country. The electricity supply for EVs in India is another issue that needs to be recognized by the government. According to a survey conducted by Greenpeace, air pollution is the main cause of death of about 2.3 million people in India.

Since 2014, the Indian government has been focused on providing a $2.5 billion (Rs 14,000 crore) subsidy to electric and hybrid vehicle companies. This arrangement lets the government give financial incentives to car manufacturers while the benefits will be turned over to the end consumers. The government funding for EV manufacturing has increased from 19 million USD or Rs 123 crore (FY2016-2017) to 27 million USD or Rs 175 crore (FY2017-2018).

Under the NEMM plan (or the National Electric Mobility Mission), the government has in fact already made plans to increase the demand for electric vehicles by 2020. The potential customers for electric vehicles including those in the market for three wheelers, two wheelers, commercial vehicles and buses should increase by 5 to 7 million.

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