Economic Survey: Emphasise on EVs, Supporting Policies to Reduce Total Ownership Cost

The country must emphasise on EVs and appropriate policy measures to lower the overall lifetime ownership cost, according to the latest Economic Survey

The country must emphasise on electric vehicles (EVs) as these represent the next generation in sustainable mobility and appropriate policy measures are needed to lower the overall lifetime ownership cost to make them an attractive alternative to consumers, according to the latest Economic Survey that was tabled in the parliament on July 4, 2019.

It further added that India can emerge as a hub of EV manufacturing, and a policy push is required to devise universal charging standards for India as a whole and to provide adequate charging infrastructure.

“As electric vehicles represent the next generation in sustainable mobility, India must emphasise on them. Currently, the market share of electric cars is only 0.06 percent when compared to 2 percent in China and 39 percent in Norway,” it stated.

Stating that it may not be unrealistic to visualise one of the Indian cities emerging as the Detroit of EVs in the future, it said, “Appropriate policy measures are needed to lower the overall lifetime ownership costs of EVs and make them an attractive alternative to conventional vehicles for all consumers,” it said.

In India, the limited availability of charging infrastructure seems to be a major impediment to increased adoption of EVs, according to the survey. Highlighting the need for adding access to fast charging facilities to increase the market share of electric vehicles. A policy push in this regard is required to devise universal charging standards for the country as a whole and to provide adequate charging infrastructure.

Stressing on the enormous potential for EVs in India not just because of its eco-friendly attributes, the survey said the country can emerge as a hub of manufacturing of such vehicles generating employment and growth opportunities provided policies are supportive.

“While various incentives have been provided by the government and new policies are being implemented, it is important that these policies not only focus on reducing the upfront costs of owning an EV but also reduce the overall lifetime costs of ownership,” it said.

The Survey further said that given the commitments that India has made on the climate front as a nation and the increasing awareness of the consumers on environmental aspects, it is likely that larger and larger share of the automobile sector will be in the form of electric vehicles.

Quoting the Niti Aayog, it said that if India reaches an EV sales penetration of 30 percent for private cars, 70 percent for commercial cars, 40 percent for buses, and 80 percent for two- and three-wheelers by 2030, a saving of 846 million tonne of net CO2 emissions and oil savings of 474 million tonne of oil equivalent (MTOE) can be achieved.