Success of FAME II, Other Measures Help in Realizing High EV Penetration by 2030: Niti Report

Niti Aayog in its report said that, “According to the analysis, if FAME II and other measures – in public and private space – are successful, India could realize EV sales penetration of 30% of private cars, 70% of commercial cars, 40% of buses and 80% of two and three-wheelers by 2030.”

On the back of success of FAME II and other measures – in public and private space, India could realize high Electric vehicle (EV) sales penetration by 2030, said a Niti Aayog and Rocky Mountain Institute (RMI) report.

The technical report titled ‘India’s Electric Mobility Transformation: Progress to Date and Future Opportunities’, quantifies the direct oil and carbon savings that the vehicles incentivized under FAME II will deliver.

It also quantifies the catalytic effect that FAME II and other measures could have on the overall Electric Vehicle (EV) market.

Niti Aayog in its report said that, “According to the analysis, if FAME II and other measures – in public and private space – are successful, India could realize EV sales penetration of 30% of private cars, 70% of commercial cars, 40% of buses and 80% of two and three-wheelers by 2030.”

It further said that, “Extrapolating from the same, the lifetime cumulative oil and carbon savings of all EVs deployed through 2030 could be many-fold larger than the direct savings from FAME II. For example, achieving these levels of market share by 2030 could generate cumulative savings of 846 million tonnes of CO2 over the total deployed vehicles’ lifetime.”

Here’re the key highlights from the report:

• Effects of FAME II will go beyond the vehicles that are eligible under the FAME II.
• In order to capture the potential opportunity in 2030, batteries must remain a key focal point as they will continue to be the key cost driver of EVs.
• India needs auto industry’s active participation to ease electric mobility The auto and battery industries could collaborate to enhance customer awareness, promote domestic manufacturing, promote new business models, conduct R&D for EVs and components, consider new business models to promote EVs.
• Government should focus on a phased manufacturing plan to promote EVs, provide fiscal and non-fiscal incentives for phased manufacturing of EVs and batteries. Different government departments can consider a bouquet of potential policies, such as congestion pricing, ZEV credits, low emission/exclusion zones, parking policies, etc. to drive adoption of EVs.
• There is considerable energy and CO2 savings associated with the two, three, and four-wheeled vehicles and buses covered by FAME II over their lifetime, as well as the potential savings associated with greater adoption levels by 2030.
• The electric buses covered under FAME II will account for 3.8 billion vehicle kilometers travelled (e-vkt) over their lifetime.
• Vehicles eligible under FAME II scheme can cumulatively save 5.4 million tonnes of oil equivalent over their lifetime worth Rs 17.2 thousand crore.
• EVs sold through 2030 could cumulatively save 474 million tonnes of oil equivalent (Mtoe) worth Rs 15 lakh crore and generate net CO2 savings of 846 million tonnes over their operational lifetime.