EVs - India takes the road to sustainability

-Veena Bhagavathi (MBA, Class of 2023)

India’s mobility now stands at a critical point of evolution. As business activities are starting to regain traction, the automobile industry is gearing up to launch itself into a new phase of growth, innovation and investment.

EV FOR THE ENVIRONMENT

The twin challenges of climate change and the COVID-19 pandemic certainly reminded us of the importance of sustainability and shifted consumers’ preference to greener vehicles. According to the Air Quality Index (AQI) 2021, India ranks 178 out of 180 countries in terms of air quality indicating the grave need to make a big switch. While the overall environmental degradation over the past decades no longer remains a hidden consequence of burning fossil fuels, the global automakers are constantly juggling to find new and sustainable alternatives to conserve them.

EVs are a game changer for the environment as they emit less greenhouse gases and air pollutants over their life and provide at least 50% savings compared to a fuel car. Studies show that it takes only one electric car to save an average 1.5 million grams of CO2 each year!

INDIA’S PUSH

India has the world’s largest untapped EV market, primarily in the two-wheeler segment. The penetration of electric vehicles is rising sharply since the past few years with several manufacturers rolling out EVs at a rapid pace.

“India is moving towards manufacturing its electric vehicles (EVs) and in due course, it will become a global leader in this technology” says Nitin Gadkari, the Union Minister of Road Transport and Highways in a recent summit. “Currently there are 12 lakh EVs in the country. By the end of 2022, the number is expected to go up to 40 lakh and in next two years, it is sure to reach 3 crore” he added.

Among the Indian automakers, Tata Motors is seen to be batting on the front foot by introducing Tata Curvv and Tata Avinya as a new paradigm of innovation. Both these EV models are expected to hit the roads by 2025. Even though Tata Nexon EV and Tata Tigor EV undeniably helped Tata Motors secure a lion’s share in the Indian EV space, it continues to be hellbent on sealing its leadership position in the years to come as well.

A BUMPY RIDE

India’s road to a fully-electric ecosystem still has a few potholes which may be challenging to overcome such as high upfront cost, inadequate infrastructure, lack of high performing EVs, to name a few. While many are geared up for the big switch, 60% of consumers believe that EV is way beyond their budget. The government, however, is determined to aggressively promote EV among consumers by providing subsidies and tax cuts. With a view to boost EV sales, the government is offering a tax exemption of Rs. 1.5 lakh on EV cars taken on loan and GST of 5% on the with zero cess on the purchase of EVs.

As India is now committed to realise its dream of “Zero-Emission 2070”, funds and focus are entirely being directed towards electric mobility. In a world where carbon emissions and pollution are a growing concern, the need to switch to environmentally-friendly alternatives is more than ever.

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