Business Standard

Sparing the bulldozer

The latest govt stand on e-vehicles is practical

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It is time once again for India’s largest automotive show, the Auto Expo — and, reportedly, as many as 50 new electric vehicles or EVs are going to be the stars of the show. Hybrids and pure electric cars, many of them relatively cheap, are to be unveiled; some big Indian car makers will exhibit half a dozen such models each. The shift towards electricit­y-driven transporta­tion is well under way — there is no longer any stigma associated with such vehicles in consumers’ minds, and if they make economic and marketing sense, they will likely be successful. What is worth looking at, however, is the government’s attitude towards this shift. Earlier, Union Road Transport Minister Nitin Gadkari had said that he wanted “100 per cent” of passenger vehicles to be electric by 2030 and had added that if companies needed to be “bulldozed” to make that happen, then the government would do so. In an interview with this newspaper, however, Mr Gadkari has clarified that he does “not want petrol and diesel vehicle manufactur­ing to stop”, but that EVs would become popular by themselves “if the commuting cost for the public comes down”. This is a welcome realisatio­n.

Naturally, while the Union government must explore ways to nudge consumers towards cars that are more affordable and energy-efficient, and which produce less carbon and less of the suspended particulat­e matter that causes local air pollution, any draconian steps that lead to major disruption­s should be avoided. Mr Gadkari is right in arguing that consumers themselves will push car companies to innovate and produce affordable and attractive EVs. In order for that to happen, the Union government must work on creating the right context. The minister highlighte­d one important aspect of this effort: the reduction in the per-kilometre cost of driving electric cars as compared to those based on fossil fuels. As diesel and petrol become more expensive and electricit­y becomes more accessible, the consumer argument for EVs, especially in a cost-conscious market like India, will become ever more pressing.

But other aspects of the environmen­t for a transition to a low-carbon passenger vehicle fleet need more work from the government. Above all, the infrastruc­ture that will be required for such a transition is not in place. Low-cost and accessible charging stations, for example, need to become ubiquitous in Indian cities. Preferenti­al parking and other charges for EVs also need to be considered. Until the overall context in which EVs are driven improves, Mr Gadkari’s consumer-first approach to transformi­ng the Indian passenger vehicle fleet will not be effective. It would also be unwise to overstate the effect of this transforma­tion on India’s carbon emissions unless its sources of electricit­y are also radically changed, and renewable energy makes up a larger proportion of India’s mix of power sources. Finally, it is important to take a holistic view of India’s transport sector. In urban areas, in particular, planning an affordable, environmen­tally sustainabl­e and efficient public transport system may be even more important than a focus on EVs. That is where most of the Union government’s attention should be focused.

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