Government, consumers, and manufacturers collaborate for EV adoption in India
The Green Revolution in the 1960s was a significant event that shaped the destiny of millions of Indians through technology and innovation. A natural shapeshifter, technology is rewriting the history again. It is causing a similar disruptive revolution in the mobility sector. The current green mobility revolution has the potential to transform transportation and mitigate the impacts of climate change by reducing dependence on fossil fuels. India is currently experiencing significant changes in its mobility landscape as it strives to become a leader in climate change mitigation efforts.
As one of the world’s fastest-growing economies, the country is committed to addressing the challenges posed by climate change and rapid urbanization by transitioning towards sustainable mobility. We were ranked as one of the high performing countries for our climate change performance during the COP27 conference held last year.
This commitment to shaping a sustainable future is evident through the favourable policy environment, incentives, and mobilized stakeholders driving the adoption of electric vehicles (EVS) in the country. India has the potential to become a global green mobility hub and is working towards faster adoption and transition.
However, there is still a long way to go, and it is necessary for OEMS, auto component manufacturers, and consumers to collaborate and accelerate the adoption of EVS to make this transition successful. There are several factors that will facilitate the transition towards sustainable mobility in India. Let us take a look.
GOVERNMENT STEPS BOOSTING EV ADOPTION
Multiple initiatives undertaken by the government and push to boost adoption across multi-layered mobility ecosystem is laudable. The framework to strengthen the entire ecosystem is robust. Promotion of growing charging infrastructure, $10 billion-dollar Production-linked Incentive (PLI) scheme encouraging semiconductors and display manufacturing in the country promoting self-reliance and indigenous manufacturing; Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAMEII) scheme with a budget of INR 10,000 crore to promote EVS are a few examples which underline the sharp focus. These efforts are likely to result in a significant reduction in vehicular pollution and carbon emissions in the long run.
Besides EVS, the government is also investing in the development of smart cities with integrated public transportation systems. The National Biofuel Policy launched in 2018 promotes the use of biofuels to reduce the dependence on fossil fuels.
The government has also announced Bharat Stage VI (BS VI) emission norms to reduce vehicle emissions. The Green National Highway Corridors Project (GNHCP) in an aggregate length of 781 km to be implemented in the states of Himachal Pradesh,
Rajasthan, Uttar Pradesh and Andhra Pradesh with financial assistance of World Bank is another noteworthy initiative that underscores our focus on sustainable mobility. The objective of the GNHCP is to demonstrate green and safe highways keeping in view climate resilience and the use of green technologies This is an exemplary snapshot of Indian government’s multipronged approach to promote sustainable mobility by addressing various aspects such as technology, infrastructure, and policy. The efforts are both holistic and commendable.
EVOLVED NEW AGE CONSUMER
A recent report by Bain & Company, APAC markets care about the environment as much as western markets, thanks to the new age, dynamic and environmentconscious consumers. In India, 43% of consumers rank sustainability as a top-five key purchasing criteria and 62% Indian consumers are willing to spend a clear premium on sustainability products. Nearly 52% of consumers plan to increase their spending on sustainable products over the next three years.
Clearly, the tipping point is fast approaching. India is at an interesting juncture with a sensitised, heterogenous set of consumers who are the driving force behind moulding and adapting to new age consumption patterns. They are committing to sustainability, making informed choices. Sustainability has left a clear, lasting imprint.