“Despite the necessity of electric vehicle transition, multiple challenges have slowed down its adoption.” Discuss and suggest measures to promote EV transition. (10M)

India aims for 30% electric vehicle (EV) penetration by 2030, but as of 2024, penetration stands at only 7.6% of total vehicle sales (2 million EVs). While EVs can reduce oil import dependence, emissions, and urban air pollution, structural challenges in financing, infrastructure, and supply chains hinder faster adoption.

Importance of EV Adoption:

• Energy Security: As India imports 85% of its crude oil, EVs can reduce this dependency.
• Climate Goals: Transport contributes 13.5% of India’s CO₂ emissions. Thus, EVs are key for achieving NDC and net-zero 2070 targets.
• Industrial Development: Potential to create 5 crore jobs and a $200 billion domestic EV market by 2030 (NITI Aayog).
• Global Competitiveness: As China leads EV manufacturing, India risks lagging behind without accelerated transition.

Key Challenges:

1. High Costs & Financing Issues:
   1. Battery cost constitutes 40% of EV cost while upfront price remains prohibitive.
   1. Lack of innovative financing, second-hand markets, and leasing models.
2. Charging Infrastructure Deficit:
   1. Inadequate charging points; utilisation remains low due to poor planning.
   1. Power cuts in many regions deepen reliance on diesel gensets reduces green benefits.
3. Import Dependency:
   1. Reliance on imported lithium, nickel, cobalt increases supply risk and high costs.
4. Awareness & Trust Deficit:
   1. Consumers unaware of EV lifecycle benefits, total cost of ownership.
   1. Lack of resale and battery recycling infrastructure.
5. Regulatory & Institutional Gaps:
   1. No unique battery IDs, weak EV classification on VAHAN portal.
   1. Fragmented state-level policies and poor Centre-State coordination.
6. Environmental Concerns:
   1. Battery production has a high carbon footprint.
   1. Over 80% of electricity in India comes from fossil fuels, limiting EV benefits.

Government Efforts So Far:

• Demand-side: FAME I & II subsidies, 5% GST on EVs, waiver of registration fees.
• Supply-side: PLI scheme for advanced chemistry cell batteries and EV components.
• State Policies: Delhi, Tamil Nadu, Maharashtra, Gujarat leading in EV adoption incentives.

Measures needed for Accelerated Adoption:

1. Financial & Regulatory Support:
   1. Blended financing, battery-swapping, second-hand EV market.
   1. Mandated EV quotas for fleets, buses, taxis, and logistics.
2. Infrastructure Development:
   1. City-based saturation projects: 100% EV fleets in 5 pilot cities by 2027.
   1. EV-ready urban planning: dedicated charging points in housing and workplaces.
3. Battery Self-Reliance:
   1. R&D in solid-state batteries, hydrogen fuel cells.
   1. New PLI scheme for advanced chemistries and battery recycling ecosystem.
4. Institutional Mechanisms:
   1. Dedicated inter-ministerial EV transition committee (Power, MoRTH, Heavy Industries, Environment).
   1. Strengthen VAHAN data systems and introduce unique battery IDs.
5. Public Awareness:
   1. Nationwide campaigns to reduce range anxiety and highlight TCO advantages.
   1. Training of EV service technicians.

Conclusion:

India must shift from policy intent to implementation by ensuring financing innovations, indigenous battery supply chains, coordinated governance, and consumer awareness. Accelerating EV adoption will reduce oil imports, cut emissions, generate jobs, and secure India’s place in the global mobility transition.

‘+1’ Value Addition:

• Current EV share: 7.6% (2024).
• Target: 30% by 2030.
• India currently imports more than 70% of battery cells; domestic gigafactories will reduce dependency and costs
• NITI Aayog: EV transition can save $180 billion in oil imports and prevent 846 million tonnes CO₂ emissions.
• Case study: Norway leads the world with 90% EV penetration in new car sales which is achieved throughzero import duties on EVs, VAT exemptions, toll-free roads, bus-lane access, and widespread charging network.

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