Future of mobility belongs to India

Context: Prime Minister Narendra Modi on Friday said that the future of mobility
belongs to India that saw an unprecedented sale of 2.5 crore vehicles a year
and attracted USD 36 billion foreign direct investment in just four years. The Bharat
Mobility Global Expo 2025, India’s largest auto expo, scheduled from January
17-22, will bring the entire value chain of the mobility ecosystem – from
automobile manufacturers to components, electronics parts, tyre and energy
storage makers, and automotive software firms and material recyclers – under a single
umbrella.

Key points

·       Overview: The Expo will
be held from 17-22 January 2025 across three separate venues: Bharat Mandapam
& Yashobhoomi in New Delhi and India Expo Centre & Mart, Greater Noida.

·       India’s
push: India is currently experiencing a wave of excitement surrounding
electric vehicles (EVs), towards a potential future of cleaner transportation.
This shift towards EVs promises significant environmental benefits by reducing
emissions in our cities.

·       E-Mobility: Electric
mobility (e-mobility) is a method that employs electrical propulsion partially
or fully, to power a wide range of vehicles. Examples include cars, buses, and
personal devices such as bicycles and scooters. There are two main types of
electric mobility: pure electric and hybrid.

·       Current
Status of E-Mobility in India: EV Sales Growth - EV registrations in
2021: 330k units, a 168% rise from 2020.

Factors Driving
EV Adoption - Rising oil prices and environmental awareness.

Limited charging
infrastructure - 1,742 stations (2021), projected 100,000 by 2027.

Investment &
Employment - EV industry attracted USD 6 billion in 2021, projected USD 20 billion by
2030.

·       Significance
of E-mobility: The push for electric mobility in India holds
significant importance due to its potential to address key economic,
environmental, and societal challenges.

Ø  Reducing Air
Pollution - According to the ‘World Air Quality Report 2023’, India was declared as
the third-most polluted country in 2023, after Bangladesh and Pakistan.

Ø  Energy Security
-
India’s import dependence soared to 87.7% in 2023-24, up from 87.4%, according
to Petroleum Planning and Analysis Cell (PPAC).

Ø  Combating
Climate Change - India is committed to reducing its carbon emissions under the Paris
Agreement. The transport sector is one of the largest sources of greenhouse gas
emissions.

·       Government
initiatives: India has undertaken several key initiatives to push for electric
mobility as part of its broader goals for sustainability, pollution control,
and reducing dependency on fossil fuels.

Ø  Production-Linked
Incentive (PLI) Scheme - The PLI Scheme for the Automobile sector with
₹25,938 crore incentivizes up to 18% of sales to boost domestic manufacturing
of electric vehicles (EVs) and components.

Ø  Tax Reduction - GST on electric
vehicles has been reduced from 12% to 5%, GST on chargers/ charging stations
for electric vehicles has been reduced from 18% to 5%.

Ø  Green License
Plates - Ministry of Road Transport and Highways (MoRTH) announced that
battery-operated Vehicles will be given green license plates and be exempted
from permit requirement for carrying passengers or goods.

·       Associated
challenges: Inadequate Charging Infrastructure - India has a limited network
of public charging stations, which hampers long-distance travel and makes EV
ownership less convenient.

High Upfront
Cost of EVs - The cost of electric vehicles, especially electric cars, remains higher
than conventional internal combustion engine (ICE) vehicles, primarily due to
expensive battery tech.

·       Way
Forward: Enhancing Infrastructure Development - Accelerate the rollout of
public and private charging stations, including fast chargers and wireless
charging facilities, to reduce range anxiety and support long-distance travel.

Transitioning to
Renewable Energy - Transitioning to renewable energy sources such as
solar and wind power is essential to fully realize the environmental advantages
of electric vehicles (EVs).

·       Conclusion: The push for
electric mobility in India is vital for sustainability, reducing pollution, and
enhancing energy security, requiring continued investment, policy support, and
infrastructure development.