By Arsh Rampal
Nitin Gadkari, the Road Transport and Highways Minister of India, has recently stated that the government will not bring a separate policy for electric vehicles. The statement was made on the launch of the electric vehicle charging points in Yojana Bhawan, the headquarters of NITI Aayog. The auto industry, however, has divided opinions regarding this decision of the government.
Government’s plan of action for electric vehicles
The government’s apparent U-turn on its decision to introduce a policy for electric vehicles (EVs) has resulted in the fact that it will now only formulate the rules and regulations for the category. The standards for EVs finalised by the NITI Aayog will be used as the final benchmark.
Amitabh Kant, the CEO of NITI Aayog, elaborated upon the reasons for the government to take up this decision. As stated by him, the introduction of a policy in the sector would affect the way in which technological innovations take place in the industry. Day-to-day technological innovations will get curbed if a policy is introduced to bind technological advancements.
The government is still keen on gradually moving to electric mobility, in order to curb the rising levels of pollution in the country. As a move in this direction, the governments policy to scrap polluting commercial vehicles older than 15 years of age is ready and will soon be implemented. The government is not going forward with an EV policy for now but is planning on strengthening the FAME India (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India) initiative.
The automobile industry’s take on this decision
R. C. Bhargava, the Chairman of Maruti Suzuki India, believes that the lack of a policy will be beneficial to the automobile industry. A lack of policy gives the industry a flexibility to work on any form of sustainable technology. It also reduces the pressure on the industry to change their strategies regarding the production of EVs.
In contrast, manufacturers such as Mercedes-Benz India and Mahindra Electric Mobility Limited believe that the government support is very much essential in this sector. A strong initiative by the government is needed to ensure that electric vehicle production booms in the country. The FAME India initiative has been a great factor in providing the required push that the EV industry needs.
Why it matters
India is very keen on ensuring that it makes a move towards cleaner mobility solutions. The adoption of Bharat Stage-VI (BS-VI) emission norms by the year 2020 and the FAME India initiatives are some ways in which the government plans on doing this. The sale of EVs in India is still very low due to a lack of electric car models in the market and the missing charging infrastructure. The sale of four-wheel EVs comprises only a small fraction of the total EV sales in India.
Keeping the above-mentioned points in mind, a government policy on EVs would be extremely beneficial to boost the production of electric vehicles in the country. A lack of policy may provide flexibility to the industry but it will also reduce the pressure on the Indian government to move to cleaner mobility options as soon as possible. The move will also benefit the Indian ecosystem, as India will cut down its carbon emissions to a great extent. If India moves towards cleaner technologies, it can save up to $60 billion in its crude oil expenditure and one giga-tonne of carbon emissions by 2030.
Future outlook
In the present scenario, where India will work without an EV policy, it is crucial that the government continues with the FAME India initiative for a few more years. Also, tax slabs on EVs, if not reduced, should remain the same to provide an incentive to potential buyers. The NITI Aayog should regularly update the norms for the sector to stay at par with the technological advancements made in the sector.
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