Leading the Drive Against Pollution, Industrial Growth
TL/DR –
The shift towards electric vehicles (EVs) is crucial for India due to the ongoing air pollution crisis and to maintain industrial competitiveness. India risks losing domestic markets and the chance to become a global export hub if it does not scale electrification across all vehicle segments. Three priority actions are proposed: mandating the electrification of all two- and three-wheelers by 2030; strengthening Corporate Average Fuel Efficiency (CAFE) norms to drive the electrification of cars; and establishing a national “Right to Charge” to accelerate adoption.
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India’s Path to Electric Mobility: A Strategic Imperative
The escalating air pollution crisis in Delhi underscores the urgent need for India to expedite its transition to full electric mobility. Besides environmental considerations, this shift is crucial for India’s industrial competitiveness, technological leadership, and economic resilience, as the global auto industry is currently experiencing a significant transformation towards electric vehicles (EVs).
Over the last decade, India has made some progress in EV manufacturing, including battery innovation and the development of affordable electric two- and three-wheelers. However, the pace of global change is accelerating, with countries like China leveraging electric mobility to dominate substantial parts of the global EV supply chain. As the US and Europe respond with industrial policies such as the Inflation Reduction Act and the EU Green Deal, India’s participation in this transformation becomes more critical, lest it risk losing not only domestic markets but also the potential to become a global export hub.
Three Essential Priority Actions
To maintain a competitive edge and foster a vibrant EV ecosystem in India, three priority actions are imperative:
Mandate the Electrification of All Two- and Three-Wheelers by 2030
With two- and three-wheelers accounting for almost 80% of all vehicles on Indian roads, their electrification presents a cost-effective opportunity due to the proven technology, rapidly declining costs, and mature local industry. Implementing a regulatory mandate for 100% electric two- and three-wheeler sales by 2030 will catalyze investment in domestic battery production, component manufacturing, and R&D. It will also reduce India’s oil import bill, enhance urban air quality, and generate numerous green jobs.
Strengthen CAFE Norms to Drive the Electrification of Cars
India’s Corporate Average Fuel Efficiency (CAFE) norms lag behind global advancements, necessitating more decisive measures for the transition towards fully electric passenger cars. The objectives should be to stimulate innovation, align with global regulatory standards, and accelerate the availability of affordable electric cars for Indian consumers. The European model, where stringent 2020 light-duty vehicle CAFE standards resulted in an increase in EVs market share from 3% to 11% in a year, provides an excellent example.
Enshrine a National “Right to Charge” to Accelerate Adoption
One key barrier to EV adoption in India is the limited access to reliable charging facilities at home and at work. A national “right to charge” policy, guaranteeing EV owners the right to install charging points in their parking spaces, could significantly alleviate these challenges. This policy should cover mandatory access, clear timelines for utilities and DISCOMs, builder obligations, and collective solutions.
Electrifying transport goes beyond dealing with environmental concerns and presents an opportunity for India to establish itself as a global manufacturing powerhouse. It can reduce India’s chronic dependence on imported fossil fuels, improve air quality, stimulate investment in advanced technologies, and ensure India’s competitiveness as the world moves away from internal combustion engines.
Riding on decisive policy initiatives for electrification across all vehicle segments, clear mandates, strong standards, and a long-term industrial vision, India has the potential to lead the global automotive industry in the coming decade.
Ashok Jhunjhunwala is chairman, Immersive Technology and Entrepreneurship Labs and Institute Professor, IIT Madras, and chairperson, CAQM’s Expert Committee for Abatement of Air Pollution caused by Vehicular Emissions in Delhi-NCR. The views expressed are personal
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