Electric Vehicles in India – A Dream or a Possibility!
Hello Readers, Our previous is on Upcoming iPhone XI. So, in this post we are going to talk about Electric Vehicles in India. Last year, an announcement was made where the GOI wants only electric vehicles to ply on roads by 2030. However, recently Transport Minister Mr. Nitin Gadkari has said that the target as unofficial. But still the government is in the mood to force the use of EVs so as to curb the pollution level caused by the automobiles. The GST council has also set the GST rate on EVs at 12% as compared to 28% plus cess on petrol & diesel cars and hybrid cars. The announcement has made a disruption in the automobile industry. The companies either have to adapt or shut down. If we see on the recent developments:-
1. Mahindras are the only ones who is producing and selling electric vehicles in India.
2. State run firm EESL has tendered a bid of 10000 EVs for the purpose of hire and use in PSUs. The bid of 8500 cars bid was won by TATAs and rest by Mahindras.
3. Many companies like Maruti, JSW etc has shown interest and are planning to invest in the same.
4. Mahindras are considering into ventures with Cab Aggregators like Ola
The move seems to be very much needed in country like India which is one of the highest petroleum consumer in the world so as to reduce the spending on oil imports.
Now the question arises, if the target is real, whether is it likely possible to achieve the same or will be a dream?
Have you read our previous posts? If not, you can read it here:
Let’s look on some facts:-
1. In 2016, 3,36,000 EVs were sold in China and 1,60,000 in the US whereas in India, just 450 EVs which is even less than 1% of the Global Markets. And the government wants nearly 6 million EVs by 2030.
2. Ola’s conducted a pilot project to test a fleet of electric cars in some big cities. Nine months later, the Ola drivers expressed their dis-satisfaction with the EVs due to long wait times at charging station, high operating expenses etc.
3. In a survey conducted by Reuters in Nagpur, out of 20 drivers, more than 12 drivers have returned the Electric cars and have switched to diesel cars.
4. The hurdles faced by Ola in setting up sufficient charging stations for a fleet of expensive electric cars with a limited driving range expose the challenges the Indian Govt and automakers will face if they were to get anywhere near realizing the 2030 vision.
5. Right now, Mahindra is the only active electric car manufacturer in India
6. Government has not given any incentives to common man to boost the demand of EVs.
7. Cost of entry level model is nearly Rs. 7.6 lacs which is a barrier for many first time buyers.
8. No announcement in budget in the favour of electric vehicles.
The target is really too ambitious to be achieved by 2030. In order to achieve the same, GOI has to come with some plans to speed up the development of vehicles, increase the availability of Charging stations, increase the current electricity generation capacity to power such stations, incentives to manufacturers to decrease the cost of production and other incentives to public to boost up demand etc. The government needs to come with a vision statement and an effective policy on electric vehicles so that the target could become the reality and not just remain a dream.
Feel free to share your views in comment box or mail us at email@example.com.
-CA Sparsh Bansal (Team Itslyf)
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