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19/03/2021 - Government Policies

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March 19, 2021

Explain the various policy challenges present in mainstreaming of electric vehicles in the country. (200 Words)

Refer - The Indian Express

Enrich the answer from other sources, if the question demands.

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IAS Parliament 4 years

KEY POINTS

According to the Union Minister of State for Heavy Industries number of registered electric vehicles sold in India in 2019-20 was just 1,67,041 units.

According to auto industry website Autocar India, EV sales in 2019-20 stood at 7.5 lakh units in India.

Policy Challenges

·        FAME II is not very popular with manufacturers, lowering of GST and import duties and enhanced subsidies, none of which actually happened in the Budget.

·        The lack of a proper charging infrastructure is the key impediment to the pathetic Electric Vehicles sales.

·        In fact, globally, one-third of all electric cars sold are sold in just 14 cities around the world which have adequate and well-developed charging infrastructure.

·        Electrifying a market the size of India would massively push up the demand for rare earths like lithium, of which China controls a bulk of the supplies.

·        While lithium is almost infinitely recyclable, the technology to recover and reuse lithium is still largely untested.

Way forward

·        Converting city buses to electric poses a much more handleable infrastructure challenge, with charging facilities needed only in depots. Focussing on shared mobility taxis and three-wheelers is also easier, a fleet-based approach.

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