19/08/2021 - Environment

KEY POINTS

·        The global automotive landscape is transforming amid growing concerns on reducing dependency on fossil fuels and mitigating carbon emissions.

·        As per IEA, during 2019-40 the energy demand and carbon emissions from road transport in India are likely to more than double along with oil import dependence increasing to 90 per cent.

·        India will need to promote mass electrification by leveraging all electrified technologies (xEV), alternate fuels and hydrogen fuel technologies for realising reduction of oil import.

·        To localise EV parts, it is crucial to ensure investment viability for which both supply-side incentives and high level of demand are required.

·        For investment viability a key strategy is to aggregate demand for EV parts across different applications and various electrified technologies including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and BEVs as all these have common EV parts.

·        India is promoting fuel efficiency through Corporate Average Fuel Economy  regulations and is encouraging BEV adoption.

·        The logical and scientific approach is to adopt a merit-based taxation regime that provides all xEVs suitable preferential GST rate.

·        Moreover, with increased consumer adoption, EV part costs can decline rapidly due to scale thus further accelerating shift to BEVs.

·        This can create the manufacturing base for future technologies like hydrogen vehicles once that ecosystem begins to mature.

Please review 

Dear ShankarIAS Team,

Requesting to review and provide your feedback.

Regards,

Swathi

Please review sir