Is it really that hard to frame a clear and realistic EV policy?

The NITI Aayog report of last year set some pretty aggressive targets slated for 2030 – 40% of all personal vehicles to be electrified, 100% of fleet vehicles, 100% of buses and 100% of three-wheelers. These targets were so ambitious, in fact, that – without a clear roadmap of how to get there – the viability of achieving them was in question from the get-go.

Now, it appears that the government is backtracking from these targets. In the middle of February, Transport Minister, Nitin Gadkari, and NITI Aayog CEO, Amitabh Kant, essentially said that no policy is required as technology development always supersedes policy – and changing regulation to adapt is a tedious process in India. In making such a statement, are they accepting defeat or merely being practical?

Whatever the case may be, if automakers are expected to invest in the manufacture and R&D of eco-friendly vehicles, a clear roadmap is a must! Every industry leader has made it a point to go on record to say as much, and also state that, without a demonstrable commitment from the government towards setting up an enabling infrastructure, no investment from the industry will be forthcoming.   

In a nutshell, what the government must do is start by incentivising hybrids and plug-ins. Hybrids are clearly an intermediary step towards full electric vehicles. Not only do plug-in hybrids get people used to the idea of charging, but they also allow the ecosystem – in terms of charging stations and after-sales expertise – to build around them. Moreover, the manufacture and assembly of these vehicles in the country starts to build the economies of scale in the lithium-ion battery packs that will be imperative for EVs to flourish. Setting up a network of charging stations in the metros, and even a series of stations on some of the main national highway corridors has to be done to surge this movement forward. Companies like Ashok Leyland and Greaves Cotton demonstrated swappable battery buses and electric three-wheelers respectively at the recent Auto Expo.

Government-funded pilot projects should be set up to gauge the viability of such technology solutions – especially in the commercial vehicles space. Imagine if last-mile mobility solutions can be clean and integrated into larger plans that include metro connectivity – then our cities can actually make real strides towards being ‘smart.’  

Above all, though, a clear and logical roadmap is required. Without that, the way forward remains a mystery – an unfathomable one at that!