Latest news with #FasterAdoptionandManufacturingofElectricVehicles
Mint
23-06-2025
- Automotive
- Mint
Keep off that brake pedal: India's EV transition has no time to lose
Electric vehicles (EVs) on Indian roads breached the 6.5 million mark in May 2025. With over 2 million EVs sold in 2024 and rising adoption across two-wheelers, three-wheelers and public transport, the groundwork is firmly in place, and we are ready for take-off. The stellar progress so far has been made possible by a forward-looking and purposeful policy push, starting from Faster Adoption and Manufacturing of Electric Vehicles (Fame) to the recent PM E-Drive and scheme for making electric passenger cars in India. There are several ongoing interventions and initiatives to address rampant bottlenecks in financing, credit mechanisms, charging networks and the battery value chain. So far, the government has spent more than ₹40,000 crore on incentives, which in turn has led India to a 7.8% share of EVs in annual vehicle sales. Also Read: Mint Quick Edit | India's EV bait: Who'll bite? We now need a well-calibrated push for large-scale adoption of EVs across India's cities, both big and small, without digressing from the national EV agenda; we must not risk derailing the impressive progress we have made thus far. The government has spent enormous funds to incentivize the automobile industry and battery ecosystem while taking decisive measures to localize manufacturing, ensure domestic value addition and enhance the uptake of the production-linked incentive scheme. While incentives and subsidies played a key role in market development, the path ahead requires setting up long-term expectations and visibility that can step up the momentum. The rapid addition of renewable energy to green India's power grid presents a unique opportunity to create a zero-emission value chain, from power generation to transportation. Globally, markets are moving decisively towards zero-emission vehicles (ZEVs), with strong policy signals to accelerate EV adoption. India must craft tailored strategies for different vehicle segments, given varying levels of market maturity. Clear market and regulatory signals are necessary to unlock long-term investment, reduce risk for manufacturers and financiers. This calls for a decisive shift: from incentives and subsidies to clear mandates, regulatory confidence and long-term innovative solutions contextualised for the Indian market. Also Read: Rare earths: China is choking its own prospects of leadership Holistic development of the battery ecosystem: To scale up EV adoption across modes and geographies, it is crucial to develop battery standards aligned with global benchmarks, besides creating a robust framework for data sharing grounded in the core objectives of safety, sustainability, resource efficiency and circularity. A nodal agency should be set up to ensure compliance, streamline mechanisms for data storage and explore business models for viability. This can aid end-of-life battery management, thereby reinforcing a circular economy. Create a circular and accountable ecosystem: To ensure a thriving battery circularity ecosystem, we must ensure that the Extended Producer Responsibility (EPR) portal is enabled with an audit function. Further, third-party validation should be encouraged for producer declarations. The responsibility for old-battery collection should be borne by both recyclers and producers, with unrestricted movement allowed between states. Finally, EPR pricing should be designed to suit different battery chemistries. Also Read: Cold War II alert: Rare earths could tilt the global balance of power Capture battery data for resource efficiency: To streamline the battery value chain and create a resilient and circular ecosystem, the government's department of science and technology recently unveiled a strategic pilot initiative: Battery Aadhaar, a unique digital battery ID to enable tracking of lifecycle data to support circularity, resource efficiency and regulatory compliance. This is a breakthrough for energy storage as it strengthens our resolve to couple economic and sustainable development as we strive to become a net-zero economy by 2070. As our energy transition intensifies, we must also prioritize support for R&D and homegrown startups to explore indigenous technologies and help create a recycling market. We also need more collaborative platforms like the Battery 360 Alliance, which can assess ecosystem readiness and facilitate better decision-making by all stakeholders. Introduce EV mandates: At this critical juncture of India's EV transition, we also need new nudges towards EVs. We can begin with low-level mandates that could be progressively scaled up. Globally, countries with robust EV adoption have used varied supply-side norms to send market signals. India can chart its own course by using phased and locally adapted mandates for manufacturers and operators. Also Read: China risks overplaying its hand by curbing rare earth exports Implement Café norms: We must implement the tightened Corporate Average Fuel Efficiency (Café) norms while tapering off the super credits provided to manufacturers in non-EV segments. These regulations also serve as motivators for manufacturers to invest more in innovation and accelerate economies of scale to bring down costs, helping the EV industry reach a tipping point. The scope of Café norms must be thoughtfully extended beyond just 4-wheelers to cover all major vehicle segments (especially commercial vehicles like trucks), given their emissions and substantial share in India's mobility ecosystem. These regulations will accelerate the adoption of EVs and further push the development of a domestic market, which could create green livelihood opportunities for millions. Expand charging infrastructure to underserved areas: India suffers from an uneven charging infrastructure distribution, with operators opting for high-traffic, commercially attractive zones, leaving low-demand or peri-urban areas underserved. For EVs to become the new normal in India's Tier 1 and 2 cities, we need corridor-level planning, not just a focus on wide distribution. We must establish a nodal agency that can create cross-subsidization opportunities for a balanced infrastructure rollout that offers equitable charging-point access. At the sub-national level, it will help to enhance the transparency and accountability of urban local bodies to strengthen and streamline frameworks for efficient service delivery through mechanisms like single-window clearances. Also Read: Electric three-wheelers and e-rickshaws could soon be rated like cars. Here's why it matters By integrating these strategic shifts in our short-, medium- and long-term roadmap, India will not only pave the way for a cleaner future, but also solidify its role as a global economic powerhouse while inching closer to its vision of Viksit Bharat by 2047 with a $30 trillion economy. These are the authors' personal views. The authors are, respectively, G20 Sherpa, India; and executive director, Integrated Transport, Clean Air and Hydrogen, WRI India.
Express Tribune
19-06-2025
- Automotive
- Express Tribune
EVs 30% target by 2030 ambitious but daunting, say automakers
Listen to article Local auto industry has termed the government's target of having at least 30% electric vehicles (EVs) by 2030 both ambitious and daunting for a financially constrained country like Pakistan. The industry also mentions that when India could not do it in 10 years despite significant financial interventions, how can Pakistan realise this in the next five years? Jamil Asghar, who has been associated with the motorcycle industry for around 35 years, said that India introduced FAME I (Faster Adoption and Manufacturing of Electric Vehicles) scheme in 2015 with an initial outlay of INR895 crore (INR8.95 billion), followed it up with FAME II in 2019 with an outlay of INR10,000 crore (INR100 billion). Then after the end of FAME II in March 2024 came Electric Mobility Promotion Scheme from April till September 2024, with INR500 crore (INR5 billion) and more recently the FAME scheme has been replaced with PM-EDRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement) with effect from October 2024 with a total outlay of INR10,900 crore (INR109 billion). Despite spending billions of rupees, the results, however, are not that promising so far. In October 2024, the sale of two-wheelers in India was recorded at 2.1 million. Of these, only 80,850 units were electric bikes. This translates into penetration of only 3.7% for E2Ws (electric two-wheelers). During the same period, E4Ws (electric four-wheelers) constituted only 1.5% of total market as per the Federation of Automobile Dealers Association and the Society of Manufacturers of Electric Vehicles in India. In Pakistan, according to Jamil, there is an industry-wide excitement that automakers are flexing their muscles with the introduction of New Energy Vehicles (NEVs) as the industry is going through a transition phase with the induction of new entrants. "Unlike ICE (internal combustion engine) vehicles, where localisation is more than 95% for two-wheelers and around 65% for four-wheelers, the NEVs are typically being imported into Pakistan as completely knocked down (CKD) units at best and being assembled here only," he said, adding that prices of these vehicles run into tens of millions of rupees, rendering them very expensive for an average Pakistani customer. "Moreover, globally, wherever NEV uptake was recorded, it has come as a result of a hefty supply and demand-side incentives and subsidies and it immediately dips when the incentives are removed or suspended," he pointed out. Jamil said that considering exorbitant prices of NEVs and in the absence of any significant incentives from the government, which is already financially strained and resource starved, what possible fraction of masses will opt for these fancy vehicles remains to be seen. He feared that the government will direct and allocate already scarce resources for a fraction of society and to a sector whose contribution to air pollution is still unclear.
Time of India
12-06-2025
- Automotive
- Time of India
85 if not 100: e-bus plan in limbo, UT ready to settle for less
1 2 Chandigarh: Facing the imminent phasing out of 100 diesel buses and struggling to get 100 e-buses as their replacements for more than a year, the Chandigarh administration will now send a fresh proposal for procuring 85 new e-buses to the central govt. A UT official said the Transport Department would again prepare a detailed proposal and submit it to the Ministry of Home Affairs. Recently, the officers of the Transport Department also went to Delhi and held a meeting regarding the purchase of buses. "Under the current circumstances, the administration will float fresh tenders on its own. The terms and conditions will be the same as those set by the central govt. The tender will be floated after approval from the competent authority. From the start of the tendering process to the delivery of buses, it will take at least six months," said a UT official. The urgency for procuring the buses stems from the fact that out of the 358 diesel buses, 100 will complete their 15-year service limit by November this year, and these will have to be phased out. The CTU is the mainstay of the public transport system in the tricity, with Mohali having no tricity bus service available and Panchkula having a very limited local bus service. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Clean Warehouses = Safe Workplaces SearchMore Learn More Undo If these 100 buses are taken off the road, there would be a consequent reduction in bus services within the tricity. The process to replace these 100 diesel buses with e-buses started a couple of years ago. "The buses were being purchased under a central govt scheme, and even the tendering process was completed last year. But since then, litigation plagued the execution of the tender. Even if the tender materialises now, we are still unlikely to get the 100 buses before November," said the official. The new 100 e-buses were to be ultra-low entry (ULE) vehicles of 12m length. The existing e-buses with CTU are 9m long and of low entry. The 100 buses were being availed under the 'PM e-Bus Sewa' scheme. Earlier, e-buses were availed under phase II of the FAME (Faster Adoption and Manufacturing of Electric Vehicles) India Scheme of the central govt. In the tendering process for the new e-buses, which concluded in March 2024, the lowest bid was Rs 61.8 per km. MSID:: 121784767 413 | Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Hans India
18-05-2025
- Automotive
- Hans India
IEA ranks India world's largest market for electric 3-wheelers, above China
India has been ranked the world's largest market for electric three-wheelers, above China, for the second straight year with a 20 per cent surge in sales to 7 lakh vehicles in 2024, according to a report by the International Energy Agency (IEA). The IEA's Global EV Outlook 2025 report points out that the three-wheeler market is highly concentrated, with China and India accounting for more than 90 per cent of electric and conventional 3W sales. "Electrification of 3Ws in China has stagnated at less than 15 per cent over the past three years. In 2023, India overtook China to become the world's largest market for electric 3Ws, and it maintained this position in 2024, with sales growing close to 20 per cent year-on-year to reach nearly 7,00,000 vehicles," the report states. The report states that this rising trend is likely to continue with the government's support under the new PM E-DRIVE scheme, which supported the roll-out of more than 3,00,000 electric 3Ws for commercial use in 2024. According to the report, China, India, and Southeast Asia remain the world's largest 2/3W markets, accounting for around 80 per cent of 2024 global sales, with 2/3Ws serving as the primary mode of private passenger transport in these regions. "India's increasingly dynamic electric 2W market hosted a total of 220 OEMs in 2024, up from 180 in 2023, although the four market leaders accounted for a combined 80 per cent of the 1.3 million electric 2Ws sold in the country in 2024 (6 per cent of the overall 2W market)," the report said. While the upfront purchase price of electric 2Ws remains higher on average than that of conventional 2Ws, increasing competition is prompting OEMs to offer more affordable electric models. "Policy support is also helping to bridge the affordability gap between electric and ICE 2W models, with the new PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) policy continuing financial support formerly provided under both Faster Adoption and Manufacturing of Electric Vehicles (FAME)-II and Electric Mobility Promotion Scheme measures," the IEA report states. The scheme is planned to operate until March 2026 to support the roll-out of about 2.5 million electric 2Ws, up from 1 million targeted under the previous FAME-II policy. On the manufacturing side, the 80 largest electric 2W makers in India accounted for a combined production capacity of 10 million electric 2Ws in 2024, almost 8 times the domestic sales that year. The capacity is expected to increase to 17 million electric 2Ws in the near term, if all OEM announcements come to fruition. The IEA report also states that total sales of electric cars in India increased by a mere 2 per cent to around 1,00,000 units in 2024. Sales in India grew 45 per cent year-on-year, nearing 35,000 electric car sales for the first quarter of 2025. "In India, high import duties on EVs and the availability of locally made, affordable electric models meant the share of Chinese imports in the country's EV sales remained below 15 per cent in 2024. "While the cheapest battery electric car model was produced locally by a Chinese OEM (SAIC's city car, the MG Comet EV, priced under $8,000), the average price of imported Chinese BEVs was twice that of those made by domestic manufacturers," the report pointed out. In 2024, all battery electric vehicle (BEV) models manufactured by Indian carmakers started below $20,000, while none of the imported Chinese BEV models were priced under that threshold. Overall, the average price gap between battery electric and ICE cars fell below 15 per cent for small cars and 25 per cent for SUVs in 2024. IEA said India has also seen rapid growth in electric bus deployment since 2020, with the number jumping nearly 4-fold from below 3,000 to more than 11,500 at the end of 2024.
