India pushes for greater uptake of electric mobility

In the gold rush for global domination of the electric mobility market, India has thrown its hat into the ring. The Modi-led government announced last month that it would offer US$1.4 billion in subsidies for both buyers and manufacturers of electric vehicles and impose higher import tariffs to spur domestic companies to build vehicles.

The government aims for 30 percent of its public transport to be electric by 2030. With prime minister Narendra Modi emphasizing that he wants India to lead across the value chain from battery production to smart charging to electric vehicle manufacturing.

“Policies will be designed as a win-win for all who want opportunities in the automobile sector,” said Modi. Although he emphasized that public transport would remain the focus of the electric mobility push.

The issue of air pollution in Asia was discussed at the 2nd UN Science Business Policy Forum in Nairobi in March 2019. Dechen Tsering, regional director of Asia-Pacific for UN Environment, said that the Indian private sector had shown a lot of interest in developing electric cars, but the problem was still battery prices.

The issue of renewable energy components availability in lower-middle income countries remains a challenge. Often essentials such as solar panels or lithium batteries are not produced locally, or at least not at scale, which prevents the private sector from entering renewable energy infrastructure. Yet 92 percent of Asia and the Pacific’s population— about 4 billion people—are exposed to levels of air pollution that pose a significant risk to their health.

Arnico Kumar Panday, regional programme manager for the atmosphere at the International Centre for Integrated Mountain Development, said that it was possible to create a rapid uptake of electric vehicles in Asia through taxes. He gave the example of Nepal, where cars running on petrol and diesel are taxed at 220 percent when purchased, while electric cars at 10 percent.

Of the US$1.4 billion released by the Indian government, about US$1.2 billion has been earmarked for subsidies, US$140 million for charging infrastructure, and some US$5 million for administrative expenses and advertising.

UN Environment’s e-mobility programme supports countries, particularly emerging economies, in introducing electric mobility. It helps governments to develop policies, exchange best practices, pilot technology options, track electric vehicle uptake, and calculate emissions and economic benefits.

Original source: UN Environment
Published on 19 March 2019