• UGI USER
  • Jul 30, 2024
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CHALLENGES AND OPPORTUNITIES IN TRANSITION TO ELECTRIC VEHICLES

Why in the news?

  • Global EV sales were 14 million in 2023, but adoption rates are lower than needed for climate goals.
  • Major EV markets: China, Europe, and the US, account for 95% of sales.
  • Countries like Norway and Sweden show high EV adoption, while others lag.

India’s EV Strategy:

  • India’s EV sales are growing but are still low compared to global rates.
  • Proposed realistic goal: 50% EV adoption by 2040, alongside renewable energy grid transformation.
  • GST rates favour EVs (5%) over hybrids and ICE vehicles (28%), but policy needs uniformity to avoid market distortion.
source:slideshare
 What are Electric Vehicles?

  • Definition: Vehicles using electric motors for propulsion instead of internal combustion engines.

Types:

  • BEVs: Battery-powered, zero emissions.
  • PHEVs: Electric and gasoline engines, externally chargeable.
  • HEVs: Electric and gasoline engines, non-pluggable battery, charged by engine or braking.

EV Policies in India:

  • 2010: Rs 95-crore MNRE scheme, 20% incentives on ex-factory prices; withdrawn in 2012.
  • 2013: NEMMP 2020 launched but largely unimplemented.
  • 2015: FAME scheme announced, Rs 75 crore outlay.
  • 2017: 100% electric cars by 2030 goal, scaled to 30%.
  • 2019: Rs 10,000-crore FAME-II scheme approved.
  • 2023: GST on EVs reduced from 12% to 5%, chargers from 18% to 5%.
  • 2024: New Electric Vehicle Policy proposed, under consultation.