EV POLICY

1.Introduction

Electric vehicle is what “EV” stands for. An electric vehicle is a kind of automobile that runs
on electricity, usually rechargeable batteries. A fossil fuel-dependent internal combustion
engine is replaced by electric motors in an electric vehicle. “EV Policy” typically refers to
regulations pertaining to electric vehicles, these policies seek to address environmental issues
and less dependency on conventional fossil fuels. When it comes to reducing reliance on
fossil fuels and addressing climate change, electric vehicles present more sustainable and
environment friendly option for both private and public transportation. Their capacity to
generate zero emission from their tailpipes make a substantial contribution to reducing air
pollution and halting climate change. Furthermore as battery technology and charging
infrastructure continue to advance, EV are becoming more and more sensible, affordable, and
essential in changing the face of global transportation in the direction of a more sustainable
and environmentally friendly future.

2.Background

It is important to note that Scottish inventor Robert Anderson created the first rudimentary
electric carriage in 1832, marking the beginning of the development of electric vehicles in the
early 19th century. In the latter part of 19th century (EV) gained popularity in the United States
as city cars as they were simpler to operate than steam-powered and gasoline powered
vehicles. However, the use of EVs began to decline in the 1920s due to a number of factors,
including improved roads, the discovery of Texas crude oil, lower fuel prices, better
combustion, Ford’s mass production of less expensive vehicles, and others. Environmental
concerns in the 1990s and the 1960s skyrocketing oil prices sparked interest in EVs among
researchers, policy makers and the general public.
The automobile sector in India is the fourth largest globally, with a compound annual growth
rate (CAGR) of 7.01%; in 2018, the industry covered 4.02 million units (excluding two-
wheelers and motorcycles). Current data indicates that India produces over 25 million
vehicles, of which 210 million are licenced vehicles on the country's road network, with bikes
accounting for the largest share at 79% and passenger vehicles at 14%1. India is still in the
early stages of the adoption of electric vehicles, but the market is expanding quickly. The
number of registered electric vehicles in India climbed to 28,30,565 as of August 2023 from
53,387 in 2013, according to figures presented to the Parliament by the Ministry of Road
Transport and Highways, Government of India. India's automobile sector would be essential
to the country's move to renewable energy, according to the most recent Economic Survey.
The country's EV market is predicted to expand at a compound annual growth rate (CAGR)

1
Singh, V., Singh, V., & Vaibhav, S. (2021). Analysis of electric vehicle trends, development and policies

in India. Case Studies on Transport Policy, 9(3), 1180–1197.

https://doi.org/10.1016/j.cstp.2021.06.006

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of 49% between 2022 and 2030. Annual sales of EVs may surpass one crore units by 2030,
creating five crore employment directly and indirectly.2

3. Main body

National Level Policy

Over the past ten years, the country's central government has announced several promotional
initiatives to help promote the use of electric cars (EVs). These initiatives include tax breaks
for EV owners and the building of public EV charging infrastructures. Currently, India's main
programme for advancing electric mobility is called FAME, or Faster Adoption and
Manufacturing of (Hybrid and) Electric Vehicles. DHI introduced it in 2015. FAME-II,
which is presently in its second phase of implementation, has a budget allocation of 10,000
Cr, including a carryover from FAME-I of Rs 366 Cr. It will be implemented for a period of
three years, starting on April 1, 2019.
United nations aims to promote EV under its sustainable development agenda for 2030.
Government of India plans to make India an ‘electric vehicle nation’ by 2030. Under the
National Electric Mobility Mission Plan (NEMMMP), GoI envisions 6 million electric and
hybrid vehicles on India’s road by2020.

National Mission on Transformative Mobility and Storage

Role:
1.Encourage the development of innovative mobility strategies and phased manufacturing
plans for electric cars, their parts, and their batteries.
2.Establishing a Phased Manufacturing Programme (PMP) to bring manufacture in-house
throughout the whole value chain for electric vehicles. A phased manufacturing roadmap that
takes into account the current state of the nation's manufacturing ecosystem has been
developed to boost electric mobility and encourage the development of electric vehicles.
Through a graded duty structure, indigenous manufacturing of electric vehicles, their
assemblies and sub-assemblies, and parts, sub-parts, and inputs for the sub-assemblies will be
promoted over time. The objective is to greatly increase value addition and capacity building
within the nation.
3.The Mission will decide on localization details and establish a clear Made in India plan for
the battery and other parts of electric vehicles.
4.The Mission will work with important state, department, and ministry partners to combine
several projects to alter India's mobility landscape.
Roadmap:
2
Government’s EV policies driving India’s Green Revolution. Investment Promotion and Facilitation Agency.
(n.d.). https://www.investindia.gov.in/team-india-blogs/governments-ev-policies-driving-indias-green-
revolution
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1. A phased manufacturing roadmap for batteries that will first concentrate on building large-
scale assembly factories for modules and packs by 2019–20 and giga scale integrated cell
production by 2021–2022.
2. Ensuring the complete and all-encompassing expansion of the Indian battery
manufacturing sector through PMP
3. Putting together a plan to allow India to use its size and resources to manufacture
competitive, creative multimodal mobility solutions that can be used all over the world in a
variety of situations
4. Roadmap for creating a sustainable mobility environment and promoting Made-in-India to
enable transformative mobility in "New India"3.
Maharashtra’s Electric Vehicle Policy
Policy objectives:
1) The primary objective of Maharashtra Electric Vehicle Policy 2021 is to accelerate
adoption of Battery Electric Vehicles (BEVs) in the state so that they contribute to 10% of
new vehicle registrations by 2025.
2) In the six targeted urban agglomerations i.e. Mumbai, Pune, Nagpur, Nashik, Aurangabad
and Amravati in the state, achieve 25% electrification of public transport.
3) In the six targeted urban agglomerations i.e. Mumbai, Pune, Nagpur, Nashik, Aurangabad
and Amravati in the state, achieve 25% electrification of fleet operators, fleet aggregators and
last-mile delivery vehicles by 2025.
4) Transition of 15% of Maharashtra State Road Transport Corporation's
(MSRTC) existing bus fleet to electric.
5) Make Maharashtra the country's top producer of BEVs in India, in terms of annual
production capacity.
6) Target establishment of at least one Gigafactory for the manufacturing of advanced
chemistry cell (ACC) batteries in the state.
7) Promote research and development (R&D), innovation, and skill development across the
EV ecosystem in the state.
Policy's Strategic Drivers
a) Encouraging the use of EV technology:
By offering financial and non-fiscal incentives, EVs will become more viable.
b) Encouraging the construction of EV-specific infrastructure by providing investment
subsidies.
c) Innovation and R&D Promotion:

3
National level policy. (n.d.). https://e-amrit.niti.gov.in/national-level-policy-
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To encourage the creation of Centres of Excellence and Research & Development Centres
throughout the state.4

4. Advantages

1. Environmental Impact:
By lowering air pollution and greenhouse gas emissions, electric vehicle (EV) rules in
India help to create a greener, healthier atmosphere. Environmental Impact: By
lowering air pollution and greenhouse gas emissions, electric vehicle (EV) rules in
India help to create a greener, healthier atmosphere.
2. Energy Independence:
By encouraging electric vehicles that run on renewable energy sources, EV policies
help India's efforts to become less dependent on fossil fuels.
3. Employment Creation:
The production, maintaining, and development of charging infrastructure by the EV
industry creates jobs and boosts the economy.
4. Technological Advancements:
EV rules stimulate innovation in electric drivetrains and battery technology, leading to
breakthroughs that may find wider uses across a range of industries.
5. Decreased Fuel Imports:
India may lessen its reliance on fuel imports and lessen its exposure to global changes
in oil prices by encouraging the adoption of electric vehicles. This will have a
beneficial effect on the trade balance.
6. Health Benefits:
When air pollution from combustion engines is reduced, air quality improves,
improving public health and lowering medical expenses due to illnesses linked to air
pollution.
7. Infrastructure Development:
In order to support the expanding electric car market, EV regulations encourage the
construction of charging infrastructure and promote investments in services and
technology.
8. Tax Incentives:
By lowering the cost of electric vehicles through government incentives and tax cuts,
consumers are urged to adopt eco-friendly solutions and hasten the shift to electric
mobility.
9. Global Commitments:
In line with international environmental accords and commitments, India is positioned
as a responsible player in the global fight to battle climate change through the
implementation of EV policies.
10. Urban Planning and Traffic Management:
The development of electric vehicles is associated with programmes that support
sustainable urban planning and public transit, which lessen traffic and enhance the
general standard of living in urban areas.

4
मोटार वाहन विभाग, महाराष्ट्र. (n.d.). https://transport.maharashtra.gov.in/
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5. Disadvantages

1. Initial Cost:
Despite long-term fuel savings, the greater upfront costs of electric vehicles relative to
conventional internal combustion engine vehicles may discourage some potential
customers.
2. Limited Range and Charging Infrastructure:
EV customers may have range anxiety due to the present restrictions on the range of
electric vehicles and the unequal distribution of charging infrastructure, especially in
areas with a dearth of charging stations.
3. Battery Recycling Challenges:
Recycling and disposing of lithium-ion batteries can be a complicated operation that
calls for effective recycling solutions to avoid dangerous elements that could cause
harm to the environment.
4. Emissions from Electricity Generation:
Since power plants produce carbon emissions and air pollution, some of the
environmental benefits of charging electric vehicles may be offset if the electricity
comes from fossil fuels.
5. Difficulties for Low-Income Consumers:
Even with government subsidies, low-income consumers may find it difficult to adopt
electric vehicles (EVs), contributing to the affordability gap between EVs and
conventional cars and perhaps widening socioeconomic gaps.
6. Stress on Power Grid:
If electric vehicles become widely used, the current power networks may be put under
a lot of pressure, necessitating large infrastructural expenditures to handle the rise in
electricity consumption.
7. Effect of Transition on Auto Industry:
The move to electric vehicles has the potential to upend established automotive
manufacturing sectors, which could result in employment losses in industries related
to internal combustion engine production.
8. Restricted Vehicle Options:
Compared to traditional vehicles, the selection of electric vehicle models may be
more limited, which could influence consumer preferences and decision, particularly
in some vehicle categories like trucks and SUVs.

6. Recommendations

1. Two wheelers based on Petrol and Diesel should be reduced on road:

Two-wheelers make up a sizable portion of all vehicles on the road and are
significant contributors to a number of air pollutants. The majority of buyers
of two-wheelers are those who used public transportation in the past and wish
to simplify their daily trip. These clients are from a socioeconomic stratum
that is sensitive to pricing. To do this, it is advised to implement the following
two policies:
a) Provide this target market with discounted electric fleet services for shared
mobility: Due to their price sensitivity, this target market is likely to migrate to
 EV POLICY

shared mobility if affordable and practical options are provided. There will be
less air pollution emitted into the ecosystem because the shared mobility fleet
is electric.
b) Market electric two-wheelers to this target market segment: Given that this
target market is price sensitive, if more affordable electric two-wheelers
become available on the market, this market will choose them over traditional
two-wheelers. To accelerate adoption, the government may subsidize the cost
of two-wheelers5
2. Promoting the development of renewable energy projects:
Electric cars only emit fewer emissions when their fuel combination includes a
higher proportion of renewable energy. Thus, an increasing number of
renewable energy generation sources should be installed in order to guarantee
that the adoption of EVs reduces air pollution. Although India has abundant
solar and wind resources, the current strategy only sets renewable targets
through 2022. Since only 25% of energy will come from renewable sources
till 2022, the strategy of supporting renewable resources must be extended
beyond that year in order to achieve a considerably higher proportion from
renewable energy in India's electrical mix. Along with smart grids, scalable
energy storage will be required to accelerate the growth of these renewable
resources6.
3. Finance battery technology innovation:
Advancements in the battery manufacturing process are required to make
electric vehicles genuinely non-polluting. Other battery-related domains, such
as bi-directional charging and battery life, also require innovation and research
because they are critical to consumer satisfaction and the uptake of electric
vehicles. Since longer battery life will encourage the use of electric vehicles
and lower emissions from the battery manufacturing process will lower overall
emissions into the ecosystem, the government should support research in this
area and host conferences on the subject. Energy storage systems will be
needed to drive the growth of these renewable resources.
4. Infrastructure for Charging:
Make investments in a broad and easily accessible network of infrastructure
for charging, especially in urban areas and beside major highways. It is
possible to investigate public-private partnerships in order to accelerate the
installation of charging stations.
5. Public Awareness Campaigns:
Start campaigns to address concerns, debunk myths, and inform the public
about the advantages of electric vehicles. Various media outlets and
community engagement initiatives can accomplish this.
6. Collaboration with Industry:

5
Vidhi, R., & Shrivastava, P. (2018). A Review of Electric Vehicle Lifecycle Emissions and Policy

Recommendations to Increase EV Penetration in India. Energies, 11(3), 483.

https://doi.org/10.3390/en11030483
6
Ibid.
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Encourage cooperation between stakeholders in the public and private sectors.

This is done to guarantee a coordinated strategy for developing the EV
ecosystem, involving automakers, tech firms, and energy providers.

7.Conclusion

In conclusion, India's decision to implement an electric vehicle (EV) policy is a critical first
step towards a more environmentally friendly and sustainable future. India can create an
environment that is favourable to the widespread adoption of electric vehicles by putting in
place a comprehensive set of policies, from financial incentives to infrastructure development
and research initiatives. The successful implementation of the electric vehicle (EV) transition
depends on cooperation among the public, private, and other sectors of society. India has the
chance to take the lead in this global movement towards greener, more sustainable forms of
transportation, benefiting the environment, lowering its reliance on fossil fuels, and fostering
technological advancement. If the EV policy is successful, it will not only lead to a cleaner
environment but also boost economic growth, generate employment, and establish India as a
leader in the quickly changing field of electric mobility.