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Title : ELECTRIC VEHICLE SECTOR IN INDIA


Date : Dec 12, 2021

Description :

Based on a News Article published in the ‘The Hindu’ on 11th December 2021 on Page Number 12

 

Useful for UPSC CSE Prelims and Mains (GS Paper III)

 

 

 

 

Introduction:

 

  • With around 40 crore customers in need of mobility solutions by 2030, India is the world's fifth largest car market and has the potential to become one of the top three in the near future.
  • However, in light of the Paris Agreement's goals, a growth in the number of automotive users will not imply an increase in conventional fuel consumption.
  • A transportation revolution in India is required to ensure a positive growth rate toward India's Net Zero Emissions goal of 2070.
  • This will result in greater "walkability," public transportation, railroads, roads, and better autos. Many of these "better cars" will most likely be electric vehicles.
  • Recently, there has been a growing consensus among automotive specialists and the general public that electric vehicles are the way of the future.
  • However, India still has a long way to go in terms of battery manufacture and charging infrastructure, among other things.

 

Electric Vehicles and India's Origins, as well as their Expanding Scope:

 

  • The global climate agenda set under the Paris Agreement to reduce carbon emissions in order to minimise global warming is driving the demand for electric vehicles (EVs).
  • The rapid adoption of electric vehicles (EVs) is now defining the global electric mobility revolution.
  • Electric vehicles account for about two out of every hundred automobiles sold today, with EV sales expected to reach 2.1 million by 2020.
  • In 2020, the worldwide EV fleet will number 8.0 million, accounting for 1% of global vehicle stock and 2.6 percent of global car sales.
  • Global demand for EVs is also being fueled by falling battery costs and improved performance efficiencies.
  • Electric Vehicles are Required: India requires a transportation revolution.
  • The current trajectory of cramming already overcrowded cities with infrastructure constraints and high levels of air pollution with ever more cars relying on expensive imported fuel is unsustainable.
  • Electric mobility is a promising global method for reducing carbon emissions in the transportation industry.

 

India's EV Support:

 

  • India is one of just a few countries that backs the global EV30@30 campaign, which aims for at least 30% new electric vehicle sales by 2030.
  • At the COP26 in Glasgow, India's promotion of five factors for climate change — "Panchamrit" — is a commitment to the same.
  • At the Glasgow summit, India proposed a number of suggestions, including renewable energy meeting 50% of India's energy demands, cutting carbon emissions by 1 billion tonnes by 2030, and achieving net zero by 2070.
  • The Indian government has taken a number of steps to develop and promote the country's electric vehicle ecosystem, including the redesigned Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme and the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) suppliers.
  • For makers of electric vehicles, the recently announced PLI scheme for Auto and Automotive Components.

 

Associated Obstacles:

 

  • Manufacturing of Batteries: India's cumulative demand for batteries is expected to be around 900-1100 GWh by 2020-30, according to estimates.
  • However, there is concern that India's lack of a battery manufacturing base may force it to rely only on imports to fulfil expanding demand.
  • India imported more over $1 billion worth of lithium-ion cells in 2021, according to government data, despite having a low penetration of electric vehicles and battery storage in the power industry.
  • Issues Concerning Customers: In 2018, India was reported to have only 650 charging stations, far fewer than its surrounding countries, which had more than 5 million charging stations.
  • Because there aren't enough charging stations, users won't be able to travel great distances.
  • Furthermore, a complete charge of a vehicle at the owner's home using a private light-duty slow charger can take up to 12 hours.
  • Furthermore, the cost of a basic electric automobile is significantly higher than the cost of a car that runs on conventional fuel.
  • Policy Obstacles: Electric vehicle production is a capital-intensive industry that necessitates long-term planning to break even and profit. Government policy uncertainty surrounding EV production hinders investment in the industry.
  • India is technologically poor in the production of electronics that comprise the backbone of the EV industry, including as batteries, semiconductors, controllers, and so on.
  • EVs have higher maintenance costs and necessitate a higher level of expertise. In India, there are no designated training programmes for this type of skill development.
  • Unavailability of Materials for Domestic Manufacturing: The battery is the most crucial component of an electric vehicle.
  • India has no known lithium or cobalt reserves, both of which are required for battery manufacture.
  • Importing lithium-ion batteries from other nations is a barrier to becoming entirely self-sufficient in the battery manufacturing business.

 

Way Forward:

 

  • Electric Vehicles as a Way Forward: EVs will help to improve the country's overall energy security status, as the country imports over 80% of its crude oil needs, which total around $100 billion.
  • The demand for electric vehicles is also projected to boost job development in the local EV manufacturing industry.
  • EVs are also projected to reinforce the grid and assist accept increased renewable energy penetration while maintaining secure and stable grid operation through a variety of grid support services.
  • Battery Manufacturing and Storage Possibilities: Given recent technological upheavals, battery storage has a significant role to play in encouraging sustainable development in the country, especially in light of government measures to encourage e-mobility and renewable energy (450 GW energy capacity target by 2030).
  • Consumer gadgets such as mobile phones, UPS, laptops, power banks, and other items that require advanced chemistry batteries have seen a huge increase in demand as per capita income has risen.
  • As a result, improved battery production is one of the most promising business possibilities of the twenty-first century.
  • EV Charging Infrastructure: An EV charging infrastructure can be built up at private households, public utilities such as petrol and CNG pumps, and commercial enterprises such as malls, train stations, and bus depots, using energy from the local grid.
  • On both sides of the roadways, the Ministry of Power has mandated that at least one charging station be present in a 3 km grid and every 25 km.
  • In residential and commercial structures, the Ministry of Housing and Urban Affairs has mandated setting aside 20% of parking space for EV charging stations under the Model Building Bye-laws, 2016 (MBBL).
  • The MBBL will require state governments to make appropriate adjustments to their individual building bye-laws in order to take effect.
  • R&D in electric vehicles: The Indian market need support for indigenous innovations that are strategic and economically beneficial to India.
  • It makes logical to use local colleges and existing industry centres because investment in local research and development is required to drive prices down.
  • India should collaborate with countries like the United Kingdom to accelerate the development of electric vehicles.

 


Tags : EV Charging Infrastructure, UPS, laptops, power banks

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