The future of electric vehicles in India looks quite promising. In recent times, diverse factors, such as environmental concerns, have shifted interests towards them. The Indian government has now declared supportive schemes for environment-friendly automobiles. The Production Linked Scheme (PLI), drafted to boost the auto sector, shall support electric and hydrogen fuel vehicle manufacturers. The $3.5 billion incentive aims to give financial support to Electric and Hydrogen fuel vehicle manufacturing. Auto part makers, making parts for clean vehicles, and investing in safety-related and advanced technology would benefit. Initially created to support gasoline-vehicle manufacturers, the plan now focuses primarily on shifting to sustainable automobiles.
India’s present sustainable initiatives
The current Indian market for electric vehicles is small but prominent. Commercial transport vehicles and two-wheelers dominate the Indian EV market. With improved battery price performance, the EV market is expected to multiply in the coming years. Several companies such as Tata Motors, Mahindra Electric, Morris Garage (MG), and Hyundai started launching electric cars in the Indian market. The encouragement given to clean technologies and the entry of well-known brands such as Tesla will boost the industry and help migrate from ICE-based technologies. The presence of domestic and international manufacturers will create a variety of options suiting the needs of EV users.
The government introduced the FAME and FAME II (Faster Adoption and Manufacturing of Hybrid and EV) to transform transportation. e-buses, e-two-wheelers, e-three-wheelers, and e-passenger vehicles are promised support under these schemes. In addition, several subsidies given to EVs encourage the use of locally manufactured units. The central ministry also exempted EVs from road tax completely. Alongside the Central Scheme, the states such as Delhi, Gujarat, Maharastra, Rajasthan are providing subsidies up to 30,000 INR.
Promises of the PLI
PLI for electric vehicles intends to induce foreign technologies not manufactured in India. The induction of these technologies helps in overcoming the price obstacle EVs face constantly. Under the scheme, Hydrogen fuel and EV manufacturers who invest 2000 crore INR for four-wheelers and 1000 crore INR for two-wheelers over five years will be eligible for the incentives. In addition, auto component makers who include modern technologies and EV components will also be entitled to these benefits. Components included under the scheme are an electronic power steering system, automatic transmission assembly, sensors, supercapacitors, adaptive front lighting, sunroofs, tire pressure monitoring system, automatic braking, and collision warning system. In addition, the induction of improved battery chemistry and newer technologies improves the working and efficiency of electric vehicles.
What does the PLI mean for EV charging infrastructure in India?
The shift towards cleaner transportation, like electric vehicles, creates a massive demand for charging stations. The central scheme addresses parts of the problem while charging infrastructure still needs attention. EV charging infrastructure in India needs special attention to make the use of EVs a viable option. The lack of sufficient EV charging stations results in range anxiety. Several charging stations do not have the right equipment or power to recharge an EV. Lower demand, a lesser number of vehicles, and the dominance of traditional vehicles affect the creation of charging infrastructure. Another concern with the present charging stations is the lack of a uniform and transparent platform for the consumers and providers. Applications like e-MSPs, ensure a convenient and feasible charging experience for EV drivers. With the predicted progress, charging infrastructure also needs substantial development to make EV use easy. Replacing the long-standing traditional fuel vehicles needs to be done comprehensively, and charging infra is one of the crucial steps.
Summary
The dire need for adopting sustainable technologies in India has influenced the incentivization for Hydrogen fuel and EVs. Electric vehicle manufacturers and auto component makers making parts for sustainable vehicles are eligible. Components imbibing modern technologies like sensors, electronic power steering will also benefit the industry. The present schemes and initiatives address part of the problem. The PLI, spanning over five years, intends to support the growth of sustainable vehicles significantly. It also brings forth the need to establish additional charging stations. Synchronizing the availability of charging slots, power, the right kind of chargers, and a transparent transaction system is necessary. Overpowering traditional fuel vehicles in feasibility, convenience, and cost is a difficult task. Addressing the crucial aspects of hybrid and electric automobiles can help realize this.
