The main areas of infrastructure to concentrate on are physical infrastructure, power infrastructure, economic infrastructure, and social infrastructure.
A recent report by the Confederation of Indian Industry (CII) and KPMG has highlighted that with the right policy support and expedited decision-making, India could significantly enhance collaborations among stakeholders in the electric vehicle (EV) ecosystem, leading to accelerated EV adoption, reduced oil imports, and lower CO2 emissions. This shift would align with India’s commitments at COP26, aiming for a transition to 100% zero-emission vehicles by 2040.
The report, titled ‘Enabling infrastructure changes through policies for growth of EV’, points out that electric vehicles are a crucial solution to environmental challenges and are in line with India’s sustainability goals. Over the past four to five years, EV adoption in India has surged, with total sales hitting 1.2 million units and achieving a 5% market penetration in FY24. The country aims to reach a 30% penetration by 2030 as part of its EV30@30 campaign.
India’s EV market growth is supported by four main factors: policy support, total cost of ownership (TCO) parity, technology access, and a vibrant start-up ecosystem. Lessons can be drawn from countries like Norway, Sweden, China, Germany, and the United Kingdom, which have seen substantial EV penetration due to similar factors.
However, the report also notes that India still needs significant advancements in EV infrastructure. It outlines four primary areas of focus: physical, power, economic, and social infrastructure. Enhancements in these areas could boost EV penetration significantly, marking the current decade as transformative for Indian mobility.
The physical infrastructure improvements include developing a more extensive and evenly distributed charging network and establishing battery recycling facilities. For power infrastructure, there is a need to manage the growing power demand better and integrate renewable energy sources for EV charging. Economic infrastructure improvements should ensure access to low-cost capital for EV buyers and support innovative vehicle ownership models. Lastly, social infrastructure should focus on educating and enhancing the capabilities of various stakeholders and raising public awareness about the benefits of EVs.
The proliferation of vehicles has markedly increased India’s oil import bill, which has consistently been around $100 billion over the past three years. Road transportation contributes over 12% to the country’s total CO2 emissions. While initiatives like lightweight and regulatory mandates on fuel efficiency have been instrumental, EVs offer a more permanent solution to these challenges.
The government has also implemented several measures to support the EV market, such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, reductions in GST and road taxes for EVs, and the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, which aims to enhance India’s manufacturing capabilities and attract investments in the automotive manufacturing value chain.
