Access to reliable transportation at affordable costs can go a long way in promoting the economic prosperity of a country. India’s economy is expected to grow rapidly in the coming decades and transportation demand is set to grow proportionately.
Transportation in India has historically been dominated by vehicles running on fossil fuels. These modes of transport contribute to air pollution and increase greenhouse gas emissions, and also increase India’s import dependence. India has been largely dependent on oil imports for its transportation fuel needs, and our fuel import costs have increased drastically, from INR 16.4 billion in 1981 to INR 869.46 billion in 2017-18.
Electric mobility can have positive impact on India’s macroeconomic position as well as the environment.
The transport sector accounts for 18 percent of total energy consumption in India with road transport being one of the highest emitting sub-sectors, contributing at once to air pollution and GHG emissions. A study conducted by IIT Kanpur in December 2016 found that in the national capital alone, vehicles account for 9 percent of PM10 emissions, 20 percent of PM2.5 emissions, 36 percent of the NOx emissions and 83 percent of the CO emissions.
Electric vehicles have no tailpipe emissions and therefore contribute significantly reducing air pollution. They also have a positive impact on noise pollution since they are quiet and make very little noise. While electric vehicles rely heavily on the electricity grid for their charging requirements, studies show that the emissions caused due to grid reliant EV charging are considerably lower than the emissions from their ICE counterparts. They are almost four times more energy efficient than ICE vehicles, which is a contributing factor in their low emission intensity. With the greening of the grid underway, this emission intensity is set to reduce further. As electric vehicles run on electricity as a fuel source, fuel dependence is reduced drastically which leads to improved energy security for India.
Concerns about charging infrastructure, capital costs, and range anxiety have hampered the swift adoption of electric mobility in India, but the situation is changing rapidly. Electrification is on the rise in India, especially in the 2-and 3-wheeler categories and amongst fleet operators. Favourable state and central policies and consumer incentives are aiding the process as are innovations in electric mobility technology which are reducing capital costs.
While electric vehicles have higher upfront costs, they are more cost-effective than ICE vehicles over their lifecycles. Electric vehicles have a lower operating cost, which benefits long range vehicles that see longer miles of travel in a day. They have only 25 to 30 moving parts as opposed to over 2000 moving parts in an ICE vehicle, thereby being more reliable, with fewer breakdowns, and therefore, resulting in low maintenance costs. Further with battery prices falling rapidly, electric vehicles are fast becoming cost-competitive with mainstream ICE vehicles.
