Electric Vehicles

Syllabus: General Studies Paper 3

Context:

In 2016, BigBasket became one of the first companies in India to introduce electric vehicles (EVs) for last-mile deliveries. By going electric, the online supermarket successfully saved costs while being kind to the environment, and three years later, it added 1,000 more e-vans and 2,000 e-bikes to its fleet.

ELECTRIC VEHICLES

Electric vehicles are automobiles that are prepared by one or more electric motors using energy stored in rechargeable batteries

DATA/ REPORTS

NITI Aayog submitted a report to move out three-wheelers running on internal combustion engines

According to WHO’s  global air pollution database ,India has 14 out of 15 most polluted cities in the world in terms of particulate matter concentrations (PM 2.5)

According to the Ministry of petroleum and oil, India’s oil import dependence is around 83%. It is a concern for current account deficit as well as energy security

It affects overall economic growth as well as has spill over effects on other factors as well

In the Indian transport sector, mobility market is driven by two wheelers. Policy making should focus on this aspect and also on public transport. India has merely 1.2 buses for 1000 people

BENEFITS OF ELECTRIC VEHICLES

Sunrise industry-  this is a new industry and hence has a huge potential to grow with high investment as well as employment opportunities

To become world leader- if India does not move to clean energy then there will be huge differences between developed and developing countries. 

It would help in sustainable growth and development

CHALLENGES

Import dependence

• For oil imports India is majorly dependent on OPEC countries, electrical vehicles will diversify the import of energy
• However, China controls lithium-ion battery markets directly or indirectly making it a dominant player in the battery of electric vehicles
• The move towards more electric vehicles would mean a dependence upon China which could pose a strategic challenge for the country

Shifting with respect to emissions

• Since India gets the majority of electricity from coal power thermal plants some major part of electricity for electric vehicles would come from coal
• Emissions from automobiles will be shifted to emissions from thermal power plants

Technology and funding

• To reduce our dependence on coal India needs to have better renewable energy technology and funding
• The recent Glasgow summit and India’s commitments are vital steps in this direction

Lithium and Cobalt reserves

• We do not have large reserves of lithium or Cobalt. Countries like China, Congo, Bolivia and Australia have high reserves

Pricing 

• Since it is yet a new technology price cannot be reduced beyond a certain limit since then it would become economically unviable, government has to balance this factor with incentivizing people to buy electric vehicles

New technology

• As it is said when a new technology comes out it will lead to the death of many all technologies
• When the technology of fracking came up, the US started the exploration of shale gas. This causes the issue of creative destruction which may lead to loss of jobs and other repercussions.

Lack of energy security

• India has yet not achieved 100% electrification in a real sense, it is only according to the definition that mandates only 10% electrification of households in a village

Lack of charging facilities

• India has around 150 charging stations with a target of about 5000. China has lakhs of charging facilities

PROBLEMS IN THE AUTOMOBILE SECTOR

At present automobile sector is experiencing a decline and it is a lead indicator of economic growth

Reasons for slow down

• Some exports of called to be a cyclic slowdown of the automobile sector
• Policy induced- high GST and adoption of Bharat stage VI norms
• Because of uncertainty in the policies that previous models will be banned and government steps of increasing re-registration charges, people are looking for a scrap value
• The gig economy- even the millennials are using ola and uber, consumption patterns of the population have shown a change
• Model fatigue theory- the new models launched by major manufacturers are not that attractive

ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS

• According to the curve when the country e moves from a pre-industrial economy to an industrial economy there is an increase in pollution and hence level of degradation of the environment increases. 
• When it enters the stage of the industrial economy there is a shift to service-based economy and becomes less polluting, after reaching a turning point with growth in the country it adopts mitigation and adaptation measures and becomes less polluting
• Thus, more the economic growth that is more capability and money for the protection of the environment

GOVERNMENT INITIATIVES

FAME- faster adoption and manufacturing of hybrid and electric vehicles

It is a part of the national electric mobility mission plan. It focuses on 4 areas

Technology development demand creation pilot projects charging infrastructure

Now phase 2 of the FAME India scheme has been extended till 2024 with the announcement of a 50% increase in incentives for electric two-wheelers

Minister of heavy industries has also mandated energy efficiency services limited to procure your 3 lakh electric three-wheelers for use by different authorities

WAY FORWARD

• A study titled ‘ India’s electric vehicles story: emerging opportunities’ observed that incentivising electric vehicle production could help to cut carbon emissions as much as 37 %
• India’s future mission- 7 c’s of future mobility
• Common- public transport
• Connected- geo connectivity and internet-enabled
• Convenient- safe, affordable and accessible for all sections
• Congestion free- fewer traffic jams and increased efficiency in logistic movements
• Charged mobility- electric vehicles
• Clean mobility- pollution-free
• Cutting edge- new technology and innovation

The Live Mint Link:

https://www.livemint.com/opinion/online-views/evs-for-last-mile-delivery-could-boost-india-s-e-commerce-sector-11637686236178.html

Question:

What are the salient features of the FAME 2 scheme? How will the FAME 2 scheme help improve charging infrastructure?