The Government of India is planning to go big on e-vehicles and aims to have an all-electric car fleet by 2030. The major objective behind this is to lower the fuel import bill and running charge of vehicles in the country. Power Minister Piyush Goyal said that the Ministry of Heavy Industries and the NITI Aayog are working on a policy for raise of electric vehicles. Pointing near the cost factor, Goyal said that people would like to buy an electric vehicle when they find it cost effective. Presently, we also have the Manufacturing AND Faster Adoption of Electric and Hybrid vehicles a.k.a. the FAME initiative in India, under which the government offers grants on electric and hybrid vehicles. Addressing the CII Annual Session 2017, Goyal said, “We are going to introduce electric vehicles in a very big way. We are going to make electric vehicles independent like UJALA. The idea is that by 2030, not a single petrol or diesel car should be sold in the country.” Goyal was also pretty hopeful and said that the government could aid the electric industry in the initial 2-3 years to ease the transition from diesel and petrol cars to electric vehicles before the industry stabilizes. Goyal also spoke about the government’s plan to introduce electric vehicles (EV) in India on a massive scale within the next 3 years. The government will be structure charging substructure and battery swapping programmes to achieve this goal.
Presently, the electric vehicle market is highly niche with only Mahindra Electric offering all-electric cars in India. On the other hand, the hybrid vehicle market is in a much better position with numerous builders like Volvo, Toyota and BMW offering either conventional hybrids or plug-in hybrids in the country. Carmaker’s like Tesla and Nissan have already announced their plan to enter the Indian market with products like the Model 3 and Leaf respectively. And if the administration’s plan succeeds then we are likely to see a surge of other global brands enter the Indian market with their electric fleet.