India Can Save Rs 17,200 Crore By 2030 Through Electric Vehicle Adoption: Niti Aayog

The Indian government has set an ambitious goal of having 30 percent of its transportation needs met through EVs by 2030. With an optimistic take on this, Niti Aayog now confirms in a report that the penetration can easily be met, with the ongoing FAME scheme and other such measures.

As per the report, Niti Aayog estimates that around 80 percent two-wheelers in India will be electric in India by 2030 while up to 30 percent four-wheelers will follow suit. The report has been titled ¡®India's Electric Mobility Transformation: Progress to Date and Future Opportunities¡¯ and has been concluded by Niti Aayog and the Rocky Mountain Institute.

As for the penetration of EVs predicted by the report, it estimates that "if FAME II and other measures in public and private space - are successful, India could realise EV sales penetration of 30 percent of private cars, 70 percent of commercial cars, 40 percent of buses and 80 percent of two and three-wheelers by 2030."

(Representative Image: Reuters)

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In addition to this, the report also tries to quantify the direct oil and carbon savings that vehicles incentivised under the FAME II would deliver. It mentions that the lifetime cumulative oil and carbon savings of all-electric vehicles put into use through 2030 could be ¡°many-fold larger than the direct savings¡± from FAME II.

It says that if the predicted share of EVs are brought to use in the Indian transportation scenario, ¡°cumulative savings of 846 million tonnes of CO2¡± over the total deployed vehicle's lifetime could be possible. Similarly, for oil, vehicles eligible for incentives under FAME II scheme can cumulatively save ¡°5.4 million tonnes of oil equivalent over their lifetime worth Rs 17,200 crore."

(Representative Image: Reuters)

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The report by Niti Aayog also shares some appropriate measures to accelerate the transition to EVs. It suggests the government to focus upon a phased manufacturing plan to promote EVs by providing fiscal and non-fiscal incentives for the production of both EVs as well as their batteries.

Some other policies that can possibly help include ZEV credits, congestion pricing, low emission/exclusion zones, parking policies, etc. to increase adoption of EVs.

Interestingly, a recent report had revealed that many existing electric two-wheelers will not be able to use the incentives provided under the FAME II. Reason being, the stringent eligibility criteria, that restrict the subsidies to the vehicles powered by lithium-ion batteries and having specific speed capabilities. With the industry appealing to the government to reconsider the criteria, there is expected to be ample to and fro between the centre and the industry before a set growth pattern for the EV adoption in India can be decided upon.

(With inputs from PTI)