Policy Paper (Part 2)- How Indian EV Specific Use-Case Can Be Reframed

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E-mobility is just not about electrifying your vehicles rather electrifying your businesses. The need to tackle the huge C02 emissions in the environment is an alarming situation. A densely populated nation like India finds it hard to worth the private vehicle. Thus, the option of sharing vehicles or fleets is a good choice.

A policy paper worked by WBCSD has highlighted some policy and regulatory measures to be explored for early EV adoption. The paper talks about the three highly utilized Indian use cases; employee transport, ride-hailing, and deliveries. These three use cases make a strong bucket to improve TCO and foresees a greater alignment with FAME’s existing focus on vehicle segments.

Employee Transport

The lack of reliable transportation is a major concern for the urban workforce. Thus, the demand for clean and safe mobility has increased. Companies like Wipro, Google, Amex, Adobe, etc. have already deployed the EVs for employee transportation. Therefore, there are now service providers who have invested in the creation of electric fleet culture and its charging infrastructure in India. This indeed matches with the government’s vision of shared mobility or micro-mobility. However, some recommendations would boost this progress.

 Bus market in India; Courtesy: WBCSD

The WBCSD’s study suggests including the privately operated e-buses within the brackets of FAME II scheme. As currently e-buses are excluded from being subsidized under FAME II (while e-2Ws, e-3ws or e-cars are). However, FAME II scheme has a budget of INR 35.45 billion allocated for e-bus used for public transportation, but not for privately held operators.

Ride-Hailing

In India, ride-hailing is the top-most chosen option for commutation. Due to several availabilities of an easy app-based ride-hailing network, services have been extended to various vehicle segments. In India, it is even estimated at USD 60 billion by 2030. However, this market is ruled on petrol and diesel.

Electrification of ride-hailing vehicle segments can improve the environmental concerns and provide a clean, efficient option for the passengers to ride. There are some policies improvements suggested by WBCSD in this category.

  • The e-bikes must be legalized across all states along with ease of license and permit processes for the drivers.
  • Digitization of processes is the key to transparency.
  • The MoRTH must ensure the proper guidelines for e-bike rentals in all states and UTs.
  • By waiving the toll fees and airport entry charges and parking reservation to EVs drivers or fleets. It has presently been adopted by six states in India including Karnataka, Maharashtra, and Tamil Nadu.

Deliveries

Post pandemic, the online orders in India accelerated like never. This has given a noticeable shift to the last-miles delivery category in various vehicle segments. But due to dependency on petrol and diesel fuels, the increased quantum of CO2 emissions and noise is painful. Now surge in fuel prices and goods demands, the vehicle electrification finds a fantastic hope to normalize the chaos. The companies like Flipkart has already announced their complete shift of last-miles delivery on e-vehicle fleets by 2030 in India. However, there are some challenges in this use case.

  • The WBCSD recommends considering relaxing entry restrictions on e-SCVs and e-MCVs during daytime.
  • The DHI could include the amendments in FAME II to include certified retrofitting kits for heavier e-commercial delivery vehicles.
  • It is also suggested to permit flexibility of the usage of e2W use cases.
  • To revise the licensing fees based on power ratings threshold to 500W for EVs.
Annual new sales vs vehicle stock of 2Ws and 4Ws; Courtesy: WBCSD

 All-in-All

The use cases depicted in the read are the most promising areas for mobility progression in India. Gurgaon-based start-up Zypp aims to electrify all last miles deliveries, the e-bus transportation named Shuttl are some examples to find its face. Last year Amazon India announced its hitch with Mahindra’s treo to electrify the transportation of its goods to the doorsteps. Although FAME II has curbed many ecosystem loopholes, some scrutiny and accountability are needed in the policy or regulations.

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