Table of Contents
What’s happening?
- The global automotive industry is undergoing a paradigm shift at present in trying to switch to alternative/less energy intensive options.
- India, too, is investing in this electric mobility shift.
- The burden of oil imports, rising pollution, and as well as international commitments to combat global climate change are among key factors motivating India’s recent policies to speed up the transition to e-mobility.
- The sale of retail electric vehicles (EV) saw a sharp three-fold jump in 2021-22 (April-March), data from the Federation of Automobile Dealers Associations (FADA) showed.
- In 2021-22, 4.29 lakh electric vehicles were sold, compared to only 34 lakh last year, and 1.68 lakh in 2019-20.
What kind of electric vehicles?
- The data from FADA showed that electric two-wheelers make up the bulk of the numbers.
- During the financial year that just ended, 2.31 lakh electric two-wheelers were sold, compared to just 41,046 units a year ago.
- Among the brands, Hero Electric Vehicles Pvt Ltd sold the most electric two-wheelers, clocking 65,303 units during the year, followed by Okinawa Autotech Pvt Ltd at 46,447 units, Ampere Vehicles Pvt Ltd at 24,648 units and Ather Energy at 19,971.
What about 4 wheelers?
- Electric passenger vehicles also saw a 257% growth in sales, albeit over a small base.
- During 2021-22, 17,802 units were sold, FADA said, compared to 4,984 the year before.
- A major chunk of this was sold by Tata Motors, which has the Tigor and Nexon EV products in its portfolio.
- The company sold 15,198 units during the year, followed by MG Motor India at 2,045 units and Mahindra & Mahindra at 156 units.
Any other vehicle?
- During 2021-22, 1.78 lakh electric three-wheelers were sold as against 88,391 in 2020-21 and 41 lakh in 2019-20.
- While YC Electric Vehicle leads the figures, selling 17,049 units, it is followed by Saera Electric Auto Pvt Ltd at 8,475 units and Mahindra Reva Electric Vehicles Pvt Ltd at 8,037 units.
- Notably, FADA said that the three-wheeler market is seeing a tactical shift from internal combustion engines to electric ones as 45% of the three-wheeler market has now shifted to EVs.
Reasons for the growth
- A concerted push by the government and expanding footprint of the charging infrastructure has led to the growth in EV sales during the year.
- Added to this was the sustained increase in prices of automobile fuels, such as petrol and diesel.
- Going ahead, with services such as battery swapping, battery-as- a-service (BaaS) setting in, sales in the segment could see further growth.
PLI scheme
- In May 2021, the government rolled out a Production-Linked Incentive Scheme (PLI) for ACC Battery Storage Manufacturing,
- Which will incentivize the domestic production of such batteries and reduce the dependence on imports.
- This will support the EV industry with the requisite infrastructure and will significantly cause a reduction in cost of EVs.
- On September 15, 2021, the government approved a PLI Scheme for the automobile and drone industry, Which intends to incentivize high value advanced automotive technology vehicles and products, including ‘green automotive manufacturing,
- The PLI Scheme for the auto sector is open to existing automotive companies as well as new investors who are currently not in the automobile or auto component manufacturing business.
conclusion
- The Indian automotive industry is the fifth largest in the world and is slated to be the third largest by 2030.
- Catering to a vast domestic market, reliance on the conventional modes of fuel intensive mobility will not be sustainable.
- By making the shift towards electric vehicles (EVs), India stands to benefit on many fronts: it has a relative abundance of renewable energy resources and availability of skilled manpower in the technology and manufacturing sectors.
Q) Which among the following ministry recently released India’s National Green Hydrogen Policy?
- Power ministry
- Ministry of New & Renewable energy
- Finance ministry
- Ministry of Road & Transportation
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