THE GIST of Editorial for UPSC Exams : 07 February 2020 (Electric vehicle ecosystem’s taking solid shape in India (Mint))

Electric vehicle ecosystem’s taking solid shape in India (Mint)

Mains Paper 2: Economy
Prelims level: Electric vehicles
Mains level: Electric vehicle market in India

Context:

• There are 4,000 EVs in India, which is about 0.1% of close to 3.5 mn cars sold in the last year

Climate concern:

• Following the Paris agreement in 2015, India announced its commitment to reduce its emission intensity by 2030.
• However, it is going to be a herculean task, unless India goes the whole hog in adopting less carbon-emitting ways, especially in the automobile sector.
• India has a long way to go where electric vehicles (EVs) can play a big role.

Electric vehicle market in India:

• India is a market that provides a tremendous opportunity in the EV space—just like it does in petrol and diesel car segments.
• The opportunity is so big that every player in the ecosystem can benefit from it.
• EVs are going to be a key focus area when it comes to providing eco-friendly mobility solutions, overall.
• Under ‘Strategy 2025’, we plan to build the capacity and capability so that we can sell 670,000 battery EVs and fuel cell EVs annually.
• We also plan to offer most of our new models with an EV drive train by 2030 in major markets and by 2035 in emerging markets.
• India will be one of the most important markets for the EV ecosystem.
• It has a set a target of 30% electric vehicles on Indian roads.
• Just like Hyundai and other automobile firms, the government is doing laudable work in creating an enabling environment for EVs. Recently, the GST Council reduced the taxes on EVs from 12% to 5%.
• Similarly, to promote ‘Made In India’ EVs, the finance minister increased the customs duty on completely built units and SKD to 40% and 30%, respectively. This will definitely boost Indian manufacturing of EVs—as we did for the Kona EV.

FAME scheme:

• Phase 2 of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) scheme is now gathering momentum, which again will augur well for the EV ecosystem, including charging and battery change infrastructure in the country.
• Achieving the target of 30% electric mobility by 2030 looks challenging, and investment, innovation, research and development (R&D) across the right technologies will be key. What will also be crucial is the affordability factor and more than that the mindset of the common man.
• India’s commitment towards cleaner mobility is commendable and the automobile sector has to do its bit to make it possible.
• Currently, the sector as a whole is religiously working towards implementing the BS-VI emission norms.

Way forward:

• However, this probably would not be enough, considering the millions of tonnes of CO2 emissions the sector contributes. It needs long-term solutions, which lies in electric mobility.
• The players in the automobile sector are taking various steps. From charging infrastructure to investment in R&D for EV products suitable for the Indian roads, the industry is up for the task.
• It is indeed heartening to see that all the stakeholders are working towards one common goal, which is going to shape up a cleaner world, a cleaner tomorrow!

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Prelims Questions:

Q.1) With reference to the “Udyanotsav” of Rashtrapati Bhavan, consider the following statements:
1. The Mughal Gardens are a blend of the Mughal and English style of gardening and is inspired by the Charbagh style.
2. Charbagh is a Persian/Islamic quadrilateral garden layout based on the three gardens of Paradise mentioned in the Qur'an.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both
(d) None

Answer: A
Mains Questions:
Q.1) What are the major challenges to introduce electric vehicle system in India?