Rocky Mountain Institute and NITI Aayog have recently brought up a set of calculations that
would set the electric vehicle aspirations on the right track. The report had comprehensive
studies about the opportunities of the automotive sector and government after the implementation
of FAME II (Faster Adoption and Manufacturing of Electric Vehicles II) scheme.
The report would provide insights n the saving and economic opportunities FAME II
could pass on when oil and carbon prices are factored in.
The study year is set around 2030 where the report is pointing out that once the scheme has been
successfully deployed in both the public and private sector, India could witness a deeper EV
penetration with 30% of the private and 70% of the commercial cars being completely run on
electric power. The same set of numbers e also applicable to public modes of transport with 80 %
of three-wheelers and 40 % of busses being used to electric energy. The savings not only comes
from cheaper electric vehicles but also takes the form of oil and carbon savings.
With the recent advancement in technology, the price of the EV is witnessing new lows, f the
FAME II touches the stipulated mark, around 846 million tons of carbon dioxide be weeded out
from the environment. FAME II is all focused on electrifying the transportation sector with
recommendations and policy changes for faster EV adoption in the Indian market.
Some of the notable highlights from the report are
Necessary attention should be given to batteries as they are the key cost drivers
Total savings in terms of oil and equivalent fuels would max out to 5.4 million
tones than translates to savings worth of 17.2 thousand crores.
Electric busses would run down a total of 3.8 billion vehicle kilometers
FAME II policies and schemes would be extended to vehicles that are not currently
present under the radar.
In order for the system to show its full potential, active participation from the
automotive sector, both the private and public players are essential.
Still customer awareness and domestic manufacturing constraints are a few of the
leading problems associated with faster adoption of electric vehicles.
Incorporating government policy support in areas of emission laws, subsidized
pricing and parking policies can make a huge difference when it comes to how
faster customers can be influenced for adoption.
With new and new data’s from the market, it would be interesting to see how the Indian market
would respond to such opportunities.