Promoting Electric Vehicle Mobility in India: Issues and Challenges by - Abhijit Anil More
Promoting Electric Vehicle Mobility in India: Issues and Challenges
Authored by - Abhijit Anil More
Abstract
Keywords: Means and Modes of Transportation,
Road Transportation, Traditional Sources of Energy, Emission, Health Hazards,
Electric Vehicle, Issues and Challenges
1. Introduction:
Transportation
has made a significant contribution to any country's development through
improving people's lives, whether the growth is in the economic, social,
political, or cultural fields. Transportation is significant because it
facilitates trade, commerce, and communication, all of which are necessary for
civilization to thrive. The emergence of motorized vehicles powered by internal
combustion engines has made transportation more efficient and effective.[1]
The automobile sector is one of India's most important economic drivers, with a
high level of participation in global value chains. Strong government support
has aided this sector's expansion, allowing it to carve out a distinct path
among India's manufacturing sectors. The country's automobiles are distinctive
in that they cater to the needs of low- and middle-income sectors of the
population, making it stand out among other automobile-producing countries.[2]
By
2020, India is predicted to be the third-largest automobile market in terms of
volume. According to the Society of Indian Automobile Manufacturers, the Indian
automobile sector employs more than 30 million people directly or indirectly.
The automobile business in India is booming thanks to technological
advancements, technology transfer, and rising customer demand. The Indian
automobile industry is well-positioned economically to fulfil rising domestic
demand as well as export potential. By 2026, India's vehicle industry might
earn up to $300 billion in yearly income, up from $80 billion in 2018, and
contribute up to 12% of the country's GDP.[3]
The
fast growth of urban India has resulted in a massive increase in the number of
vehicles on the road. In India, the car population is increasing at a rate of
about 5% per year, with approximately 80 million vehicles on the road now.
Vehicle expansion is the backbone of economic progress, and the Indian
automotive industry is no exception (the second-fastest growing in the world).
Approximately 7-8 million vehicles are produced annually in the country now.
This has doubled in certain cities during the last decade. In recent years,
urbanization and the expansion of motor vehicles have had a significant impact
on human life and the environment. Automobiles are a major cause of urban air
pollution and are becoming an increasingly important source of anthropogenic
carbon dioxide, carbon monoxide, Nitrogen Oxide, Photochemical Oxide, Oxides of
Sulphur, particular matter and many other greenhouse gases. The transportation
industry is a key contributor, accounting for nearly 90% of total emissions.
Air pollution is a severe threat to human health in the environment.[4]
2. Impact of Vehicular Emission on Human Health
Vehicle
emission is one of the most significant causes of air pollution.
India has 22 cities in the top 30 polluted cities in the world. With a reading
of 999 on the Air Quality Index, Delhi has officially become the world's most
polluted city.[5] India's
transportation sector emits 261 tonnes of CO2 and accounts for 60% of all
greenhouse gas emissions from diverse operations. Vehicles contribute to about
70% of total air pollution in India's main cities.[6]
According to WHO-supported research, around
154,000 individuals died in India as a result of ambient fine particulate
matter (PM2.5) in 2005. (NTDPC, 2014). Children suffer from cardiovascular
morbidity, asthma, and other respiratory illnesses as a result of
traffic-related air pollution. According to World Bank research from 2013,
outdoor air pollution accounts for 29% of all pollution in India, resulting in
the early deaths of 109,000 individuals each year. The study shows an
unsettling fact: the health cost of air pollution, which is caused by vehicle
activity, was almost 3% of GDP in 2013.[7]
Carbon
monoxide (CO) is an odourless, invisible gas produced when carbon-containing
fuels are burned inefficiently, and it is a major health hazard. At high levels
of exposure, CO is known to cause death. Because carbon monoxide has a 200-fold
higher affinity for blood haemoglobin than oxygen, CO obstructs oxygen delivery
from the blood into the tissues. Even at modest levels of exposure, the effects
of this gas on humans have been demonstrated. Angina (chest pain) in persons
with coronary artery disease is accelerated by low levels of exposure. Even
short-term NO2 exposures have been shown to cause a variety of respiratory
symptoms in schoolchildren, with cough, runny nose, and sore throat being among
the most prevalent. Higher susceptibility to respiratory infection increased
airway resistance in asthmatics, and poorer pulmonary function have all been
linked to nitrogen dioxide (NO2).[8] Particulate Matter (PM) is a broad term that
refers to a variety of chemically and physically varied substances that exist
as discrete particles (liquid droplets or solids) in a variety of sizes.
Particles can be discharged directly into the atmosphere or produced from
gaseous emissions like Sulphur dioxide or nitrogen oxides. Premature death,
worsening respiratory and cardiovascular disease, changes in lung function and
increased respiratory symptoms; changes in lung tissues and structure; and
alterations in respiratory defence mechanisms are just a few of the primary
health impacts related with PM.[9]
3. History of Motor Vehicle Emission Norms in India
Automobiles
used to emit a large amount of specific matter and gases into the air, but
there were fewer vehicles on the road at the time. However, as the number of
vehicles grows, there is a need for emission standards to push automobile
manufacturers to improve their technology to produce fewer emissions. In 1999,
India's central government implemented the EURO Norm in response to a Supreme
Court judgement. The EURO Norm allows for carbon dioxide emissions of 14.3-27.1
g/km and hydrocarbon emissions of 2.0 g/km. [10]
In
Europe, Euro norms were followed; however, due to the differences in driving
styles, average speeds, and driving restrictions between India and Europe,
India began its emission standard known as the Bharat Stage Norm. The gap
between the norms in Europe and India is negligible. India does not adhere to
the standard uniformly throughout the country. Large metropolitan cities such
as Mumbai, Delhi, Calcutta, and Chennai adopt emission standards first, with
the rest of the country following suit after some time.
In the
Year 2000, Commercial Vehicle follows India 2000 norm which was equivalent to
Euro I Norm. It used to emit 8.68-12.40 g/km of carbon dioxide and 3.00-4.36
g/km of carbon dioxide and Nitrogen dioxide.[11]
When the rest of the country was following the BS-II norm in 2005, cities like
Delhi, Mumbai, Calcutta and Chennai followed the BS-II norm in 2001. BS-II norm
permits 2.2 g/km CO and 0.5 g/km of HC+NOx. Bharat Stage norm III reduced
emission of CO + NOx to 0.5 g/km. BS III norm was implemented in the country in
a staggered manner in October 2010 while big cities followed the same norm in
2005 itself. [12]
Bharat
Stage IV reduced the emission of CO to 1.0 g/km and 0.18 g/km of HC+NOx. The
BS-IV norms were implemented in major cities by April 2010 and the country
follows that norm in 2014. India lags behind European and American countries in
emission standards so with the direction of the Supreme Court India Leapfrog
BSV Norm and followed BSVI norm implemented on April 1, 2020. The implementation of the BSVI norm put India
in the elite club of countries with the best emission norm.
4. The Benefits of Electric Mobility in India
One of
the most significant advantages of driving an electric vehicle is the positive
impact it may have on our environment. Because pure electric vehicles do not
have a tailpipe, they do not release any exhaust gases, reducing local air
pollution, especially in packed cities. Electric automobiles are a viable
option for municipalities seeking to improve air quality and improve the health
and quality of life of their citizens.[13]
Electric
automobiles are substantially quieter than gasoline and diesel vehicles, which
means noise pollution may be greatly decreased, benefiting both residential and
city-centre locations. Living near busy roadways may no longer be a drawback
when it comes to relocating in the future, but rather an appealing feature for
those who want to take advantage of transportation options. Because electric
cars are so quiet, they are now obliged by law to carry an Acoustic Vehicle
Alert System (AVAS), which emits an artificial sound to alert pedestrians while
reversing or travelling at less than 12 mph (19 km/h).[14]
5. Initiatives Taken by Central Government for Promoting
Electric Mobility in India
The
Ministry of Road Transport and Highways established three committees to provide
advice on the execution of different provisions of the Motor Vehicle Act and
Central Motor Vehicle Rule, as well as problems concerning safety and pollution
regulation. The following committees have been formed:
1.
Technical Standing Committee on Central Motor Vehicle Rules
2. The
Standing Committee on Emissions Legislation Implementation.
3. The
Automotive Industry Standing Committee is a group of people that work in the
automotive industry.
The
committees' major responsibilities include providing technical explanation and
interpretation of the requirements of the Motor Vehicle Act 1988 and the
Central Motor Vehicle Rule 1989, recommending worldwide standards, providing
effective emission standards, and suggesting modifications to the Automobile
Industry. This Ministry has authority to make changes in MVA 1988 and CMVR 1989
leading to the introduction of Electric vehicles on Indian roads. It can compel
the automobile industry to make and sell electric or hybrid vehicles in India.[15]
In
January 2013, India's Prime Minister unveiled the National Electric Mobility
Mission Plane 2020. The goal of NEMMP 2020 was to raise the number of electric
and hybrid vehicles on the road by 6-7 million by 2020, improve charging
infrastructure, and stimulate hybrid and electric vehicle use. FAME India
Scheme 2015 (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles)
was announced under NEMMP 2020 by the Ministry of Heavy Industry to promote
eco-friendly transportation technologies in India. The National Automotive
Board is the administrative entity in charge of carrying out the FAME India
Scheme and disbursing funds to various organizations.[16]
The FAME Scheme's main goals are to give fiscal and monetary incentives to
encourage the development of an electric or hybrid vehicle market as well as
environmentally friendly transportation infrastructure. Technical development,
demand creation, pilot projects, and pricing infrastructure are the scheme's
main priority areas. Under the FAME India Scheme 2015, the Karnataka government
receives a 60% subsidy for the purchase of 40 electric buses, 100
four-wheelers, and 500 three-wheelers. The program provides funding for the
procurement and development of hybrid and electric technologies, such as
in-house hybrid/electric motors and biofuel. It also exempts consumers from
paying sales taxes on electric and hybrid vehicles.[17] The Fame Scheme was launched for 2 years from April 1, 2015,
to March 31, 2017, with an outlay of 795 Crore. The scheme was extended for 6
months till Sep. 30, 2017, and it was extended further till March 31, 2018.
The
FAME India portal has been launched at http://fame-india.gov.in/index.aspx as
part of the digitalization of initiatives to provide efficiency, transparency,
and effective monitoring. This Web Portal has digitalized the entire scheme's
process life cycle. This scheme currently has thirty Original Equipment
Manufacturers (OEM) and one hundred and thirty-seven models of all types of
cars registered. The total incentive amount paid out so far is around Rs 359
crores for 2.8 million automobiles. The performance of the dashboard is
displayed state-by-state. It also includes the post-benefit of e-vehicles
purchased through the Scheme. The total amount of fuel saved due to
electrification is estimated to be over 50 million litres, with 52,700 litres
saved per day. CO2 Reduction each day is approximately 1.3 lakh kilograms, and
overall CO2 Reduction is approximately 129 million kilograms. For monitoring
and management, built-in MIS reports are also accessible.[18]
Phase-II
of the FAME Scheme has been authorized by the government with a budget of Rs
10,000 crore for three years beginning April 1, 2019. A total of 86 per cent of
the budgetary support has been set aside for the Demand Incentive, to increase
demand for electric vehicles (xEVs) throughout the country. This phase will
support 7000 Electric Buses (e-bus), 5 lakh Electric Three Wheelers (e-3W),
55000 Electric Four-Wheeler Passenger Cars (including Strong Hybrid) (e-4W),
and 10 lakh Electric Two-Wheelers to generate demand (e-2W).[19]
Vehicles that are equipped with exclusively advanced chemistry batteries, meet
minimal technical criteria, and are registered as "Motor Vehicles"
according to the CMVR are eligible for the scheme's incentive. The scheme will
be applied primarily to cars used for public transportation or those registered
for commercial reasons in the-3W, e-4W, and e-bus segments, with a greater
emphasis on providing economical and environmentally friendly public
transportation options for the masses. However, as a mass segment, privately
owned registered e-2Ws are also covered by the scheme.[20]
Mr
Nitin Gadkari, Union Minister, introduced the first Draft of the Voluntary
Vehicle Fleet Modernization Program (V-VMP) in May 2016, intending to reduce
air pollution generated by outdated trash vehicles. However, the Ministry of
Finance has raised concerns about the number of vehicles to be scrapped, as
well as other issues such as the amount of excise duty exemptions and the
establishment of vehicle scrapping infrastructure. The proposal requested that
15-year-old or BSIII-compliant vehicles be retired and replaced with new
vehicles. The Ministry of Finance opposed the concept, claiming that providing
exemptions or rebates to such a large number of vehicle owners (28 million)
would be problematic.[21]
The complete process of depolluting, dismantling, segregation of material, safe
disposal of non-reusable parts, and issue of a "Certificate of Vehicle
Scrapping" to the registered owner of a motor vehicle is referred to as
"scrapping."
Finance Minister Nirmala Sitharaman announced
a new voluntary scrappage policy in her Union budget presentation for 2021, in
which 20-year-old private cars and 15-year-old commercial vehicles will be
scrapped after failing a fitness test at a recognized automated fitness centre
in India. Once enforced, this strategy will phase out outdated cars that
pollute the environment. With the aid of rebates and incentives, the centre
will encourage customers to purchase new vehicles, allowing the car sector to
expand even more. This policy could help bring an electric vehicle on Indian
roads as Government is willing to provide much more rebates on the purchase of
an electric vehicle.[22]
The
GST Council has cut the rate of GST on lithium-ion batteries, which are an
important component of electric vehicles, from 28 per cent to 18 per cent. The
GST rate cut would aid the local manufacture of lithium-ion batteries in India
for a variety of uses.[23]
The lithium-ion battery in an electric car cost roughly a third of the overall
vehicle cost. The lower cost of an electric car's battery will lower the overall
cost of the vehicle, making it more accessible to the general population. The
GST on electric vehicles has been lowered from 28 per cent to 12 per cent. Even
back then, India's electric car market was small. As a result, the
manufacturing and acceptance of electric vehicles will be accelerated.[24]
Separate
efforts for battery swapping standards for Light Electric Vehicles and
buses have been launched. There will be two sets of standards papers addressing
the battery pack form factor, interoperable connection methods, communication
between the battery management system (BMS) and the EV and charging station,
and network management. Any EV can use a battery pack that meets these
specifications. The rechargeable battery packs can be charged using AC or DC systems.
The BIS is still working on developing Indian standards for EV roaming and grid
management activities.
A
large number of low-power charging stations in an EV charging network is
preferable to a small number of high-power charging stations. For EVs, any
parking location where the vehicle is stationary and has access to an EV
charging station may be utilised to replenish the battery. This is often
referred to as destination charging, as opposed to "on-the-go
charging," which occurs when automobiles charge their batteries quickly to
continue driving to their destinations. As a consequence, rather than
establishing new sites for EV charging hubs, EV charging infrastructure should
be installed in regions where vehicles are often parked. This charging infrastructure
implementation plan promotes a distributed network of EV charging points for
customers to connect to in a variety of places, such as homes, apartment
complexes, business campuses, retail malls, metro and railway stations, bus
terminals, and so on. A strategy for a distributed network offers several
advantages for both consumers and operators.[25]
6. Challenges for Promoting Electric Mobility in India
6.1 Electric Vehicles are Costly
Mostly
due to what goes into them. An electric vehicle (EV) utilizes the same
rechargeable lithium-ion batteries that power your laptop or smartphone;
they're simply larger and can offer a lot more power. The cathode, one of the
two electrodes that stores and releases a charge, is the most expensive
component in each cell. This is due to the high cost of the materials used in
cathodes to store more energy, such as cobalt, nickel, lithium, and manganese.
Mined, processed, and transformed into high-purity chemical compounds are all
required.[26] The
battery pack of an electric vehicle accounts for about 40%-50% of its cost and
this cost is the largest single factor in the price differential
between electric vehicles (EVs) and internal combustion engine (ICE)
vehicles.[27]
The
materials used to make EV batteries must maintain a specific level of quality,
which results in a high cost. High-performance batteries are produced, but the
cost rises as well. Lithium-ion (Li-ion) batteries are utilised in many
electronic devices. Electric vehicles pose a serious threat. Child labour has
been related to the extraction of cobalt, which is a crucial component of
rechargeable Li-ion batteries. With laws and policies in place to promote
ethical mining practices, the supply of the mineral will decrease while demand
remains high, resulting in a further increase in cobalt prices. According to Li
and Ouyang, lowering the cost of an electric vehicle's battery will lower
consumers' overall spending and allow them to pay a higher battery charging
fee. Even with government purchase subsidies, the price of EVs will remain high
due to the high cost of batteries.[28]
6.2
Inadequate Charging Infrastructure
According
to a 2019 white paper by the World Economic Forum, the Indian automobile
industry is one of the fastest-growing markets, even though it accounts for
only 0.5% of the global EV market. According to a MarketWatch study, India
would require about 4 lakh charging stations by 2026 to meet the demand for 20
lakh electric vehicles on the road. As of March 2021, the country had 1,800
charging stations. According to an independent analysis conducted by the CEEW
Centre for Energy Finance, about 29 lakh public charging stations would be
required by 2030 to enable EV adoption under the NITI Aayog's base case
objective. About 21 lakh (71%) of the chargers would be low-capacity chargers
for two- and three-wheelers. The charging of electric vehicles at home is difficult
as current urban planning doesn’t support charging at home. Lots of cars are
parked in driveways and unplanned parking lots don’t support charging
infrastructure.[29]
6.3 The
Technology of Electric Vehicle is Nascent and Underdeveloped
Charging
an electric car is a difficulty since most of them take 8 to 9 hours to get
fully charged, such as the eVerito, which takes 8.75 hours to charge up to
100%. E-vehicle batteries, on the other hand, are both expensive and
ineffective. The improvement in electric battery technology is insufficient to
persuade consumers to choose electric vehicles that rely on traditional fuels
such as gasoline, petrol and diesel. The new electric automobiles are
quite expensive, ranging from 18 lakhs to 22 lakhs. Even for a short run, those
vehicles take 2-3 hours of charge. so, people need to wait till they get a new
affordable electric vehicle effective enough to replace traditional vehicles in
India.[30]
6.4 Lack of EV Awareness
The majority of dealers
and consumers are unaware of electric vehicles and their manufacturers' plans
to develop them. Because of this lack of understanding, there have been fewer
inquiries and sales of electric vehicles. Only 5% of total inquiries in the
showrooms are for electric vehicles, yet 20% of those inquiries result in
sales.[31]
The social component is
especially important since it indirectly encourages customers to embrace EVs
while also impacting consumer emotions and EV performance. Consumers' cost and
benefit judgments, as well as their attitudes about new technology and societal
effect, are all psychological factors. Range anxiety is a syndrome in which
electric car owners are always afraid about being stranded with a depleted
battery due to the vehicle's limited range. Consumer attitudes play an important
influence in deciding whether or not to invest in electric automobiles.[32]
6.5 Dependence on Thermal Energy
for Electricity
The
major goal of encouraging electric vehicles is to minimize pollution; but, if
we charge our EVs with electricity provided by coal-fired thermal reactors,
which emit more pollution than allowed, the entire EV strategy would be
rendered useless. Creating renewable energy to recharge our EV batteries, on
the other hand, will eliminate air pollution from transportation.[33]
6.6 Original Equipment Manufacturer
needs huge investment with risk involve
The original Equipment
Manufacturer to obtain electric mobility requires heavy investment in research
and development. The shift to electric vehicles requires a huge understanding
of future needs to avoid huge financial risks.[34]
6.7 Inadequate Financing for Electric
vehicle to Consumers and Manufacturers
Consumers and
manufacturers face a lack of or insufficient financing for electric vehicles.
Another source of worry
is the availability of finance for both manufacturers and customers when it
comes to EVs. Bansal, whose business designs and runs EV charging stations,
believes that financial re-engineering is required for the sector to prosper. Personal
buyers should expect to pay anywhere between Rs 12 lakh and Rs 20 lakh for a
car. Financiers anticipate that the exorbitant prices will induce the consumer
to fail, making it impossible for them to sell the linked automobile.[35]
6.8 Issues with the supply chain
infrastructure in India
In India, there is a chance to improve logistics and supply chain
infrastructure, reducing inefficiencies, delays, and excessive costs. The
country's integration of roads, railways, and ports may be improved, even more,
resulting in an integrated logistics network. The presence of dedicated
facilities and sophisticated infrastructure can potentially help the electric
vehicle business expand and increase global competitiveness.[36]
7.
Conclusion
Road Transportation is
the most accessible mode of transportation that allows a large section of
society a right to movement. The growth
of the Automobile industry and the need for people leads to an increase in the
number of vehicles on roads. This increase in a vehicle on congested roads in
India cause huge Air pollution from vehicular exhaust leading to hazardous
respiratory diseases. To overcome this issue, the need was felt to bring
electric vehicles on Indian roads. Attempts have been made by Central
Government to encourage electric vehicle evolution in India. However, there are
many issues the central Government is facing for promoting electric vehicle
mobility in India. The issues like the high cost of an electric vehicle, which
could potentially create demand for the second-hand vehicle market. This will
only increase pollution further.
The person is not going
to purchase the new electric vehicle until and unless he gets satisfied with
the supportive infrastructure. Lack of an Electric charging station will not
encourage a person to even think about purchasing an electric vehicle. In India,
we have very a much smaller number of electric charging stations and the cost
of an electric vehicle is very high causing hindrance in the adoption of this
technology. Many automobiles manufacturers are scared to invest big in this
technology as it is a nascent and evolving technology. Consumers only choose
the finest and most inexpensive products, therefore any new improved electric
car technology developed by any automotive manufacturer would result in a
significant loss to other automobile manufacturers that have previously
invested much in R&D. Similarly, charging vehicles is a major problem
because India's primary source of energy is thermal energy from coal. The
production of thermal energy necessitates the combustion of coal in a reactor.
As a combustion product, coal-burning generates a large quantity of CO2. As a
result, operating an electric car on thermal energy renders the policy
ineffective. As a result, the government must concentrate on renewable energy
sources to power our electric automobiles in the future.
*
The author is the Research
Scholar pursuing Ph.D. from Maharashtra National Law University Nagpur. Author
can be reached at abhijitmorey95@gmail.com or Contact No. 7020667287
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