Two important elements will combine to expedite India’s transition to e-mobility, according to a top government official on Saturday.
“Market forces and technology disruption will assure that there will be no conventional two-wheelers and three-wheelers in the country after 2025,” says Amitabh Kant, CEO of Niti Aayog, the government’s primary policy think tank.
“By 2025, the market will have ensured that the ICE 2W and 3W (Internal Combustion Engine) will be obsolete. Automobiles that run on electricity will become more inexpensive. As a result, people will choose electric vehicles,” Kan said during a roundtable hosted by the Ministry of Heavy Industries to promote electric mobility.
According to Kant, battery prices have plummeted to $126 per kWh from approximately $1,100 in previous years.
They are predicted to fall below $100 per kWh in the next 18 months, bringing electric and fossil fuel-powered vehicles to price parity.
He believes that India should grab this chance and aim towards EV leadership.
“One of the lessons we learnt was that when the Indian mobile phone market grew, we became increasingly reliant on imports. In the case of solar, we realised that while the market in India grew, we became increasingly reliant on imports. Let us not make that error in the area of [electric] mobility. “We must turn India become the world’s manufacturing capital, both for the Indian market and for the rest of the world.” Kant claims that.
The Union Minister for Heavy Industries, Mahendra Nath Pandey, believes that Indian automakers must go worldwide and aspire for a big portion of the electric car market.
The Production-linked Incentive (PLI) scheme for the automobile sector, as well as the manufacturing of advanced chemistry cells (18,100 crore) and subsidies worth ten billion rupees under the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME) II initiative, have all been designed to make India an appealing destination for setting up advanced automotive technology production hubs.
Advanced automotive technologies currently represent for about 3% of the local vehicle sector, compared to 18% internationally.
This ratio is predicted to rise to 30 percent by 2030.
Advanced automotive technologies currently suffer cost disadvantages of 15-30% due to a technical gap, a lack of a local supply base, and economies of scale. The PLI programme will allow the sector to focus on developing higher-value, higher-technology products in order to move to connected, clean vehicles that are less reliant on imports and integrate with the global supply chain.
In addition, the Ministry of Heavy Industries has begun working with the Ministry of Petroleum and Natural Gas to construct charging stations at 22,000 fuel pumps in order to accelerate the local market’s transition to e-mobility and address consumer concerns about range anxiety.