How is the world responding to electric vehicles

The global automotive industry is currently undergoing a paradigm shift as it seeks to transition to alternative and less energy intensive options including the EVs. India, like many other countries, is investing in this shift towards electric mobility, driven by a range of factors such as burden of oil imports, rising pollution levels and geopolitical tensions affecting the oil prices and also to meet the international climate change commitments. The EU has already directed automotive manufacturers to lower CO2 value by 30% by 2023. The US and India target the bold goal of moving to 100% electric vehicles by 2030. Canada is looking at achieving 100% zero-emission by 2035.

The adoption of electric vehicles (EVs) is changing the world in significant ways, from reducing greenhouse gas emissions and air pollution to transforming the energy and transportation sectors. India is emerging as a key player in this global shift towards EVs, with policies to incentivize adoption, expanding charging infrastructure, and investment in EV manufacturing and research and development. As one of the world's largest automobile markets, India's role in the transition to electric mobility is significant.

Govt aid to boost EV usage: Governments across the globe are encouraging a quicker adoption of electric vehicles by offering incentives for the procurement of electric vehicles.Fiscal incentives, mainly purchase subsidies and tax rebates, were crucial in promoting electric vehicles which led to the growth of EV manufacturing and battery industries. These measures were aimed at reducing the price difference between conventional and electric vehicles. Norway, the US, and China introduced such incentives as early as the 1990s, 2008, and 2014, respectively.The government of India launched the FAME scheme in 2015 to incentivize the adoption of EVs. The scheme provides financial incentives to buyers of EVs, as well as to manufacturers and suppliers of EV components. The government of India has also been working on increasing the number of charging stations for EVs across the country. As of January 2022, there were over 2,500 public charging stations for EVs in India, according to data from the Power Ministry.

‍Growth in the E-com sector : EVs are fast emerging as the vehicle of choice across multiple applications. Key players in food delivery, grocery, and e-commerce committing large-scale EV adoption within their fleets. For example, Zomato announced 100% fleet electrification by 2030, while Big Basket has committed to 70% electrification by 2024. E-commerce giants, like Amazon, have pledged to have 100,000 electric delivery vehicles on the road by 2030.

‍Growth of EV industry: A growing number of countries have pledged to phase out internal combustion engines or have ambitious vehicle electrification targets for the coming decades. The increase in EV sales in 2021 was primarily led by China. More vehicles were sold in China in 2021 (3.3 million) than in the entire world in 2020. Sales in Europe showed a growth to 2.3 million and in the United States to 630,000 EV sales doubled in a number of regions in 2021 – including in India– which could pave the way for quicker market uptake by 2030 if supporting investments and policies are in place.

For an eco-friendly transportation, electric vehicles have a crucial role to play and the future does belong to them world over. And India is a key player in the transition towards electric vehicles by reducing its dependence on fossil fuels, addressing air pollution and meeting climate change commitments. While there are still significant challenges to overcome in terms of infrastructure and affordability, the momentum towards electric mobility in India is expected to continue to grow in the years ahead.

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