Following the Indian government’s recent announcement of plans to provide Rs 14,000 crore of incentives to the hybrid and electric vehicle (EV) industry to boost adoption of greener and cleaner vehicles, EV manufacturers have upped the ante. While this is an initiative to activate the National Electric Mobility Mission Plan (NEMMP) 2020 plan, the industry now expects the government to expedite the rollout of schemes aimed at helping EV makers.

The Society of Manufacturers of Electric Vehicles (SMEV) says ever since the withdrawal of the MNRE (Ministry of New & Renewable Energy) subsidy, more than 50 percent Indian manufacturers of electric vehicles have shut down. This has resulted in both a loss of thousands of jobs and also put capex of over Rs 1,000 crore at risk. Further, faster implementation of NEMMP 2020 will enable the country to emerge as the leader in EV technology which is increasingly being adopted by developed markets and could evolve into an export hub of EVs.

The NEMMP aims at putting 6-7 million EVs on the road by 2020 of which 4-5 million are expected to be two-wheelers. The benefits that could accrue are saving in conventional fuels of 2.2-2.5 million tonnes by CY 2020, conservation of foreign exchange by reducing dependence on fossil fuels (80 percent of which are imported), and dDecrease in carbon di-oxide emissions by 1.3 percent to 1.5 percent in 2020.

According to Sohinder Gill, director, SMEV and CEO, Hero Electric, there’s a very good chance for electric mobility to take off in the country. He expects that with things going right, there could be over 6 million EVs on Indian roads by 2020, fulfilling a large chunk of the NEMMP’s target. However, many implementations across the value chain of the industry need to be carried out. Focusing on not just technology development but India-centric, flexible and cost-effective innovations will help drive the growth of electric mobility in India.

He added “Though 70 percent EV players have shut their business, SMEV hopes that the EV industry can still be revived if NEMMP 2020 is implemented in the next 3-4 months. A successful and early implementation of NEMMP will certainly change the landscape of the Indian transport sector. We will have cleaner air to breathe, the country’s fuel bills go down by billions of dollars and the manufacturing sector will get a boost in the new technology area. NEMMP is the lifeline on which the fate of the EV industry is hanging.”

SMEV’s suggestions to activate NEMPP

- Supply creation by rollout of direct and indirect tax benefits for EV manufacturers.

- Demand creation by offering subsidy to customers on purchase of EVs manufactured in India.

- Create infrastructure to support EV adoption like charging stations across the country.

- Provide resources for pursuance of and directly take up R&D projects.

- Help in creation of a collaborative mechanism that brings all EV industry stakeholders on board and reduces business risk.

- Promote region-based innovation, which is critical for the success of electric mobility in India.

- Educate and encourage auto dealers to sell EVs.

- Also focus on the pilot project – focus towards creating awareness, kick- start adoption, test market condition, develop conducive models and product feedback from customers.