The global shift towards electric vehicles (EVs) has gained momentum in 2024, with countries striving to combat air pollution and encourage sustainable transport solutions. China’s leading role in this revolution is evident, with over 22 million EVs on its roads, improving urban air quality in cities like Beijing and Shanghai. As India grapples with its own air quality challenges, the question arises – what lessons can it draw from China’s comprehensive EV policies?
China’s EV Policy Framework
Since 2008, China has implemented a multi-faceted approach to promote EV adoption. This includes national sales mandates, purchase subsidies, and extensive tax incentives aimed at both consumers and manufacturers. The Chinese government has invested approximately INR 2.34 lakh crore in subsidies, which has substantially lowered the effective purchase price of EVs. Notably, provinces like Shenzhen have achieved a 100% electric bus fleet, demonstrating the effectiveness of targeted regional policies.
Targets and Achievements
China aims for 45% of new vehicle sales to be electric by 2027, with even more ambitious goals for public transport. Several provinces have set specific targets, such as achieving a 40% share of EVs in new sales by 2030. Regions like Jilin and Hainan plan to phase out diesel vehicles entirely by the same year. This strategic planning has resulted in the rapid expansion of EV infrastructure, including charging stations and battery production facilities.
India’s Evolving Landscape
India’s approach to EV promotion mirrors some aspects of China’s strategy but remains limited in scale. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme has provided subsidies, but the total expenditure is only about one-twentieth of China’s investment. Currently, India has over 4.5 million EVs and approximately 16,000 charging stations, yet the adoption rate pales in comparison to China’s success.
Challenges in Policy Implementation
Despite a comprehensive policy framework, India’s EV adoption faces hurdles. Many state-level policies are outdated, failing to align with national objectives. The recent PM E-DRIVE initiative aims to enhance the adoption of electric two-wheelers, three-wheelers, and buses, but the exclusion of four-wheelers may hinder overall growth in the market. Moreover, the absence of stringent targets and mandates hampers manufacturer confidence, leading to slower adoption rates for electric cars and commercial vehicles.
Future Prospects and Recommendations
To replicate China’s success, India must establish clear, ambitious targets for EV adoption, complemented by robust city-level implementation programmes. The focus should also extend to enhancing the manufacturing ecosystem for batteries and components, ensuring a sustainable supply chain. The integration of local governments in policy formulation can lead to more responsive and effective measures tailored to regional needs.
Questions for UPSC:
- Discuss the key factors that have contributed to the success of electric vehicle adoption in China.
- What are the main challenges faced by India in promoting electric vehicles?
- Evaluate the effectiveness of India’s FAME scheme in the context of global EV trends.
- How can India improve its electric vehicle policy framework to align with international standards?
- What role does local government play in the successful implementation of EV policies?
