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General Studies Prelims

General Studies (Mains)

India’s Electric Vehicle Transition – Challenges and Opportunities

India’s Electric Vehicle Transition – Challenges and Opportunities

India’s air quality crisis has reached alarming levels, particularly in 2023. The capital, Delhi, recorded its worst air quality in eight years. Despite initiatives like the promotion of CNG vehicles and the introduction of BS6 emission norms, air pollution remains issue. The continued reliance on fossil fuels has exacerbated the situation. A shift towards zero-emission vehicles is essential for improving air quality and maintaining India’s competitiveness in the global automotive market.

Current Air Quality Situation

In November 2023, Delhi experienced its worst air quality, failing to register a single ‘good air’ day. A study by IQAir ranked India as the third-most polluted country globally. This indicates that air pollution is not limited to urban areas but is a nationwide crisis.

Advancements in Vehicle Emissions

India has made progress in reducing vehicle emissions through initiatives like CNG vehicle promotion and transitioning from BS4 to BS6 emission norms. However, these efforts are overshadowed by the growing pollution from fossil fuel vehicles.

Global Electric Vehicle Trends

Globally, electric vehicle (EV) adoption has surged. Major markets such as Europe, the US, and China have increased their EV market shares. In contrast, India’s current EV market share stands at only 2%. To catch up, India must adopt robust policies that encourage EV adoption.

Government Initiatives and Investments

The Government of India has invested over ₹75,000 crore in various schemes to promote EVs. These include the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and the Production-Linked Incentive (PLI) scheme. State governments have also introduced policies and tax incentives to encourage EV adoption.

Steps for Accelerating EV Adoption

To enhance the transition to EVs, India needs to set clear targets. A national goal of achieving a 30% EV market share by 2030 and 60% by 2034 is essential. Regular reviews of progress should commence in 2026 to ensure accountability.

Corporate Average Fuel Economy (CAFE) Standards

The Bureau of Energy Efficiency has proposed new CAFE standards. However, these may delay the transition unless fossil fuel vehicle credits are phased out. A focus on EV super credits is crucial for accelerating the shift.

Credit Trading Systems

A credit trading system could incentivise manufacturers to exceed zero-emission sales targets. This model has proven successful in other markets, notably Tesla, which earned substantial revenue from regulatory EV credits.

Phasing Out Internal Combustion Engines (ICE)

A phased approach to eliminating ICE vehicles is vital. Cities like Delhi-NCR could aim to stop new fossil fuel vehicle registrations by 2035. OEMs should ensure a gradual increase in their zero-emission vehicle fleets.

Economic Implications of EV Transition

The automotive sector contributes to India’s GDP and employment. The EV industry is projected to create 50 million jobs by 2030. Transitioning to EVs is crucial for safeguarding India’s economic position in the global market.

Public Health and Environmental Concerns

Failing to transition from fossil fuels to EVs risks public health and environmental degradation. The urgency for decisive action is paramount to ensure a sustainable future.

Questions for UPSC:

  1. Critically analyse the impact of air pollution on public health in urban India and the measures required to address it.
  2. What are the key factors driving the global shift towards electric vehicles? Explain with suitable examples.
  3. Comment on the role of government policies in promoting sustainable transportation in India.
  4. Explain the significance of the automotive sector in India’s economy and the potential consequences of failing to transition to electric vehicles.

Answer Hints:

1. Critically analyse the impact of air pollution on public health in urban India and the measures required to address it.
  1. Air pollution in urban India leads to respiratory diseases, cardiovascular issues, and increased mortality rates.
  2. Vulnerable populations, including children and the elderly, are disproportionately affected by poor air quality.
  3. Long-term exposure to pollutants can cause chronic health conditions, impacting overall public health .
  4. Measures needed include stricter emission regulations, promoting public transportation, and increasing green spaces.
  5. Public awareness campaigns and health monitoring systems can help mitigate the health impacts of pollution.
2. What are the key factors driving the global shift towards electric vehicles? Explain with suitable examples.
  1. Government policies and incentives, such as tax breaks and subsidies, have accelerated EV adoption in countries like Norway and Germany.
  2. Technological advancements in battery efficiency and charging infrastructure have made EVs more accessible and convenient.
  3. Environmental concerns and climate change initiatives are pushing consumers towards sustainable transportation options.
  4. Major automakers are investing heavily in EV technology, with companies like Tesla leading the market and setting examples.
  5. Consumer preference is shifting towards eco-friendly products, driving demand for electric vehicles globally.
3. Comment on the role of government policies in promoting sustainable transportation in India.
  1. Government initiatives like the FAME scheme and Production-Linked Incentive (PLI) promote EV manufacturing and adoption.
  2. Policies aimed at reducing emissions, such as BS6 norms, encourage cleaner vehicle technologies.
  3. State-level tax incentives and subsidies further stimulate the market for electric vehicles.
  4. Regular reviews and adjustments of policies can ensure they remain effective in achieving sustainability goals.
  5. Public transport improvements and infrastructure development are critical components of government efforts to promote sustainability.
4. Explain the significance of the automotive sector in India’s economy and the potential consequences of failing to transition to electric vehicles.
  1. The automotive sector contributes approximately 7% to India’s GDP and is a major employment generator.
  2. India is a global leader in two- and three-wheeler manufacturing, with exports enhancing economic growth.
  3. Failure to transition to EVs could lead to economic stagnation and loss of competitiveness in the global market.
  4. Sticking to outdated technologies can hinder job creation in the emerging EV industry, projected to create 50 million jobs by 2030.
  5. Environmental degradation from fossil fuel reliance could lead to increased healthcare costs and reduced quality of life.

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