Prime Minister Narendra Modi on Friday promised global technology and automobile companies a stable policy regime to make India a pioneer in electric mobility.
“We want to drive investments across the value chain from batteries to smart charging to electric vehicle manufacturing. We will soon put in place a stable policy framework for electric and alternate fuel powered vehicles. Policies will be designed as a win-win for all and will enable huge opportunities in the automotive sector, “ Modi told industry leaders.
The prime minister said that the auto industry is like Internet right now which needs to grow a lot, as mobility is the key to development of an economy. He also said that mobility is the next frontier in the world’s fight against climate change.
He was addressing industry executives at Move, a global mobility summit in the capital, organised by policy think tank Niti Ayog. He said Modi said that India will do whatever it takes to usher in electric mobility in a big way as it holds immense promise for economic growth and ease of living.
Currently, India doesn’t have a separate policy on electric vehicles. Since 2015, a framework called FAME, or Faster Adoption and Manufacturing of Electric Vehicles, provides subsidy to electric car manufacturers.
E-mobility will help in meeting three key strategic goals – cutting down carbon emissions, creating new job opportunities and reducing use of crude oil. India imports more than 83% its oil.
Other takeaways:
- India is best placed to be an early mover in adoption of transportation solutions based on clean energy
- India has inherent strength and comparative advantage – fewer vehicles per capita than other economies, does not carry the legacy of other economies which were built on private car ownership.
- Modi listed the characters that a city’s transportation system must have – common, connected, convenient, congestion-free, cutting-edge and clean.
- India wants to create a robust and affordable electric mobility ecosystem comprising production facilities. The key challenge is the high cost of batteries .
- A widespread network of charging points will be created. Many businesses, including state-owned fuel retailer Indian Oil Corp and power producer NTPC Ltd, have ventured into setting up charging stations to tap opportunities arising from a transition to electric mobility.
- Plans to have all new vehicles sold from 2030 to be electric.
- Anand Mahindra, chairman of the Mahindra group, who spoke on the occasion, said mobile applications that offer shared and connected multimodal transport options between long distances will change the way people live.
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