Updated June 5th, 2024 at 18:05 IST

World Environment Day: Auto Sector Expects India To Achieve 9-11% EV Share in PVs by 2030

Faster Adoption and Manufacturing of Electric Vehicles-III (FAME-III) is expected to be one of the top priorities of the new central government.

Reported by: Saqib Malik
EV Share is expected to become 9-11% by 2030 | Image:Unsplash
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Towards greener fuels: Top electric vehicle hubs including China and the US are witnessing electric vehicle (EV) makers have a neck-and-neck competition to emerge as the leading Original Equipment Manufacturers (OEMs) in electric mobility.  Elon Musk-owned American EV maker Tesla, Chinese BYD, and Vietnamese VinFast have already either made an India foray or else knocking at its doors. 
The Society of Indian Automobile Manufacturers (SIAM) data has revealed that the share of EV Passenger Vehicles (PVs) in India since 2022-23 has increased two-fold to now seeing a considerably healthy growth in 2023-24.  The country aims to have 9 to 11 per cent of its total vehicles as EVs by 2030. The introduction of the Faster Adoption and Manufacturing of Electric Vehicles-III (FAME-III) scheme is expected to see India enhance its EV penetration. Republic Business delves deep into the issue. 

Charging infra incentives  

The Faster Adoption and Manufacturing of Electric Vehicles-II (FAME-II) was discontinued in March, 2024 and the industry players are now keen to know the timeframe which the new government at the centre will set for the introduction of the FAME-III. Rajesh Menon, Director General, Society of Indian Automobile Manufacturers (SIAM) told Republic Business that the electric mobility ecosystem in the country along with the automobile industry in our country has been witnessing a paradigm shift.  


“The auto sector is seeing a major change and progressing towards sustainability. It is heartening that the auto sector is aligning with the decarbonisation targets set by the central government. India's transition to e-mobility is gaining momentum, and as the economy continues to expand, EV adoption will follow suit,” says Menon.  
With all-round support of the central government through lower Goods and Services Tax (GST), FAME incentives, PLI schemes and incentives to manufacturers, it is expected that EV penetration would continue to grow, said Menon. 
The central government has also been focused on creating a well-spread charging infrastructure and the number of charging points has increased to a great extent. “This coupled with higher drive range of EVs is addressing the range anxiety of the consumers,” added Menon.

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More spending on electrification  

As far as the ‘Javik Pahal’ campaign of the SIAM is concerned, it promotes the use of biofuels derived from renewable biological materials, said Menon. “As a part of the Vidyutikaran initiative, SIAM promotes the adoption of electric and hybrid technologies as alternatives to fossil fuels,” added the SIAM DG Menon. Reflecting on the “recycling and circular economy” concept, Menon said the ‘Chakriyata’ initiative focuses on recycling and promoting a circular economy to minimise waste and ensure sustainable resource usage.
Manish Raj Singhania, President, Federation of Automobile Dealers Association of India (FADA)  says the auto companies in India at present are barely spending 3-5 percent of the gross revenue on research and development (R&D)  and innovation. “There is huge scope to bring in innovation, especially in EV batteries to further bring down their carbon footprint. Evolution of technology in batteries is bound to happen,” says Singhania. “Hydrogen-based fuel is the leading example of clean fuel but with joint industry efforts we have to ensure the use of new-age technology in EV batteries in order to bring down carbon footprints,” said the FADA President Singhania.  

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As per Vinnie Mehta, Director General, Auto Component Manufacturers Association of India the automotive sector is gearing up to play a key role in achieving India’s sustainability goals. "Many of our ACMA members have taken significant steps towards decarbonisation and embracing principles of material circularity. We need to further intensify our efforts by collaborating across the value chain and adopting green manufacturing techniques and energy-efficient processes. Together, we can build a greener future for the automotive industry and our nation," added Mehta. 

 

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Published June 5th, 2024 at 16:41 IST