Define a roadmap for green energy and clean mobility
The last few years have seen a sea change in the mindset of consumers. With global warming and climate change dramatically affecting the planet, our health and well-being, people are looking to adopt a more sustainable lifestyle. And transportation is one of the main causes of pollution, since almost all vehicles were built as ICE (Internal Combustion Engine) models.
Well, until recently, that is. Today, with consumers’ growing awareness and preference for sustainable modes of transportation, it’s no surprise that EVs (electric vehicles) are in the limelight.
Although the electric vehicle market in India is still in its infancy, it is gaining momentum as more and more consumers are taking the EV route. But that wouldn’t be entirely possible without government support, would it?
The government has played a vital role in promoting the adoption of electric vehicles in the country with several policies aimed at promoting sustainability and creating an enabling environment for electric vehicles while reducing pollution and fuel import costs. .
The Indian electric vehicle market, valued at $5 billion in 2020, is expected to reach $47 billion by 2026, growing at a CAGR of over 44%.
However, despite the growing popularity of electric vehicles, the segment still faces a host of challenges such as range anxiety and lack of robust charging infrastructure. According to an estimate by Grant Thornton-Bharat-Ficci, India will need 4 lakh charging stations by 2026 to meet the demand generated by the 20 lakh electric vehicles on the road.
So, as the 2022-2023 Union Budget approached, all eyes were naturally on Finance Minister Nirmala Sitharaman to observe the policies announced to help EV players drive the adoption of EVs in the the country. And we can say with certainty that expectations have been met.
The 2022 budget represents an important milestone in boosting India’s growth. This year’s budget focused on almost all industries, with a special mention on electric vehicles to further boost the adoption of electric vehicles in India.
So, what awaits EV gamers?
Battery Exchange Policy Announcement
The battery swap policy is one of the important announcements made by Finance Minister Nirmala Sitharaman in the Union Budget 2022. The announcement was made to urge automakers, who have so far been reluctant to adopt the battery exchange agreement, to improve the penetration of electric vehicles.
Electric vehicle owners see battery swap technology as a convenient way to charge their vehicles, minimizing range anxiety. The technology will allow the owner to disconnect the battery from the car and recharge it remotely.
The move will provide a plethora of opportunities for companies to enter the electric vehicle battery market, spurring the growth and development of the country’s electric vehicle and energy industries. It will also facilitate the growth of battery or energy as a service and improve the efficiency of the electric vehicle ecosystem.
Development of special mobility areas
Considering the need for electric vehicle zones to foster the growth of the segment, the Minister of Finance announced that the government will develop specific mobility zones for electric vehicles. These mobility zones will be free of fossil fuel vehicles and will play a vital role in accelerating the adoption of electric vehicles and raising public awareness.
Introduction of EVs in public transport
Finance Minister Nirmala Sitharaman said the government would promote clean energy and electric vehicles in public transport. This will benefit manufacturers of electric buses and commercial vehicles much more. The supply chain partners of these organizations will also benefit from this initiative.
Overall, this budget is undeniably forward-thinking and well-balanced, especially for India’s EV ecosystem.
It will help reduce range anxiety while enabling cost-effective and environmentally friendly mobility at scale. If implemented effectively on a large scale, nothing will stop the country’s electric vehicle segment from becoming one of the best in the world.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)