From debating whether to buy a petrol or diesel car to companies abandoning diesel altogether to launching purely electric vehicles, the Indian auto sector has seen a lot of change in a relatively short period of time. A growing concern for climate change and the emissions generated by internal combustion engines (ICE) along with an active push from the government has brought about an era of awareness for EVs and rapid adoption too. Link
Prime Minister Narendra Modi was present at Suzuki’s 40-year celebration event and also laid down the stone for the company’s first battery manufacturing plant in India. This facility, situated in Hansalpur, Gujarat, will produce batteries that will then be supplied to Maruti Suzuki for use in their upcoming EVs. We know that the company has plans to launch its first electric vehicle by 2025 and a localised battery manufacturing facility should help the carmaker keep its costs lower than the competition. Link
At the event, the honourable Prime Minister spoke about the government’s endeavours to create an electric future and the tides of change that have come with it. He said that the kind of growth we are seeing in the Indian EV space today was not even imaginable a few years ago. In one of his signature witty style of addressing the masses, the PM said, “Electric vehicles have a speciality, they are silent. No matter if it is a two-wheeler or a four wheeler, they do not produce any noise. This silence is not only because of its engineering, but it is also a sign of the silent revolution coming to India.” Link
He also claimed that people are no longer thinking of EVs as an extra vehicle, something you would get if you already have a conventional ICE vehicle. According to him, people are now relying on EVs as their primary mode of transportation too. There is some truth to this statement as EV sales are seeing a rise and so are the range figures of newer models. Range anxiety has been a cause of concern for people looking at this new power source but that is being tackled with new technologies that allow manufacturers to pack in the cells more efficiently and give a higher range per charge. Link
PM Modi also said that the country has been preparing grounds for this silent revolution for the past eight years. “The government is working on both supply and demand in the EV ecosystem. It has been giving various incentives to EVs so that the adoption rate increases. From reducing income tax to easier loan procurement, a lot of steps have been taken so that the demand for EVs grows.”, said the PM. A higher procurement cost to the customer is also another factor that discourages buyers from switching to electric vehicles. This high cost is being brought down using state-wise subsidies and policies like FAME-II. Link
He further commented, “Similarly, using the PLI scheme the supply levels are being increased in the automobile and auto component industries. The PLI scheme is also favouring battery manufacturing.” PM Modi also said that a lot of important decisions have been taken to increase the charging infrastructure in the country. Not too long ago, a battery swapping policy was introduced in the Union Budget 2022-23. The policy would focus on creating an ecosystem where the same battery could be used in vehicles from different manufacturers by using a unified standard. Link
While EVs produce zero tailpipe emissions, the source of their energy is not entirely eco- friendly. In India, a major chunk of the electricity that is produced comes from the burning of coal. However, the Prime Minister said that at COP26, India committed to ensuring that 50 per cent of its electricity will be generated from non-fossil fuel sources. This would be a key step towards reduction in our carbon footprint and making EVs truly better for the environment. Further to this, India has a target of reaching net zero by the year 2070. Link
All of these steps towards a changing mobility landscape in India are sure to keep us excited and we agree with PM Modi when he said that this silent revolution is ready to bring a big change in the coming days. Link
