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Only Electric Vehicles to be sold in India from 2030?

According to a media report, the Government has proposed a new mandate banning the sale of internal combustion engine powered two-wheelers under the 150cc segment, which is the largest chunk in terms of volume in the Indian two-wheeler market. The sub 150cc two-wheelers will be replaced with electric two-wheelers and the new norms are expected to be implemented by the year 2025.

Now, according to a media report, the Niti Aayog has proposed that only electric cars should be sold after the year 2030 and the body has asked, the Road Transport and Highways Ministry to ready a framework which will phase out the internal combustion engine powered four-wheeled vehicles by 2030. The proposal also includes an advanced infrastructure program such as setting up an overhead electric cable network for an e-Highway. A similar pilot project is under operation in Sweden and Germany. The overhead electric network will be used mostly for buses and heavy vehicles. According to a media report, the ideal stretch for the e-Highway could be the upcoming Delhi-Mumbai highway.  

The automobile industry has been opposing the idea of 100% electrification with the Japanese and Korean manufacturers leading along with Indian vehicle makers. Suggestions are that petrol and diesel vehicles used by cab aggregators and vehicles used by the central ministry, should be replaced, with electric vehicles by 2030.

To meet the target of the battery requirement and to ensure that the batteries are manufactured domestically the Government has proposed to extend subsidies and financial incentives to investors on a per kilowatt basis with annual subsidies estimated to around INR 8,000 crore.

According to a media report, the cash subsidy will be Rs. 2,000 per kWh for 100% domestic value capture and for 60% domestic value capture, it will be Rs. 1,200 per KWh. And the maximum cash subsidy would be for up to 20 GWh per company. It is also speculated that companies will have to reach at least 5 GWh in 5 years or the subsidies will be reduced.