Flaming Question – On Challenges of EV Sector

Source: This post has been created based on the article “Flaming Question” published in the Times of India on 5^th October 2023.

UPSC Syllabus Topic: GS Paper 3 – Environment — Environmental pollution and degradation

GS Paper 2 – Governance – Government policies and interventions for development in various sectors

News: Recent instances of videos of Electric Vehicles (EVs) going up in flames due to malfunctioning batteries have brought to attention the unique regulatory challenges in the EV sector.

Between 2019-2022, a more than 6-fold increase in the number of EVs registered signifies that EVs have taken root in India. Therefore, it becomes important to tackle all the hinderances to growth faced by this sector.

What are the distinct features of the Indian EV Market?

Firstly, EV adoption in India is being driven by the mass market (as opposed to the luxury market of high-end cars). It mostly consists of two-wheelers, and three-wheelers to an extent. These account for about 96% of the EV market.

Secondly, batteries in EVs are sourced mainly through imports.

Thirdly, advanced chemistry cells are sourced entirely from abroad.

Fourth, All the mechanical systems of the traditional internal combustion engines have been replaced by software in the EVs that oversees their battery management system.

What are the Regulatory Challenges with EVs?

Software to manage batteries in EVs has been out of the purview of the traditional regulatory system.

Since it is an emerging field, having a clear insight into the critical aspects of functioning of EVs has been difficult for regulatory authorities.

Another regulatory challenge is presented by imported components of EVs that haven’t been adapted to domestic operating conditions.

What are the steps taken by the government:

GOI appointed a committee of technical experts to study the problem of EVs catching fire, which led to regulatory changes. Separately, NITI Aayog floated a proposal to develop open-source battery management systems.  

EVs represent the future of mobility. They are set to play an important part in achieving India’s commitments under the Paris Accord and to achieve ‘Net Zero by 2070’. Hence, it’s critical for GOI to set and implement standards that helps build trust amongst present and future customers.