{"id":186409,"date":"2022-05-25T20:41:54","date_gmt":"2022-05-25T15:11:54","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=186409"},"modified":"2022-05-25T20:41:54","modified_gmt":"2022-05-25T15:11:54","slug":"let-commercial-vehicles-take-the-lead-in-going-electric","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/let-commercial-vehicles-take-the-lead-in-going-electric\/","title":{"rendered":"Let commercial vehicles take the lead in going electric"},"content":{"rendered":"\n

Context<\/strong>: India\u2019s air quality has been diminishing on the back of urban development and higher e-commerce adoption, among other factors. The cost of this progress means some of our large Indian cities figure among the world\u2019s most polluted.<\/p>\n

Citizens\u2019 right to clean breathable air is a fundamental need and is a critical parameter in global benchmarks used to list the world\u2019s happiest and most liveable cities.<\/p>\n

A shift from ICE vehicles to EVs is crucial to reversing the impact on air quality.<\/p>\n

Efforts at reducing air pollution<\/h5>\n

India has set promising targets and taken several steps to bring about both accountability and action. For example, the government aims to reduce carbon emissions by 45% by 2030,<\/p>\n

In 2019, it launched the National Clean Air Programme<\/strong><\/a><\/span> as a strategic intervention to reduce air pollution levels across the country. City-specific clean air action plans have been prepared and rolled out for implementation in as many as 132 cities.<\/p>\n

Meanwhile, the NITI Aayog and Rocky Mountain Institute\u2019s Shoonya campaign<\/strong><\/a><\/span> is building awareness around fleet adoption of electric vehicles (EV) for last-mile deliveries.<\/p>\n

– Urban freight vehicles<\/strong> account for over 10% of transportation-related CO2<\/sub> emissions in India, a number that is set to increase by about 115% by 2030 due to the sharp rise in e-commerce demand for deliveries, according to the NITI Aayog.<\/p>\n

Meanwhile, Delhi, Mumbai and Bengaluru are upgrading their public transport facilities<\/strong>, albeit they are still using internal combustion engine (ICE) vehicles.<\/p>\n

Why a shift from ICE vehicles to EVs is necessary for India?<\/h5>\n

A shift from ICE vehicles to EVs is crucial to reversing the impact on air quality as ICE commercial vehicles are large users of diesel in India.<\/p>\n

China<\/strong> reduced air pollution in its major cities of Shanghai and Beijing by limiting ICE vehicles, relocating polluting units and using EV incentives, among other steps.<\/p>\n

A glance at ecology-conscious markets like Norway and Iceland<\/strong> offers a clear picture of how rapid EV adoption can meaningfully reduce pollution levels.<\/p>\n

Way forward<\/strong><\/h5>\n

Various Indian states have proposed independent EV policy frameworks, but these do not include light commercial vehicles (LCVs). Policy incentives<\/strong> need to be given to logistical service providers to shift to electric LCVs.<\/p>\n

Incentives to EV original equipment manufacturers<\/strong> (OEMs) and green taxes levied on ICE vehicles based on emissions and time spent in urban areas could deter ICE vehicle usage.<\/p>\n

An effective policy framework for charging infrastructure<\/strong> would help too.<\/p>\n

As of now, no distinction is made between slow, medium and fast charging set-ups, and India’s recent battery swapping policy applies more to the 2W and 3W segments than their 4W counterparts. A push for a reliable pan-India fast-charging network<\/strong> will be an essential driver of EV adoption across vehicle categories.<\/p>\n

Lowering the cost of ownership<\/strong> and bringing in more fleet financing options will support the EV adoption rate for commercial transport. The total cost of ownership (TCO) for EVs, a key determinant, needs parity with ICE vehicles.<\/p>\n

An upfront subsidy for fleet owners<\/strong> to purchase commercial EVs could be instituted.<\/p>\n

Recently, the NITI Aayog recommended the inclusion of EV and EV-charging in the Reserve Bank of India\u2019s framework for priority sector lending<\/strong>. This would help finance EV fleet conversion, as 60-70% of vehicles are financed with little or no difference in interest rates.<\/p>\n

Loans for EVs could be made more efficient<\/strong>. While banks typically offer a 25-50-basis-points benefit on ESG (environmental, social and governance) assets, lending institutions currently take a hit on their bottom line in providing ESG finance.<\/p>\n

Incentivizing innovation among new-age electric OEMs<\/strong> and helping build a talent pool<\/strong> that will fuel this growth story are equally important.<\/p>\n

India has the potential to leap into a global leadership position on the commercial EV front.<\/strong> It is among a handful of countries supporting the global \u2018EV30@30\u2019 campaign that aims for 30% of all new vehicle sales by 2030 to be electric.<\/p>\n

Source<\/strong>: This post is based on the article \u201cLet commercial vehicles take the lead in going electric<\/strong>\u201d published in Livemint<\/strong> on 24th May 22<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Context: India\u2019s air quality has been diminishing on the back of urban development and higher e-commerce adoption, among other factors. The cost of this progress means some of our large Indian cities figure among the world\u2019s most polluted. Citizens\u2019 right to clean breathable air is a fundamental need and is a critical parameter in global… Continue reading Let commercial vehicles take the lead in going electric<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-186409","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704923863},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/186409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=186409"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/186409\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=186409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=186409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=186409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}