Is India’s Electric Vehicle Push for Real This Time?

The Climate Group is targeting the electrification of more than 2 million vehicles by 2030 under its EV100 initiative.  EV100 is a global initiative by The Climate Group (a non-profit organization that works with business and government leaders around the world to address climate change) bringing together forward-looking companies committed to accelerating the transition to electric vehicles (EVs), to make electric transport ‘the new normal’ by 2030.

The initiative was launched in September 2017 and since then 31 companies with over $0.5 trillion in combined revenue have joined to accelerate the transition to electric vehicles.

The Climate Group in its first report on EV100 highlighted a unique customer fleet commitment by LeasePlan to achieve net zero emissions from its 1.8 million vehicle customer fleet. LeasePlan is one of the world’s leading car leasing companies, with 1.7 million vehicles in over 30 countries.

According to the case study published in the report, emission reductions are a key driver for LeasePlan’s clients to opt for EVs. Apart from this, EVs are also becoming a requirement in tenders for contracts, service firms looking to win government or airport contracts.

Helen Clarkson, CEO of the Climate Group said, “With countries pledging to end sales of the combustion engine and cities bringing in low or zero emission zones, forward-thinking companies are getting ahead of the curve now by switching to electric vehicles. The private sector has an instrumental part to play in bringing down emissions and cleaning up our air – and there are big opportunities for companies taking action now.

Some of the key drivers for the business switch to EVs are cutting local air pollution, reducing greenhouse gas emissions, and generating financial savings etc.

“Air pollution is severe, for both people and our planet, and we need to take action. As a business, the transition will help us mitigate a huge business risk as cities are restricting the use of fossil fuels. It’s a win-win-win, and we see no reason to delay this”, said Pia Heidenmark Cook, Chief Sustainability Officer of Ingka Group.

The Government of India’s National Institute for Transforming India, (NITI) Aayog, officially endorsed The Climate Group’s EV100 initiative as a crucial platform for driving corporate leadership on electric transport. Indian EV100 members include, Wipro, State Bank of India, Delhi-based utility company BSES Yamuna Power Limited (BYPL) and IKEA Group (Hyderabad).

Recently, Mercom reported that the government has lowered the customs duty on import of EV components to 10-15 percent. So far, EV components imported for assembly in India attracted import duty of 15-30 percent.

In December 2018, the Ministry of Power announced guidelines and standards for the development of electric vehicle charging infrastructure in India.