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					</table>As the adoption of zero-emission vehicles (ZEV) accelerated this year across markets and vehicles, it is estimated that 60% more electric passenger vehicles, totaling 10.6 million, will be sold globally in 2022, <a href="https://about.bnef.com/" target="_blank" rel="noopener">BNEF</a>’s 2022 Zero-Emission Vehicles Factbook published at the COP27 said.
The report, however, also notes that countries and automakers globally have much work at hand to phase out all polluting vehicles eventually.
Globally, over 13% of new car sales in the first half of 2022 were electric, an increase of 4.3% from last year’s sales.
The lithium-ion battery manufacturing capacity has increased by 38% since 2021, and the cumulative spending on clean road transport worldwide is set to exceed $450 billion this year.
<img loading="lazy" decoding="async" class="aligncenter wp-image-45015 size-full" src="https://mercomindia.com/wp-content/uploads/2022/11/Picture1-8.png" alt="" width="903" height="568" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/Picture1-8.png 903w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/Picture1-8-300x189.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/Picture1-8-768x483.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/Picture1-8-650x409.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/Picture1-8-624x393.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/Picture1-8-600x377.png 600w" sizes="(max-width: 903px) 100vw, 903px" />
The rapid global adoption has resulted in a significant reduction in oil consumption and carbon dioxide emissions. Electric Vehicles (EVs) this year are expected to cut down on the use of nearly 1.7 million of oil per day, up from 1.5 million barrels per day in 2021.
EVs are currently eliminating 152 million metric tons of CO2 annually, with the biggest contribution coming from electric two-and-three wheelers in Asia.
“The BNEF factbook shows that, despite the global energy crisis, the zero-emission vehicle transition has continued to accelerate since we launched the ZEV declaration at COP26. It also highlights that the ZEV transition is key to permanently ending our dependence on oil,” said COP26 President Alok Sharma.
Slow Progress in 2022 
The report cautions that progress on new commitments to ZEVs from automakers and governments has slowed over the past year.
<img loading="lazy" decoding="async" class="aligncenter wp-image-45016 size-full" src="https://mercomindia.com/wp-content/uploads/2022/11/BNEF-Figure-2-Government-targets-to-phase-out-sales-of-ICE-vehicles-in-2035-automaker-commitments.png" alt="" width="934" height="795" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/BNEF-Figure-2-Government-targets-to-phase-out-sales-of-ICE-vehicles-in-2035-automaker-commitments.png 934w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/BNEF-Figure-2-Government-targets-to-phase-out-sales-of-ICE-vehicles-in-2035-automaker-commitments-300x255.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/BNEF-Figure-2-Government-targets-to-phase-out-sales-of-ICE-vehicles-in-2035-automaker-commitments-768x654.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/BNEF-Figure-2-Government-targets-to-phase-out-sales-of-ICE-vehicles-in-2035-automaker-commitments-650x553.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/BNEF-Figure-2-Government-targets-to-phase-out-sales-of-ICE-vehicles-in-2035-automaker-commitments-624x531.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/BNEF-Figure-2-Government-targets-to-phase-out-sales-of-ICE-vehicles-in-2035-automaker-commitments-600x511.png 600w" sizes="(max-width: 934px) 100vw, 934px" />
The lead author of the report and head of BNEF’s electric vehicle research team, Aleksandra O’Donovan, noted a growing gap between wealthy and emerging economies on ZEV adoption. “While many of the indicators in this report are pointing in the right direction, most countries still have a long way to go before we can be confident that we are on track for a net-zero emission transport sector by mid-century,” stated O’Donovan.
Nigel Topping, U.N. Climate Change High-Level Champion for the UK, COP26, called upon more actors to come forth next year to make and implement ambitious commitments toward the transition to zero-emission vehicles and reap the benefits of cleaner air, jobs, economic growth, and keep up with the Paris Agreement goals.
In India, EV retail sales <a href="https://mercomindia.com/electric-vehicle-sales-up-1h-2022/" target="_blank" rel="noopener">clocked</a> 390,399 units in the first half (1H) of the calendar year 2022, a 333% year-over-year (YoY) growth compared to the 90,102 units sold in the same period last year.

Over 10 Million Electric Vehicles Likely to be Sold Globally in 2022, up 60% YoY: BNEF

The National Institute of Transforming India (<a href="https://niti.gov.in/" target="_blank" rel="noopener noreferrer">NITI</a>) Aayog has put out a bold proposal which states that after 2030, electric vehicles (EVs) have to be exclusively sold in the country.
India heavily relies on oil imports to meet its transportation fuel demands with diesel and petrol consumption on an upward trajectory over the past decade. The 100% EV adoption by 2030 and increase in energy efficiency is aimed at reducing the country’s oil dependence while curbing air pollution in the long run. NITI Aayog estimates that EV sales will save around $60 billion by reducing oil imports. India aims to reduce 10% of its total oil imports by 2022.
The two-wheeler market crossed 21 million units in the country for the first time in 2018. A panel headed by Amitabh Kant, CEO, NITI Aayog, has come up with a suggestion that only electric two and three wheelers (with engine capacity up to 150cc) should be sold from 2025.
The transport minister Nitin Gadkari had made a bold statement in the past to mandate EVs by 2030. However, automobile manufacturers have lobbied against the move towards 100% EV adoption with Japanese and Korean companies at the forefront of the movement. Gadkari has now stated that a new roadmap will be charted out after due consultation with the existing automobile players. Battery efficiency, range, and speed of EV charging infrastructure, consumer awareness, and product costs are the other issues to be worked out in the electric vehicle transition. The looming technology disruption in the mobility sector threatens to overhaul many jobs supported by the existing auto industry.  The Confederation of Indian Industry (CII) has also called for stakeholder meetings across the automobile value chain prioritizing EV affordability for the consumers.
The cabinet note also suggests that the transport ministry should create mandates for cab aggregators to transition entirely to EVs by 2030. The heavy industries ministry will vie for a replacement of petrol and diesel vehicles with EVs of the public sector, agencies, and ministries by 2030.
A joint study by NITI Aayog and Rocky Mountain Institute suggests India can save 64% of the anticipated road-based mobility related energy demand and 37% carbon emissions by 2030 by following a shared electric and connected mobility future.
Anticipating the future demand for lithium-ion batteries used in EVs a proposal has been introduced to set up domestic manufacturing of 50 GWh batteries by 2030. NITI Aayog has recommended financial incentives to investors such as cash subsidies to promote setting up Giga-scale battery manufacturing. The estimated annual subsidy is slated at ₹80 billion (~$1.14 billion). To avoid monopoly, the cash subsidy limit would be 20 GWh per company. Companies bidding for the subsidies will have to opt for a minimum of 5 GWh manufacturing of batteries within five years. If the period is extended the cash subsidy per kWh will be lowered.
According to the CII, the strategy to bring about disruption in mobility will depend on how affordable the newly introduced products are to the consumer. Market forces, subsidies, and technological innovation are the key factors in determining the costs. Policy changes need to be practical and in sync with the market reality.
NITI Aayog has also inferred that 79% of the battery pack can be home-grown while 21% of the minerals need to be sourced from other countries. To make it an investor-friendly scheme, a proposal for complete tax exemption on capital expenditure in the first year, land and other clearances are being planned.
NITI Aayog had <a href="https://mercomindia.com/niti-aayog-model-concession-agreement-electric-buses/" target="_blank" rel="noopener noreferrer">issued</a> an agreement previously for public-private partnership for the operation and maintenance of electric buses in cities across India.
<a href="https://mercomindia.com/niti-aayog-eliminate-direct-subsidies-ev/" target="_blank" rel="noopener noreferrer">NITI Aayog</a> recently led a summit to create awareness about the numerous facets of mobility. The summit brought together stakeholders that are enhancing mobility across different domains. The government think tank released a report at the summit called Zero Emission Vehicles: Towards a Policy Framework.
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NITI Aayog Charts New Plan for Complete Transition to Electric Vehicles by 2030

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