Making India’s passenger mobility shared, electric, and connected can cut its energy demand by 64% and carbon emissions by 37% in 2030 as quoted from the report published in May 2017 by Niti Aayog. Keeping in mind the growing energy demand and need for smarter mobility options, Government of India aspires to have 100% EVs by 2030 and has approved the National Mission on Electric Mobility in 2011. Subsequently, the National Electric Mobility Mission Plan 2020 was unveiled in 2013.
The shift from Internal Combustion Engine (ICE) based transport to EV is expected to significantly lower the financial burden for the government by reduction in oil imports. Further, EVs are less polluting than ICE vehicles and serves well with government’s agenda of reducing air pollution.
Being a nascent industry, Indian vehicle manufacturers need an impetus to establish manufacturing units, the ancillary industry needs to be developed, charging stations need to be established and most importantly, a conducive policy environment needs to be formed to achieve the said goal.
Despite introduction of the technology decades ago, there are barriers which have hitherto not allowed the industry to flourish. Factors such as low demand, high financial risks for the industry, high cost of ownership for consumers, lack of awareness of benefits, absence of charging infrastructure and factors like range anxiety have inhibited adoption.
To overcome these challenges, our innovative business model of bulk procurement, demand aggregation and payment model called Pay-as-you-save, will help the industry and customers switch to electric vehicles with much ease. The model of EESL ensures zero dependence on subsidies for introduction of transformative solutions. EESL makes the entire up-front investment for adoption of the transformative solutions, making it an attractive market.
As a beginning, will procure and deploy electric vehicles in government offices across the country. It is estimated that the replacing these 500,000 cars with EVs over the 3-4-year period will lead to fuel savings of about 8000 million liters, 10 million tons of CO2 reduction and 28,200 crore of annual fuel savings.
This model will provide an impetus for Indian vehicle manufacturers, charging infrastructure companies, fleet operators, service providers, and the industry to gain efficiencies of scale and drive down costs, create local manufacturing facilities, grow technical competencies for the long-term growth of the EV industry in India. It will in turn enable the Indian EV manufacturers to emerge as a major global player.