Making India’s passenger mobility shared, electric, and connected can cut the nation’s energy demand by 64 percent, and carbon emissions by 37 percent in 2030. Understanding the potential of EVs in addressing India’s aims for an energy-ready and environmentally sustainable future, the Indian government launched the National Electric Mobility Mission Plan (NEMMP) in 2013 with a target to bring 60 to 70 lakh EVs to Indian roads by 2020 and is committed to achieve 30% e-mobility by 2030.
India’s traditional fossil-fuel based mobility is based on the affordability and ease of access to supporting infrastructure, including swift access to refuelling. India is also apprehensive about the anticipated high cost of EVs, and the projected return on investment for this purchase. The answer, therefore, doesn’t only lie in a product offering – but a business model that mitigates these barriers.
Not just a car, but a business model to drive Indian electric mobility
We have applied our proven demand aggregation model for bulk EV procurement. The mechanism of procurement price discovery via the International Competitive Bidding (ICB) process enables competitive prices, creating momentum for future demand in India’s EV landscape. Upon procurement, EVs will be leased out at rentals that are equal to the present rentals for petrol and diesel cars hired by Government organisations. Organisations can also buy the vehicles from EESL. Supporting the fleet of EVs dedicated to government staff mobility is a network of charging stations that will be set up by National Thermal Power Corporation Limited and Power Grid Corporation of India Limited in the Delhi-NCR region.
As a beginning, we will procure and deploy electric vehicles in government offices across the country. It is estimated that replacing these 500,000 cars with EVs over the 3-4-year period will lead to fuel savings of about 83.2 crore litres per year and 22.3 lakh tons of CO2 reduction.
EESL's EV programme: creating an enabling ecosystem
By establishing a substantial presence for EVs, their affordability, and supporting charging infrastructure, EESL is working to trigger an industrial and consumer switch to EVs.
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.
We are aggregating institutional demand, while also providing the capital for e-car investment.
Selected after bidding for the vehicles and charging points, OEMs will provide comprehensive extended on-site warranty and a five-year Annual Maintenance Contract.
To enable governmental institutions to have access to end-to-end fleet management services, EESL will engage a service provider. These services include insurance, registrations, permits, and other regulatory documentation
Public Sector Undertakings
Upon formal agreement with EESL, PSUs will provide parking space for e-cars and space for setting up charging infrastructure.