Shift to EVs will ease India’s energy imports to half by 2030

Various stakeholders like car OEMs, private charge point operators (CPOs) and overall end consumers have propelled the expansion of the Indian electric vehicle market.
India, as a nation, presents a compelling case for the electrification of road transport. It is in the best interest of individual consumers to switch to electric vehicles for the sake of the economy and health.
There are numerous, not just one, reasons in favour of this. India’s energy import bill is expected to double from around $150 billion to $300 billion by 2030. The shift to EVs will help reduce India’s energy imports to nearly half by 2030 and help the country to reduce emissions as a part of its voluntary commitment to the Paris climate treaty and, further, to be net-zero by 2070.
Given the global geopolitical situation, gasoline prices are soaring and are expected to continue soaring. This makes a strong case to switch to electric vehicles as this can be driven by much lower-priced electricity, which also has the advantage of being indigenously produced.
India has targeted more than 500GW by 2030 through renewable generation sources like solar and wind power. This would warrant a balancing source to offer flexibility to the grid. EVs with batteries can offer this balancing capacity to the grid, which otherwise would have to
be met with by having stationary storage at additional cost to the system.
India has the unpleasant distinction of having 63 Indian cities in the 100 most polluted places on Earth, with North India being the worst. While numerous things contribute to urban India’s dirty air, skies, and human lungs, traffic pollution plays a significant role. Thus, EVs are in the best interest of consumers and the country.
Keeping these national imperatives in view, Govts have been supporting the adoption of electric vehicles in various segments through various policy measures like FAME-I and II schemes, lower GST on EVs, income tax exemption on the purchase of electric vehicles, making charging infrastructure a service, having a separate consumer tariff category for charging station under Indian electricity code and more. Driven by this policy push, various stakeholders like car OEMs, private charge point operators (CPOs) and overall end consumers have propelled the expansion of the Indian electric vehicle market. It is worth mentioning that by 2030, India hopes to convert 70 per cent of all commercial vehicles, 30 per cent of private cars, 40 per cent of buses, and 80 per cent of two-wheeler and three-wheeler sales to EVs, which would make it an irreversible journey for electric vehicles in India.
However, the adoption of new technology has its challenges. Like any other technology, EVs also must follow the innovation adoption lifecycle addressing challenges during the initial years when innovators and early adopters use the technology and offer feedback to make the technology adaptable to the mass market at affordable prices and convenience.
We must see the challenges from the consumer’s perspective to understand them. E-mobility has three significant stakeholders – OEMs, Charging Infrastructure providers, and Consumers. Amongst all, it is the consumer who is the ultimate driver.

The third significant reason that can be sighted is the limited choices and models available of electric vehicles in the market. More and more OEMs are launching their product for Indian consumers. Today, India has nearly 20 car models ranging from Rs 8.5 lakh to more than Rs 1 crore. Over the next 5 to 10 years, OEMs aim to invest an estimated USD 515 billion in EV-related technology and manufacturing facility upgrades.
With more and more OEMs set to introduce their various models on the Electric platform, Indian consumers will have a reasonable choice of models in the next 2-3 years, which will further push adoption. In the years to come, more affordable electric cars will likely revolutionise city transport in India. Highway transport, too, would go electric. This will provide more momentum to the EV becoming mainstream.
Various myths about electric vehicles and fast charging are rolling around, which prevents EV adoption. A sustained awareness campaign by all stakeholders at all levels, starting with school students to end consumers at the point of sales, would go a long way in creating an environment where consumers would make informed decisions about their purchase of an EV.
All the factors above will significantly impact how the EV market develops in India, and the construction of adequate infrastructure for charging EVs will open the door for sector expansion in the future. There’s a strong need for the various stakeholders of the EV industry to come together and work collaboratively while keeping the consumer-first approach.
At Fortum Charge & Drive India, we believe that the electric vehicle (EV) market will reach its defining moment in the next 3-5 years when consumers may confidently approach any electric fuel station, just like they would a gasoline pump today, without worrying about its accessibility or availability. Additionally, the upfront cost of ICE and EV cars will converge within the next two to three years, clearing the path for the widespread adoption of electric vehicles.
The role of government will be significant in helping the industry set the stage by creating an enabling policy framework defined by technology and the requirements of the consumers.
For these reasons and many more, despite several challenges, EVs finally appear poised for accelerated growth and widespread adoption in India in the coming 3-5 years, contributing significantly to establishing electric mobility into the mainstream.
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