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EV adoption guidelines must be more practical

Jul 29, 2023 08:54 PM IST

A phased approach, prioritizing infrastructure development, cost-effective EV models, and collaboration is necessary for a successful EV transition in Delhi

The electrification of cabs and bikes for transportation is undoubtedly desirable for reducing pollution. As the world grapples with the climate crisis, the adoption of electric vehicles (EVs) holds immense potential, but must be tempered by ground realities. The Capital recently completed the feedback process for the fifth draft of the aggregator guidelines. The draft, however, seems to have several kinks that need to be smoothed out.

A successful and speedy transition to EVs in Delhi requires a comprehensive and well-sequenced approach (REPRESENTATIVE IMAGE) PREMIUM
A successful and speedy transition to EVs in Delhi requires a comprehensive and well-sequenced approach (REPRESENTATIVE IMAGE)

First, there is a yawning gap between electrification targets, and current adoption rates. EVs constitute a mere 0.16% of all vehicles in Delhi. As per NASSCOM, the market share of EVs in the two-wheeler, passenger three-wheeler, and four-wheeler segments stands at 0.74%, 30.3% and 0.16% respectively. If we extrapolate the number of four-wheelers in the ridesharing space across platforms such as Ola and Uber, each aggregator would need approximately 8,000-9,000 EV cars to meet the first year target. The total EV sales in 2022, according to the government’s Vahan portal, was 5,642 — of which only 2,515 were cab registrations. The draft target will require sales to more than double, and all new vehicles to be attached with aggregators.

Second, the suggestions for bike taxis seem impractical. Data says 24% of all bike taxis in India operate in Delhi, totalling nearly a million rides per week. The draft guidelines differentiate between a bike taxi carrying goods, and those carrying passengers, and put an unrealistic target of 100% EVs for the latter. Unfortunately, none of the two-wheeler EV makers can support such an expansion in EV bike taxi operations. Moreover, drivers often use the same bike for goods and passengers, making the differentiation impractical.

Third, the cost differential between EVs and their internal combustion engine (ICE) counterparts remains steep. Industry data says two-wheeler, three-wheeler, and four-wheeler EVs are roughly 25%, 40%, and 60% more expensive than their ICE counterparts. To make EVs economically viable, bridging the cost gap through incentives and subsidies is key.

Fourth, the performance of EVs remains inferior to their ICE counterparts. An auto or bike taxi driver would normally drive roughly 100 kilometres a day. However, most current EVs have a sub-100 kilometre range. Lack of easy access for charging on-the-go, and the time taken to charge a battery, make the proposition impractical. Delhi government identifies charging stations at 1,919 locations, 232 battery-swapping stations, and 2,452 charging points. However, many of these charging stations are non-functional, some are in locations that will require a significant detour for drivers, and still, others are packed during peak hours, leading to long delays. It is critical to prioritise growth, and strengthening of charging infrastructure for the draft targets to be met.

A successful and speedy transition to EVs in Delhi requires a comprehensive and well-sequenced approach with collaboration among various stakeholders. To achieve this, it is essential to re-evaluate and align the targets outlined in the draft guidelines with the ground reality of the EV ecosystem. The targets set for electrification in the ridesharing space should be in accordance with the availability of EVs and the corresponding charging infrastructure. If we push aggressive electrification targets without charging infrastructure, it will negatively impact tens of thousands of drivers, throwing many out of business, and hurt consumer mobility. A phased approach may be more practical, prioritising infrastructure development, promoting cost-effective EV models, and catering to the specific requirements of different transportation segments. It would also be important to foster collaboration among authorities, aggregators and manufacturers. That could engender a greener and more sustainable future for Delhi’s transportation landscape.

Dhanendra Kumar is former transport secretary, founding chairman of CCI and India’s executive director at World Bank. He is currently chairman of Competition Advisory Services. The views expressed are personal

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