#283: EVs in India | 360 UPSC Notes
You will thank me for this!!!!🥰🥰🥰
EV EV EV
Why are these two fighting? What is Indian EV policy?🤔
What all do you need to know EV sector in India?
Learn everything here!!!👇🏼
Kunal Kamra replied to Bhavish's tweet on new Ola Electric factory
Topic? Poor Services. (Even tagged ministers)
Bhavish took it on him to 'give it back'
What unfolded next is a bad rapport for Ola, tbh!
But hey, what's Ola Electric? How is policy involved?
Ola Electric is an OLA subsidiary
To manufacture EV Vehicles in India!🤯
When? 2017
Timing is critical, this is also when India's EV policy started gaining traction
What is India's EV Policy?👇🏼
1. FAME Scheme 2015
• Faster Adoption & Manufacturing of EVs
• Subsidies & incentives for in-house production
• Promotes Electric & Hybrid Vehicles via subsidies for infra development
• Note: FAME II focuses on charging infra; adoption of EV fleet in public transport is part of FAME
2. NEMM Plan 2020
• National Electric Mobility Mission Plan 2020
• To support broader tech, infra & process ecosystem
3. Make in India
• Encourages Manufacturing of EV goods within 🇮🇳
• Aim: 🇮🇳as hub of EV manufacturing, reduced import reliance & promoting local production
4. PM E-DRIVE (Oct 2024 Launched)
• PM Electric Drive Revolution in Innovative Vehicle Enhancement
• Subsidies aiming to reduce EV cost for consumer
• Reduced pollution + Position India as leader in sustainable transportation
• Incentivizes diff categories focusing on private/commercial segments
The specific subsidies are per kWh for 2/3 wheeler EVs
Okay CSEWhy, give me 360 notes on EVs!!🥰
Here, we will cover 4 pillars
1. Policy framework
2. Economic Implications
3. Environmental Impact
4. Tech Aspects & Social Adoption
1. Policy Framework
You learnt most of it in the previous section
2. Economic Implications
• Investment & Manufacturing
High domestic value addition → job creation
Challenge:
Capacity variation b/w Local manufacturer v/s global giant
• Market Dynamics
Long term sustainability of subsidies will eventually impact all vehicle categories negatively
• Trade Balance
Reduced Oil imports improve trade balance
Increased Battery elements import counterbalance it!
3. Environmental Impact
• Reduced air pollution & GHG emission
• Shifting resource dependency from oil to Li concerns sustainability and geopolitics of mineral extraction
4. Tech aspects & Social Adoption
• Revolution inevitable in EV adoption despite lagging in battery development tech
• Charging infra will scale but needs focus on distribution, maintenance & universal compatibility
• For society, following factors matter:
- Consumer behavior around initial high cost, negative reliability perception & travel range anxiety
- Urban Infra needs a relook to design parking with charging points in commercial & residential spaces
- High level engagement for Education & Awareness is needed!
Alright, CSEWhy.
Now tell me challenges & strategic thinking pointers for me!
Challenges🥶
• Infra Overload⚡
Strain on current electricity grid → upgrade in power generation & distribution
• Industry Readiness🤔
Concerns are here on industry readiness to scale to large scale manufacturing
• Global Competition
Embrace for either spur in innovation or foreign entities dominating the Indian markets🙃
Strategic thinking points for UPSC aspirants😌
1. Policy Analysis
• Evaluate how policies impact market dynamics, consumer adoption & India's position in global trade
Policies like:
- ↓ import duties & Subsidies
- Manufacturing Incentives
2. Environmental Economics
Understand cost-benefit analysis of
infra v/s long term environmental benefits
3. Technological Policy Alignment
Asses how the Policy align w/ tech advancements
Focus on:
• Battery life
• Charging speed
• Overall vehicle efficiency
4. Cultural & Behavioral Shift
• Sociological aspects of policy on cultural acceptance
• Impact of govt. campaign on public perception
5. Geopolitical Angle
• Analyze Policy implications on IR
• Focus: Import dependency & trade agreements
Thanks