Electric Vehicles to make up 30% of Indian Auto Sales by 2030 : IEA Report

‘Global EV Outlook 2021’ – the recently released Annual Report of International Energy Agency (IEA) has stated that the sale of Electric Vehicles (EVs) will be more than 30% in new vehicle sales in India by 2030.

• It states that through electrification of two/three wheelers in India, the sales share of EVs can reach almost 50%.
• In 2020 the global car sales fell by 16% in 2020 due to COVID-19, but the Global EV sales increased by 41% to around 3 Million vehicles in 2020.
• In 2020, Europe emerged as the World’s Largest EV market for the 1st time, overtaking China.  Electric car registrations in Europe doubled to 1.4 Millions, while in China it increased by 9% to 1.2 Million.
• The report discusses developments in electric mobility across the globe in 2020.
• The rate of electrification of buses and light-duty vehicles is lower, below 15 per cent sales share in 2030.

Global Scenario

i.In order to maintain the rapid growth of EVs, governments across the world need to act on providing charging stations & ban fossil-fuels.

• 20 Countries across the world have announced plans to ban sales of new fossil-fuel vehicles – UK has announced ban on fossil-fuels from 2030.

ii.The Consumer spending on EVs increased by another 50% in 2020 to reach USD 120 Billion. The Government spending stood at USD 14 Billion – 10% of total spending, down from 20% in 2015.

iii.Based on current trends and policies, the report projects the number of electric cars, vans, heavy trucks and buses on road worldwide to reach 145 Million by 2030.

Indian Scenario

i.In 2020, India increased electric bus registration by 34% to 600.

ii.The report highlights the FAME II (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles) scheme of the Central Government.

• Lack of Government spending under FAME II Policy has hindered deployment of EVs in India.
• Under the scheme, only 3% of the allocated funds have been used for a total of just 30, 000 vehicles.

iii.If India pursues an aggressive sustainable development policy,

• The share of EVs in sales in India could reach 50% in 2030 across all road vehicle modes (30% excluding two/three-wheelers).
• By 2030 almost 60% of all two/three wheeler sales will be electric, as are about 30% of LCVs and buses.

FAME Scheme (National Mission on Electric Mobility)

i.It was introduced by Government Of India in 2015 to support electrification of public and shared transportation through subsidies.

ii.It is implemented by the Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises.

iii.Phases – Phase-I  (2015-2018), Phase-II active from 2019-2022

• Phase-II –  Initial Outlay  – INR 10, 000 Crore, it aims to support 10 lakh electric two-wheelers, five lakh three-wheelers, 55,000 four-wheelers and 7,000 buses by 2022.

Recent Related News:

i.February 1, 2021, According to a NITI Aayog & RMI report India’s transition towards EVs adoption between 2020-2030 will need a capital of INR 19.7 Lakh Crores (USD 266 Billion).

About International Energy Agency (IEA)

Executive Director – Dr Fatih Birol
Headquarters – Paris, France