In 2010, the Ministry of New and Renewable Energy proposed a 20% subsidy for electric vehicles through a scheme called the Alternate Fuels for Surface Transportation Programme. This resulted in a big leap in sales of electric vehicles, mostly in the e-bikes segment. However, this initial spurt in sales was followed by a slump. This article analyses why electrical vehicles have not taken off in India, and suggests alternatives.
In January 2013, the Government of India introduced an ambitious National Electric Mobility Mission Plan (NEMMP) through the Department of Heavy Industry (DHI) to revamp the electric vehicle (EV) segment further. This plan has identified a demand potential of 60–70 lakh EVs on the road by 2020. This target is classified into the two-wheeler (2W), three-wheeler (3W), four-wheeler (4W), buses, and light commercial vehicle (LCV) segments. The targets for each segment are mentioned in Table 1.
After the introduction of NEMMP, many modern and noise-free Hero e-bikes and Yo e-bikes were expected on the road. However, multiple news reports suggest that the introduction of NEMMP has been counterproductive. Sales of 2W EVs have dropped by more than 80% and this led to the shutdown of 75% of 2W EV manufacturers. This industry witnessed peak annual sales of 1,10,000 units of 2W EVs in 2011–12.
