CII: Forging ahead with India’s future mobility e-cosystem

00_enGAUGE_Article_LogoBy Team enGAUGE @ciienergy

India has announced ‘CLEAN’ as the new way ahead for its automobile sector, and recent policy initiatives seek to leapfrog to a future driven by clean mobility, addressing the twin challenges of enhancing national fuel security and countering escalating environmental urban pollution.

Transport continues to be India’s highest oil consuming sector. Diesel and petrol use have grown at 5.9% and 9.9% respectively in past decade, driving up India’s import dependency on oil from 78.3% of total consumption in 2014-15 to a new high of 83.7% in the 10-month period of FY19.

A Government study indicates that India can save 64% of anticipated road-based mobility-related energy demand and 37% of carbon emissions in 2030 by pursuing shared, electric and connected mobility. This would result in reducing 156 Mtoe in diesel and petrol consumption per year and net savings of about $60 billion in 2030 at present oil prices.

In sync with India’s journey to adopt cleaner mobility solutions and reduce oil imports by 10% by 2022, the Confederation of Indian Industry has initiated policy advocacy measures and work areas for energy security and environmental sustainability within its annual theme of ‘Competitiveness of India Inc – India@75: Forging Ahead’. These include effectively managing energy use with growth and reducing India’s oil intensity; developing high grade energy infrastructure, and promotion of clean air and electric vehicles.

The Government’s FAME II scheme has allocated over half its ₹10,000 crore budget to green mass transport systems, including e-buses and e-three-wheelers. This aligns with India’s call for 100% electrification of three-wheelers, commercial four-wheelers, and public transport vehicles by 2030, along with 40% electrification of private two- and four-wheelers.

However, with EV penetration in India currently at just 1%, FAME alone is not enough to reach the 2030 target. CII recommends support in market creation and adoption; building scale for domestic manufacturing of vehicles, components and batteries through ‘Make in India’; skill development across the value chain, and strategic sourcing of raw materials to power this transition. For transport to go truly green, it must also be accompanied by a rising share of renewables and environmentally-sustainable batteries.