Dezan Shira & Associates has just released their publication called “Navigating Indias Shift, to Sustainable Transportation” which can be downloaded from the Asia Briefing Publication Store.   

In this edition;   

  1. The Evolution of Transportation, in India Towards Cleanliness and Automation Through Shared Mobility  
  2. The landscape of vehicles, in India
  3. Measures, in place to encourage the adoption of eco transportation, in India.

 

Transportation plays a role, in Indias development story as various elements like technology advancements and efforts to make transport more accessible and sustainable are transforming the way people move around. The progress in technology and the shift towards options, like vehicles and green hydrogen are set to improve the manufacturing capabilities of the automotive industry and offer consumers a wider range of choices.      

  

India is committed to lowering carbon emissions and promoting the adoption of energy and transportation options well. During the Conference of Parties, in Glasgow year India declared its ambition to reach net zero carbon emissions by 2070 and to increase its non fossil energy capacity to 500 gigawatts by 2030. Furthermore India has promised to reduce one billion tons of carbon emissions from 2021 to 2030. Recent efforts, by both state authorities are steering the nation towards these environmental goals.   

    

The Indian government backs the development of the vehicle (EV) industry by permitting 100 percent direct investment (FDI) implementing incentive programs to boost technological innovation and supply chain advancement and establishing targets, for quick expansion of public charging infrastructure. Central policies involve the transition of industry norms, from BS4 to BS6 standards and the introduction of production linked incentive plans (PLIs). They also focus on advancing the adoption and manufacturing of electric vehicles through programs like Faster Adoption and Manufacturing of Hybrid and Electric Vehicles Phase II (FAME II). Furthermore support is extended to initiatives such as the National Green Hydrogen Policy and Biofuel Policy.Moreover there is an effort towards promoting eco transportation through rebranding efforts by corporations and educational campaigns, on electric vehicles. The e Amrit website (https;//www.e amrit.niti.gov.in/) was introduced back into 2021. Serves as a hub, for details regarding electric vehicles (EVs) covering topics like charging stations accessibility various financing choices available to consumers and stakeholders investment prospects within the industry government regulations impacting the sector as well, as incentives offered to both drivers and companies involved.    

Federal subsidies and policies currently provide discounts for domestically produced EVs, and PLIs have been introduced to encourage local production of ACC battery storage and to boost the domestic manufacturing of EVs and hydrogen fuel cell vehicles. 

 

  • As of April, India has approved bids from four companies to receive incentives under the PLI Scheme for ACC Battery Storage Manufacturing. The selected companies—Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited, and Rajesh Exports Limited—will benefit from the INR 181 billion program aimed at boosting domestic battery cell production. These companies are required to establish a production facility within the next two years. 

 

  • In March, 75 companies were granted PLI approval under the “Component Champion Incentive Scheme,” including notable names such as Maruti Suzuki, Hero MotoCorp, Tata Autocomp, Mitsubishi Electric, Toyota Kirloskar, Motherson Sumi, Bosch, and Lucas-TVS. 

 

  • In February, 20 companies were approved as PLI beneficiaries under the “Champion OEM Incentive Scheme.” These companies, which include both existing automotive and auto component firms as well as new entrants from non-automotive sectors, committed investments totaling INR 450.16 billion (US$5.88 billion) under the Champion OEM Incentive Scheme and INR 298.34 billion (US$3.90 billion) under the Component Champion Incentive Scheme.   

 

  • In April, Niti Aayog, the government’s think tank, released a draft battery swapping policy to promote the battery-as-a-service segment. This draft policy, open for stakeholder comments until June 2022, will be effective until March 31, 2025, and is specifically aimed at battery swapping systems for two-wheelers and three-wheelers. 

 

These developments suggest a significant shift towards increasing the adoption and affordability of cleaner mobility solutions in India. This issue of India Briefing Magazine will first explore these trends and their impact on mobility in India, followed by an in-depth analysis of the existing electric vehicle ecosystem and the policies guiding India’s transition to clean mobility. 

India’s transportation sector, which accounts for 6.3 percent of the country’s GDP, is a significant energy consumer and a major source of pollution. Adopting climate-positive policies will create numerous foreign investment opportunities in areas such as automotive and auto components manufacturing, research and development, logistics, support infrastructure, and related industries. 

  

For insights into the evolving Indian automotive industry and mobility landscape, as well as opportunities for new market entrants, please contact our advisors at Dezan Shira & Associates by emailing india@dezshira.com. Dezan Shira & Associates has assisted environment and cleantech investors across China, ASEAN, and India. The firm provides comprehensive services, from pre-investment studies and strategy development to setup and compliance support, tailored to help foreign companies enter this burgeoning industry in Asia. 

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