Green Transportation – Stepping towards a clean Environment
India announced its commitment to reduce its carbon emission intensity by 2030 as per Paris agreement in 2015. However, it needs great strength and determination unless India promises to cut down emission intensity especially from the automobile sector. No doubt, India has to go a long way where electric vehicles (EVs) can play a big role in this direction.
The number of electric cars grew by about 300% in the last decade. The absolute number is only around 4,000 electric cars on Indian roads which is just about 0.1% of the cars sold last year. The number indicates that the EV system is yet to take a positive shape. Therefore, there is an opportunity where automobile manufacturers can play a big role in this direction of ecosystem.
India is a great market that provides a tremendous opportunity in the EV space similar to just in petrol and diesel car segments. The opportunity is so big that every player in the ecosystem can benefit from it. For Hyundai, EVs are going to be a key focus area when it comes to providing eco-friendly transportation system. This was announced, recently by Hyundai Motor Company in ‘Global Strategy 2025’. There is a target of 30% electric vehicles on Indian roads. Under ‘Global Strategy 2025’; we are planning to sell 670,000 EVs annually. In the above-stated strategy, India will be one of the most important markets for the EV system.
To promote ‘Made In India’ EVs, finance minister increased the customs duty on completely built units and SKD to 40% and 30%, respectively. This will definitely boost Indian manufacturing of EVs. The SKD means to describe a product that is exported in a set of parts that have been partly put together, and which are then all put together for sale to customers.
Achieving the target of 30% electric mobility by 2030 looks challenging for investment, innovation, research and development (R&D) to successes.
India’s commitment towards cleaner transportation is commendable. Currently, the sector as a whole is working towards implementing the BS-6 emission norms. This, I think would not be enough since these sectors are contributing tonnes of carbon dioxide into environment.
The automobile sectors are taking various steps from charging infrastructure to investment in R&D for EV products suitable for the Indian roads. It’s good to see that all everyone (all concerned stakeholders) are working towards a common goal which is going to shape up a better tomorrow, a clean tomorrow……