The Delhi government’s new Electric Vehicle (EV) Policy is meant towards improving the economy, decreasing the pollution crisis in and around the city, and most significantly boosting the sales and use of electronic vehicles. Few moves that are fitting at this hour are the commercial incentives that are proposed for all purchasers of EVs for the approaching three years. Buying a two-wheeler, an e-rickshaw or freight vehicles is now getting to allow the advantage of up to Rs 30,000 and for a four-wheeler, an advantage of up to 1.5 lakh which is that the first of its kind within the country. the motivation of Rs. 30,000 per e-scooter may be a huge step to build up the sales of two-wheeled electric vehicles in Delhi.
Further, to encourage the acquisition of electrical mobility, the govt has permitted the sales of EVs in India without A battery which no other country has allowed thus far. The step is crazy the target of reducing the value of electric vehicles because the battery is that the costliest a part of any EV. An automobile that’s verified and sold as a combined vehicle and therefore the OEM is in charge of the reassurance, charging or swapping of batteries after the EV is sold, must be included within the proposal. This accounts for a big impact on the economy from both industry and customer perspectives.
Financial benefits of the policy
The policy mentions that purchase of EVs are going to be exempted from paying road tax and registration fees. Currently, road tax ranges from 4 per cent to 10 per cent of the expenditure of the vehicle, and therefore the registration fee amounts to about Rs. 3,000. Additionally, a subsidy of Rs 5,000 per kWh of the battery capacity up to Rs 30,000 given on the acquisition of every electric vehicle points towards a satisfactory profit on a part of the buyers. For the primary 1,000 e-cars or electric four-wheelers, a subsidy of Rs 10,000 per kWh is allotted, which is capped at Rs 150,000 per vehicle.
Furthermore, for those that decide to buy EVs for commercial usages, loans are made available at very low-interest rates, and registration and road tax fees are being waived off, thereby encouraging people to take a position during this sector. These financial incentives are valid for both battery swapping and glued charging vehicles. Additionally, the cumulative sales of newly purchased cars within the capital is estimated to be around 25 per cent, as compared to the present 0.2 per cent, and touching the aim of 100 charging stations across the town within the next year alongside the target of putting in 200 charging stations within the next 4 years maybe a game-changer in India’s EV story. this may overcome the reluctance to shop for EVs as on-road recharging has always been a challenge for consumers.
The gradual shift to EV
Presently Delhi has over 83,000 EVs out of a complete of over 11 million automobiles registered within the city. And out of that 83,000 registered electric vehicles, quite 75,500 are e-rickshaws, about 900 personal electric cars, and approximately 3,700 e-two-wheelers running across the streets of Delhi. There are mainly two difficulties influencing in contrary to the rise of personal EVs in Delhi- (a) the high price of cars, and (b) the deficiency of adequate charging infrastructure. Nonetheless, the government’s goal to register a minimum of 500,000 EVs in Delhi by 2025 comes with great but well-regulated challenges, if plans mentioned within the policy are executed as proposed.
With this, even the availability chain for the entire bandwagon of EV is going to be transformed which isn’t only necessary to thrive but inaugurate a subsequent era of improved logistics processes. the kinds of mechanisms, i.e. the logistics processes which are now active, the markets of origin and destination, and therefore the tiered character of automotive supply chains will need to modify to an excellent extent to deal with the trend. for instance, the availability chain and logistics providers will need to adapt to the geography of battery and electric component production locations, etc. The incorporation of the battery pack and related elements will generate a replacement system. The logistic processes will need to confine mind the difference of electricity as an influence source, consider safety and handling necessities of applied batteries to stay a check on the value in logistics processes.
Progressive transformation in logistics
Even the delivery service must incorporate new-age mobility solutions, like customising vehicle architecture designed for the E-commerce sector from bigger delivery trucks to two-wheelers, IT platform intended to optimize routes and delivery points to decrease the delivery time from days to but an hour, also as modified data accumulation as a further service to reinforce the prevailing E-commerce’s transformation towards Q-commerce.
It is also estimated that the incentives ensured by the govt will reassure delivery service providers, E-commerce logistics also as courier facilities to shift to using electric two-wheelers EVs. Ascertaining the shift, delivery service providers are expected to convert 50 per cent of their fleet operating in Delhi to electric by March 31, 2023, and 100 per cent by March 31, 2025.
Finally with the launch of FAME II, if the EV sector has got to grow, then the main target has got to get on the high-speed vehicles offering the simplest alternative to ICE customers. alongside that, the electrical two-wheeler market is additionally in demand for an enormous transformation, because the current ratio, tilted in favour of low-speed scooters, goes to gradually change. as long as Indian customers are mostly price-conscious, even with the size set to extend and battery prices set to fall, cheaper, low-speed models are likely to ascertain the inflexion point within the EV industry in FY 21-22.
Advantages of the scrappage incentive
Scrappage is one among the nightmares of buyers when it involves the whole automobile sector. to form the switching to EVs smoother and faster, scrappage incentives also are included within the policy. These benefits are added to the subsidies provided by the Union government through the celebrity II (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles) scheme.
Apart from this, the New Delhi EV policy also has mentioned a scrappage policy that gives a sale incentive when a customer scraps an old ICE (internal combustion engine) vehicle and buys a replacement EV, which may be a unique approach towards addressing the scrapping problem of the whole industry, making the acquisition cheaper and reliable.
This well-timed resolution will enhance a swifter shift to wash mobility, thereby putting a check on the increasing pollution within the city and adjacent areas. to form this project a hit, manufacturers too will need to consider decreasing the value of four-wheelers in due time. Only through consumer-focussed incentivization can manufacturers very swiftly overcome the hurdle of bringing consumers to adopt electric vehicles.
The future of Indian mobility is electrical
The blueprint of India’s EV story is holistic and is directed by a separate electronic vehicle department, the vision of seeing 50,000 EVs on the streets of the capital is certainly achievable. Additionally, fixing a robust network of charging infrastructure including 200 charging stations will act as a catalyst to the event of the world. it’ll successfully address the apprehensions of not just the electronic vehicle manufacturers, sellers, and customers, but also will boost business for other clean energy players to compete within the market.
However, the exclusion of other factors like no limit for minimum vehicle range, no obligatory requirement of local manufacturing, and no condition for vehicles to possess built-in suitable monitoring devices to work out the entire fuel savings on a real-time basis have got to be taken into consideration before the shift is finally made. Nevertheless, the general policy will provide a head-start and enable the EV led start-ups to save lots of huge from the new policy and luxuriate in a better adoption rate, and supply the much-needed push towards a 100 per cent electric logistics by 2025.