“When India transforms, it benefits one-fifth of mankind”: Piyush Goyal on India’s EV disruption

The union minister believes that supply, instead of demand, for EVs is the challenge in the Indian markets, and exhorts stakeholders to build a template in mobility for world to adopt

The Union Minister of Commerce and Industry, Piyush Goyal, claims that the world is on the verge of a revolution in electric mobility, and he urges automobile industry stakeholders to "bring this revolution to India," because "when India transforms, it benefits one-fifth of mankind," and India should set an example in this sector for the rest of the world to follow.

Apart from its influence on climate change mitigation, Goyal claims that the electric car business has also served as a tremendous leveller – in both supply and demand elements of the industry. "Historically, our industry has had substantial entrance hurdles, but times are changing. It might be the start of a golden period for the electric car mobility ecosystem, which is emerging from the shadows of huge companies. "We're seeing a lot more democratisation in the business now, with a lot more enterprises, startups, and new technology taking centre stage," he says.On the demand side, Goyal explains that demand for electric vehicles in tier-II and tier-III cities in the hinterlands and mofussil has exceeded demand in metropolitan centres, proving the phrase "technology is a great leveller." "Electric cars will enable people in these locations live better lives," he continues.

According to Goyal, demand for electric vehicles in India is not a concern. It's all about supply and demand. "The public is prepared.They want more alternatives," he says, adding that India's electric two-wheeler business has made significant progress and "is positioned to develop significantly in the years ahead." With climate change a hot topic in conversations about sustainability and the future of the world, Goyal says that road transport is responsible for one-fifth of global carbon emissions and must be addressed. "Mobility is undeniably important for the survival of our planet. Mobility, in fact, becomes the new frontier in our battle against climate change," he continues. He also echoed Prime Minister Narendra Modi's belief that electric cars had the potential to reduce India's reliance on oil imports, save foreign cash, reduce pollution, and propel the country to the next stage of self-sufficiency.

"We now see more democratisation of the sector — with a lot of companies, startups and new technologies taking centre-stage,” Goyal tells.

The union minister also stated that, while demand for electric vehicles has grown over the last five years, this growth is coming from a relatively low base. Despite this, he believes the industry will experience revolutionary development and rapid adoption. "I'm certain that the electric automotive sector's stakeholders will assist us in breaking industry records," he says. He also discusses the problems of early EV adoption, such as how automobiles can be charged at home if possible, how heavier trucks can be brought into the fold of electric charging, and how to extend the range of electric vehicles."Many of our firms are focusing on old challenges and providing unique solutions to them," he says, "but I also feel that the industry is working on fresh concepts in this arena."

Goyal also used the occasion to highlight the government's attempts to speed up the growth of this market, which he claims is currently predicted to be worth 50,000 crore by 2025, but which he believes will be "far more." "The government is at the forefront of the electric car landscape revolution." The acceptance of FAME I and FAME II, as well as programmes like the National Electric Mobility Mission Plan 2020, have prepared the road for electric cars in public transportation. Since April of this year, FAME II has been in use.10,000 crores has been set aside in the budget.

"Under FAME II, we've already sanctioned 92,000 EVs, 6,000 e-buses, and approximately 3,000 EV charging points," he continues. According to Goyal, the Product-Linked Incentive (PLI) plan for automobiles and automobile components is expected to generate over 45,000 crore in investment over the next five years. "The battery swapping strategy outlined in the budget will also assist the private sector in developing sustainable, innovative battery, or rather energy as a service (EaaS) business models."

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