Policy Commission issues proposal for electric vehicle regulation framework, suggests for technology improvement

New delhi date. Wednesday 29 June 2022

The Policy Commission has proposed a regulatory framework for electric mobility. The Commission estimates that if demand incentives continue beyond 2024 and battery costs decrease and power increases with significant improvements in technology, sales of electric two-wheelers in India could reach 22.01 million by 2031, up from 0.23 million in 2021.

"There may be a suitable ecosystem to implement regulation for electric mobility or other clean transport options at certain times in the future." The policy commission in its report predicts the entry of electric two-wheelers in India, which has been jointly developed with TIFAC.

Improvements in technology and reductions in battery costs are key to maintaining the market for electric mobility, according to a report released Tuesday. Which is expected to achieve 100 per cent access by 2024 with a combination of technology improvements and demand incentives.

The report estimates that in an optimistic scenario, with battery costs falling by 8% CAGR, the range and power of vehicles will increase by 20% by FY2024 and demand growth will continue until FY 2031, compared to 0.23 million units sold in FY 2021. India is expected to sell 22.01 million units.

However, in a challenging proliferation scenario when most conditions are considered unfavorable, only 5.82 per cent more market access can be achieved in FY2024, after which demand has declined due to the return of stimulus and finally reached 3.1 per cent in 2031. This would translate into sales of 0.98 million units in 2024 and 0.78 million units in 2031.

The Commission believes that in view of the high volume of petroleum imports, a shift towards electric mobility is necessary for India to balance trade, value foreign exchange and its adverse impact on the environment.