India is on the cusp of revolutionising its mobility system.
Global technology trends and India’s rapidly growing economy have prompted the government to focus on the electrification of transport. This focus has led to a newl approach that will benefit both industry and citizens – offering $1.4 billion in incentives to spur electric vehicle (EV) growth.
The Government of India’s think tank, Niti Aayog, and Rocky Mountain Institute have worked together to quantify the energy and carbon savings that the vehicles eligible for the scheme will deliver over their lifetimes. Assuming all vehicles eligible for the scheme’s incentives are deployed, the net savings would be five million tonnes of oil equivalent and seven million tons of CO2.
The name of the scheme is FAME II (Faster Adoption and Manufacturing of Electric). According to RMI this is just the beginning. The catalytic effect that FAME II could have on the overall EV market is huge – if measures are successful, India could realise EV sales penetration of 30 per cent for private cars, 70 per cent for commercial cars, 40 per cent for buses, and 80 per cent for two and three wheelers by 2030. In addition, if India achieve predicted levels of EV market share by 2030 it could generate cumulative savings of 846 million tons of CO2 over the deployed vehicles’ lifetimes.
India’s efforts in implementing these types of policies signal the country’s vision for a shared, clean, and connected mobility system.
To learn more about the future of EVs in India download RMI’s new report here.