Exemptions on Registration Fees: Driving Up Electric Vehicle Sales in India

To increase the popularity of electric vehicles (EVs) in India, several measures are necessary. Exempting EVs from registration fees is one such vital step. However, this is just one part of the comprehensive strategy needed to boost the EV market.

Steps Needed to Boost the EV Market in India

Here are some additional steps that can contribute significantly to the success of EVs in India:

Make EV Prices Comparable to IC Engine Vehicles

One of the key challenges is making EVs more affordable. For instance, the Bharat Stage 6 (BS6) emission norms have made diesel engines very expensive, prompting Maruti to discontinue manufacturing diesel cars. Flipping this trend, stringent emission norms could also make petrol vehicles more expensive, thus leveling the playing field for EVs.

Cost of Fuel

The current price difference between diesel and petrol (less than 10%) has made petrol cars more popular again. As fuel prices rise, people will increasingly look for alternatives. While compressed natural gas (CNG) was once more economical, EVs are now becoming more cost-effective to run. A closer examination of the economics might reveal that, with rising fuel prices, EVs are not only more cost-effective but also more reliable in the long run.

Special Privileges for Electric Cars

To further incentivize the adoption of EVs, special privileges such as dedicated parking spaces and charging points can be provided. This not only encourages ownership but also ensures that EV owners have a more convenient experience. Additionally, governments can offer incentives to manufacturers, such as tax breaks and subsidies, to help them set up plants efficiently, driving the growth of the EV industry.

Addressing Range Anxiety

One of the significant challenges for EV owners is range anxiety. To tackle this, governments need to establish fast-charging stations along highways, allowing drivers to recharge their vehicles during breaks. This infrastructure is crucial for expanding the user base of EVs.

Tackling Increased Energy Demand

As EVs become more common, the demand for electricity is likely to increase dramatically, both at home and on a national scale. To address this, government policies and initiatives should encourage the installation of solar charging stations. A 2KW solar UPS can generate enough power to charge an EV for about 35-40 km daily. Furthermore, designing cars with solar cells on the roof, allowing them to recharge while in the sun, can provide an additional 5-10 km of range daily. This is a step in the right direction, even if it's not a complete solution.

Starting with a Decent EV

While the goal is to have high-end EVs like Teslas, the immediate target should be to provide affordable options. A car priced between 6 to 8 lakh with a range of 200 km can compete well against petrol and diesel vehicles. The key is to offer an EV that is a practical and affordable alternative, paving the way for wider adoption.

Conclusion

Exemptions on registration fees can indeed encourage more people to buy EVs, but it is just one piece of the puzzle. A multi-faceted approach is necessary for a sustainable and widespread adoption of EVs in India. By addressing key factors such as pricing, fuel costs, and infrastructure, the country can make significant strides towards a future where electric vehicles are the norm rather than the exception.