Businesses in India are seeking government support to meet the goal of at least 65 percent of all new vehicle sales to be electric by 2030, according to an organization led by CEOs of major companies around the world. More than 25 companies, including automakers Mahindra & Mahindra and Volvo, oil giant Shell and clean mobility startups, want India to set firm goals and policies to support the transition to electric vehicles (EV), World Business Council for Sustainable Development (WBCSD) said on Thursday.
This is the first collective push by companies in India to switch to clean mobility and comes weeks ahead of the United Nations’ climate change conference – seen as key to scrapping over-commitments from governments to curb global warming.
India is the world’s third largest greenhouse gas emitter after China and the United States and is so important in the fight against climate change.
“Following the rapid growth in India’s renewable energy sector, transport decarbonization is India’s next big opportunity to address climate change,” said Joe Phelan, Director of WBCSD in India.
WBCSD said in a statement that meeting the 2030 target could provide an investment opportunity of about $200 billion (approximately Rs 15,060 crore), which would also cut India’s road transport emissions by 15 percent.
India has some of the most polluted cities in the world and the government is pushing automakers to switch to EVs to clean the air and reduce costly oil imports. But companies have been slow to adapt, saying EVs still cost more as batteries cost more and insufficient charging infrastructure impacts sales.
In recent months, India has strengthened plans to encourage companies to manufacture EVs and batteries locally to boost supply for EV buyers and to supplement federal and state benefits.
WBCSD said that by 2030, companies want 30 percent of new cars, 70 percent of new motorbikes and scooters and 35 percent of new buses to be electric.
To achieve this, they want the government to legalize e-bike taxi services, grant fleet permits for electric three-wheelers, ensure easy access to finance and leasing opportunities for electric cars, and set up public chargers. Speed up
Indian bus maker JBM Group, motorcycle maker Hero Electric, goods vehicle maker Switch Mobility, energy company Fortum, IKEA and LeasePlan are also supporting the push.
© Thomson Reuters 2021