Industry-Wide Consultation Necessary Before Launching a Plan for Transition to EVs: CII

CII has recommended a three-pronged approach that it believes will help stakeholders and the nation achieve goals linked to the transformation of the mobility sector


The Confederation of Indian Industry (CII) has called stakeholders from across the transportation and renewable energy sectors for a consultation on the future of intelligent mobility in the country.

CII announced that it would focus on setting goals, working on the technology, and affordability of vehicles for consumers as India is looking to achieve its goals of transportation based on energy choices.

The confederation has emphasized on a three-step strategy which it will leverage. The first strategy would include setting the right goals based on macros, such as India’s carbon footprint and energy security. The targets and the timelines for this would need to be established to achieve desired goals, which is to be discussed through stakeholder consultations.

As part of its second strategy, CII has urged the government to be technology-agnostic in its approach as the transportation sector is going through significant and transformative innovations both in vehicles and batteries. Especially in the case of battery technology, India needs to also look at the challenges of sourcing raw material that will need to keep geopolitical priorities of the country in mind, it noted.

The third strategy would focus on the affordability of electric vehicles for consumers. Vehicles like two wheelers and three wheelers are preferred modes of transport in rural areas and towns where most of India resides.

“Constructive disruptions driven by market forces coupled with enabling policies is the kernel of any innovation, and we are hopeful that the same is adopted as India readies itself for the advent of new technologies in mobility including electric vehicles,” Vikram Kirloskar, president of CII said.

“It is important to set the goals right and work towards them as we look at fuel efficiencies and choices for future mobility solutions. The processes of how we get there should be driven by market and industry, to get the best results for the nation,” the CII added.

In August last year, NITI Aayog and the CII entered into a partnership for the sustainable development of India. CII and NITI Aayog have entered into a three-year partnership, and a memorandum of understanding was also signed. This partnership focuses on specific activities that aim to develop a vision and action agenda for businesses and industries to contribute to SDGs, annual status reports, and sector-specific best practice documents.

In March 2019, the Union Cabinet approved the FAME India Phase II program, aimed towards the promotion of electric mobility in the country. The objective of FAME is to encourage faster adoption of electric and hybrid vehicles by way of offering upfront incentives on the purchase of electric vehicles and establishing necessary charging infrastructure for electric vehicles.

Meanwhile, the government is also planning to order SoftBank group backed Ola and Uber to convert 40% of their operational fleet of public transport to EVs by 2026, news agency Reuters said quoting sources. The two public transport providers are expected to achieve 2.5% electrification by 2021, 5% by 2022, 10% by 2023 and then accelerating to 40%.