Market sentiment has changed over the last 14 years because of several advantages offered by electric vehicles (EVs). EVs are much more eco-friendly than internal combustion engines. They significantly reduce the oil import bill of nations, bolstering energy security. They can also be much cheaper than conventional vehicles in the long run, due to fewer moving parts, lower maintenance costs, and reduced fuel expenses. However, in FY16 only 22,000 EVs were sold in India, of which approximately 2,000 were cars and the rest two-wheelers. But hope is on the horizon, with the Central government’s renewed commitment to EVs, especially for public transportation. To overcome the scattered presence of charging stations, and the additional barrier of still-expensive batteries, the Narendra Modi government is contemplating a policy push for the sale of EVs without batteries, supplemented with battery leasing operations and battery swap stations. More policy innovations, both from the Centre and the states, are required to ensure the success of these green initiatives. These steps can be structured around three key themes. The first, and perhaps the most obvious, is the targeting of direct sops and incentives for EV and component manufacturers, as well as consumers. The second step must be a renewed commitment on the part of governments to provide and promote greater public infrastructure for EVs, including public charging stations, dedicated electric supply lines for such stations, and battery swap stations. Third, and equally important, is a big boost for R&D (research and development) innovation in this space.

(Live Mint)