- All cars sold for commercial use to be electric from April 2026
- All scooters, motorbikes sold for commercial use to be electric from April 2023
- India to order taxi aggregators like Uber and Ola to convert 40 % of their fleet to electric by April 2026
The Union Government of India has proposed to have an all-electric fleet of commercial cars from April 2026 in the country. All the cars sold in the Indian market from April 2026 for commercial purposes would be electric. In this reference, it was also decided to issue orders to the mobile app based taxi aggregators like Uber and Ola to convert 40 percent of their existing fleet to electric by April 2026. Additionally, all the two-wheelers including motorcycles and scooters sold from April 2023 for commercial use should be all-electric.
Niti Aayog, the statutory body for policymaking in India, in a meeting chaired by PM Narendra Modi stated that it is working with several other ministries on the new policy. The Government of India is working aggressively on the new EV policy and pushing the manufacturers to adopt electric vehicles in order to lower down the oil imports and curb down the increasing levels of pollution as a part of the Paris Climate Change accord. Recently, in a meeting on May 28 in Delhi, officials of Niti Aayog, ministries of road transport, power, renewable energy and steel, as well as the departments of heavy industries and trade unanimously recommended the conversion of commerical vehicles (taxi operator) to electric.
Ola, one of the most popular taxi aggregators, experimented operating with electric cars in thye country but it failed to achieve success due to lack of required infrastructure and higher input costs. Both Uber and Ola have a backing of Softbank Group and they need to start working at the earliest to convert their existing fleet in order to achieve electrification target of 40 percent. If these companies can start converting to electric by next year, then by 2021 they can have 2.5 percent electric cars in the fleet, 5 percent by 2022, 10 percent by 2023 and eventually going all out to achieve 40 percent by 2026. The sales of electric vehicle saw a three-fold growth in FY 2018 with total 3600 units being sold, however it is still 0.1 percent of total vehicles sold in India in the whole year.
Source - Reuters