On August 12, 2020, the Ministry of Road Transport and Highways announced that the Electric Vehicles shall be sold and registered without pre-fitted batteries. This will reduce cost of Electric Vehicles by 50%.
Why is the step introduced?
The step is being introduced by GoI as the batteries make the Electric Vehicles highly expensive than the combustion engines. If the cost of the batteries is delinked from that of the vehicles, their cost would be far less than that of the fossil-fuel powered vehicles. The batteries can then be sold by the manufacturer or energy service provider separately.
Concerns
With this step, the manufacturers now rise the question that if the EVs are sold without batteries how will the subsidies under the Electric Vehicle Adoption Policies be determined. GoI offers incentives under Electric Vehicles FAME Policy as well.
The other major concern involved around the decision is that under Rule 126 of the Central Motor Vehicles Rules, 1989, both electrical vehicle and the battery are required to be type-approved by the test agencies.
Benefits
The GoI is trying to create an ecosystem that will accelerate the uptake of Electric Mobility in the country. If the step becomes a success, the batteries can just be rented or refilled at fuel stations just like diesel and petrol. This will help ultimately remove the obstacle of under developed Charging Stations Infrastructure in the country.
Background
It is important for India to promote the use of Electric Vehicles in the country. India has committed to cut Green House Gas Emission intensity by 33% to 35% by 2030 as compared to 2005. WHO says that India is home to 14 out of 20 most polluted cities in the world. Therefore, it is essential for India to push for use of Electric Vehicles.
Also, India imports 80% of its transport fuel, that is oil. EVs can help reduce this dependency. Promotion of EVs will also help generate employment in the country.