Indian Government Initial Efforts To Push Electric Vehicle Cars Come To A Cropper

Will Govt. Of India Succeed in Promoting EVs

Given that the Indian market is currently highly immature in terms of Electric Vehicle adoption, the government is using its own procurement to push the growth of the EV cars. The Indian government has come out with a procurement of hiring EV cars for its transportation department. However, the tender was poorly made and it failed as there were not enough bidders. Given that there are hardly any EV makers and extremely few charging points for EVs, there is no ecosystem which can cater to the government’s procurement needs. The department has once again come out with a tender by lightening some of the conditions but it remains to be seen whether this will be successful or not. Also, the size of the procurement is so small that it will not make any substantial dent in the demand for EV cars in India.

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Another scheme which the government is coming up with is to lease Electric Vehicles for its own use as well as for different state-owned companies. This will be similar to what it does for ICE based vehicles. This will hopefully give impetus to the Electric Vehicle car market as the government uses thousands of cars for its vast bureaucracy. The scheme will start in the Indian capital of Delhi which has the maximum government paraphernalia. I think it is a good move on the government’s part if it moves to only EVs. This will make a substantial boost to the nascent and almost moribund Electric Vehicles market. The government has the heft and the capacity to push a new technology. The higher costs of EVs can easily be borne by the government and it will also serve to increase the awareness of this technology.

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The government has made very tall targets of the EV market but in terms of policy implementation, the efforts fall far short of what is required. There need to be more innovative initiatives and better execution in order for the EV market in India to take off.