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An oil ministry panel has recommended that the Indian government ban diesel-powered four-wheeler vehicles by 2027 in order to cut emissions. The panel has suggested switching to electric and gas-fuelled vehicles in cities with more than a million people and polluted towns. The report also recommended that by 2030, no city buses should be added which are not electric, and diesel buses for city transport should not be added from 2024 onwards.
Diesel accounts for about two-fifths of refined fuel consumption in India, with 80% of that used in the transport sector. India aims to produce 40% of its electricity from renewables to achieve its 2070 net zero goal.
FAME incentives to be extended to boost electric vehicle use
The panel's report said the government should consider a "targeted extension" of incentives given under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles scheme (FAME) beyond March 31 to boost electric vehicle use in the country. The panel said new registrations of only electric-powered city delivery vehicles should be allowed from 2024.
India's railway network to be fully electric in two to three years
The report also suggested higher use of railways and gas-powered trucks for the movement of cargo. The country's railway network is expected to be fully electric in two to three years. It said that long-distance buses in India will have to be powered by electricity in the long term, adding that gas can be used as a transition fuel for 10-15 years. India aims to raise the share of gas in its energy mix to 15% by 2030 from 6.2%.
EV sales surpass 100,000 units for the seventh consecutive month
In April 2023, EV retail sales in India rose 41% year on year to 109,283 units, making it the seventh month overall EV sales have crossed the 100,000-unit mark. Two- and three-wheeled EVs accounted for 60% and 34% share, respectively, while electric passenger vehicles accounted for 5,147 units and 4.70% share of the EV industry retails last month.
India became the third largest automobile market globally after China and the United States for the first time in January 2023, with sales of new vehicles totaling at least 4.25 million units, exceeding Japan, according to the non-profit national body Society of Indian Automobile Manufacturers (SIAM).
ZEV fleet accounted for 4.7% of total vehicles in India in 2022
Globally, zero-emission vehicles (ZEV) accounted for 13% of total vehicle sales in 2022, according to US-based clean technology website CleanTechnica. In India, the ZEV fleet accounted for 4.7% of total vehicles in the same year.
India highlighted its focus on a faster zero-emission transition for two-wheelers and three-wheelers in the 26th Conference of Parties (COP26) to the United Nations Framework Convention on Climate Change in November 2021. Nationally, two-wheelers and three-wheelers constitute about 80% of the vehicles on the road.