Electrification of Vehicles can save India Rs 20 lakh crore by 2030

If India can completely implement vehicle electrification by 2030, the country can boost its economy by saving 876 million tonnes of oil equivalent worth Rs 20 lakh crore.

According to Rocky Mountain Institute (RMI) report titled ‘Enabling India’s Transition to Electric Mobility’, electric mobility will save India from 1 giga-tonne of carbon-dioxide emissions by 2030. India can overcome key barriers to Electric Vehicle (EV) adoption and potentially become a global leader in electric mobility, added report.

The report also estimated that India's urban population will nearly double in the next decade, to approximately 600 million in 2030 and forecasts suggest that by then India’s urban population will take almost 500 million trips per day. While this rapid growth presents major policy and business challenges for India’s public and private sectors, respectively, it also presents an enormous economic opportunity.

Optimizing e-mobility use for everyday life with greater thrust on use of public transport, e-vehicles, metro solutions and shared rides as means for mass transit could also prove game-changers in addressing the issue of air pollution in urban areas.

Even under a shared mobility paradigm, over 46,000,000 vehicles (two, three, and four wheelers) could be sold in 2030. This annual market size would present an opportunity for Indian companies to become leaders in EV technology on a global scale.

Automobile major Mahindra & Mahindra (M&M) Chairman had earlier said that the concept of making environment-friendly and clean technology vehicles is business opportunity of future that can allow businesses to make money out of the nascent sector.

M&M and Tata Motor will jointly supply 500 electric vehicles in phase I to State-run Energy Efficiency Services Limited (EESL) by November 30.The purchase orders for supply of the rest of 9,500 electric vehicles is scheduled for the phase II.

Earlier, Minister of Road Transport & Highways Nitin Gadkari has asked automakers in the country to move to vehicles that run on electricity, biodiesel, ethanol and compressed natural gas by 2030.