According to sources and records of government meetings to discuss new regulations for clean consciousness, India plans to convert 40% of its fleet of taxi aggregators into electricity by April 2026. Uber and Ola, backed by SoftBank Group, will have to start changing their fleet by early next year, before increasing its power to 2.5% by 2021, 5% by 2022, and 10% by 2023. And records reviewed by Reuters.
Some taxi players, such as Ola, have previously tried to drive electric cars in the country, but with little success have been given adequate infrastructure and high costs.
New Delhi, however, is looking to come up with a new policy to increase the adoption of electric vehicles (s) as it seeks to reduce its oil imports and curb pollution, thus fulfilling its commitment to the 2015 Paris Climate Change Agreement.
Indian think tank Neethi Aayog, who is chaired by Prime Minister Narendra Modi and is a key figure in policy making, is working with various ministries on the new policy.
Neighboring China, home to the world’s top auto market, is leading the world in electrification by setting stricter EV sales targets for carmakers and encouraging taxi operators to increase their fleet of fuel cars.
EV sales in India tripled by 3,600 in the year to March, but industry accounted for 0.1% of the 3.3 million diesel and gasoline cars sold in the country. China electric car sales, meanwhile, increased 62% in 2018 to 1.3 million vehicles.
At a meeting in New Delhi on May 28, ethics commission officials and heavy industries and commerce departments including the Ministry of Road Transport, Electricity, Renewable Energy and Steel recommended the gradual conversion of taxi operators in India.
They recommended that all new cars sold for commercial use be electric only from April 2026. The change also applies to Uber and Ola, a person with direct knowledge of the matter, speaking on condition of anonymity.
Motorcycles and scooters sold for food purposes or commercial purposes for use by e-commerce companies must also be electric by April 2023.
India has boomed in food delivery apps such as Zomato and Swiggy, which have seen Naspers and Tencent as investors. Sales of e-commerce companies such as Amazon.com and Walmart-owned Flipkart are also on the rise.
Three-wheeler autorickshaws over the next six to eight years, after weeks of intergovernmental committee recommendation that most motorbikes and scooters be electrified for private use.
While there are many electric scooter manufacturers in the country including Ether Energy, Hero Electric and Okinawa, there are only two car manufacturers that sell and sell electric cars – Mahindra & Mahindra and Tata Motors.
Some taxi operators have so far not had much success with electric cars in India. Ola embarked on a pilot project in the central Indian city of Nagpur in 2017, but a year later, drivers, unhappy with long wait times at charging stations and high operating costs, wanted to return to gasoline cars.
Ola, however, hasn’t left yet.
In March, its Ola Electric Mobility Unit venture capital fund raised $ 4 billion ($ 58 million) from investors including Tiger Global and Matrix Partners.
It raised $ 300 million from Hyundai Motor and Kia Motors and formed a strategic partnership with the South Korean duo to help build India-specific EVs.
In 2017, the Modi government set an ambitious goal to electrify new cars and utility vehicles by 2030, but resistance from the industry has forced the plan to back off.