Have you ever looked at the world from above? One thing that defines its beauty and grandeur is the movement down under. This movement, in technical terms, is called mobility. What our world needs today is Green Mobility
Research dollars are being spent in these fields to drive growth and create new business lines that will take the automotive sector into new realms. And one domain that is showing the maximum promise in terms of delivering sustainable transportation and mobility is electric vehicles (EV).
Global trends in the Electric Vehicles (EV) segment
Growing business opportunities in green mobility, increased government understanding, reduced costs, higher demand and changing consumer habits are giving a fillip to the EV industry. As per industry trends and estimates, global EV sales are slated to touch 41 million by 2040 and constitute 35 per cent of new car sales. This could happen because of wider acceptance of the technology and allied industrial support.
Countries like China, USA, Japan, the Netherlands and France are currently the prominent markets for investments in EV. The growth drivers in these markets are: increased collaborative IP sharing, stakeholder interest, funding, advocacy for the technology, development of infrastructure to support EVs in terms of adequate charging facilities, and continuous investments in R&D.
Government policies are being driven to adapt to these changes, which is encouraging. And it is expected that the global mass markets will follow the trends set by the early-adopter countries. Industry bodies and early adopters have succeeded in delivering practicality, sustainability, safety and cost effectiveness to the EV sector, but it still needs support in terms of governance, which can help wider deployment and faster adoption.
China is now adopting the EV culture in a big way, supported by government initiatives like restrictions on the use of conventional fuel engine vehicles in certain major cities, a step taken in the public interest to reduce pollution. Allied industries like the manufacturers of batteries, components and electronic accessory manufacturers have been given tax holidays to catalyze this growth.
These are bold moves that are expected to drive exponential growth in the segment, setting an example for others to follow. One major move made by China is in public transport. Today, more than 200,000 buses on China’s roads are electrically powered, and 20 per cent of all new orders annually are being equipped with EV features.
After the climate change conference held at Morocco in 2016, it is widely believed that EVs are the future for a sustainable transport system, and that’s why there is a global impetus to shift public transport systems towards optimal adoption of EVs. There is a consensus that by 2020, 20 million cars globally must be electrically powered — this is being championed under the Electric Vehicles Initiative (EVI).
Prior to the Morocco convention, the Paris Declaration on electro–mobility and climate change focused on the fact that transport contributes almost 23 per cent to greenhouse gas (GHG) emissions, and this is increasing at a faster rate than in most sectors. If the right steps are not taken in time, it could contribute to 50 per cent of GHG emissions by 2050. This will lead to rising temperatures and global imbalances. Are we ready to counter this trend?
Therefore, it is advisable for governments to invest in sustainable energy sources that can impact human life in a positive way. The steps that can lead to this transition are: a dramatic change in the transportation portfolio, with a set target to replace fossil fuel powered vehicles with EVs; investment in global research to understand the dynamics across temperature zones; incentives to manufacturing industries with EVs in their product portfolio; and creation and implementation of global agreements as well as policy frameworks to drive change.
There are various encouraging government initiatives, too, for this sector. The Indian government has set up a Green Urban Transport Scheme (GUTS) with an initial investment of Rs 250 billion. This will help propel green energy initiatives and infrastructure at the national, state and city levels, all of which will impact the EV market. Another promising policy initiative is the National Electric Mobility Mission – 2020, mandated under the FAME scheme.