How to go electric…

India uses roughly 20mn tonnes of petroleum products in a month. Diesel, petrol, and LPG, in that order, make up about 75% of the total. What if we could replace some of it with electricity? This isn’t wishful thinking. Consider petrol, for example. Last year, India sold 4.7mn cars, but only 0.2mn, or 4.3%, were electric. China sold 24mn cars in the same time – 53% electric. Point is not that we are behind China, but that scaling up to 10% or 20% within a year or two should be easy, thanks to our small base. And when we do that, our dependence on imported oil will start ebbing.

So, how do we begin? We know the main hurdles to faster EV adoption. One, EVs cost more than comparable ICE cars. Two, range anxiety. Three, lack of public charging infra, and difficulty of installing chargers at home, especially in apartments. For the market, this is a chicken-or-egg dilemma. Car buyers won’t consider EVs until charging infra improves, but firms don’t have an incentive to install more public chargers when existing capacity is underutilised. That’s why govt has to draw some lines now. Instead of hoping that we get to 30% EV sales by 2030 – which we won’t at this rate – it should lay down clear year-by-year sales mandates.

How will we make electric cars cheaper? Since 40% of an EV’s price comes down to its battery, lighter cars with smaller batteries – therefore, less range – are the answer. A rapidly expanding public charging network can address range anxiety. Battery-as-a-service, or BaaS, model, in which you pay a monthly subscription for the battery, also lowers initial price. But while India taxes EVs at 5%, BaaS is taxed at 18%. This must change. Niti Aayog has recommended that we concentrate on specific regions, say, the metros, first. For network effects. And that’s a good idea, because big cities need air quality improvements urgently.

Switching to electric cooking should be easier, because equipment costs are modest. And the energy savings are enormous, because induction plates and microwave ovens, for example, don’t waste fuel heating ambient air and vessels. Nor do they cause indoor air pollution. But old habits can be hard to break, and if gas becomes cheap again, interest in electric cooking might wane. That’s why govt should promote it through awareness campaigns, incentives and influencers. Not to forget, assured power supply.