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Non-polluting tech in auto sector

20 Oct 2022 Non-polluting tech in auto sector

Posted at 14:43h in Daily current-affairs by
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Source: The Indian Express

News: Government data shows that electronic vehicles (EVs) adoption has seen a considerable rise since 2020.As per the data shared by the Minister of State for Heavy Industries Krishan Pal Gurjar with Parliament ,1.19 lakh EVs were sold in 2020, which increased to 3.11 lakh in 2021 and 4.19 lakh in 2022.

EV categories:

  • n Plug-in hybrid vehicles or PHEVs: PHEV uses an IC engine in combination with an electric motor backed by rechargeable batteries. Electric motor is used for power and rechargeable batteries can be plugged into a power source.
  • n Fuel cell electric vehicles or FCEVs: Combination of hydrogen and oxygen used to produce electricity for running the motor. FCEVs range and refuelling processes are comparable to conventional cars and trucks.But they  are considered as Evs. Examples: Toyota’s Mirai, Honda’s Clarity and Hyundai’s Nexo.
  • n Conventional hybrid electric vehicles or HEVs: HEV is hybrid vehicle drivetrain due to combination of conventional internal combustion engine system  and an electric propulsion system. HEVs substantially lowers fuel usage. Unlike PHEVs, HEVs do not have a plug-in option. When the IC engine is powering the drivetrain or by regenerative braking the onboard battery in a conventional hybrid is charged. Examples: Toyota Hyryder/ Maruti Grand Vitara models, Toyota Camry and Honda City e.
  • Flex fuel Vehicles: Vehicles that can run on one or multiple fuel types. Example: Toyota sedan.
  • Examples of other hybrid models: Honda City e,Toyota Urban Cruiser Hyryder,Maruti Suzuki Grand Vitara,Toyota Innova Hycross.
  • Battery Electric Vehicles (BEVs): Tata Nexon EV, the Hyundai Kona or Mahindra eVerito.
  • Recently Union minister of state for Science and Technology  Jitendra Singh unveiled a hydrogen fuel cell bus developed by KPIT-CSIR in Pune.

Reasons for rise in the number of EVs and multiple hybrid platforms

  • Sharp rise in prices of petroleum products.
  • Reduction of Goods and Service Tax (GST ) on EVs from 12 to 5 per cent.
  • Production Linked Incentive (PLI) scheme for manufacturing of Advance Chemistry Cell (ACC) to replace costly Lithium-based batteries.
  • Central government asked states to waive road tax for EVs.
  • Government is also mulling proposals for a broader taxation incentive structure for other clean technologies in the auto sector.
  • Constant efforts by Prime Minister Narendra Modi to reduce carbon intensity of the Indian economy and proceed towards net zero emission. PM Modi in his address at  the 26th United Nations Climate Change Conference (COP26) in Glasgow, said that India  aims to reduce the carbon intensity of its economy to less than 45 per cent by 2030 and net zero emission by 2070.
  • Recent government policies aim to shift the auto industry from Internal Combustion Engine (ICE) systems to multiple tech platforms apart from battery electric vehicles like conventional hybrids, flex fuels, fuel cells and even hydrogen ICE etc.
  • Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India(FAME) programme of Ministry of Heavy Industries provides benefits to electric and hybrid Vehicles including Fuel cell vehicles.

Demands for EVs are rising still there are lot of problems faced by policy makers to push new non-polluting auto tech or platforms in the mass market:

  • Behavioural issues: Despite so much push for EVs only 10 lakh EVs were sold in the country in the last four years against 6.3 crore non-electric vehicles as people become accustomed to petrol or diesel vehicles.
  • Logistic Challenges: Due to unavailability of battery charging points and lithium ion batteries.
  • High Cost of EVs compared to non-electric vehicles due to usage of lithium-ion battery that is the costliest component in the EV.
  • Issues in the existing auto taxation structure: that offers incentives based on the type of powertrain instead of lower emissions or higher mileage to auto companies.
  • Excessive focus of the government on battery electric vehicles neglecting  other technologies like conventional hybrids, flex fuels, fuel cells and even hydrogen Internal Combustion Engine(ICE).
  • Divisions within the auto industry: Auto companies without  hybrid portfolios are opposing the proposal for lower tax on conventional hybrid vehicles.
  • Current taxation structure discourages hybrid vehicles: Effective taxation on hybrid vehicles is 43 percent just 2 percentage points lower than the 45 percent levied on mid-sized passenger Internal Combustion Engine (ICE) vehicles.
  • High GST rate of hybrid  passenger vehicles: Battery Electric Vehicles (BEVs) are taxed at 5 percent GST rate,but GST rate is 28 percent on all passenger vehicles.
  • Government policies are not able to keep pace with changing technology due to bureaucratic taxation structure.

Article:

  1. India sees a rise in EV adoption since 2020: Govt data
  2. Govt eyes tax breaks for more non-polluting tech in auto sector

Article Link:

1.https://indianexpress.com/article/auto-travel/against-6-3-cr-non-evs-only-10-lakh-evs-sold-in-india-in-past-4-yrs-govt-data-8040793/

2.https://indianexpress.com/article/business/govt-eyes-tax-breaks-for-more-non-polluting-tech-in-auto-sector-8186559/

Yojna IAS Daily current affairs eng med 20th Oct

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