The policy focuses on two key vehicle segments i.e. two-wheelers and public/shared transport. These segments together contribute to about 55 per cent of PM and 50 per cent of NOx emissions.
Electric vehicles are the future. Experts predict the initial purchase price of an electric car will be equivalent to that of a gasoline car by or before 2025, a tipping point that will dramatically accelerate adoption.
In the meantime, bold policies and ambitious action will be required to support the adoption of electric mobility. Such actions should be designed to achieve environmental and societal goals that electric mobility can enable.
On November 27, the Delhi government released its Draft Electric Vehicle Policy. Anchored to the objective of improving Delhi's air quality, the policy sets an ambitious target of 25 per cent share of Battery Electric Vehicles in new vehicle registrations by 2023.
The policy takes a comprehensive, system-level approach to vehicle electrification, and could serve as a replicable blueprint for sub-national leadership. Beyond incentives and targets for vehicle segments, the policy's focus on charging infrastructure and dedicated electricity tariff are critical components of the policy, ensuring that supportive conditions are in place to enable the transition.
The policy is a warmly welcome step for a city that registers nearly 2,500 vehicles everyday and which has been striving to curb increasing vehicular emissions. It sends a strong signal to industry on the growth of EV demand that the policy aims to generate, addressing the long-discussed barrier cited by industry of lack of surety of demand.
A 25 per cent share of new vehicle registrations will cumulatively translate into nearly 1.2 to 1.5 million vehicles, primarily two-wheelers and cars, by 2023, creating a rich market opportunity for the EV industry to fill.
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