Subsidies on micro EVs, focus on charging infra important to boost adoption in India: Uber

In a report on shared mobility in India, Uber highlights a few focus areas for India to boost EV adoption, especially for low-income households.

Subsidies on micro EVs, focus on charging infra important to boost adoption in India: Uber

Thursday May 18, 2023,

2 min Read

Electric vehicle (EV) manufacturing subsidies—while geared towards privately-owned vehicles—should include commercial manufacturing to multiply the positive effects of vehicle electrification Uber said on Thursday.

The ridesharing firm said in a report that though India has taken strong steps to encourage e-mobility and other forms of sustainable mobility, the policies can do more to ensure widespread and—more importantly—affordable adoption.

Uber lists a few ways to do that.

  • Extending subsidies on micro-mobility vehicles like e-bikes, electric kick scooters, and other small vehicles that are typically cheaper than bikes and motorcycles.
  • Shifting to a subsidy model that focuses on benefitting lower-income households so they can access EVs.
  • Give preference to shared vehicle fleets that transport passengers and goods, as well as provide subsidies for cheaper two- and three-wheelers so more commercial fleets are able to purchase EVs.
  • Install green vehicle-only lanes on congested roadways to encourage people to shift away from internal combustion engine (ICE) vehicles.
  • Invest in the energy grid to ensure there is adequate generation capacity to support EV charging.

Citing Delhi as an example which is planning to make it compulsory for shared mobility companies to ensure a percentage of their fleets is electric, Uber said that the pace of vehicle manufacturing and charger installation, as well as the cost of EVs, are not aligned with the government's ambitious mandates.

"Policies with more achievable targets, and those that apply to a broader cross-section of vehicle owners, not just a small subset, will ultimately have a greater impact," the report 'Future of cities and shared mobility in India' said.

Further, setting up a comprehensive network of charging stations will be imperative to boost the adoption of EVs in India, especially for commercial purposes, Uber said.

Edited by Akanksha Sarma