India is considering to ban the sale of two and three-wheelers that use internal combustion engines by 2025.
Indian business daily Economic Times has reported that India may be considering to ban sales of all three-wheelers using internal combustion engines by March 2023 and all two-wheelers using internal combustion engines with less than 150 cc by March 2025. These moves would form part of India’s long-term plan to completely ban sale of vehicles based on internal combustion engine.
The newspaper quoted a senior government official privy to discussions held among the steering committee on transformative mobility working under the NITI Aayog, the Indian government’s long-term policy think tank.
While the adoption of electric vehicles may not be apparent in India, the country is host to more than 1.5 million electric three-wheelers that operate in the public transportation sector. These three-wheelers have flooded the Indian roads and provide last-mile connectivity to commuters using the city bus or subway services as well as for hyperlocal journeys.
The Indian government had announced the National Electric Mobility Mission with a target to create potential demand for 5 to 7 million electric vehicles by 2020, including buses, light commercial vehicles, two-wheelers and three-wheelers, as well as electric cars.
To create this demand the government has taken multiple steps like, issuing tenders to procure electric cars for its own use and a host of incentives for electric cars. The Indian government had earlier announced plans to ban the sale of all cars running on internal combustion engine after 2030.
India plans to implement Bharat Stage 6 emission norms for vehicles starting 1 April 2020, leapfrogging from the current Bharat Stage 4 emission norms due to the increasing concern of air pollution. While there is no ban announced on diesel-powered passenger vehicles, several automakers in India have announced plans not to sell diesel cars in the country from April 2020.
The proposed shift of a large number of private and public transport vehicles from petrol and diesel-based platform to the electric platform would have an unprecedented impact on India’s transportation sector with indirect impact the country’s energy sector and financial health given India’s overwhelming dependence on imported petroleum products.
The potential impact on such a decision on the Indian transportation sector can be estimated from the statistics reported by the Society of Indian Automobile Manufacturers (SIAM). Between April 2018 and March 2019, a record 21 million two-wheelers were sold in India, comprising of more than 80% of all auto sales in the country. If three-wheelers are added to this tally, the share increases fo 83% of all auto sales in India. Between financial year 2013-14 and 2018-19 the sales of two-wheelers in India jumped by 42%, while that of three-wheelers increased by 46%.