Government's backtracking on EV targets-I: By how much will petrol and diesel consumption be impacted?
The Indian government has withdrawn its earlier stand that the country will go "all electric" in the transportation sector by 2030. 8It did so because it found that to be an impossible target to meet 8The government originally planned to save the country an estimated $60 billion in energy bills by 2030 (whilst also decreasing carbon emissions by 37 per cent), by switching the country’s transportation system towards EVs; however, in early 2018 it backtracked from a declaration to electrify the country’s entire vehicle fleet by 2030, to a more modest target of 30 per cent of the fleet. 8From the petroleum sector point of view, the question is how is the EV industry going to evolve over the next 12 years? 8How much will diesel and petrol consumption be subdued by this switch to EVs? 8EV adoption could pick up pace in the post-2020 timeframe, once charging infrastructure grows. 8The impact on fuel demand could be large if commercial vehicles such as trucks are also electrified. Oil demand growth in transport is likely to slow relative to a baseline level, if policies to substitute away from oil in transport are implemented on a widespread basis Click on Reports for answers