Table of Contents:
- Introduction
- Why Alternative Fuel Vehicles
- Present Scenarios of Alternative Fuel Vehicles In India
- Factors Driving The Shift To Greener Mobility
- Affordability & Maintenance
- Conclusions
Introductions:
Alternative fuel vehicles may be defined as a vehicle that is powered by any fuel other than conventional petroleum fuels (diesel or petrol).The term “alternative fuel,” as defined by the U.S. Department of Energy and the Energy Policy Act of 1992, refers to-:
- biodiesel,
- electricity,
- ethanol,
- hydrogen,
- natural gas,
- propane,
- and new fuels, still under development
Why Alternative Fuel Vehicles:
- India is the third-largest user of transport automobiles in the world and 70% of its transport energy need is fulfilled by importing fossil fuels.
- “The aim is to gradually shift to fuels, which are import substitutes, cost-effective, indigenous and pollution-free.
- Conventional Fuels are limited and depleting.
The conventional fuel (gasoline) is not renewable and a day will come when our vehicles will be useless with an empty stomach as there will be no fuel to fill in. Therefore, it is necessary to go for an alternative solution.
- Alternative Fuels are Pollution-free
Alternative fuel vehicles do not emit harmful exhaust gases like carbon dioxide, carbon monoxide, particulate matter, and sulfur dioxide as well as ozone-producing emissions.
- Protect against global warming
Burning fossil fuels causes a temperature rise in the earth’s atmosphere i.e. global warming.
- To Save Money
Alternative fuels are less expensive in terms of the cost of fuel and maintenance of the vehicle.
Present Scenarios of Alternative Fuel Vehicles In India:
As per the Economic Times Report, 20% of cars sold in metros run on alternate fuels; sales doubled in the last 3 years.
These vehicles are either running on:
Electricity:
or Hybrid :
or CNG as Fuel :
Present Scenarios of Alternative Fuel Vehicles In India:
- The Economic Times report said that the market share of alternative vehicles increased to reach 12.95 percent in urban centers this year. And this was only 4.68 percent in 2020.
- Rural areas have also seen a shift on similar lines where the market share for vehicles operating on alternate powertrains rose to 8.39 percent from 3.75 percent during the same period,
- Certainly, this growing acceptance of hybrid and electric vehicles hit the combined share of diesel and petrol vehicles and has gone down by 8.27 percent in Urban and 4.64 percent in rural markets.
Factors driving the shift to greener mobility:
Government push and rebates to both the manufacturers and the end users, resulted in the car manufacturers launching more electric-powered vehicles, along with the expansion of CNG dispensing stations and growing charging infrastructure for EVs, which are driving the shift away from conventional fossil fuels.
Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) – I and II:
- FAME, or Faster Adoption and Manufacturing of (Hybrid and) Electric vehicles, is currently India’s flagship scheme for promoting electric mobility
- In its 2nd phase of implementation, FAME-II is being implemented on 1st April 2019 with a budget allocation of 10,000 Cr.
Central Government Incentives on various Alternative Fuel vehicles:
Sl.No. | Total Approximate Incentives | Approximate size of battery |
1. | Two Wheeler: Rs 15000/- per kWh up to 40% of the cost of vehicles | Two Wheeler: 2 kWh |
2. | Three Wheeler: Rs 10000/- per kWh | Three Wheeler: 5 kWh |
3. | Four Wheeler : Rs 10000/- per kWh | Three Wheeler: 15 kWh |
4. | E Buses: Rs 20000/- per kWh | E Buses: 250 kWh |
5. | E Trucks: Rs 20000/- per kWh | E Truck: 250 kWh |
- The government has initiated work on the third phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-III) financial support scheme, which is likely to encompass alternative fuel vehicles,
- According to a senior government official, there is a proposal to incorporate vehicles powered by alternative sources such as hydrogen and biofuels along with electric vehicles in the upcoming phase of FAME.
- “The objective is to shift away from conventional polluting vehicles, and the incentive for alternative fuels aims to encourage the transition from internal combustion engine (ICE) to cleaner technology,” government officials observed
- As per the ET report, the Managing director of Tata Motors passenger vehicle and Passenger electric mobility, “Diesel in any case is declining.
- He added that for us, we are very clear that we have defined our net zero in 2040, which means a very fast acceleration of EVs.”
Affordability & Maintenance of Electric Car:
Running Cost of Tata Tiago Electric Car:
- Monthly Charging Cost Rs. 750
- Daily Charging Cost Rs. 25
- Per KM charging Costs Rs. 0.5
This cost is calculated based on charging the vehicle at a rate of 6.5/ units of electricity and assuming a daily run of 50 kilometers.
Maintenance of Electric Car:
- As there is no internal combustion engine and no moving parts, the wear and tear is zero, hence no need to keep regular maintenance like filling mobile oil, coolant, etc.
- Only periodic Tyre and battery maintenance is required in all-electric vehicles.
Conclusion:
- Many Indian manufacturers like Maruti and Tata Motors are working towards doubling their EV portfolio and offering different electric vehicles in the next few months.
- The share of diesel vehicles has dropped to 15 percent from the peak of 88 percent,
- The share of electric vehicle sales has risen to 14-15 percent.
- The EV share is likely to grow further to 25 percent by 2027 and 50 percent by the end of the decade.