The urgent need for commercial EV adoption in India to combat pollution

With its rapidly growing economy and urbanization, India faces a pressing challenge in addressing air pollution and reducing carbon dioxide (CO2) emissions. In this context, the adoption of commercial electric vehicles (EVs) by businesses emerges as a critical imperative, writes Maxson Lewis, Founder & CEO at Magenta Mobility.

Dangerously high levels of emissions, of which commercial vehicles are a major contributor, rising fuel prices, high maintenance costs, and poor safety standards underline the urgent need for businesses to switch to the smarter, more efficient EV alternative.

Alarming Levels of Air Pollution

India grapples with severe air pollution, especially in its urban centers. According to the World Air Quality Report 2021, several Indian cities consistently rank among the most polluted globally. According to the 2022 International Energy Agency (IEA) study, road transport contributes roughly 12% of India’s energy-related CO2 emissions, besides emitting particulate matter (PM), nitrogen oxides (NOx), and other pollutants. Adopting commercial EVs is crucial to curbing this pollution and improving air quality.

In 2021, Delhi, one of India’s major urban centers, recorded an annual average PM2.5 level of 84.1 micrograms per cubic meter, well above the World Health Organization’s guideline of 10 micrograms per cubic meter. According to IQAIR, India dominates the list of the top 30 most polluted global cities with 22 Indian cities.

CO2 Emissions from Commercial Vehicles

Commercial vehicles running on traditional fossil fuels majorly contribute to CO2 emissions, exacerbating climate change. As of 2021, India was the third-largest emitter of CO2 globally, with the transport sector being a significant contributor. According to the International Energy Agency (IEA), the transport sector accounted for 32% of global CO2 emissions in 2022, with commercial road transport being the most significant contributor, obviously due to the nature of heavy-duty operations.

The IEA estimates that 35% of all vehicle sales in India will be EVs by 2030. To meet India’s net zero commitments, the realistic number of EV sales should be about 50% by 2030. Nudging commercial vehicles towards electrification needs as much focus and catalysts as it can get.

Economic Toll of Air Pollution

The economic toll of air pollution is substantial, affecting healthcare costs, productivity, and overall well-being. According to a report by the Lancet Countdown on Health and Climate Change, air pollution in India led to 1.67 million premature deaths in 2019. The economic burden of treating pollution-related health issues further underscores the urgency for businesses to transition to sustainable alternatives.

A World Bank Report concluded that the economic cost of air pollution in India was estimated to be around $36.8 billion in 2019, accounting for healthcare expenses, lost labor productivity, and other associated costs. This economic toll could go as high as $150 billion annually by the end of this decade. This loss represents 1/10 of our total spending on the Education sector annually.

Regulatory Push Towards Sustainable Mobility

Recognizing the severity of air pollution and the environmental impact of conventional vehicles, the Indian government has implemented regulatory measures to incentivize the adoption of electric mobility. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, launched in 2015 and subsequently revised, provides financial incentives to promote the manufacturing and adoption of electric vehicles.

Under the FAME II scheme, the government earmarked ₹10,000 crores (approximately $1.34 billion) to encourage the adoption of electric vehicles, including commercial ones, over three years starting from 2019. We are yet to see concrete action to implement emission-free zones and fast charging standardization in state EV policies, which will provide further impetus to EV adoption.

Transitioning to Commercial EVs as a Solution

Adopting commercial EVs by businesses presents a viable solution to mitigate air pollution and reduce CO2 emissions. Electric vehicles produce zero tailpipe emissions, offering a cleaner and sustainable alternative to conventional vehicles. Beyond environmental benefits, businesses stand to gain cost advantages, regulatory compliance, and enhanced market competitiveness by embracing this transition.

According to a study by the International Council on Clean Transportation (ICCT), transitioning to electric buses and trucks in India could significantly reduce CO2 emissions, potentially cutting emissions by over 400 million tons by 2030. The data on air pollution and CO2 emissions from conventional commercial vehicles in India underscores the urgent need for businesses to transition to electric mobility.

Proposed Catalysts for Commercial EV Adoption

1. Easy access to vehicle financing – Incentivizing EV adoption for commercial vehicles through convenient vehicle finance, digitization of the acquisition process, and a credit mechanism will encourage faster commercial EV transformation.
2. Standardization of Intelligent Traffic Systems – ITS norms for route optimization, charging efficiency, and driver safety are inherently suited to the EV ecosystem. Logistics and industrial hubs are ideal pilot locations.
3. Focused product development – OEMs must avoid taking the retrofitting route to deliver optimized and evolved products for the transport sector to phase out inefficient and poorly designed previous-generation vehicles for driver comfort, safety, and digital integration.

The adoption of commercial EVs aligns with environmental and regulatory imperatives presenting a strategic opportunity for businesses to lead the charge towards a cleaner, healthier, and more sustainable future. As businesses navigate this transition, they not only contribute to reducing pollution and emissions but also position themselves as pioneers in driving positive change within India’s transportation landscape.

Also read: Magenta Mobility launches a 12-output EV charger called PLENT