Nasscom Flags ‘Unrealistic’ Electrification Targets for EVs in Delhi

Nasscom has flagged concerns over “unrealistic electrification targets” for EVs in the national capital citing supply constraints, inadequate charging infrastructure, and challenges ahead for cab drivers in its submissions on Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme.
Nasscom highlighted that only 0.16 percent of the total vehicle in use in Delhi are currently EVs, as it pointed to the vast difference in electrification targets and current realities.

“In its observations, Nasscom raises concerns about the unrealistic electrification targets for EVs in the capital, citing supply constraints, inadequate charging infrastructure, high entry costs, and challenges ahead for the cab drivers,” the industry body said.

The note said the current share of EVs in Delhi is a mere 0.74 percent, 30.3 percent, and 0.16 percent for two, three, and four-wheeler vehicles, respectively.

Nasscom opined that Delhi’s electrification targets will negatively impact the mobility of people in the national capital region.

“Even for the EVs that are available for commercial use, the range offered is not viable for ridesharing as there is a need for a 100 km plus range to be economically viable,” the note mentioned.

In addition, charging infrastructure is inadequate, as many charging stations set up in NCT do not work properly and are too crowded during peak travel hours, it said.

Also, they are not available in all areas, which requires drivers to take long detours to charge their vehicles.

The cost of acquiring EVs is also considerably higher compared to Internal Combustion Engine (ICE) counterparts as the industry data suggest that for goods and passenger mobility vehicles, two-wheeler EV models are about 25 percent more expensive, three-wheeler EV models are about 40 percent more expensive and four-wheeler EV models are about 60 percent more expensive than their ICE counterparts.

Nasscom’s note also mentions the case of bike taxis in Delhi, which are currently banned by the state government.

As per the proposed aggregator guidelines, the transition from ICE motorbikes to two-wheeler EVs is immediate with aggregators needing to onboard 100 percent EVs from the date of notification.

Nasscom emphasised the need to relook at these targets, given that only 0.74 percent of all two-wheelers in Delhi are EVs today.

Moreover, it said, most 2-wheeler EVs available are scooters and not motorcycles, which are the preferred form factor for bike taxi operators.

The note suggests that the onboarding targets of EVs must be revised and reflective of the EV ecosystem in the NCT.  Electrification should be carried out in a phased manner, it mooted.

It further underscored the need to create a working group of aggregators and delivery service providers to work with the Delhi government for electrification.

Raising concerns over the financial hurdles, the note states that the per-vehicle license fee under the proposed scheme is exceptionally high. The document emphasised the need for a realistic approach and collaboration with stakeholders to address the ground realities and challenges, hindering EV adoption and offering flexibility to gig workers in Delhi through this policy.