Why not E-scooters?

In April 2017, Sri Piyush Goyal, former Union Minister for Power, came forth giving clear direction for the future of mobility in India. With the aspiration to have 100 percent electric vehicles (EV) sales in India by 2030, Goyal, later joined by Union Road and Highways Minister Nitin Gadkari, put the most ambitious vision globally in the public space. 

Why not start small? The Amma Two-Wheeler Scheme.

In early 2018, the Government of Tamil Nadu launched the Amma Scheme – a program to subsidize scooters for working women in the southernmost part of the Indian subcontinent. Prime Minister Modi personally inaugurated the scheme on 24^th February 2018 – the 70^th anniversary of the admired Chief Minister of Tamil Nadu, the late J. Jayalalithaa. Unexpectedly, the scheme does not align a bit with the policy goal of the Modi Government and raises a lot of questions. The most pressing one being, is it not the time to revise the Amma Two-Wheeler Scheme and let women take the lead in the transition to cleaner modes of transport?

During the 2016 Assembly election, then Chief Minister of Tamil Nadu and Chief of the All India Anna Dravida Munnetra Kazhagam party (AIADMK), the late Shri J. Jayalalithaa promised a subsidy of 50 percent for women purchasing a two-wheeler in order to empower women, strengthen their economic independence while making women more self-reliant in their mobility needs. Under the scheme, one lakh women are eligible for government support of up Rs. 25,000 purchasing a scooter. According to AIADMK, more than 3 Lakh applications currently undergo scrutiny.

Why scooters?

People all over India have a preference for traveling on two-wheelers. With high traffic density in urban India and lesser developed rural areas, two-wheelers are the most convenient, time-saving and cost-effective mobility solution for many people. However, in times of global goals for sustainable development where the need to bring our economies on a low-carbon development trajectory is one important objective among others, why not converting the Amma scheme into a program that supports women purchasing electric scooters? 

Why not e-scooters?

According to the National Family Health Survey 2015-16, official household electrification in Tamil Nadu reaches almost 100 percent. The state is also leading in renewable energy installations. In 2016-17, roughly 20 percent (10.6 GW) of India’s entire renewable energy production was generated in Tamil Nadu. Such high and growing level of renewable energy generation is the ideal breeding ground for environmentally sound vehicle electrification and Tamil Nadu would set a pioneering example for other Indian states in realizing the central Government’s vision of complete vehicle electrification by 2030. Nevertheless, the current market for electric scooters in India is rather small. Out of a total of 1,90,000 registered electric vehicles all over India, roughly 70,000 are two-wheelers, 4,500 of which registered in Tamil Nadu, less than 6.5 percent. With these figures, the national Government’s goal of 6-7 million electric vehicles by 2020 remains far out of sight. This, however, is not an issue of domestic supply side shortage. Supply of electric two-vehicles is guaranteed by a range of Indian companies including Ajanta Manufacturing, Ampere Vehicles, Avon Cycles, Chris Motors, Electrotherm India, and Hero Electric Vehicles Private Limited.

ICE scooters vs. E-scooters

When compared to scooters with an internal combustion engine (ICE) the mechanical parts in the electric scooter are significantly lower in number and thus require less servicing while the electricity gets directly converted into kinetic energy making the vehicle markedly more energy efficient in use and more convenient to handle.

At the environmental front, the use of electric vehicles can reduce carbon dioxide emissions over the vehicle lifespan compared to petrol scooters, especially when powered by renewable energies. Fully electric vehicles also avoid other local emissions such as nitrogen dioxide, sulfur dioxide and particulate matter helping to pave the way for a more environmentally conscious society.

Moreover, it is a popular belief that electric scooters are very expensive. But in fact, the price of an electric scooter ranges between Rs 30,000 to 60,000 which can be lower than the market price of a conventional scooter even without any monetary government support. According to Hero Electric’s savings calculator, the money saved on petrol and maintenance will help recover the entire cost of the vehicle in less than two years.

Leading with ambition

Every large-scale diffusion of a product starts small at some point. While phase I of the FAME India program has been extended by another six months, the willingness of the Government of Tamil Nadu to provide a subsidy for two-wheelers should at least not exclude the registration of electric two-wheelers. Ideally, however, the Amma scheme would take a bold step to a subsidy program fully dedicated to e-scooters making an environmentally sound decision an affordable and cost competitive alternative for even more working women.

More generally, concerted action by central and state governments is needed to attune all primary stakeholders in the establishment of a robust electric mobility ecosystem which will ultimately attract new investments, create jobs and sustainable business models while supporting a transition to cleaner energies and modes of transport. Then, and only then India will live up to its ambitions and become a global leader in clean energy mobility.

Dr. Annika Bose Styczynski is Assistant Professor & Assistant Dean (Research and International Collaborations) Jindal School of Government and Public Policy (JSGP) and R. Varan Rajah, is a student pursuing a Masters in public policy from JSGP. Views are personal.