Nasscom Shows Worries About 'Unrealistic' EV Targets in Delhi, Citing Insufficient Charging Facilities

In its contributions to the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, Nasscom expressed worry about "unrealistic electrification targets" for EVs in the national capital, citing supply bottlenecks, limited charging infrastructure, and problems ahead for taxi drivers.

Nasscom emphasised that just 0.16 percent of total vehicles in use in Delhi are already EVs, indicating a significant gap between electrification objectives and existing 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 cab drivers," the industry association stated.

According to the note, the current percentage of EVs in Delhi is 0.74 percent, 30.3 percent, and 0.16 percent for two-wheeler, three-wheeler, and four-wheeler vehicles, respectively.

According to Nasscom, Delhi's electrification ambitions would have a detrimental influence on people's mobility 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," according to the memo.

Furthermore, charging infrastructure is inadequate, since many charging stations installed in NCT do not function correctly and are overcrowded during peak traffic hours, according to the report.

Furthermore, they are not available in all places, forcing travellers to take lengthy diversions to charge their vehicles.

The cost of acquiring EVs is also significantly higher compared to their ICE counterparts, with industry data indicating that for goods and passenger mobility vehicles, two-wheeler EV models are approximately 25% more expensive, three-wheeler EV models are approximately 40% more expensive, and four-wheeler EV models are approximately 60% more expensive than their ICE counterparts.

The memo from Nasscom also notes the instance of bike taxis in Delhi, which are currently prohibited by the state government.

The proposed aggregator standards call for an instantaneous shift from ICE motorcycles to two-wheeler EVs, with aggregators required to onboard 100 percent EVs from the day of notice.

Given that just 0.74 percent of all two-wheelers in Delhi are EVs today, Nasscom stressed the need to rethink these objectives.

Furthermore, it stated that the majority of 2-wheeler EVs on the market are scooters rather than motorcycles, which are the favoured form factor for bike taxi companies.

According to the memo, EV onboarding objectives should be amended to match the NCT's EV ecosystem.  It was proposed that electrification be done in stages.

It also emphasised the importance of forming a working group of aggregators and delivery service providers to collaborate with the Delhi government on electrification.

The memo expresses worry about the financial obstacles, stating that the planned scheme's per-vehicle licence charge is very expensive. The statement stressed the importance of taking a pragmatic approach and working with stakeholders to solve the ground realities and problems impeding EV uptake and providing flexibility to gig workers in Delhi through this policy.