Hindi English Translation || Editorial || ​Falling short: on India’s EV journey

​Falling short: on India’s EV journey

India must ensure technology transfer in the EV segment

On June 2, India took a turn for the better in its transport electrification journey by offering a concessional import duty of 15% on completely built-up (पूरी तरह से निर्मित) units. This is contingent (पर निर्भर, के अधीन) on the EV manufacturer investing a minimum of about ₹4,150 crore over three years to localise (स्थानीय बनाना) manufacturing in India, with a base (आधारभूत) domestic value add of 25% in three years, going up (बढ़ना, ऊपर जाना) to 50% in another two years. The notification, under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) announced in March 2024, allows for a maximum import of 8,000 completely built units annually for each manufacturer for five years. The SPMEPCI adds to the bouquet (bunch) of policies that attempts to boost EV adoption and manufacturing. However, these policies put together fall short of addressing a pressing (अत्यावश्यक) issue in India’s journey to decarbonise (कार्बन-मुक्त करना) and transform (परिवर्तन) mobility (गतिशीलता) — technology transfer. India began this journey in 2015, about five years later than most large economies. An outlay (परिव्यय) of ₹895 crore for the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (An EV is defined as a vehicle that can be powered by an electric motor that draws electricity from a battery and is capable of being charged from an external source) in India (FAME) scheme, for five years, expanded to ₹10,000 crore in 2019. China announced its ambitious (महत्वाकांक्षी) New Energy Vehicle (नवीन ऊर्जा वाहन) subsidy programme in 2009, which, coupled with mandatory (अनिवार्य) joint venture manufacturing of EVs until 2022, enabled technology transfer (प्रौद्योगिकी हस्तांतरण). In addition (additionally, besides, furthermore), a reduced import duty on EVs (25% in 2010 to 15% in 2018), and cumulative (aggregate; accruing, collective, combined) incentives of about $230 billion in the past 15 years — the most by any country — enabled (make (something) possible; allow, validate, facilitate) China to achieve the highest global EV adoption (it refers to the increased choice of electric vehicles over traditional fossil fuel-powered vehicles by individuals and companies) rate. This also supported rapid charging infrastructure deployment (installation, position, arrangement (the use of something or someone in an effective way)), making China the largest producer and consumer of EVs.

The U.S. began this journey in 2010 with an initial outlay of $25 billion for its Advanced Technology Vehicles Manufacturing Loans Program (This provides for grants and loans to eligible automobile manufacturers and component suppliers for projects that reequip, expand, or establish manufacturing facilities in the United States to produce qualifying advanced technology vehicles or qualifying components). This was greatly expanded under the Biden administration’s Inflation Reduction Act (The Inflation Reduction Act of 2022 (IRA), signed into law on August 16, 2022, directs new federal spending toward reducing carbon emissions, lowering healthcare costs, funding the Internal Revenue Service, and improving taxpayer compliance). But its EV adoption rate is much lower than China’s. In 2024, out of 17 million global EV car sales, China alone accounted for 11.3 million, followed by Europe with 3.2 million, the U.S. with another 1.5 million, and the rest of the world accounting for the remainder (the balance; remaining part/quantity). China’s vertical integration (According to the traditional economic definition, vertical integration is the combination, under a single ownership, of two or more stages of production or distribution (or both) that are usually separate. It is a business strategy where a company controls multiple stages of production or distribution within its industry) of battery manufacturing, from mining, processing to assembling, has aided (help, support, assist) economies of scale with competitive (reasonable, moderate, economical, low, inexpensive) pricing of EVs against conventional ICE vehicles. For now (for the time being; for the present; temporarily), the 25% DVA that India could aim for under the just announced scheme would be repurposing locally made auto components meant for ICE vehicles to EVs and layering it with Software-as-a-service. But to obtain the crucial technology for the heart (the central part of something) of the EV — its battery — India must replicate (recreate, repeat) its approach to localising ICE manufacturing, which is to mandate (instruct, direct, order, make necessary/mandatory) joint ventures with local ICE or EV makers, and gradually allow for a complete open market (a market with no regulatory barriers, such as taxes, licensing requirements, and government subsidies).

Courtesy: The Hindu

Important Word List With Meaning

1.concessional duty (noun)

Hindi Meaning - रियायती शुल्क
English Meaning - a reduced or lower rate of customs duty or tariff applied to imported goods.

2.completely built-up (CBU) (adjective)

Hindi Meaning - पूरी तरह से निर्मित
English Meaning - relating to a vehicle which is directly imported into the country as a whole unit.

3.contingent (adjective)

Hindi Meaning - पर निर्भर, के अधीन
English Meaning - conditional on, subject to, dependent on, controlled by.

4.localise (verb)

Hindi Meaning - स्थानीय बनाना
English Meaning - to make local.

5.base (adjective)

Hindi Meaning - आधारभूत
English Meaning - bottom, low

6.go up (phrasal verb)

Hindi Meaning - बढ़ना, ऊपर जाना
English Meaning - increase, rise, soar.

7.pressing (adjective)

Hindi Meaning - अत्यावश्यक
English Meaning - urgent, critical, crucial, serious, desperate, important, key, vital, high-priority, burning, essential.

8.decarbonise (verb)

Hindi Meaning - कार्बन-मुक्त करना
English Meaning - reduce carbon dioxide emissions through the use of low carbon power sources, achieving a lower output of greenhouse gasses into the atmosphere.

9.transform (verb)

Hindi Meaning - परिवर्तन
English Meaning - change, alter, modify.

10.mobility (noun)

Hindi Meaning - गतिशीलता
English Meaning - transportability; ability to move, movability.

11.technology transfer (TT) (noun)

Hindi Meaning - प्रौद्योगिकी हस्तांतरण
English Meaning - transfer of technology (ToT) or teach transfer; a process in which technology or knowledge developed at one organization is transferred to another, typically for the purpose of commercialization. Technology transfer can be accomplished through a variety of methods including licenses to use protected intellectual property, and may also include exchange of know-how and materials.

12.outlay (noun)

Hindi Meaning - परिव्यय
English Meaning - expenditure, expenses, spending, outgoings, money spent.

13.ambitious (adjective)

Hindi Meaning - महत्वाकांक्षी
English Meaning - formidable, difficult, challenging, demanding.

14.New Energy Vehicle (NEV) (noun)

Hindi Meaning - नवीन ऊर्जा वाहन
English Meaning - a term used to describe all types of electric vehicles, from battery-powered fully electric vehicles to plug-in hybrid cars.

15.mandatory (adjective)

Hindi Meaning - अनिवार्य
English Meaning - necessary, compulsory, required, obligatory.

16.fall short of (phrase)

English Meaning - fail to meet/reach; be deficient/inadequate/insufficient.

17.Electric Vehicle (EV) (noun)

English Meaning - An EV is defined as a vehicle that can be powered by an electric motor that draws electricity from a battery and is capable of being charged from an external source.

18.take a turn for the better/worse (phrase)

English Meaning - to become worse/better.

19.domestic value addition (DVA) (noun)

English Meaning - it refers to the value created within the country during the production of goods and services, including exports.

20.Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) (noun)

English Meaning - The Government of India vide notification S.O. No. 1363(E) dated 15th March 2024 has notified the Scheme to Promote Manufacturing of Electric Passengers Cars in India (herein referred to as ―SPMEPCI or ―the Scheme) to attract investments from global electric passenger car manufacturers, generate employment opportunities, achieve the goal of ―Make in India and promote India as a manufacturing destination for electric passenger cars. This scheme requires applicants to invest a minimum of ₹4150 crore and to achieve a minimum Domestic Value Addition (DVA) of 25% at the end of the third year and DVA of 50% at the end of the fifth year. This allows for a maximum import of 8,000 completely built units annually for each manufacturer for five years.

21.add to (phrasal verb)

English Meaning - augment, increase, intensify, boost, expand, enhance.

22.bouquet (noun)

English Meaning - bunch.

23.EV adoption (noun)

English Meaning - it refers to the increased choice of electric vehicles over traditional fossil fuel-powered vehicles by individuals and companies

24.address (verb)

English Meaning - tackle, deal with, attend to, try to sort out.

25.Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme (noun)

English Meaning - The FAME scheme was launched in April 2015 under the National Electric Mobility Mission, to encourage electric and hybrid vehicle purchase by providing financial support. Its first phase ran for four years until 2019. The Government notified Phase-II of FAME India Scheme initially for a period of five years commencing from 1st April, 2019 with a total budgetary support of Rs. 10,000 crore.

26.subsidy (noun)

English Meaning - also called as subvention; a financial contribution granted to help an industry or business, mostly given by a government, in order to keep the price of service/goods at a low level.

27.couple with (verb)

English Meaning - combine, connect, link.

28.enable (verb)

English Meaning - make (something) possible; allow, validate, facilitate.

29.In addition (phrase)

English Meaning - additionally, besides, furthermore.

30.cumulative (adjective)

English Meaning - aggregate; accruing, collective, combined.

31.incentive (noun)

English Meaning - a monetary benefit/reward that is given to motivate someone to encourage a specific action or behavior.

32.EV charging infrastructure (noun)

English Meaning - the network of charging stations that enables electric vehicle owners to recharge their vehicles.

33.deployment (noun)

English Meaning - installation, position, arrangement (the use of something or someone in an effective way).

34.Advanced Technology Vehicles Manufacturing Loans Program (ATVM) (noun)

English Meaning - This provides for grants and loans to eligible automobile manufacturers and component suppliers for projects that reequip, expand, or establish manufacturing facilities in the United States to produce qualifying advanced technology vehicles or qualifying components.

35.Inflation Reduction Act (noun)

English Meaning - The Inflation Reduction Act of 2022 (IRA), signed into law on August 16, 2022, directs new federal spending toward reducing carbon emissions, lowering healthcare costs, funding the Internal Revenue Service, and improving taxpayer compliance.

36.account for (phrasal verb)

English Meaning - constitute, make up, comprise, form.

37.the remainder (noun)

English Meaning - the balance; remaining part/quantity.

38.vertical integration (noun)

English Meaning - According to the traditional economic definition, vertical integration is the combination, under a single ownership, of two or more stages of production or distribution (or both) that are usually separate. It is a business strategy where a company controls multiple stages of production or distribution within its industry.

39.aid (verb)

English Meaning - help, support, assist.

40.economies of scale (noun)

English Meaning - the cost advantages that businesses experience as their production volume increases. (the average cost of all units declines as the level of production increases).

41.competitive (adjective)

English Meaning - reasonable, moderate, economical, low, inexpensive.

42.conventional (adjective)

English Meaning - normal, standard, regular, usual, traditional.

43.conventional internal combustion engine (ICE) vehicle (noun)

English Meaning - It has two centres of mass: the engine and the fuel tank. This engine burns fuel (typically petrol or diesel) within a combustion chamber, converting chemical energy into heat and then into mechanical energy, which drives the vehicle. An ICEV is also known as a conventional vehicle and provides carbon emission.

44.for now (phrase)

English Meaning - for the time being; for the present; temporarily.

45.Software as a Service (SaaS) (noun)

English Meaning - a business model in which customers pay to access and use cloud-hosted software over the Internet rather than purchasing it outright. This differs from traditional software that you need to purchase and install yourself.

46.heart (noun)

English Meaning - the central part of something.

47.replicate (verb)

English Meaning - recreate, repeat.

48.mandate (verb)

English Meaning - instruct, direct, order, make necessary/mandatory.

49.open market (noun)

English Meaning - a market with no regulatory barriers, such as taxes, licensing requirements, and government subsidies.