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India plans to order taxi aggregators such as Uber and Ola to convert 40 per cent of their fleet of cars to electric by April 2026, according to a source and records of government meetings to discuss new rules for clean mobility.
Uber and Ola, both backed by Softbank Group, would need to start converting their fleet as early as next year to achieve 2.5 per cent electrification by 2021, 5 per cent by 2022, 10 per cent by 2023 before hiking it to 40 per cent, according to the person and the records that have been reviewed by Reuters.
Some taxi players, like Ola, have previously tried to operate electric cars in the country, but with little success given inadequate infrastructure and high costs.
Push for green drive
The Centre, however, is looking to push the new policy to boost the adoption of electric vehicles (EVs) as it tries to bring down its oil imports and curb pollution so it can meet its commitment as part of the 2015 Paris climate change treaty.
The NITI Aayog is working with several ministries on the new policy.
Neighbouring China, home to the world’s top auto market, is already leading the world in electrification by setting tough EV sales targets for carmakers and offering incentives to taxi operators to increase their fleet of clean-fuel cars.
In a meeting in New Delhi on May 28, NITI Aayog officials and the ministries of road transport, power, renewable energy and steel, as well as the departments of heavy industries and trade, were among those recommending taxi operators in India gradually convert to electric.
They also recommended that all new cars sold for commercial use should only be electric from April 2026, a change that would also apply to Uber and Ola, said the person who has direct knowledge of the matter but spoke on condition of anonymity.
Food delivery vehicles
Motorcycles and scooters sold for commercial purposes, like food delivery or for use by e-commerce companies, will also need to be electric from April 2023, the person added.
India has seen a boom in food delivery apps like Zomato and Swiggy, which counts Naspers and Tencent as investors. Sales by e-commerce firms like Amazon.com and Walmart-owned Flipkart are also rising.
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