Usage-based incentives for electric vehicles will accelerate innovation, encourage early adopters, enable new business models, and promote low-cost shared mobility services.
Commercial and public transport systems have “more compelling economics” of using electric vehicles (EVs) over private cars, given the low operating costs of these environment-friendly vehicles, a report by Ola Mobility Institute (OMI) Tuesday said.
The report – based on insights from Ola’s EV project in Nagpur – also stated that it would make sense to focus on electrifying vehicles with the highest demand and utility in the Indian context i.e. two-wheelers and three-wheelers.
Probable roadblocks
“High upfront costs, lack of charging infrastructure and uncertain performance of a battery-powered vehicle may hold back rapid adoption of e-mobility for private users (also) appropriate prioritisation of vehicle segments for electrification may prove to be critical to the adoption of e-mobility,” the report pointed out.
It added that apart from incentivising purchase of EVs, “usage-based incentives” for electric vehicles will “accelerate innovation, encourage early adopters, enable new business models, and promote low-cost shared mobility services”. The report noted that the highest proportions of passenger-kilometers travelled are by public and shared vehicles.
