Higher EV sales by 2030 to boost aluminium consumption and reduce 14% CO2 emissions in India’s commercial vehicle sector

A recent study - Roadmap for Electrification of Urban Freight in India found that there could be a 14 per cent reduction in CO2 emissions in India’s small commercial vehicle segment with higher electric vehicle sales by 2030. The study assessed the operational and financial feasibility of electric vehicles in India’s urban freight (UF) segment by undertaking a survey-based analysis of five sectors in Delhi, Bengaluru, and Surat.

The Energy and Resources Institute (TERI) released the study in association with Shakti Sustainable Energy Foundation (SSEF). It came up with various recommendations such as setting up a nationwide vehicle scrappage policy programme, with a focus on electric vehicle replacement.

The study also encouraged a countrywide national programme for electrification of urban freight sector suggesting state and city-level action plans. Besides, the study established a financial credibility framework for the manufacturers and drivers.

The study also sought favourable terms of finance for electric freight vehicle by the lending institutions.

"Our key findings suggest that the total cost of operation is rapidly turning in favour of EV variants, and diesel prices, range of EVs and subsidies play a significant role in the overall total cost of ownership (TCO) of EVs," TERI Centre for Sustainable Mobility Associate Fellow and Area Convenor Sharif Qamar noted.

Higher penetration and sales of electric vehicles in India’s commercial vehicle segments will expectedly boost the consumption of aluminium components as well. Aluminium, popularly called the green aluminium because of its environment-friendly properties, saves 95 per cent of the energy when recycled and reduces weight, fuel consumption, and greenhouse gas emissions when used in transport.