India set the international best practice for driving the electrification of buses: Drew Kodjak
‘India has one of the world’s largest markets and a substantial manufacturing base for motor vehicles and their components’
The transition from fossil-fuelled vehicles to battery-powered EVs is a complex process that involves prioritising an auto segment that cuts emissions the most, formulating regulatory frameworks and incentives, ensuring economic viability and a just transition, providing adequate infrastructure to run these zero-emission vehicles, and generating green jobs and propelling economic growth in the process.
Drew Kodjak, executive director of International Council on Clean Transportation (ICCT), took a sabbatical last year to work in the Biden administration’s White House climate policy office. He shared his insights on this transition in an interview with Hindustan Times. Edited excerpts:
How fast is the EV transition happening worldwide?
Historically, it’s been Europe, the United States and China (leading the transition). To a lesser extent, but catching up fast, is India.
In the US, it is an interesting combination of government policy driven by climate change and oil security, and now being taken over by interest in economic development, green industrial transition, and domestic jobs.
India has one of the world’s largest markets and a substantial manufacturing base for motor vehicles and their components. There is a fair amount of exports, particularly in vehicle components. So, India stands to lose or gain depending on how well it manages this transition.
India also imports a significant amount of oil. That’s been a longstanding issue, and EVs would address it. India is considering a suite of policies, including updating and expanding FAME — Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India — and supply-side regulations.
{{/usCountry}}India also imports a significant amount of oil. That’s been a longstanding issue, and EVs would address it. India is considering a suite of policies, including updating and expanding FAME — Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India — and supply-side regulations.
{{/usCountry}}How would you rate the electrification of buses in India?
{{/usCountry}}How would you rate the electrification of buses in India?
{{/usCountry}}India has set the international best practice for driving the electrification of transit buses. First was the standardisation of bus types. Every city wants a different-coloured bus, with various heights and different-sized windows and in the US, this drives up the cost dramatically. India was very wise in requiring only four different types of buses. Within that, it also required that the manufacturers not only bid the price of the new vehicle, but also the 10-year operational cost, because of which the electric buses were the lower cost bids on the contract. It signalled to cities across India that battery electric buses are the way to go if you are interested in lower-cost technology for your buses. It was an eye-opener for the world. I was impressed by Niti Aayog’s creativity and thoughtfulness in that policy. This catapulted Indian electric bus production and market forward.
{{/usCountry}}India has set the international best practice for driving the electrification of transit buses. First was the standardisation of bus types. Every city wants a different-coloured bus, with various heights and different-sized windows and in the US, this drives up the cost dramatically. India was very wise in requiring only four different types of buses. Within that, it also required that the manufacturers not only bid the price of the new vehicle, but also the 10-year operational cost, because of which the electric buses were the lower cost bids on the contract. It signalled to cities across India that battery electric buses are the way to go if you are interested in lower-cost technology for your buses. It was an eye-opener for the world. I was impressed by Niti Aayog’s creativity and thoughtfulness in that policy. This catapulted Indian electric bus production and market forward.
{{/usCountry}}Electrifying freight should be prioritised because trucks are the most polluting road vehicles. However, the EV transition worldwide is much faster in the car segment.
The US and Europe have finalised regulations requiring medium and heavy-duty vehicles to transition to zero-emission vehicles over time, starting now and continuing until 2035 and 2040.
Regarding fuel consumption from the transportation sector in the US, Europe, and Japan, 75-80% is from passenger cars and 20-25% from trucks. In India, China and Brazil, heavy-duty vehicles account for more than half of the (total) fuel consumption. It’s a big chunk of the emissions. So, if you are interested in dealing with climate change and oil security, trucks make the most sense; or more sense in India than in the US.
Studies show that battery-electric trucks will be significantly cheaper to operate over time than diesel or natural gas trucks. This matters a great deal because these are businesses, not consumers.
Electric trucks also have fewer moving parts, so they are far less complicated. Maintenance requirements should also be lower. Ideally, reliability will also increase.
But it is important to see which segment of heavy-duty vehicles to consider. Urban delivery vehicles have a less demanding duty cycle than long-haul tractor-trailers. They have smaller batteries and a limited range. They can be recharged at night. We’ll see electrification moving from urban delivery vehicles to longer-range tractor-trailers.
The trucking business in India has many problems. Ownership is an issue. Traffic and road conditions are bad. Truck overloading affects fuel efficiency. Will these factors impact the EV transition?
None of these things are necessary to fix before you transition to electric vehicles. In the US, where the roads are in better shape, and trucks move faster, starting in 2010, we improved efficiency with better tyres, aerodynamic retrofits, side skirts, etc. You won’t have those benefits in India because trucks are going slower, and the roads are more congested. However, you will improve efficiency by changing from a diesel engine to an electric vehicle.
How important is having a regulatory framework for this transition?
Regulations are essential because this is a complicated transition. Having the government set the pathway allows many actors – battery manufacturers, mine (industry), and the supply chain – to align with it. The utilities need to know how much power they need to provide and where to upgrade their transmission lines.
I spent a year at the White House helping finalise two major regulations completed earlier this year. These regulations will set the pace of change for light-duty and heavy-duty vehicles from 2027 to 2032.
And subsidies?
Subsidies are important – not forever, but until there is cost parity. Subsidies for (buying) vehicles and creating incentives for manufacturing plants that generate jobs. You have to figure out the best policy package for India that deals with regulatory and supply-side standards. Also, what are the consumer incentives during this transition period so electric vehicles are at the same cost (as EVs), and eventually, the EVs become cheaper? The government doesn’t have to build the infrastructure. It should guide and standardise where and how it should be built. It should support manufacturing all EV components, including batteries, within India.
