Make shared mobility part of sustainability discussions
This article is authored by Nissy Solomon, senior research associate and D. Dhanuraj, chairman, Centre for Public Policy Research, Kochi.
The recent announcement of the PM E-drive (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme marks a step towards sustainable mobility in the country. With an outlay of ₹10,900 crore for two years for the PM E-Drive scheme, the Centre intends to boost the uptake of electric vehicles (EVs) via subsidies and incentives. It aims to subsidise 24.79 lakh electric two-wheelers, 3.16 lakh e-three-wheelers, and 14,028 e-buses.
Increasing the adoption of EVs has been the government's consistent focus in the past years, and the Centre has been a key player in India's EV growth story. Their efforts to increase EV adoption started in 2015, when, owing to an increase in vehicular emissions, the central government launched the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) 1 Scheme to reduce pollution caused by diesel and petrol-operated vehicles and to promote manufacturing of electric and hybrid vehicles. Since the inception of the scheme, the demand for EVs has surged. As of 2023, the number of electric buses delivered stands at 5,760, with an additional 10,000 e-buses to be deployed by the next fiscal year. The total registrations of electric two-wheelers in India grew by 34% year-over-year to reach 8.49 lakh units in 2023. A CEEW-CEF study stated that the electric two-wheelers category was the largest beneficiary of FAME II. More than 90% of all e-2Ws sold since financial year (FY) 2019-20 have been subsidised by the policy, showcasing significant support by the government for the private vehicles’ market growth. As a successor of the FAME scheme, E-drive also carries forward the subsidy policy for EVs.
However, as the Centre places a renewed focus on the EV industry to advance sustainable transportation, it also needs to renew its stance on other modes of transport that are environmentally better alternatives than passively promoting the growth of private vehicles. This requires not just deliberate government investments but also solid policy reform in the transport landscape.
Shared mobility, especially Intermediate Public Transport (IPT), offers a cost-effective, environmentally friendly, and convenient solution to building sustainable transportation. It is a transportation service where multiple passengers share a single vehicle to travel from one location to another. IPTs bridge transportation gaps that are prevalent in rural India by ensuring last-mile connectivity for people. In India, auto-rickshaws, which can accommodate up to four passengers, are a popular form of IPT and are commonly used to transport passengers between railway and bus stations and their immediate surroundings. They normally charge a nominal fare, like ₹10 per km, which makes them an economical and comfortable option for end-to-end connectivity.
However, the government rules and legal framework (Motor Vehicles Act) do not allow IPTs, such as autos and taxis, to carry multiple passengers to different destinations. They are only allowed to carry passengers from one point to another. They are not permitted to operate like stage carriages that allow boarding and deboarding of passengers on the way. This policy has thwarted any innovations in the IPT. There’s not much besides an autorickshaw to count as IPT in India. In other countries where IPTs are legally recognised and permitted, many innovative models have come about, such as vans, micro-buses, mini-buses, and jitneys, among others, that accommodate anywhere between eight-20 passengers at a time. Shared mobility with high ridership is a good bet to ensure reduced greenhouse gas (GHG) emissions, cost-effective travel, and end-to-end connectivity, especially in rural areas where the transport conditions are dismal.
The graph below on emissions per passenger km of different transport modes presents some pertinent insights. While e-buses are environmentally better than diesel buses, investing in a traditional diesel bus and/or mini-bus IPT shows to be an environmentally better choice than electric cars (or electric two-wheelers and 3-wheelers).
IPTs, by nature of carrying multiple passengers, are more efficient in terms of emissions per passenger kilometres compared to private cars. Additionally, if they are given more legal recognition and policy support in India, the IPTs would benefit from technological advancements and reductions in GHG emissions akin to the evolution seen in the cars/automobile sector.
The existing legal barrier disproportionately affects rural areas. Bus ridership remains a primary mode of public transport in rural India, but despite the limited frequency of services, it often only serves as a means of transit between fixed points and does not offer comprehensive end-to-end connectivity. Here, IPTs are promising in terms of bridging this service gap at a nominal cost.
While EVs are an important piece of the remedy, a quick reality check will also show us that EVs are not the only optimal solution to climate change. Electric cars and E-2-wheelers still contribute to congestion and require significant resources to manufacture. A more effective approach that can yield better environmental outcomes is to combine EV adoption with other sustainable modes, but this requires policy support and formal recognition of IPTs in the transportation sector.
This article is authored by Nissy Solomon, senior research associate and D. Dhanuraj, chairman, Centre for Public Policy Research, Kochi.