ABSTRACT
The National Mission claims that its main objective is to build a sustainable and environmentfriendly transport system. However, electrical energy generation in India is strongly reliant on coal-fired power plants, and there are so far no explicit targets to decouple e-mobility from the overall energy mix. Under these conditions, electric vehicles are unlikely to reduce greenhouse gas emissions or improve energy efficiency. The fact that the mission was launched precisely at a moment when global carmakers started to launch electric cars and Mahinda & Mahindra had acquired REVA suggests that competitiveness issues played a major role in starting to support the national industry. The automotive industry has become the backbone of India’s manufacturing sector, and the industry does not want to miss a technological trend that may become relevant for the competitiveness of the motor vehicle industry worldwide. Also, the facts that (a) the subsidy is tied to a local content requirement of 30% and (b) the coordinating role of the National Mission was given to the Ministry of Heavy Industries & Public Enterprises – rather than the Ministries of New and Renewable Energy or Environment and Forests – points to industrial policy interests.
