Date: Mon, 08 Jun 2026 Extracted Body: Pollution kills. It is harmful to India’s reputation as a dynamic, forward-looking society, and, where vehicular pollution is concerned, the better-off pollute more, whereas the worse-off suffer more. The auto industry has historically tended to oppose policies aimed at reducing fossil fuel vehicles due to fears of revenue losses and the cost burden of moving to new technologies. Fear of new competitors with a technological advantage may be another factor. Such challenges will remain whether we switch now or 10 years later, and policymakers must ask: How long should the government wait? It is now time for the government to institute a comprehensive policy for a move towards electric vehicles (EVs) for both two- and four-wheelers by 2028. And in parallel, implement a plan to install the required charging points in parking lots, petrol pumps, and public spaces across the country. The belief that such a policy will make India dependent on China is deeply flawed. First, India is a large two- and three-wheeler market. Second, EVs, in fact, reduce India’s global vulnerabilities, whereas fossil fuel vehicles increase them. Why? Because batteries and magnets are not consumables, even if their imports stop, EVs already on the road will continue to operate; this is not the case with fossil fuel-driven vehicles. Third, India has a mechanism for keeping petroleum stockpiles, and it can do the same for rare earths or critical minerals. Indeed, India’s National Critical Mineral Mission envisages precisely this. The Indian government highlighted in the 2026-27 budget its efforts to enhance access to critical minerals and rare earths. These efforts will need domestic demand to succeed. Yet another concern is the potential loss of jobs associated with the repair and maintenance of fossil-fuel-driven vehicles. Here as well, the government is proposing to stop the registration of new vehicles after 2028. All the older vehicles will continue to need the services of such mechanics. Moreover, new EVs will also create jobs for other services. Remember the concerns that accompanied computerisation in banking? It is also sometimes argued that EVs, despite government subsidies, are more expensive and therefore delivery workers, own-account workers and others dependent on two- and three-wheelers will end up paying more. To the contrary, analysis conducted at CSEP has shown that the lifetime costs of electric two-wheelers are significantly lower than their petrol counterparts, and in fact, these workers will gain from the switch to EVs. The higher purchase cost, if a real concern, can be addressed through slight tweaks to the government’s collateral-free credit programs. The gig work economy has already embraced electric two-wheelers. Any policy change results in a diverse set of winners and losers. But imaginative and cooperative actions can create win-win solutions. The Indian automobile sector includes some of the most respected firms in India. And these firms can and must come up with a forward-looking and solution-oriented plan. They will no doubt face stranded assets as production lines shift from internal combustion engine vehicles to electric vehicles. For this, they could be asking the government for accelerated depreciation. Dependence on China is a concern, and the industry needs to ramp up R&D spending for that. The industry could also work with the government on interim stockpiling solutions. It should be proposing innovative ideas for ramping up charging facilities; bringing utility companies into the conversation would help, since they would be a major gainer. Reuse and recycling of batteries is another challenge area, and here as well, there are many ways in which the industry can use its extensive networks to support the government’s efforts. India needs to change, but this would be best achieved when industry and government are able to create a collaborative and socially oriented relationship.