Indian Govt. Will Order Uber, Ola To Convert Into Electric Mode – How Will This Happen?

In one of the biggest push for electric mobility in India, Govt. will soon order Uber and Ola to convert into electric mode.

This will be done in a phased manner, and an official notification will be soon issued.

Rising fuel charges, and curbing pollution seems to be the primary reason for this step, and if it’s executed in a planned manner, then it can unleash a new wave of electrification in the automobile sector.

But, will automobile companies be able to adapt to this new truth?

Govt Of India To Uber, Ola: Go Electric

Indian think-tank Niti Aayog, which is right now chaired by PM Modi, and makes key decisions related to business policies and environment, is right now making plans to implement large scale electric mobility in the country.

As per reports coming in, Indian Govt. will inform Ola and Uber, which are the biggest cab aggregators in India, to run electric vehicles and cabs.

As per the phased implementation plan, by April 2026, 40% of all Uber and Ola cabs should go electric.

Here is the timeline:

By 2021: 2.5% of all cabs should go electric

By 2022: 5% of all cabs should go electric

By 2023: 10% of all cabs should go electric

By 2026: 40% of all cabs should go electric

As per analysts, pollution and rising fuel costs seem to be the primary reason for this Govt. policy decision.

In a way, India is following China in the implementation of electric mobility, as there, Govt. has given a strict timeline and targets for selling electric vehicles for both commercial and private usage.

Aggresive Electric Mobility Policy Being Drafted

This decision of Indian Govt. to mandate Uber and Ola to go electric mode is part of the larger goal to convert all vehicles into electric.

Soon, we are expecting, that other taxis and cabs will be also asked to convert into electric mode, and gradually private cars too.

In fact, the push to convert two-wheelers into electric mode has already started, and we recently reported that after 2025, all petrol-run 2-wheelers can be banned in India.

After 2025, 2-wheelers with engine capacity upto 150 CC will have to be electric, else, it can run on India roads.

Besides this, a subsidy of Rs 20,000 per kilowatt hour has been proposed for three-wheelers as well. Upto Rs 50,000 crore investment has been proposed for pushing battery manufacturers and accessory makers for enabling more electric mobility in the country.

But, Will This Work?

Despite these plans and schemes, India is lagging behind in the sale of electric vehicles, by a long margin. In the financial year ending March, 2019, total of 33 lakh diesel and petrol vehicles were sold in India.

Out of this, only 3600 were electric cars/bikes, which is just 0.1% of the total number.

On the other hand, in China, 1.3 million electric vehicles were sold last year.

However, the positive side is, that the sale of electric vehicles grew by 3X, which is one of the fastest growth rates in the world.

We will keep you updated, as more details come in.

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