India can save on crude oil imports worth more that Rs 1 lakh crore ($14 billion) annually if electric vehicles (EVs) are to garner 30% share of country’s new vehicle sales by 2030, according to an independent study released by the Council on Energy, Environment and Water (CEEW).

The increase in electric vehicles penetration could also increase the combined market size of powertrain, battery and public chargers to more than Rs 2 lakh crore ($28 billion), in addition to creating 1,20,000 new jobs in this sector.

In addition, a substantial number of new jobs are likely to be created in emerging areas such as battery recycling, telematics and allied construction and services.

The CEEW study, supported by the Shakti Sustainable Energy Foundation, also found that meeting the 30% EV penetration target in 2030 could lead to several environmental benefits including a 17% decrease each in primary particulate matter and nitrogen oxide and dioxide (NOx) emissions, 18% reduction in carbon monoxide emissions, and a 4% reduction in greenhouse gas emissions relative to the business as usual scenario (BAU).

Abhinav Soman, one of the authors of the study and a researcher at CEEW, said, “As India recovers from the pandemic, a focus on developing India’s domestic EV manufacturing sector and increasing the penetration of electric vehicles in road transport would help deliver on jobs, growth and sustainability. This would require creating a robust and comprehensive transition plan for electric mobility that capitalises on the opportunities created in the form of improvement in balance of payments, new markets, and jobs generated. Further, we strongly recommend that the EV roadmap for India should target a significantly higher share of EV penetration as the 30% target could be achieved just via the sales of electric two-wheelers and electric three-wheelers.”

As compared to the BAU, the CEEW study also highlights that 30% EV penetration would include trade-offs such as an estimated 19% fewer jobs in the oil sector and in the internal combustion engine (ICE) vehicle manufacturing sector combined. Further, the combined annual value add loss in the oil and the automobile sector could amount to about Rs 2 lakh crore ($25 billion). In addition, the central and state governments would lose over Rs 1 lakh crore in tax revenue annually from reduced sales of petrol and diesel.