The report suggests that a coordinated approach involving government initiatives industry collaboration and public engagement could effectively address the challenges of transitioning to electric vehicles 

 According to a joint study released on Thursday, the government is considering the prospect of offering incentives or supporting programmes for the conversion of outdated vehicles into electric vehicles (EVs) as opposed to choosing to discard them. The European Business and Technology Centre (ETB) and management consulting firm Primus Partners collaborated to produce the paper, which outlines the difficulties in converting internal combustion engine-powered cars to electric vehicles (EVs) through retrofitting. It does, however, stress that these issues can be successfully resolved with concerted action involving corporate cooperation, public involvement, and government backing.

India’s Vehicle Scrappage Policy takes into account aspects like fitness and pollution levels instead of just depending on the age of vehicles, wito gradually replaceutdated and unfit vehicles with more ecologically friendly ones. According to the regulation, passenger cars and commercial vehicles that are beyond 15 years old may be scrapped or have their re-registration payments doubled.

The joint report suggests a different strategy: instead of disposing of outdated cars, the government should encourage programmes to convert them to electric power and thereby increase the lifespan of current cars. Titled ‘Retrofit for a Greener Future: Accelerating Electric Vehicle Adoption,’ the paper highlights that retrofitting is a major step towards sustainable transportation and environmental stewardship, not merely a band-aid fix.

The study emphasises the financial side of things by pointing out that, in general, retrofitting provides a faster return on investment (ROI) than buying new EVs for all vehicle types. To be more precise, the break-even point for retrofitting medium-duty trucks is reached in roughly five years, but it takes about eight years for new electric vehicles. The huge annual fuel savings that go a long way towards covering the expenses of retrofitting are responsible for this quicker break-even point.

According to the analysis, buses with modified electric vehicles reach break-even in around four years, which is significantly less time than the eight years needed for new electric vehicles. According to the analysis, the global market for retrofit vehicles is expected to be valued at USD 65.94 billion in 2023 and rise at a compound yearly growth rate of 7.40 per cent to reach USD 125.37 billion by 2032. Establishing a strong EV retrofitting ecosystem is imperative given the substantial potential for growth in the industry as India moves forward with its commitment to the Paris Agreement and nationally determined contributions (NDCs).