Uber says government support with incentives and charging infra is necessary to scale up EV plan

A top Uber executive has said that the density of charging infrastructure in India is nowhere close to what is needed for full electrification and that government support is needed in order to bring down cost of ownership and operation. The comments assume importance at a time when the central government is considering whether or not to extend the electric vehicle subsidy scheme beyond March 2024.

Uber on Wednesday launched Uber Green in India. The service will allow customers, initially in Delhi, Mumbai and Bengaluru, to request for all electric vehicles. Uber currently offers the Uber Green facility on the app in more than 100 cities across 15 nations. Speaking to CNBC-TV18 about Uber's India roadmap, Andrew Macdonald, the company's vice-president for mobility and business operations, said, "Uber will get to full electrification in India much faster than our global 2040 commitment. EV penetration in Uber's fleet in India is in single digits, but the numbers are set to rise exponentially."

The ride-hailing giant has announced key partnerships in India to boost its electric footprint. Lithium — Everest and Moove to deploy 25,000 electric vehicles across seven major Indian cities, and Zypp electric to deploy 10,000 electric two-wheelers by 2024 in the Uber Moto category. Uber and SIDBI have signed an MoU for Rs 1,000 crore to provide easier financing facilities for driver partners looking to buy EVs and CNG vehicles. On charging, Uber said it has tied up with JioBP and GMR Green Energy.

Macdonald told CNBC-TV18 that the government needs to address the charging needs of both private users and cab drivers. A lack of charging infra is a big impediment. "The government can help with supporting build-up of charging infrastructure and an electric grid to support the charging points. Charging infra density is nowhere close to what we would need to transition the entire fleet to India," he said.

The senior executive said that India is a top-three market for Uber, and a lot of the $800 million global commitment for electrification will go to India. " 100 percent electrification by Uber in India will depend on the decline in total cost of operation and ownership," he said.

On the possibility of Tesla setting up a manufacturing plant in India, Macdonald said that it makes a lot of sense for Tesla to make in India, as the country could be the next big consumer market for the electric car maker.