India, the world’s fifth-biggest auto market with a population of 1.3 billion people, is looking to solidify its standing as an electric vehicle superpower with a governmental mandate to sell only electric cars by 2030.

The reasons for transitioning to all-electric sales by 2030 are numerous. Indian’s air pollution is worsening at alarming rates, contributing to 1.2 million deaths a year. Also, Paris climate agreement conditions call for India to reduce its global emissions. Thirdly, India is heavily dependent on oil imports with a projected $85 billion in 2018 expenditures, according to India’s oil ministry.

The ambitious plan affects shorter term goals as well. According to the Indian government’s National Electric Mobility Mission Plan, a mandate calling for national fuel security by promoting hybrid and electric vehicle use in the country, its target is to drive annual sales of six to seven million electric vehicles in the next three years. According to India’s road transport minister Nitin Gadkari in a Sept. 7 statement to SIAM, India’s automobile lobby group, “we should move towards alternative fuel. I am going to do this, whether you like it or not.”

Already, India’s government is setting the tone with new governmental regulations designed to increase adoption. In December, a new national EV policy will provide guidelines on vehicle specifications, incentive types, and explore methods of offsetting the cost of batteries using subsidies.

“The government needs to subsidize battery and lithium imports or incentivize companies to set up this business in India,” said Yaquta Mandviwala, a partner at Bain & Company.

Lastly, India is also forging relationships with battery builders. On Sept. 14, Suzuki announced its plan to build a $600 million lithium-ion-battery factory. Cummins India and Ashok Leyland, engine and bus manufacturers, have announced partnerships with startups for battery swapping system and laid out plans to expedite research on electric solutions.

Source: Quartz India