Green Vehicle Rating India: Challenges, future plans of environmental grading of EVs, bikes explained

Currently, AEEE has completed the monetisation under the second phase of GVR to cover both health and environmental costs. They are planning for the third phase to encompass more vehicle models and segments (possibly 4-wheelers).

By:Updated: Aug 05, 2021 10:20 AM

Green Vehicle Rating or GVR is something that we have come to know recently. This is because the Alliance for an Energy Efficient Economy (AEEE) championed for this cause to allow customers to make an informed buying decision. This decision not only involves the upfront cost of the vehicle but also its running/servicing costs for the next 10 years or 1.2 lakh kilometres. The upfront cost and running cost comes under TCO. AEEE have extended the boundaries to include environmental and health cost as well to arrive at a new framework called real cost of ownership. Have you compared the GVR of your vehicle before purchasing it recently? Well, I haven’t. This question was posed to the officials of AEEE. Chandana Sasidharan who is the principal research associate and Jaideep Saraswat the senior research associate with AEEE answered our queries. First up, these AEEE officials believe that customers these days do indeed refer the GVR chart before making their purchase. However, the basic hindrance happens to be the data availability of many two-wheelers. GVR only caters to the two-and three-wheeler ICE machines and they recently started classifying electric bikes/scooters.

AEEE officials say

For consumers to appreciate and purchase clean, efficient vehicles, they need straightforward information on different vehicle models’ energy consumption, environmental costs, and economic benefits. GVR facilitates this by translating the effects of air pollution and greenhouse gas emissions into economic terms, by ascertaining the monetary value of vehicles’ impact on human health, climate, and environment per kilometre ((₹/km). The Social Cost of Carbon (SCC) and marginal damage cost is sourced from secondary literature. In the case of India, there is a dearth of studies estimating the cost of environmental externalities, particularly concerning air pollution. Sengupta and Mandal (2002) remain the only working paper produced in India that derives the health damage costs of air pollution from motor vehicles in India.

The hindrance AEEE is talking about pertains to obtaining the Form 22 which manufacturers are not so willing to provide. This particular form gives out details of the vehicle which are not only present on the RC but also add to the pollutants that the vehicle emits. The officials stated that there is a certain amount of reticence when it comes to manufacturers offering it to AEEE but during the vehicle registration, they need to furnish this document at the RTO. It is also said that customers are also privy to this information and the dealer is supposed to provide it during purchase. But, we all know how it goes and pretty much, things are hushed up from the dealer end.

After getting Form 22, it barely takes a couple of hours to get the green rating of the vehicles. While it is not yet a well-to-wheel process, one can also compare the GVR of various vehicles through the tool on the website. AEEE also takes into account the emissions impact of a vehicle – environmental and health. With regards to the former, AEEE is actually calculating the different categories, which are the visibility impact, the losses to crops and the climate change. Currently, AEEE has completed the monetisation under the second phase of GVR to cover both health and environmental costs. They are planning for the third phase to encompass more vehicle models and segments (possibly 4-wheelers).

Being the make-in-India advocates that we are, the conversation naturally veered towards this aspect of EVs and the inclusion in GVR gradings. The officials said that while this will be a nice idea to incorporate this with GVR, maybe they will like to have an altogether different approach to this. At present, many electric two-wheelers are not really classified right now and getting information about them is difficult.

The takeaway I have from this interaction is that not all manufacturers or their vehicles have made it to the GVR. Good and bad, I suppose. Good because my recent ICE acquisition wasn’t listed under the GVR table. You see, now I feel a bit less burdened of having caused pollution or worse still, killed a tree in the process. Bad? AEEE officials assure me that sooner or later, once they get their hands on the Form 22 from every two-wheeler maker, the website will be updated and my particular motorcycle credentials will be updated. Maybe I feel that this particular model may not get much green points.


Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Latest Auto News