Government's e-car dream could soon face a challenge it can't overcome

economictimes.indiatimes.com

Lobbies work hard against electric Cars.

It is rarely a good idea for the government to specify a technology, it is always better to specify an outcome.  By committing to electric cars, the government may not have considered the great potential of Hydrogen powered or CNG powered vehicles. 

This article appears to lobby against electric cars using this argument.  While not entirely incorrect, the argument still is not strong enough.  First, sometimes the government needs to chose a technology when coordination between different stakeholders is important.  In a country such as India to ensure coordination between producers, mechanics, lenders, suppliers, and obtain universal consumer acceptance is a difficult task.  By mandating a single technology – electric vehicles in this case – the government reduces the chance of coordination failure.  Second, all the other technologies are still less mature than electric vehicles, and if they do reach that level of maturity, there is nothing that would prevent their inclusion.  Especially since by then the oil sector lobbies would have been weakened considerably.

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