Electric vehicles have grown in India in the last five years, but the sector still has a long way to go to reach parity with ICE vehicles. The year 2021 has been a promising year for the industry, especially for electric two-wheelers (E2W), which are sometimes seen as the low-hanging fruit for EV adoption. As the electric vehicle industry continues to grow, companies and governments alike have declared their enduring support for EV adoption.
To ease EV adoption in India, the government created the Faster Adoption and Manufacturing of Hybrid and EV (FAME) program in 2015 with the first investment of $130 million in electric car subsidies. In its second iteration, FAME II, the government increased EV subsidies to $1.4 billion in 2019. Under FAME II, the government targeted to have at least 1 million high-speed electric two-wheelers on the road by March 2022.
However, the policies of the Government of India, rising fuel prices and greater awareness among the consumers have given a much needed boost to the nascent sector. But there is still more work to be done. India still has a long way to go and the following major challenges need to be addressed in taking electric vehicles to the Indian masses.
Also read: Fire in another electric scooter, third such incident after Ola and Okinawa
Inadequate access to EV charging stations is one of the most significant barriers to poor adoption of EV vehicles. Expansion of charging infrastructure is the need of the hour. For this to happen, both the government and the commercial sector must work together for additional infrastructure and charging stations in major cities and on important routes.
Another thing that comes to mind is why can’t we just install EV chargers at gas stations? While repurposing gas stations is a brilliant idea that has gained popularity around the world, and is starting to see some traction here as well, it does have some limitations. For a problem, the EV can take a long time to charge depending on the charging station and the size of the EV’s battery. Due to longer charging times, chargers should be placed in areas where people may leave their automobiles for extended periods of time. This requires a rethinking of the charging geography. Setting up of charging stations near office, commercial complexes will play an important role.
The perceived loss of range is the second most frequently mentioned barrier to EV adoption. Most individuals have “range anxiety” because they fear that the range of an EV is insufficient to get them to their destination. While companies including ours are investing in products with better mileage and efficiency. A battery’s energy density is a key component in enabling those capabilities. This is something that will drive up the prices of the product. The mileage of electric vehicles is such that they can easily meet the average daily commute of the users. Battery swapping, charging infrastructure development are the things that should help here.
The initial cost of owning an electric car is currently higher than that of ICE vehicles, largely due to the cost of the batteries installed in the vehicles. Manufacturers anticipate cost parity by 2025 – if not sooner – and are collaborating along the electric car battery production supply chain to lower costs and improve overall efficiency. Having said that, at present, government subsidies are helping to balance the cost.
Moreover, limited credit options and high EMIs make it difficult for the EV sector to operate in a country with many economic issues. Today the interest rate on a combustion engine vehicle is 10-14% depending on the bank and the customer. For an electric vehicle it is around 20-25%. These financial limitations could pose a significant impediment to the mass adoption of electric vehicles in the country.
ALSO READ: Delhi has emerged as the EV capital of India
One of the most significant barriers to EV adoption is the battery manufacturing process and supply chain. Enabling electric vehicles requires new mining and supply networks. Lithium-ion batteries are the most common and frequently used EV energy source. We do not manufacture lithium-ion cells or its raw materials. India depends on imports for EV batteries, resulting in exorbitant prices for these critical components and ultimately EVs. This is also a major reason for the price difference between ICE and EV vehicles. To help increase product quality and dependability, India should focus on producing battery essential components in-house. Such heavy dependence could affect India’s international trade policy or even its EV ambitions. It is also important to pay attention to alternative battery technologies.
Despite the fact that Indian consumers are becoming more receptive to the pursuit of e-mobility than ever before, there are still estrangement concerns, lack of charging infrastructure, price gap between EV and ICE vehicles, and lack of certainty. There is a negative attitude. Resale value is all a contributor to this assumption.
Two wheelers account for 76 percent of all vehicles in the country. It is necessary to adapt India’s EV policy to meet the current needs of the country’s auto sector, such as a greater focus on manufacturing electric two-wheelers. India should promote private investment in battery manufacturing plants and achieve economies of scale, focusing on new technologies.
Stabilizing the policy environment by focusing on tax breaks and non-fiscal incentives can help reduce demand uncertainty, allowing businesses to access economies of scale. A collaborative ecosystem for cost-efficiency, technical expertise and improvement of existing infrastructure. Inclusive growth is the key to the future.
This article is written by Mayank Jain, Director – Crayon Motors. All views are personal.
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//console.log("$$" + $(this).children().find('.left-block').attr('data-url'));
if(prevLoc != $(this).children().find('.left-block').attr('data-url')){
prevLoc = $(this).children().find('.left-block').attr('data-url');
$('html head').find('title').text($(this).children().find('.left-block').attr('data-title'));
$('meta[name=description]').attr("content",$(this).children().find('.left-block').attr('data-summary'));
$('meta[name=keywords]').attr("content",$(this).children().find('.left-block').attr('data-keyword'));
$('meta[name=news_keywords]').attr("content",$(this).children().find('.left-block').attr('data-keyword'));
pSUPERFLY.virtualPage(prevLoc,$(this).children().find('.left-block').attr('data-title'));
//console.log("Summary: " + $(this).children().find('.left-block').attr('data-summary'));
//console.log("Keyword: " + $(this).children().find('.left-block').attr('data-keyword'));
//history.pushState('' ,'', prevLoc);
loadshare(prevLoc);
}
return false; // stops the iteration after the first one on screen
}
});
if(lastHeight + last.height() < $(document).scrollTop() + $(window).height()){
//console.log("**get");
url = $(next_selector).attr('href');
x=$(next_selector).attr('id');
//console.log("x:" + x);
//handle.autopager('load');
/*setTimeout(function(){
//twttr.widgets.load();
//loadDisqus(jQuery(this), disqus_identifier, disqus_url);
}, 6000);*/
}
//lastoff = last.offset();
//console.log("**" + lastoff + "**");
});
//$( ".content-area" ).click(function(event) {
// console.log(event.target.nodeName);
//});
/*$( ".comment-button" ).live("click", disqusToggle);
function disqusToggle() {
var id = $(this).attr("id");
$("#disqus_thread1" + id).toggle();
};*/
//$(".main-rhs2449522").theiaStickySidebar();
var prev_content_height = $(content_selector).height();
//$(function() {
var layout = $(content_selector);
var st = 0;
///});
}
}
});
/*}
};*/
})(jQuery);