All vehicle manufacturers are looking at the EV market, with PM Narendra Modi’s dream to electrify 30 percent of Indian vehicles by 2030. The country faces a massive pollution challenge. India’s Electric Vehicle Market is expected to grow at over 37 percent CAGR in the next five years, but there are still major obstacles to overcome before EV adoption.
No matter how much it costs or what its mileage is, every Indian takes pride in their vehicle. The Indian drivers are pondering the idea of switching to environmentally friendly cars due to the daily rising petrol prices and the dangerous level of air pollution. We can’t ignore the resolve of vehicle owners to purchase electric cars. But we also cannot overlook their hesitation in buying one.
India’s electric car market has grown rapidly due to the growing awareness of the negative effects of air pollution and the massive investments made by vehicle manufacturers. However, there are still challenges. Here are some key factors that will determine how fast the locomotive industry transforms:
Future of Mobility
Electric vehicle adoption is increasing at a rate that might appear slow compared to the target, but in reality, it is inspiring. The benefits of owning an EV are well known to customers, including lower operating costs, lower maintenance, pollution-free drive, and lower lifecycle emissions.
Narayan Subramaniam, founder and CEO of Hyperviolette Auto, gave an insight into the technical aspects of electric cars. He said: “Electric motors are responsive in general and can produce maximum torque at low speeds. The acceleration can be surprising for most first-time drivers.” In terms of efficiency, EVs are able to convert nearly 90% of the energy in their batteries into driving the vehicle.
The two-wheeler sector is expected to be the first to move to electric vehicles due to its low cost. The entire mobility landscape will change when electric cars take over. Manufacturers and vendors would need to replace mechanical components with electric components.
Government Initiatives
India’s Government has taken some important steps to speed up the absorption of electric vehicles into the system. The introduction of FAME (Faster Adoption and Manufacture of Electric Vehicles) is the most thoughtful one. The scheme was launched in 2015 as part of the National Electric Mobility Mission Plan. It offers incentives to EV makers.
FAME discourages the ownership of petrol and diesel vehicles. We have also created draft policies for 3-year-free parking and toll-free zones. All these are major steps in India’s EV agenda. The Government’s goal to electrify all public transportation by 2030 may seem like an impossible task. However, two-wheelers are also welcome to join the race through industry collaboration.
“The Government should offer the full subsidy upfront instead of spreading it out over several years, and give them to better designed vehicles instead of the poor-designed ones to ensure superior adoption. Once the volume hits, the industry is bound to take off,” said Mehta. He also recommended the implementation of stable policies because fluctuating schemes can affect the overall investment.
Challenge Ahead
Subramaniam said that the car manufacturers had been prompted to develop their EV strategies by the regulatory authorities tightening emission standards for Internal combustion-powered vehicles. “Range anxiety has been reduced because the vehicle has a large range – enough to cover even the most intensive usage scenarios,” he added.
A number of myths about the power, performance, and protection of electric vehicles have influenced the good judgment of prospective buyers, causing them to doubt their capabilities. It is essential to build a network of stations for energy that can be accessed on the go.
The Government has not yet deployed a nationwide charging infrastructure, but this will be a requirement once the EV adoption rates increase. Mehta argued, however, that even though a business model for EV charging has yet to be developed, people could still use their home electricity to charge their vehicles, with only the requirement of installing a 3-pin plug in their parking lot.
Adoption Strategy
Indian consumers are changing their minds as they begin to adopt and understand new technologies. They are also looking for more environmentally friendly alternatives in transportation and mobility. Subramaniam said that they are looking for a vehicle with a “powerful blend of energy-efficient technology, progressive design and an exceptional experience when using and owning it.”
Mehta is convinced that EV adoption will change the face and culture of Indian society. He said that owning an EV has many advantages. “The operating cost of electric cars is one-eighth of the price of petrol vehicles, and they require very little maintenance.” “Pollution along with fuel savings is a huge delta,” he added.
Electric vehicles will also have a profound impact on the dealership and distribution business. Electric cars are associated with environmental benefits, and their absence has direct and indirect costs for the country. Goldie Shrivastava, co-founder of SmartE and CEO, said that the vehicle must be made according to Indian requirements, as copying foreign models won’t work in India.
Current Positioning
EVs have a great chance to dominate Indian roads over the next few years, as modern consumers are always looking for new experiences and solutions. Mehta believes that the biggest advantage of electric vehicles is their novelty, as they offer a superior ride and performance to petrol cars.
The industry is still in its infancy, but massive steps are being taken to encourage the adoption of electric cars in the country. This is especially true for the public sector. Srivastava said that “around 7 to 10 lakh three-wheelers powered by batteries are always in flight in the country, which indicates that we have made a significant start in terms of using the technology.”
