How EVs have gone mainstream in India

And why they are considered the future

Nishchal Chaudhary | July 11, 2022


#Energy   #electric vehicles   #transport   #environment   #climate change  


India is the fifth-largest automotive market in the world and will have about 400 million customers in need of mobility solutions by 2030. With the government emphasizing an accelerated transition to EV and providing lucrative benefits for companies and customers alike, the Indian electric mobility demands have grown.

With more than 16 million units sold in 2021, India is the world’s largest two-wheeler market. India is still young and rapidly urbanizing. There is a heavy influx of citizens into cities from rural areas. Along with this, the Indian populous is getting more conscious of the world they live in owing to the increase in literacy rates over the past decade. According to Census 2011, India managed to achieve a literacy rate of 74.04% as opposed to 64.80% in 2001. In addition to this, 28% of the population in India (which is middle class), accounts for 70% of total consumer spending. In a market where the end consumer is aware, value-conscious, and riddled with options, EVs thrive. They are not only cost-effective but also low maintenance and they help India achieve its target of 500 gigawatts of non-fossil fuel capacity by 2030.

Going ‘electric’ is not just a talk of the distant future anymore. The Indian electric mobility market has a lot of potential for development. It will be driven by innovative companies and the government. The push will come from the versatility of use-cases and the improving dynamics of electric mobility. The government of India aims to reduce oil imports and air pollution, carmakers are trying to get an upper hand on new automotive technologies. This is partially due to overburdened ecosystems, infrastructure shortcomings and versatility in customer expectations, and the cost of electric mobility. The government has come out with ample subsidies and incentives to nudge car-makers as well as citizens to go electric. From reducing the GST on cars from 12% to 5%, approving the Product Linked Incentive (PLI) scheme to launching the Fame 2 subsidy providing citizens up to 40% and announcing that green license plates be exempted from permit requirements, the government has been successful in promoting EVs because a study by Arthur D. Little stated that by 2030, over 30% of vehicles sold in India will be electric.

The charging ecosystem is the backbone of any electric vehicle. India is picking up the pace in setting up the charging infra and swiftly catching up to the likes of the West. This would require a cumulative investment of over US$180 billion in vehicle production and charging infrastructure. Growth in the EV sector will have a significant impact on manufacturing facilities and related real estate ventures.

In addition, the growing price of fossil fuels is compelling Indian commuters to opt for an alternative fuel, i.e., electric. On average, the cost per kilometre is just 7-8% in the case of electric vehicles as compared to ICE vehicles. Advancements in battery technology and lithium-ion battery price reductions are expected to shape the future for EVs over the projected period. Better batteries with higher output capacities, new chemistries to make it safer and eliminate range anxiety, superior drive-train for better pick-up power and durability, etc. are just some of the exciting advances to expect. A trend in the YoY price reduction on lithium batteries will surely contribute greatly to this sector. Similarly, the electric vehicle battery price is expected to fall from 40% to 30% in the coming five years. Not to mention the cost of maintenance. Electric scooters do not have nearly as many moving parts as their fossil-fuelled competitors, which minimizes wear and tear allowing for them to be low-maintenance.

Studies show that in over a year, just one electric car on the roads can save an average of 1.5 million grams of CO2. This makes the air cleaner, reduces noise pollution, and creates a greener tomorrow for everyone. India is on the cusp of a transition to a greener future and the government is working towards a sustainable infrastructure so the Indian EV market can become as big as USD 30 billion in the next 10 years.

Nishchal Chaudhary is Founder, Batt:RE.
 

Comments

 

Other News

What EU’s AI Act means for the world

The recent European Union (EU) policy on artificial intelligence (AI) will be a game-changer and likely to become the de-facto standard not only for the conduct of businesses but also for the way consumers think about AI tools. Governments across the globe have been grappling with the rapid rise of AI tool

Indian Railways celebrates 171 years of its pioneering journey

The Indian Railways is celebrating 171 glorious years of its existence. Going back in time, the first train in India (and Asia) ran between Mumbai and Thane on April 16, 1853. It was flagged off from Boribunder (where CSMT stands today). As the years passed, the Great Indian Peninsula Railway which ran the

Vasudhaiva Kutumbakam: How to connect businesses with people

7 Chakras of Management: Wisdom from Indic Scriptures By Ashutosh Garg Rupa Publications, 282 pages, Rs 595

ECI walks extra mile to reach out to elderly, PwD voters

In a path-breaking initiative, the Election Commission of India (ECI), for the first time in a Lok Sabha Election, has provided the facility of home voting for the elderly and Persons with Disabilities in the 2024 Lok Sabha elections. Voters above 85 years of age and Persons with Disabilities (PwDs) with 4

A fairly reasonable way to solve problems, personal and global

Reason to Be Happy: Why logical thinking is the key to a better life By Kaushik Basu Torva/Transworld, 224 pages

Is Nano-DAP a Catalyst for India’s Green Growth?

Nano Diammonium Phosphate, or Nano-DAP, is a revolutionary agricultural input that holds immense potential for transforming farming practices across varied agro-climatic zones in India. This innovative product is a nanoparticle-based formulation of diammonium phosphate, a widely used fertilizer in the agri

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter