The perception that upper-income households predominantly purchase electric vehicles as secondary vehicles can be attributed to its high upfront cost
India finds itself at a crucial crossroads in its pursuit of sustainable transportation solutions, where the emergence of electric vehicles (EVs) holds great promise in shaping a greener future. However, despite the launch of EVs by established OEMs and new entrants, the penetration rate remains dismally low at just 0.8 per cent in the overall Indian automotive market.
A closer look reveals that the EV market in India is currently dominated by two-wheelers, accounting for 17 per cent of the EVs, followed by three-wheelers at 79 per cent, and four-wheelers at a modest 4 per cent. These figures highlight the need to overcome barriers hindering mass adoption.
The perception that upper-income households predominantly purchase EVs as secondary vehicles can’t be overstated. This can be attributed to the high upfront cost of EVs. Currently, EVs are sold at a premium compared to internal combustion vehicles, with two-wheelers and four-wheelers carrying a price tag of 20 per cent and 50 per cent higher, respectively.
This price differential has limited the accessibility of EVs to a larger segment of the population. To address this issue, EV manufacturers are actively working on reducing production costs through technological advancements, economies of scale, and government incentives.
By driving down the costs, EVs can become more competitively priced, appealing to a wider consumer base.
Another significant challenge that impedes the mass adoption of EVs in India is the inadequate density of charging infrastructure. Currently, India has approximately 2,000 public charging stations to support the six lakh electric vehicles on the road today.
This scarcity of charging stations hampers the ease of EV usage and adds to a range anxiety concerns. To overcome this hurdle, concerted efforts are required to establish a nationwide robust and widespread charging network.
Public-private partnerships, government initiatives, and collaborations between EV manufacturers and charging infrastructure providers can help rapidly expand the charging infrastructure, ensuring convenient and hassle-free charging experiences for EV owners.
Range anxiety, the fear of running out of battery power during a journey, has been a significant concern among potential EV buyers. To alleviate this anxiety and encourage EVs to be considered as primary vehicles, efforts are underway to extend the range of EVs.
Improving battery technology is a key step towards achieving this goal. Manufacturers and researchers are investing in advancements that enhance battery efficiency, allowing EVs to cover greater distances on a single charge.
Additionally, the development of fast-charging infrastructure plays a vital role in boosting confidence in EVs. By strategically establishing charging stations along major routes and in urban centres, EV owners can easily access charging facilities, eliminating concerns about range limitations.
Another challenge hindering the mass adoption of EVs in India is the limited availability of skilled technicians and service centres specialising in EV repairs and maintenance. Recognising the importance of building a competent workforce, initiatives are being implemented to bridge the skill gap.
Training programs are being designed to equip technicians with the knowledge and expertise required to handle the unique aspects of EV technology. Collaborative efforts involving educational institutions, industry players, and government agencies are essential in developing comprehensive training modules covering various EV servicing aspects, including battery management and diagnostics.
By fostering a skilled workforce, the EV sector can ensure that EV owners have access to reliable and efficient repair and maintenance services, ultimately boosting consumer confidence in the long-term viability of EVs.
Recognising the need for collective action, the EV sector has started lobbying and engaging in collaborative efforts to overcome the challenges hindering mass adoption. Industry associations, such as the Society of Manufacturers of Electric Vehicles (SMEV) and the Confederation of Indian Industry (CII), actively work with government bodies to advocate for supportive policies, address regulatory issues, and promote technological advancements.
These collaborations aim to create a conducive environment for the EV sector to thrive and grow.
Despite the existing challenges, the future of the EV market in India appears promising. The Economic Survey 2023 projects a remarkable compound annual growth rate (CAGR) of 49 per cent for India’s domestic electric vehicle market between 2022 and 2030, with an estimated 10 million annual EV sales by 2030.
The anticipated growth of the EV market in India not only holds the potential to create approximately 50 million direct and indirect jobs by 2030 but also has the impetus to tackle the challenges hindering the democratization of the EV sector head-on.
Anmol Bohre, Co-founder and managing director of Enigma EV
A rapid surge in digital transformation has reshaped the lending landscape, making it more convenient and unrestricted than ever before
The actor will further advocate for the importance of choosing environmentally friendly alternatives to single use plastics
It is time to go back to the fundamentals, which means an increased focus on profitability
