Indian Electric Vehicle Conundrum: A Tale of Opportunities amid Uncertainties

Suhas Rajkumar Nov 02, 2020

It is appallingly obvious that technology is paving ways for buzz in the market full of creative and innovative products, services, and new opportunities. As technological developments are growing rapidly, it is booming the market with the electric vehicles industry which is expected to revolutionize the future.

Critical Paradigms in the Adoption of EVs

According to a report by Avendus Capital, the electric vehicles (EV) market in India is likely to be worth Rs 50,000 crores by the year 2025, encompassing two and three-wheelers which are further expected to drive a rise in electrification of the vehicles in the medium term in the wake of COVID-19. In the case of low and medium-speed electric two-wheeled vehicles, the total cost of ownership (TCO) is already lower than that of the internal combustion engine vehicles - stated by the report. It also states that with the current and intended level of electric vehicle penetration in the country, India is expected to have 9% penetration by 2024-25 in the two-wheeler segment. If the country flows with the correct macroeconomic environment, the figure can further grow up to 16% and while the segment could raise to Rs 12,000 crores by 2024-25.

The prospects of the electrified future are buzzing as the element is growing swiftly on a global scale. However, while most of the consumers, businesses, and governments across the globe are dynamically pushing a shift for e-mobility, the acquisition rates of EV in many countries, incorporating India, delineates a grim picture. It highlights the fact that in the economy of the year 2019-20, overall electric vehicles sale in India accounted for as less as a fraction of 1% of the total sale of conventional vehicles. When we take a deeper look at the segment-wise sales, figures state that the public transport vehicles such as E-rickshaws accords with 13% of the yearly three-wheeler sales. This brings light to the critical paradigms and barriers in the adoption of the EV ecosystem in India.

Challenges Facing the Adoption of EV in India

Many factors are acting as a roadblock in the rapid adoption of EVs in India. This includes non-sufficient charging infrastructure, dependency on incentives for manufacturing, higher cost of the battery and reliance on imports, high cost of the EVs currently, an insufficient supply of electricity in many parts of the country, lack of quality repair options, lack of superior quality maintenance, dependency on imports for components and parts, deficiency of options for high-performance electric vehicles and influence of broader automobile industry downturn.

Besides these challenges, making a shift to e-mobility will breathe worthy change to the future as EVs are strongly connected with environmental benefits. EVs will provide willing businesses with numerous opportunities to develop and stay at the forefront of the industry. Some of the key points can be viewed as:

Battery Scrapping

Electric vehicles are expected to penetrate the market in huge numbers by the year 2030. The battery life for a well-taken care two-wheeler with a lithium battery is estimated to be around a thousand charge cycles. Given the fact, usage of these batteries will require to get them replaced within two to five years. However, while you decide to change your batteries, your previous batteries can be utilized to compose power banks that can make use of disused batteries and where energy is stored for various purposes. It retains the capacity to bring out maximum advantages such as it can be used for power sources like wind and solar, and once the batteries lose their complete charge, they can be recycled to obtain metals like copper, steel, or aluminum.

Last Mile Connectivity

In the coming time, electric vehicles will become much more affordable. At the time, it will be sensible to use electric two-wheelers for the last mile connectivity. These vehicles will inherit the potential to get operated in a particular area as they could be geo-fenced. This will assure that the vehicles are not getting misused and also that they don't run out of range.

Charge and Chill Stations

EVs consume a huge amount of time to get charged. With the current scenario, the charging technology, even with the most superior ones, takes up to 50 minutes to deliver a full charge. This is a lot of time which can be spent by doing ample of things. This is what crops up with the concept of Charge and Chill stations. This brings light to the fact that charging stations are not required to be allocated as fuel stations any longer and that charging stations can be composed along with cafes, movie halls, or even malls which can allow people to chill as well as use the charging facility.

Summing it up:

It is highly recommended to make a shift to electric vehicles as they will be beneficial to clear the atmosphere and will also prevent us from exploiting the resources of our planet. By the beginning of the next decade, we will encounter millions of electric vehicles on our roads.