The future of electric vehicle in India: opportunity and challenged
Is this going to change this automotive business forever? Probably not, though. It would appear that cars driven by internal combustion engines (ICEs) are nearing the end of their useful life. Even if it doesn’t go out of business overnight, it will need to change in order to continue producing electric vehicles.
In an EV car in India, it aspires to become a worldwide center. Over the past five years, the penetration of BEVs has skyrocketed, thanks to the tireless efforts of several electric vehicle start-ups and major automakers.
According to a 66.52% CAGR, the Indian EV market will reach USD 113.99 billion by 2029 from USD 3.21 billion in 2022.
EV sales reached one million units in 2022, a record 206% YoY rise. Low-speed electric three-wheelers accounted for 30% and electric two-wheelers 63%. High-speed electric three- and four-wheelers have 2% and 4% proportions.
Indian EV sales rose 41% to 109,000 in April 2023 from 77,000 the year before.
Opportunity of electric vehicle in India
#1. Start-up EV Fleets
Entrepreneurs may start EV fleets for eco-friendly transportation. Electric urban transport is developing, and this potential promotes sustainable transportation.
Opportunity: Offer mobility services via e-rickshaws, e-cabs, e-bikes, and e-scooters.
Benefits: Reduced operating costs, improved customer satisfaction, and government incentives.
#2. EV Leasing
EV leasing solves potential consumers’ concerns by enabling flexible and affordable electric car access. Entrepreneurs might enter this industry by offering reasonable and convenient leasing.
Opportunity: Consider renting or leasing electric vehicles to reduce initial expenditures and range anxiety.
Benefits: Promote EV circular economy through reuse and recycling.
#3. Charging Stations Public
Entrepreneurs might invest in public charging stations to meet the charging infrastructure demand. This potential promotes EV adoption and generates money from charging services and associated offerings.
Opportunities: Provide standard or rapid charging stations for EV owners.
Benefits: Fees, advertising, and value-added services generate revenue.
#4. Battery swapping stations:
Fast and efficient battery changing stations change charging. Entrepreneurs in this field improve EV charging infrastructure while providing a convenient service.
Opportunity: Provide rapid battery replacement to reduce charging time and expenses.
Benefits: The BaaS concept reduces battery ownership expenses.
Electric car issues in India
Challenges of electric vehicles in India
In India, the eco-friendly ecosystem for vehicles is rapidly evolving. On the other hand, there are difficulties specific to the most significant change in the mobility pattern. Presented below are a few of the challenges faced by EV cars in India, along with potential solutions:
- Standardization Deficit
The electric vehicle (EV) charging and battery business will see rapid growth because of a number of laws introduced by both the federal and state governments between 2014 and 2023. But for any industry to advance more efficiently, some standards must still be in place.
EV charging rates are monopolized due to a lack of standards. After reviewing state-specific EV prices given to Charging Point Operators in state EV regulations, the GOI should determine national or state-specific
EV charging rates.
The battery swapping sector in India is struggling to flourish due to the lack of standardization in electric vehicle battery technology. The objectives outlined in India’s Battery Swapping Policy, which was introduced in April 2022, necessitate a prompt resolution.
As CPOs eagerly await the government’s final standard operating procedures (SOPs), the charging industry’s lack of complete standardization has slowed the construction of charging infrastructure.
- Insufficient Charging Infrastructure
The primary barrier to the expansion of EV cars in India is the slow construction of EV charging infrastructure. Our poll of Indian consumers showed that the lack of a reliable EV charging infrastructure was their top issue when considering an EV in the country.
Nearly 1,586 DC charging stations, mostly in metropolitan regions, are operational as of June 2023. This data is insufficient to back India’s expanding electric vehicle industry.
It will take heavy investment and close cooperation between the public and commercial sectors and charger makers to fix the charging infrastructure problem.
4. Expensive Starting Price
Electric vehicle (EV) components and battery imports make the starting price of an EV car in India more than that of an ICE car. The increased cost of electric vehicles is a significant challenge to overcome for a cost-conscious nation like ours.
But, as domestic production of EVs and associated components increases,
prices fall, bringing EVs within the affordability range of more Indian consumers.
5. Delay in Grid Improvements
The existing electrical infrastructure is ill-equipped to manage the surge in power requirements caused by both public and residential electric vehicle charging stations.
Additionally, the current technique of generating power through coal combustion renders the advantage of EV adoption meaningless due to the substantial carbon emissions it produces.
6. Minimal EV R&D.
As electric vehicle technology is still in its infancy in India, research and development efforts are modest. Most electric vehicle parts and batteries are imported, which means they include technology that has been evaluated and certified in the place of manufacturing.
This technology might not be suitable for India. This is the cause of the fires in electric vehicles in 2022.
Thorough research, development, and testing have to be requirements for the release of any product, including electric car batteries.
7. Poor Workforce and Training
India’s workforce is not sufficiently skilled to deal with the expanding electric vehicle sector. Due to the novelty of the technology, fixing an electric vehicle in India is no easy feat. Setting electric vehicles is not a specialty of many service shops in India.
Institutions of higher learning should support programs that teach students how to make batteries, assemble vehicles, and install, maintain, and repair charging infrastructure.
Also Read: Electric Vehicles in India: The Green Revolution of 2023
Wrapping It Up
Electric vehicle projects in India are progressing as planned due to rising consumer awareness, falling pricing, technological improvements, partnerships between the government and EV businessmen, and other factors. Many environmental and social advantages, including improved air quality, new employment opportunities, increased energy production, safety, and GDP development, are associated with India’s shift to electric vehicles.Â
The electric vehicle market in India stands to expand substantially in the future years, provided that all these elements align beautifully.
If you are passionate about making a positive impact worldwide, think about becoming a part of our sustainable brands network.
Also Read: Are electric vehicles truly eco-friendly?
Prachi, an accomplished Chief-Editor at The Sustainable Brands Journal, has 15+ years of experience in Europe, the Middle East, and India, managing 90+ global sustainable brands. She’s a prolific writer in sustainability, contributing to various publications. Prachi’s unwavering passion and expertise make her a recognized authority, driving positive change and inspiring a sustainable future.
