- GOI, 30% of vehicles to go electric by 2030
- Lack of charging infrastructure, cost of buying, and lack of awareness are some of the major challenges for electric vehicles in India
- Challenges can be tackled with the joint efforts of individuals, government, and companies
With the sudden boom of electric vehicles in India, the country has made a major advancement in the shift to alternate mobility. With the ever-increasing pollution levels in India and mobility being the major contributor, it’s high time for the government and individuals to switch over to green mobility and tackle the major challenges for electric vehicles in India.
Switch over to EVs will benefit the nation in different ways as it will reduce the dependency on oil imports, indigenous component manufacture will increase the GDP, and several others. As 87% of India’s automotive fuel is imported from other countries.
READ MORE : Future of electric vehicles in India
Lack of awareness towards the benefits of electric vehicles, poor charging infrastructure, and uneven electricity distribution in the nation seems to be a major challenge for the electric vehicles industry in India.
Current scenario of electric vehicles in India
With the alarming levels of rising pollution and the prices of fossil fuels, India has lately started shifting to alternate ways of mobility. This interest could be observed with the rise in the sales of electric vehicles during the lockdown due to the global pandemic in India.
GOI offered 1120 Cr to TATA Motors Ltd for manufacturing 10,000 electric cars in order to mitigate the pollution problems in the capital and certain other metros.
The recent launch of EV giant Tesla, marked a new era in the EV industry in India.
The Indian Government has taken on an ambitious goal of making 30% of vehicles in India electric by 2030. The switch to electric vehicles in India is happening at a rapid pace aiding the better future of electric vehicles in India.
With the launch of FAME II ( Faster Adoption and Manufacture of Electric Vehicles) and National Electric Mobility Mission policies government aims to increase the number of electric vehicles in India and advancements in EV technology.
By 2023 the government wants all 3-wheelers to run on batteries, by 2025 this rule is expected to expand to most 2-wheelers. With the increased focus of the government towards green mobility in India, it can be expected that the EV sector will continue to flourish in India in some remarkable direction.
Major challenges for the electric vehicles in India
Despite the promotion of electric vehicles by the government and the interest of the public, the electric vehicle sector faces some major challenges in the Indian economy. Some of the major challenges for the electric vehicles industry in India are:
- The initial cost of owning
- Lack of choice of EVs
- Lack of Awareness
- Uneven electricity distribution
- Charging time
- Lack of EV charging infrastructure
- Service center and repair options
- Range Anxiety in consumers
- Lack of Lithium reserves for battery manufacture
- Cost of battery
Problems faced by electric vehicle sector in India
Initial cost of owning
Due to the higher cost of EV technology, the price tag of electric vehicles in India can be a big turn-off. The cost of owning a traditional ICE (internal combustion engine) car is around 5-6 Lakhs but the minimum cost of electric cars in India is around 10 lacs, which too high for the Indian middle-class majority.
The 2x price of electric cars in the Indian economy can be a major challenge for EV companies to tackle. As per reports, the increase in price is due to the import of a lot of parts and components in electric vehicles, which is a major challenge for electric vehicles in India.
Lack of choice of EVs
With the current scenario, there are not many electric car models to choose from in India. The recent launches are from ICE (internal combustion engine) automobile manufacturers who are testing out some initial technologies.
Major advancements in EV technologies are from EV startups that are yet to be launched in the Indian market. This lack of choice creates a set mindset of limitation in the buyers and a big challenge for the industry.
Lack of Awareness
Lack of awareness in Indian consumers of the advantages of electric vehicles is a major challenge for EV companies. The potential savings is ignored and the main focus on the initial cost of owning and EV battery price in India.
Awareness drives for advantages of EVs and large-scale adoption is of prime need now.
Uneven electricity distribution
The country is not yet 100% electrified, meaning there are places yet to get an electricity connection. Still, there are places in India that miss electricity connection and a major portion of electrified villages face power fluctuations. This uneven electricity distribution will cause a major issue for the deployment of electric vehicles in India.
Charging time
The wait time to charge an electric vehicle can be a major hurdle for EV companies to tackle. Not all vehicles launched to date are equipped with flash charge technology. The major mobility segment is the public transport, which will hate a wait time during travel for a recharge.
Not all charging stations have a proper fast charger, compared to the number of charging stations is already low.
Lack of EV Charging Infrastructure
A major challenge for the EV industry in India is the lack of adequate charging infrastructure in India. Apart from few metros, there are really fewer charging stations which makes it very difficult for daily commuters to switch over EVs.
Despite the recent policy of the Indian government for the installation of charging stations across major highways, very few can be seen until today. It makes driving and traveling far from the city by an EV almost impossible. Makes the major reason for challenges for EV in India.
Tap this opportunity to install EV Charging station
No dedicated EV charging provisions in malls and office spaces make it hard for the daily urban commute. Along with that charging can put very uneven pressure on the electricity generation, which is already being produced through non-renewable sources.
Service center and repair options
With little knowledge of electric vehicle systems in repair technicians in India, it is really hard to find a trained person for the repair and maintenance of EVs. Having a very high technology in the vehicle it is almost impossible and risky to repair in local service centers.
With the increase in the number of vehicles and system awareness in repair mechanics, the service and repair process can be expected to be hassle-free.
Range anxiety in consumers
Indian consumers have a set mentality of range anxiety towards electric vehicles, due to poor EV charging infrastructure in India. The lack of electric vehicles with good 300+ km range models, available models have a range of 150-200 km range within the city creates a major challenge for EV adoption in the country.
This poor range of EVs in India turns off Indian consumers as it is next to impossible to plan long trips with the available models of electric vehicles in India.
Lack of Lithium reserves for battery manufacture
Owing to its fast charging ability and high performance, the use of lithium-ion batteries in modern electric vehicles is growing. The indigenous development of lithium-ion batteries for use in Indian 2-wheelers and 3-wheelers has led to recent studies and development in the EV field.
India doesn’t produce any lithium-ion batteries to be used in EVs as we don’t have many Lithium reserves in India.
This will create a great demand for the import of lithium-ion batteries, increasing the overall cost of the electric vehicle in India.
Cost of battery
The unavailability of lithium reserves in India and the need to import it from other countries makes the cost of buying electric vehicle batteries very high. The average cost of electric car battery in India is around 2.1 Lakhs.
The need to replace batteries after 3-4 years, makes it really costly to own an EV in India at this time.
Ecogears take on challenges for electric vehicles in India
The EV sector has picked up the right pace in India and around the world but the owners and industry itself have to face some major challenges for its widespread adoption. The efforts of the government cannot be overlooked for the promotion of electric vehicles in India.
Many state governments in line with the central union have launch several EV Policies and initiatives to tackle the challenges ahead in the shift from ICE Vehicles to sustainable green mobility in India.
These hurdles and challenges for EV growth in India can be tackled with the joint efforts of government and Automobile giants for bringing a major shift in mobility in India.
Key challenges for EV growth in India are charging time, battery cost, initial cost of owning, poor infrastructure.
Electric vehicles are bringing a major shift to sustainable mobility in India, with the growth in sales of electric vehicles by 30 per cent post lockdown and global pandemic. Latest trend on EVs in India is the use of Lithium-Ion batteries in the modern electric vehicles.
With the adoption of electric vehicles the import of oil and fossil fuel will be reduced, hence lowering the import cost of almost 70 Billion. Tesla is launched in India, sales are expected to start soon.
India is the fourth largest automobile manufacturer in the world, has a tremendous user base and scope if people switch to electric vehicles.
India observed tremendous growth in the sales of electric vehicles (40%) post covid, as people began to realize the importance of a cleaner environment.
Currently, most of the electric vehicle components are imported from other countries in India, it makes the electric vehicles costly in India. The battery itself costs around 40% of the vehicle cost
The government of India is very very positive towards the rise of electric vehicles in India. GOI plans to replace 40% of commercial vehicles and 30% of personal vehicles with electric cars by 2030.
It seems setting up EV charging station is a good business idea looking at post covid situation in India. Government have to come forward for setting up more EV charging stations through small and midsize business houses with facility of Bank loan etc. So that more unemployed personal having space can set up EV charging station locally. Am interested to set up a EV charging station.
Hello Manoj Halder,
Glad to know about yout interest in electric vehicle charging station. Please check your email for detailed guide for starting an electric vehicle charging station in India
Hello sir, I’m also interested to setup EV charging station in my city. Kindly please share related information over mail. Thank you
Hello,
Mr Akash Ghagare
Kindly mail us your city details over email support@ecogears.in
We will surely give you all the details regarding electric vehicle charging stations in India.
Kindly check your mail for the details
I am interested to set up a EV charging station. Kindly share details of the project, investment, ROE etc
Hello,
Glad to know about your interest in electric vehicles Mr. Jyotirmoy
Kindly check your email for all the details regarding electric vehicle charging station startup in India.
hello
I am interested in putting up an EV charging station for high-end cars.
land location in Valsad, Gujarat.
Owns a restaurant, with ample parking space.
Hello,
Sameer Suratwala
We will surely give you all the details regarding electric vehicle charging stations in India.
Kindly check your mail for the details
Your blog post was a valuable read. I liked how you supported your arguments with relevant data and statistics. To delve deeper into this topic
Thankyou Ankit Khatri for you valuable feed on challenges for electric vehicles in India.