India aims to be a global leader in electric vehicles, and several steps have already been taken in that direction. Electric vehicle demand has risen in recent years, encouraging many automakers to shift their focus to EVs. Given the potential, several automakers have expressed interest in delivering electric vehicles in India. Along with conventional manufacturers, several startups have emerged to develop a solid ecosystem for EVs in India.
With the rising carbon emissions and fuel prices, customers are also convinced about the benefits of EVs. The penetration of electric vehicles is low when it comes to passenger vehicles. But the two-wheeler and three-wheeler segments have seen a massive rise in terms of these vehicles. This year, many automobile firms in India released electric automobiles.
But what is preventing automakers from launching electric vehicles in India? Market giants such as Tesla and Hyundai have declared that they are keen to launch electric cars in India, but high import duties are their key issue. They have previously written to the government to request that import duties be reduced to boost India’s electric vehicle ecosystem. But is that only the concern?
In this blog, we’ll talk about the opportunities and challenges of electric vehicles in India.
1. Lack of ecosystem.
In comparison to ICE vehicles, the ecosystem necessary for electric vehicles is relatively weak. We have petrol pumps every 3-4 kilometers, but no EV charging stations. When traveling from point A to point B, customers are frequently concerned about battery drain. The country will also need to invest heavily to create a stable ecosystem in which EVs can thrive. Furthermore, available charging stations are concentrated in urban regions, making it difficult for EVs to expand.
2. Consumer perception
Even while demand for electric vehicles has increased, there is still a negative view of them. Customers have been using internal combustion engines (ICE) for a long time, and a complete move to electric vehicles is still a long way off. Customers are concerned about the distance, charging infrastructure, price disparity, and security assurance. Customers will need some time to adjust to this.
India should welcome EV manufacturers worldwide, as it will help the domestic players understand the challenges and how to overcome them.
3. High price
One of the reasons people are hesitant to buy electric vehicles in India is the price gap between electric vehicles and ICE vehicles. Electric vehicles are way more expensive than conventional fuel-powered cars. For example, the Tata Nexon is priced at 7-8 lakhs in India, whereas the Tata Nexon EV is priced at 14 lakhs.
Electric cars are expensive because of the cutting-edge technology, rechargeable lithium-ion batteries, and other car parts. Even when the fuel prices are rising, the cost of electric cars is comparably more than ICE vehicles.
4. Lithium-ion batteries.
Lithium-ion batteries are the primary energy source of EVs. The country doesn’t produce lithium-ion batteries, which is why they rely on the import of EV batteries which have increased the prices of EVs. Because of this unbalanced global concentration, India is forced to import massive amounts of lithium batteries. This is one of the primary reasons India does not produce lithium-ion cells and batteries on a large scale.
