The Indian Electric Vehicle Ecosystem’s Massive Potential And Asset Management

India is one of the Asian countries with the highest rate of electric vehicle adoption. Currently, the country’s goal is for electric vehicles to account for 30% of all road vehicles by 2030. 

This isn’t simply a step towards a cleaner future. It addresses one of the country’s most pressing problems: POLLUTION! 

India is one of the world’s most polluting countries, and through cutting tailpipe emissions on the roadways, it seeks to address this issue.

In developing countries like India, the adoption of electric vehicles is significantly slower than in developed countries. People are less inclined to invest in electric alternatives if they have less income and supporting infrastructure. 

However, with the government’s push and the public’s willingness to address pollution and climate change, the situation has offered the government and businesses opportunities to develop innovative solutions that fit the country’s unique demands and circumstances. 

This would also serve as a model for other Asian urbanizing economies and pave the way for increased EV adoption across the continent.

The Fundamentals of Electric Vehicles

An electric car, also known as a plug-in electric vehicle, is a vehicle that operates on electricity and can travel between 88 and 100 miles on a single charge. 

When the battery is drained, charging takes anything from 30 minutes to 4-5 hours, depending on whether the power supply is rapid, fast, or sluggish (level 1).

Electric vehicles (EVs) acquire their power from the electric grid, which is then stored in the battery. The advantages of electric vehicles are that they emit fewer pollutants and are more efficient. 

The movement of the body consumes 95% of the energy. The remaining 5% is consumed for heat and noise, compared to 30% in a normal automobile.

EV charging will be as simple as plugging into an energy outlet at a specialized public charger or standard residential wall connection. 

We can utilize our electronic equipment through the same socket. Lower running costs are another significant advantage. A single tank of fuel would be more expensive than a full battery charge.

Currently, the disadvantage of electric vehicles is that they are more expensive than traditional vehicles. People are still hesitant to switch over due to a lack of infrastructure for public fast-charging outlets. The lack of supply makes the situation even more challenging.

However, with EV demand still in its early stages, optimism is high, as potential synergy among three key clean energy technologies: renewables, commercial energy storage, and using electric vehicles as mobile power storage, will greatly reduce the need to build expensive stationary renewable energy grids.

The Indian Electric Vehicle Development Narrative

Closer to home, India is rapidly shifting toward electric vehicles due to the government’s commitment to a sustainable future. 

India sold 3.80 lacs electric vehicles in 2019-20, up from 56000 electric vehicles, including two-wheelers, three-wheelers, and cars, sold in 2017-18. Buyer demand is high and expanding.

With rising oil prices and a sinking rupee against the dollar, the focus of most conversations today is reducing reliance on oil as a fuel and reducing pollution. 

India is a signatory to the Paris Agreement on Climate Change, as we all know.

India has pledged to cut carbon emissions by 33 to 35 percent compared to 2005 levels. To meet its target, India has boosted its installed renewable energy capacity to 89 GW, a 226 percent increase in the last five years. 

Its goal is to achieve 450 GW by 2030. To maintain this synergy, India is naturally heading toward renewable energy-powered vehicles. India appears to be on pace, based on the number of EV start-ups that have made headlines.

The Difficulties Of Making The Switch To Electric Vehicles

As cities grow, so does the number of automobiles on the road, increasing roadside pollution. In India, this has become a major public health issue. 

In 2017, pollution overexposure was accountable for roughly 1.2 million deaths.

According to a report, 90% of car owners in India are eager to switch to electric vehicles to address this issue. 

The same survey also highlighted the importance of government actions to encourage the adoption of electric vehicles, such as infrastructure development, and financial incentives such as subsidies and lower road taxes.

India’s 2030 objective is ambitious, given that electric vehicles now account for barely 1% of all road vehicles. 

The high initial cost of electric vehicles is one of the most significant barriers to their acceptance, not only in India but around the world. 

To reduce reliance on imports and stimulate domestic production, India has imposed hefty import tariffs on electric vehicles, making it nearly impossible for international manufacturers to break into and lure the Indian market.

Furthermore, the absence of charging stations is a major deterrent, with drivers frequently worrying about EV mileage and reliability.

Imaginative possibilities

Regardless of how formidable these impediments appear, they present an opportunity for developing innovative technical solutions to address India’s unique circumstances. 

Various companies are taking steps to address the growing pains of the country’s electrification of mobility.

Few of the most important electric vehicle setups have lately made news

  • According to a recent poll by Omnicom Media Group and Cardekho.com, approximately 66% of customers would consider purchasing electric vehicles if infrastructure such as public electric charging stations were available.
  • In Tamil Nadu, Ola is constructing the world’s largest electric two-wheeler manufacturing facility. They expect to generate ten million vehicles per year. SoftBank, Temasek, and Tiger Global, among others, are said to be in talks with them.
  • In India, e-rickshaws account for 80% of all-electric vehicles. Battery Smart, a Delhi-based electric mobility start-up, offers e-rickshaw owners a two-minute lithium-ion battery replacement service. Because battery charging takes 8-10 hours and buying new batteries is expensive, this service solution is viable for e-rickshaw owners. They have received undisclosed seed money from Orios Venture Partners, India’s largest VC firm and angel investor Faad Network.
  • Triton EV is preparing to launch an electric vehicle (EV) in Karnataka, India’s southernmost state. This simultaneously happened after Tesla, the world’s largest electric vehicle manufacturer, established an R&D center in Bangalore’s tech hub before expanding into EV manufacturing in India.
  • Maruti, Tata, and Hyundai are among the established automotive behemoths already scaling up EV production.
  • Reliance Industries, India’s largest firm, plans to manufacture batteries for electric vehicles. This product is critical to the development of a clean and environmentally friendly energy source. EVs will also be used as a source of home batteries in the future. Solar panels may generate energy both during the day and at night, which can be stored in these storage batteries. When the EV is not in use, it serves as a source of power for the drawing-room.
  • Blivive, a Goa-based EV-based tourist platform, has received an initial investment of 40 million INR from Mumbai Angels Network, an entertainment firm. In the coming year, the funds will be used to expand the market in 10 new areas.

Overview of the Market

The Indian Electric Vehicle Market was worth USD 5 billion in 2020, and it is predicted to grow to USD 47 billion by 2026, with a CAGR of more than 44% over the forecast period (2021-2026).

The COVID-19 epidemic has influenced the Indian electric vehicle market, causing supply chain disruptions and the closure of manufacturing units due to ongoing lockdowns and travel restrictions across the country. 

In India, however, the electric vehicle (EV) sector is still in its infancy. Several government programs and policies are predicted to expand at a considerably quicker rate during the forecast period.

E-commerce corporations (like Amazon) are launching projects to use e-Mobility for last-mile delivery in order to reduce their carbon impact.

India is experimenting with e-Mobility for public transportation, and electric intercity buses have been deployed in several major cities. 

Furthermore, state governments are actively involved in implementing legislation that encourages the use of electric vehicles. As an example,

  • Kerala wants to have one million electric vehicles on the road by 2022 and 6,000 electric buses in service by 2025.
  • Telangana wants to attain EV sales objectives of 80 percent two- and three-wheelers (motorcycles, scooters, auto-rickshaws), 70 percent commercial automobiles (ride-hailing businesses like Ola and Uber), 40 percent buses, 30 percent private cars, and 15% electrification of all vehicles by 2025.

Following the launch of the FAME India plan, which aims to transition toward e-mobility in the light of expanding international policy commitments and environmental difficulties, the EV market in India has gained substantial traction. 

Furthermore, India has the world’s largest untapped market, particularly for electric two-wheelers. 

The automatic route market is likely to gain traction throughout the forecast period since 100 percent foreign direct investment is permitted in this sector.

Takeaway

India’s substantial electrical aspirations have created and promoted a wide spectrum of technology innovation and problem-solving opportunities. 

Because of the country’s unique transportation culture and environment, this electrification process is considerably different from that of the West, with two- and three-wheelers and shared mobility taking the lead rather than private vehicles. 

It has paved the way for establishing an ecosystem of collaboration between businesses, entrepreneurs, and the government to support and facilitate electrification. 

With these business models, other Asian countries in comparable situations could follow suit, demonstrating the EV industry’s potential.

Leave a Reply

Your email address will not be published. Required fields are marked *