Paving The Way For Emobility: Challenges Ahead Of India’s Mass EV Adoption

India is keeping pace with the world as it transitions to electric vehicle adoption. However, the transition to zero-transmission mobility is not without its share of challenges, and India is no different. This article examines the obstacles to EV adoption in India. But first, we’ll look at what’s driving this adoption and the need for speed.

Why Should India Accelerate The Spread Of EVs?

From an environmental point of view, India cannot switch to battery-powered mobility fast enough. Given our roadway network and the number of vehicles on the road, carbon emissions from these vehicles have a significant impact on climate change and environmental consequences.

Air pollution in India is at an all-time high, posing a serious health risk. According to the World Air Quality Report for 2021, 35 of the 50 cities with the worst air quality are in India. None of our cities met the World Health Organization’s 5 ug/m3 air quality standard.

As a result, there is an urgent need to reduce emissions in any way possible, and switching to EVs is one step in the right direction.

India’s Roadmap To Increased EV Adoption

In its commitment to making India a zero-emissions nation, the government has introduced and strengthened incentive schemes to encourage EV production, infrastructure development, and purchase.

The government intends to convert 70% of commercial cars, 30% of private vehicles, 40% of buses, and 80% of 2-Wheelers and 3-Wheelers to battery-powered mobility. These efforts include schemes such as FAME I and FAME II, the Production Linked Incentive programme, and the Scrappage Policy to incentivise EV makers. All of these are designed to assist India in achieving its 2030 EV target.

At the state level, at least 20 states have released or are working on their EV policies. Many people have also linked the switch to EVs, with all the investments and financial benefits that go along with it, to the economy’s recovery after the pandemic.

What Are The Challenges Facing The Uptake Of Electric Vehicles In India?

Electric vehicle production and adoption are experiencing healthy growth in the Indian market. Between 2021 and 2030, the market is expected to grow at a CAGR of 90%.

However, many challenges must be overcome before electric vehicles become as common on Indian roads as ICEs. Some of the hurdles include:

Financing

EV production is currently heavily reliant on imports. India must boost domestic production to achieve robust results. The government is already taking steps in this direction by taxing imported vehicles in order to stimulate domestic EV production.

One significant component of this is getting the auto ancillary segment to transform operations to cater to the needs of the EV industry. Steps are needed to encourage and stimulate this transition.

Boosting EV production requires significant investment. Niti Aayog estimates that an investment of INR 19.7 Lakh Cr is needed before 2030 to meet its EV goals. The issue lies with sourcing the fund. 

It is challenging to obtain financing for EVs from financial institutions because of the risks associated with EV business models. Access to credit will be critical for EV projects to take off. The same applies to infrastructure builders and buyers, considering EVs are more expensive than ICEs.

Charging Infrastructure

ICE users can bank on refuelling their cars in any part of the country, thanks to the maturity of the fueling infrastructure. EVs need their batteries charged, which demands a very different infrastructure.

At home, charging is one issue that needs to be addressed as traditional construction did not factor in this requirement, but the bigger challenge comes when one is out on the road. 

Once on the road, the challenge is two-fold. One is finding a charging station. Given the lack of charger standardisation, the second challenge lies in finding a station that supports the vehicle’s charging.

For EVs to be widely adopted, the government must find ways to speed up the installation of charging infrastructure across the country. While this may present financial opportunities for investors, the onus lies with the government to spur the investments.

The FAME I initiative has sanctioned 520 charging stations. FAME II added another 2,877 stations, but there is still a long way to go before we cover the entire country. EVs may need to consider alternatives that could help mitigate this bottleneck.

Awareness

No matter how beneficial a product is, no one will buy it if the consumer is not educated about it. Electric vehicles might be a high-charged buzzword today, but there is little awareness of it among the audience.

There are many myths surrounding the purchase of EVs and how they work. Additionally, there is a lack of awareness among the public about the government’s EV policies, which prevents people from taking advantage. Whether it’s government incentive schemes or products, both need a boost in awareness.

There should be a concerted effort to educate and make people aware of the benefits of electric vehicles and the assistance available to purchase them. The launch of E-Amrit is a step in the right direction. It’s a collaboration with the United Kingdom government that serves as a one-stop-shop for EV information. However, there is still much work to be done.

Electric vehicles are unquestionably the way of the future. Their adoption is the first step toward a cleaner, healthier India. As a result, an all-out effort is required to give this the necessary push.

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Update | 4th July, 10:00 AM

The story has been updated to rectify the exact amount needed before 2030 to meet India’s EV goals.