Growth of Electric Vehicles in India

Electric vehicles (EVs) are becoming an increasingly important part of the automotive landscape. They have gained significant attention in recent years due to their potential to reduce dependence on fossil fuels. India is no exception to this trend and has set ambitious targets for the adoption of EVs. The Indian government has set a target of achieving 30% electric mobility by 2030. To achieve this goal, the government has announced a number of measures such as the National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme. These policies aim to provide incentives for the manufacture and purchase of electric vehicles, as well as the development of charging infrastructure.

The FAME scheme, launched in 2015, provides incentives for the purchase of electric two-wheelers, three-wheelers, four-wheelers and development of charging infrastructure. The second phase of the scheme, FAME-II, launched in 2019, focuses on the development of electric buses and three-wheelers, and charging infrastructure.

In addition to government efforts, the private sector has also shown significant interest in the EV market in India. Several domestic and international automakers have announced plans to launch electric vehicles in the Indian market. For example, Tata Motors, Mahindra & Mahindra, and Ashok Leyland have announced plans to launch electric buses, while Maruti Suzuki, the country’s largest car manufacturer, has announced plans to launch an electric car by 2025.

The e-mobility sector in India requires availability of Electric Vehicles (EVs) on the supply side and adoption trends on the demand side. But, despite the progress and efforts made by both the government and the private sector, the adoption of EVs in India still faces several challenges. One of the major challenges is the lack of charging infrastructure which is a key prerequisite that will enable and facilitate adoption. EVs carry limited on-board energy in the battery packs which need charging from time-to-time depending upon the battery pack, size, and capacity. Charging systems are therefore essential for sustainable operation of EVs. While the government has announced plans to set up charging stations across the country, the current infrastructure is still limited and not well-distributed. Also, High operating cost, uncertainty of power supply by discoms, possible utilization rates of charging stations are barriers to expansion. Thus, charging infrastructure is both the backbone of e-mobility  and also  a key barrier. This lack of infrastructure makes it difficult for consumers to consider opting for electric vehicles.

Another challenge is the high cost of EVs compared to their internal combustion engine (ICE) counterparts. This is due to a multitude of factors such as the high cost of batteries and the lack of economies of scale in the EV market. However, with the increasing demand for EVs and the development of new technologies, it is expected that the cost of EVs will decrease in the future.

Moreover, the lack of awareness and understanding of EVs among consumers also poses a significant challenge. Many consumers are not familiar with the benefits of EVs and how they differ from traditional vehicles, which makes it difficult for them to make informed decisions about purchasing an EV.Like we all know, batteries are the most common, convenient and adaptable form of storing energy. The potential for storage in battery systems can increase the penetration of renewable energy sources. Batteries have been used traditionally for many small-scale applications. Batteries can be classified into primary and secondary types. There are various types of batteries like Lead Acid, Lithium-Ion (Li-ion), Lithium-Ion-Polymer (Li-ion polymer), Lithium Ferro Phosphate, Reusable Alkaline batteries. But there has been a string shift to Lithim based batteries. EV batteries have a complex supply chain with three main parts: cell manufacturing, module manufacturing, and pack assembly.

In conclusion, with the Government’s push for EVs and ambitious targets for the adoption of EVs which are visible with the slew of supporting policies to achieve this goal. The demand shift in the market has propelled many manufacturers to make substantial investments and show significant interest to develop EVs and its associated infrastructure. However, the adoption of EVs in India still faces several challenges such as the lack of charging infrastructure, high cost of EVs, and lack of awareness among consumers. It is important that these challenges are addressed in order to achieve the government’s goal of 30% electric mobility by 2030.

Saurally is one of leading manufacturers of Electric Vehicle Batteries and provides design services for EV manufacturers in India and Europe. Please contact us for more information.



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