We will start this article by understanding what is an electric vehicle. A vehicle that runs on electricity instead of an internal combustion engine and generates power by burning a mixture of fuel and gases. Electric vehicles have simple mechanism and structure made up of simple parts, are easy to use, emits zero carbon, and requires less maintenance. They are being considered the Future of Indian Mobility.
They are being considered as a replacement for the current vehicles which will help in addressing challenges of rising pollution, global warming, diminishing natural resources, and others.
In recent times, the carbon footprints are increasing, and the amount of nonrenewable resources is depleting day by day as a result of which we need to find an alternative.
Electric Vehicles: Boon to Automotive Industry
Out of the 10 most polluted cities in the world, India has 6 of them. We are the most populous country in the world due to which a lot of pollution is being caused. The vehicles that are being used on Indian roads operate on some or other kind of fossil fuels. This is increasing the dependency on the import of crude oil which has gone up to 86%. We have only 15% of fossil fuels and the rest is imported which means a lot of money is being used in this sector and an alternative must be found.
Heat emissions are increasing on a daily basis, climate change is a great concern, and the impact of the latest technology and machines industries is creating havoc on the climate.
All the above-mentioned conditions require an alternative for which electric vehicles are the best solution. EV is a boon in any way and is the best solution for all the above-mentioned problems.
The Future of Indian Mobility in India
Many people believe that we are ready to adopt electric vehicles on a mass basis but there is a majority of people who believe that we are not yet ready for mass adoption and a lot needs to be done from the ground level.
People in India are price-conscious and want the best product for their price.
In the case of an electric vehicle, different factors need to be focused on such as the cost of an electric vehicle, charging infrastructure, swapping of batteries schemes, and policies related to them, and many others which will build the confidence of an Indian consumer and make it easier for them to adopt electric vehicles.
Market Share of Electric Vehicles in India
As the fourth-largest automobile industry in the world, we are expected to become the third-largest by 2030. We are trying to make electric vehicles the Future of Indian Mobility. We are the most populous country in the world right now and with an increasing population, the demand for automobiles also increases which means reliance on conventional energy supplies is no longer an option and needs an alternative. According to a report by NITI Aayog, they expect to reach 70% of EV market penetration in terms of all commercial vehicles, 30% in the private vehicle sector, 40% in buses, and 80% in three-wheelers.
State Wise Distribution
In the year 2021, the Indian electric vehicle market was worth 1434.04 million US dollars and is expected to grow up to 15,397.19 million US dollars by the year 2027 with a CAGR of 47.09%.
If you talk about state-wise sales, then in the year 2021, Uttar Pradesh accounted for 66,704 units sold across different categories of EV which were followed by Karnataka and Tamil Nadu with 33,302 and 30,036 units respectively.
Uttar Pradesh dominated the three-wheeler category whereas Karnataka and Maharashtra were dominant in the two-wheeler and four-wheeler segments respectively.
Bottlenecks in the transition to electric vehicles
There are different problems and hindrances that stand on the route to making EVs the Future of Indian Mobility which are –
- Improper Charging Infrastructure– The most important thing for an electric vehicle is its charging. It is required from time to time. We are lacking behind in terms of proper charging infrastructure. A normal electric vehicle can run up to 300 km on one charge. Distance also depends upon the size of the battery and its capacity. This means that it will require charging from time to time at proper intervals. For this, charging stations need to be present at regular distances which are lacking right now. We can see that a gas station is present every 4 to 5 km across the country but only 300 charging stations are available throughout the country which is very less compared to the number of electric vehicles present in our country.
- Cost of an Electric Vehicle– The cost of electric vehicles is approximately 2 to 2.5 times higher than a conventional internal combustion engine vehicle. This makes it difficult for common people to buy them. The government is providing different kinds of subsidies and incentives. This makes it easier for manufacturers and consumers to adopt electric vehicles. Our country has price sensitive market and transitions to e-vehicles will only be possible if it is inexpensive.
Areas of Improvement
- Lack of Skilled Workforce– India is facing a shortage of skilled workforce in the electric vehicle sector. This sector is a completely new undertaking and the logistics that are being used are new for our workforce. We need to train our workers so that they can be useful and helpful.
- Limited Technology– We are facing a technology crisis in terms of electric vehicles. Other countries like China, Russia, and Germany have very advanced technology in terms of electric vehicle manufacturing and development. Due to the lack of technology, we are importing and investing a lot. Our manufacturers and scientists are working along with other countries to develop and learn the latest technology. This step will curb many important charges and costs.
Conclusion
The market potential for electric vehicles is immense in our country. We just need the right policies, technology, and proper utilization of all the resources. This particular segment can be easily tapped and maximum benefits can be achieved. We have taken several initiatives and steps to promote the growth of electric vehicles. With the right push, the production of electric vehicles can be leveled up to meet the current demand. The need for proper charging infrastructure and stable power supply in grid stability will increase in the coming times. This means a lot of business opportunities will be there. Many existing players as well as new startups are coming up in this segment. They have already dissipated the growth and demand.
