The Future belongs to Electric Vehicles
Like most businesses, the automobile industry was also struck by the pandemic-related curbs, unfortunately it was hit harder than most. Since the beginning of Covid, vehicle sales in the country have dropped drastically across all segments. The electric mobility market, which had just recently begun to take up and was experiencing a steady increase in sales, has also succumbed to the virus. The car industry had only recently begun to recover from the first wave of coronavirus when the second, more deadly wave came early this year, exacerbating the manufacturers’ woes.
However, once things return to normal, which should happen shortly, electric mobility is set to soar. India’s market potential is second only to China’s, with a population of over 1.3 billion people. The world’s most populous country holds the largest share of the electric vehicle market, accounting for more than 30% of global EV sales. India’s EV sector, too, has a promising future. One of the reasons for this is that the average Indian consumer prefers a car that is cost-effective and budget friendly, and EVs fit perfectly in this category.
The government, following the ratification of the Paris Climate Agreement, through various policies such as the National Electric Mobility Mission Plan 2020 and the FAME-II (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) scheme, envisions an electric-only future for automobiles by 2030.
Furthermore, with battery prices dropping since 2010, electric vehicles are predicted to become almost as affordable as fuel vehicles in the near future. India, as a nation, stands to benefit tremendously from widespread adoption of e-mobility.Manufacturing of e-vehicles and their related components is anticipated to enhance the percentage of manufacturing in the country’s GDP to 25% by 2022 under the ‘Make-In-India’ initiative.On the economic front, widespread adoption of EVs is expected to save $60 billion in oil imports by 2030 — presently, imports account for 82% of India’s oil demand. Electricity as a fuel might drop to as low as Rs 1.1/km, saving an electric car owner up to Rs 20,000 for every 5,000 kilometres driven. Finally, electrification will aid in the reduction of automotive emissions, which are a major contributor to air pollution and generate an annual GDP loss of around 3%.
The recent increase in electric car sales across the country indicates that personal electric vehicles are becoming more popular day by day. The global EV market is expected to grow at a CAGR of 26.8% from 4,093 thousand units in 2021 to 34,756 thousand units by 2030. EVs with fast-charging batteries and high driving range are without a doubt the way of the future.
To make the transition to an electric future easier in India, the government has implemented special policy measures such as lowering the GST on electric vehicles to 5%, compared to 28 percent for combustion engines, and providing loan forgiveness for electric vehicle purchases. Additionally, the Union cabinet has proposed a customs duty exemption on certain EV parts, such as the electric drive assembly, on-board charger, e-compressor, and a charging gun, to cut costs. So far, over a dozen states have adopted or proposed policies on EVs, with Delhi being the most recent.
The Ministry of Power has already launched the National E-Mobility initiative which includes the Mahindra e-Verito sedan and the Tata Tigor EV, taking the country one step closer to its ambition of electric mobility. Electric Vehicle manufacturers quickly looking at ways to offer a larger range and expanding their market share swiftly. The National E-mobility Programme of India intends to boost the whole e-mobility ecosystem, which encompasses electric vehicle manufacturers, charging infrastructure developers, fleet operators, and service providers, among others. The government has stated that it’s researching charging infrastructure and legislative framework in order to achieve a target of 30% of vehicles as electric vehicles in India.
The “Go Electric” Campaign launched by Nitin Gadkari, Union Minister for Road Transport and Highways, and R. K. Singh, Union Minister of State (IC) for Power and New & Renewable Energy, raises awareness about the benefits of e-mobility, EV Charging Infrastructure, and electric cooking in India. This campaign is an initiative aimed to reduce our country’s reliance on imports in the coming years, as well as a significant step toward a cleaner, greener future.
India’s delivery ecosystem is also one that’s witnessing plenty changes towards the electric transition. Previously it was dominated by trucks hauling large and small commodities to various destinations. Then came bikes, vans, and other smaller forms of transportation, which revolutionised the delivery system. These advancements, together with rising demand, have propelled the sector to new heights. Inevitably, this has resulted in a higher carbon footprint, which has a severe impact on the environment and people’s overall health. Furthermore, air pollution is visible in heavily populated cities like as Delhi, Bangalore, and Mumbai.
With the advent of e-commerce, particularly grocery and food delivery services, there are several last-mile delivery enterprises that run entirely on electric vehicles. They have taken it upon themselves to make a difference and contribute towards making India pollution-free.
As the demand for delivery services grows, so does the need for more run-time. As electric vehicles take over the delivery system, they must retain their speed. The battery charging procedure for an EV can take a couple of hours, which might be problematic if delivery personnel are constantly waiting for a charge to complete.As a result, several last-mile delivery businesses have put up battery swapping stations to speed up the process. Delivery employees may replace a drained battery with a fully charged one within a few minutes using these battery swapping stations. As word of their efficiency spreads, these battery swapping stations are gaining popularity. It’s a solution that’s being widely adopted by automakers to give their consumers a quick and simple way to charge their EV charging needs.
All in all, considering the EV industry’s burgeoning awareness, cost-effective solutions, and convenience, it’s safe to conclude that the future of EVs in India appears positively electric.
Raj Mehta
Founder and Managing Director, Raj Electromotives Pvt. Ltd. and Greta Electric Scooters
