India, ranking as the world’s third-largest automobile market in sales, surpassing significant markets like Germany and Japan, faces an “EV adoption barriers.” This accomplishment has prompted manufacturers and policymakers to join forces in promoting a transition towards eco-friendly choices by consumers.
According to the Economic Survey 2023, an annual document of the Finance Ministry, there is a promising forecast for India’s domestic electric vehicle (EV) market. It anticipates a remarkable 49% compound annual growth rate between 2022 and 2030, resulting in 10 million annual EV sales by 2030.
Furthermore, the electric vehicle industry’s expansion is expected to generate approximately 50 million direct and indirect jobs in the coming seven years. This indicates a significant push towards EV adoption, reflecting the nation’s commitment to a greener and more sustainable future.
Statistics show that as of July 19, 2022, India had 13,34,385 electric vehicles and 27,81,69,631 non-electric vehicles. The government has been promoting EV adoption through initiatives like the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme, launched in 2015, to reduce fossil fuel dependency and address vehicular emissions. Currently, Phase II of the FAME India Scheme, with budgetary support of Rs. 10,000 crores, has been implemented since April 1, 2019.
By March 2023, India had more than 2.3 million electric vehicles, with two and three- wheelers being the majority at over 1.1 million vehicles each. The EV market is rapidly changing, and by 2Rapidly is estimated that the entire automobile market in India will be fully electric.
The government’s efforts and incentives have driven EV adoption Barriers across states and union territories, including Maharashtra, Nagar Haveli, Daman & Diu, and Lakshadweep. The widespread acceptance and use of electric vehicles face significant obstacles in various aspects.
Why EV Adoption?
EV adoption is necessary for several reasons; some of them are:
- It brings substantial environmental benefits by producing zero tailpipe emissions, which reduces greenhouse gases, air pollution, and global warming, positively impacting public health by lowering the risk of Respiratory and cardiovascular diseases.
- It contributes to energy diversity by relying on cleaner and more sustainable energy sources, decreasing dependence on oil imports, and enhancing energy security.
- For technological advancements and job creation across various sectors.
- Significant cost savings are due to lower operating costs from cheaper electricity and reduced maintenance requirements.
- It plays a crucial role in easing urban congestion by encouraging shared transportation and compact urban planning, leading to fewer cars on the streets and less need for parking areas.
The vision for innovative and futuristic smart EVs revolves around catering to shorter distances, day trips, and intra-city travel, requiring smaller batteries, faster recharge times, and lower costs.
What are the typical EV Adoption Barriers?
1.Range anxiety
This is the fear of running out of electricity while driving an electric vehicle (EV) is a huge barrier to EV adoption.
Picture this: you’re behind the wheel of an electric vehicle, cruising through the vibrant streets of India, knowing you’re making a difference for the planet. It’s an electrifying feeling, but hold on tight because there’s a twist in this tale. Suddenly your car stops and there is no where to charge close by.
This is a typical imagination of potential users. However, this concern seems to be diminishing among current EV owners due to improvements in battery technology and longer driving ranges.
Earlier models like the Nissan Leaf had limited ranges of around 80 miles (130 km), which could be further reduced by using energy for cabin heating.
Current EV Adoption Barriers:
Presently, long-range EVs like the Tesla Model 3 and Chevrolet Bolt offer estimated ranges of over 200 miles (320 km), exceeding the average daily driving distance for most people, even with potential range reductions considered.
A misconception seems to be prevailing, as surveys indicate that many drivers tend to overestimate their daily driving distance.
The “2020 Deloitte Global Automotive Consumer Study” revealed that even though drivers averaged only 27 miles (45 km) per day, over 60% of respondents desired EVs with minimum ranges of 200 to 400 miles (320 to 640 km). As EV ranges continue to improve, concerns about range anxiety might become less justified.
Notwithstanding the progress, there are still concerns about the limited range of long-distance travel, especially in countries with vast distances like India.
2. Battery Technology
One of the significant issues holding back EV adoption is the batteries they use. These lithium-ion batteries are essential for EVs, but making them requires specific minerals and rare earth elements. India relies heavily on imports for these batteries, causing supply chain challenges.
Another EV Adoption Barriers is Charge. You know how quick it is to fill up a regular car with gas, right? Well, EVs take much longer to charge up, and that’s just not as convenient for people.
Another critical aspect affecting EV adoption barriers is the gradual degradation of EV batteries over time, resulting in reduced driving range and range anxiety among potential buyers. This means they can’t go as far on a single charge, giving people range anxiety. No one would want to get stranded on the road with a dead battery.
However, the situation holds promise due to continuous advancements in battery technology and the ongoing expansion of charging infrastructure.
In India, the charging infrastructure for electric vehicles is in its initial phases of development and is primarily focused on major urban centers. For all the excitement EVs bring, the current charging infrastructure is limited, which is challenging for EV owners, particularly those residing in apartments or lacking designated parking areas.
In the FAME stage, the government intends to boost electric vehicle manufacturing infrastructure. Currently, there are over 65,000 gas stations and just 1,640 EV charging stations. Petroleum companies plan to create 22,000 EV charging stations by 2024, while China already has around 900,000.
Inadequate charging infrastructure hinders progress, requiring increased investments to establish a reliable, extensive network and ease range anxiety for EVs. This involves installing charging stations in public areas like shopping centers, car parks, and major roads.
While there are investments in India to improve the situation, there is still a considerable distance before eliminating range anxiety.
Unlike conventional fuel vehicles, which can refuel quickly on long trips, electric vehicle drivers must research charging stations and allocate time for recharging, complicating their journeys.
4.Initial Cost
The relatively higher initial cost of electric vehicles (EVs) compared to traditional vehicles hinders their spread, primarily due to the expensive battery technology used in EVs. Potential buyers see EVs as less affordable, limiting demand and viewing them as luxury items rather than practical choices.
The significant price gap creates EV adoption barriers, despite various long-term cost-saving benefits associated with ownership. Despite incentives and rebates, many consumers are deterred by the initial high price of EVs.
Educational and awareness campaigns in EV Adoption Barriers
Crucial in overcoming the EV adoption challenge due to public misunderstanding, campaigns dispel misconceptions and provide vital EV information.
Emphasizing EV cost savings, like lower maintenance and nighttime charging rates, convinces consumers to transition to electric vehicles.
Support and time are crucial for mainstream consumers to understand and appreciate the changes and benefits of EVs in personal transportation. Vehicle dealers, in particular, play a crucial role in educating potential buyers and steering them toward electric vehicles.
In conclusion, there is growing optimism that the situation will significantly improve. This optimism arises from the continuous advancements in battery technology, which has enhanced production efficiency.
Decreasing battery prices make electric vehicles more affordable, approaching a turning point where they match or surpass internal combustion engine vehicles’ cost.
This development will enhance EV appeal, speed up adoption in India, and contribute to a cleaner, sustainable transportation ecosystem.
What, then, is the way forward to promote the adoption of EVs?
The Way Forward for India to promote the adoption of EVs includes the following steps:
1. Reduce the initial cost of owning an EV by offering subsidies, tax incentives, and financing options for consumers and manufacturers.
2. Implement government incentives and policies to make EVs more attractive and accessible.
3. Foster innovation, competition, and collaboration among OEMs, start-ups, and other stakeholders to increase the variety of available EV models.
4. Support domestic manufacturing of EVs and their components through incentives and favorable policies.