Is India Ready For Electric Vehicles?

Electric vehicles need one or more motors and use electricity for propelling the vehicle. It uses a battery to store electric energy. The battery can be recharged through charging stations or electric ports built for the purpose. EVs are the need of the hour with the high levels of toxins in the air due to emissions from conventional petrol or diesel engines. Climate change has made it imperative that we Indians do our part in reducing the carbon footprints that we are constantly creating. India is not new to the technology of EVs we have been successfully and indigenously manufacturing and using as electric locomotives. All our long-distance trains, metro trains and monorails in the metropolitan cities have been using electricity to run the network successfully.

There are many benefits of using EVs first and foremost is the positive impact it will have on the environment of our country. Not only are the EVs low maintenance (the engines require far fewer components than the conventional combustion engines), but also cheaper to use. The electricity cost to charge an EV works to almost a third of buying petrol for the same vehicle. Batteries of the electric car are warranted by most manufacturers for almost 8 years!

Despite the known advantages of EVs there is a dearth of knowledge for several stakeholders; most importantly the end-users i.e. the consumers. The Indian automobile industry and the ministry of transportation needs to create awareness regarding the benefits of using EVs, the technology used to manufacture and efficiently use them, the infrastructure requirements of vehicles, etc.

Even as the benefits of EVs are far-reaching and cost-effective in the long run, the present circumstances do not present a conducive atmosphere in India. To run the whole transportation of the Indian sub-continent on electric energy we need sufficient electricity-generating resources. This creates the main crux of the problem. India doesn’t have enough hydroelectric power plants to supply clean emission less energy. Most of our electricity is generated from thermal power plants that use coal to create energy. Thus, we will not be reducing the pollutants in the already toxic environment but adding to it. The several hundred homes that are yet without electric power, the several power cuts experienced in all the urban areas are proof that our electricity generation capacity is not sufficient. Even though we plan to further burden it by using electricity as the source to fuel millions of two-wheelers and three-wheelers besides cars, trucks, public utility vehicles, and even public buses.  

India lacks significant infrastructure and the necessary technology to support EV manufacture. The basic and most important component such as high-density batteries remains a key challenge.  The NITI Aayog wants to invest in building 50-60 GWh of battery capacity by 2025. To achieve this an investment of $40 billion would be required. The lithium-ion battery needs raw materials that are in short supply globally making them expensive also these batteries do not support long-distance travel. Besides these challenges, we also lack a robust supply ecosystem of charging stations leading us to depend heavily on batteries imported from China and other countries. Used, spent electric batteries are harmful and toxic for the environment. There are companies working toward a solution for safer and less harmful disposal, but for the time being there is no recyclable solution.

The GOI initiated the FAME scheme to enable the growth of the E-mobility. The scheme (already in its phase II stage) has failed to create the momentum required as it plans to convert all two and three-wheelers into electric vehicles by 2023. There are start-ups that are designing and testing products to suit the Indian markets. Several studies have shown that there is an increased need for last-mile deliveries with huge mass transportation needs that can be filled by E- rickshaws; yet the lack of private parking space and charging infrastructure hinders the transition to EVs. The 1.3 billion people with unique transportation and commuting requirements make the transition to EVs formidable task. The average cost of manufacturing a conventional car is 5 Lakhs as compared to the 13 Lakh for an EV. Under the current circumstances, EVs are costing 2.5 times more than ICE engines. Therefore, several incentives under FAME have resulted in a lukewarm response from the industry as well as consumers.  The Ola initiative, in Nagpur, to go electric has also witnessed a hurdle as the Ola drivers returned the electric cars and switching to petrol/diesel vehicles citing high operating expenses and long waiting periods at charging stations. The slow pickup, low speeds and insufficient charging stations in the local vicinity added to their woes.

Several Indian car manufacturers have already launched their vehicles in the market with Mahindra and Tata motors emerging as leaders. Hyundai, MG, Toyota, etc have options available for the consumers but the lack of awareness, infrastructure confusion about the after-sales services, trained technicians, service stations etc is causing the lacuna in boosting the sales of EVs in India.

Global players like Tesla, BMW, Toyota, Mercedes Benz who have been waiting to launch into the Indian markets have expressed concern over the high (almost 100%) import duties. Tesla’s interest in setting up a battery manufacturing plant in India should be encouraged if we want to be ground ready for the efficient and smoother transition to EVs. Small steps by the GOI like the 7% reduction in the GST of EVs, free registration and tax benefits for the manufacturing of batteries and technology can lead to generating the demand in the market.

Yes, electric mobility is the future and India needs to get there sooner rather than later. However, the transition from fossil fuel-powered mobility to electric mobility has to be a smoother, more informative and more structured approach. All stakeholders (GOI, OEMs, OES, State Governments, etc.) need to work in unison around a plan and a practical framework to transition well into electric mobility.