Buzz buzz go vroom vroom

People are promised an environmentally guilt-free mode of transport with electric vehicles (EVs). They're quieter and have developed greater travel ranges over the past couple of years. However, concerns about EV range have now been replaced by issues with the availability & visibility of functioning chargers. The depreciating value and loss of battery life are dampening the hype, pushing nearly 51% of Indian EV owners to consider an internal combustion engine (ICE) car as their next purchase. Can design thinking intervene to address this systemic issue?

We know that top EV players such as Lucid and Rivian have begun losing market share rapidly in the US, with Tesla even offering substantial discounts across their product line and providing affordable financing incentives. This is clearly a response to the shrinking EV market. While the lowered prices are favourable for new customers, existing EV owners are also discovering that EVs can be costly due to the absence of standardized evaluations and tests. Seeing the resale value of your car plummet overnight is not a pleasant experience. Additionally, the difficulty in repairing EVs drives up insurance costs.

Some view cars as investments, as they are among the biggest assets an individual can own, second only to a house. One of the biggest threats to the used EV market is the rapid pace of technological advancements. Car companies frequently release new trim models every 6-12 months with various upgrades. The engine is the most comparable component between ICE cars and EVs. While we know we can drive a 15-year-old Toyota without issues, the foundational technology in EVs evolves quickly. No one would buy a used EV with significantly reduced capacity compared to a new model fresh off the production line.

It's similar to smartphones—the newer model is so advanced that it makes more sense to replace the old one.

The sheer weight of EVs causes faster wear on brakes and tires, leading to increased pollution and expenses. Despite significant efforts to extend battery range, the challenge of recycling heavy metal-laden batteries remains. Germany's Trumpf is working on innovative laser solutions that break down the constituents of used batteries, bringing us closer to industrial-scale battery recycling. These lasers can help automate various manual processes, enabling a greater scale of operation. If EV companies want demand to increase, they need to figure out battery recycling on a much larger scale—especially if they aim to "save the planet" from another type of pollution.

In India, the government has extended the Electric Mobility Promotion Scheme (EMPS) by an additional two months, with an increased budget from Rs. 500 crore to Rs. 778 crore. This scheme aims to promote the adoption of electric two-wheelers and four-wheelers, supporting the growth of the overall EV manufacturing ecosystem. Before EMPS, we had the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, which ended in March 2024 and subsidized 1.365 million two-wheelers over three years. However, EV sales declined after the program ended. A long-term solution for the electric mobility ecosystem in India is still needed.

The data is available for us to draw insights from. Even though EVs may be facing a downturn currently, they still hold a promising future. Both EV and power companies need to leverage design thinking to build a robust EV ecosystem. Design and systems thinking can bridge the gap between different EV stakeholders, leading to a more cohesive system that supports the needs of both customers and the planet. Simply installing chargers, lowering prices, and recycling batteries won't be enough. Design thinking can help identify non-obvious problems that may not seem urgent to the EV industry, leading to a more significant return on EV investments than we can currently imagine.