Electronic Vehicles - Powering India's tomorrow into a Cleaner, Greener & Faster Future.

The global automotive industry is at the cusp of a paradigm shift from internal combustion engine vehicles to zero-emission vehicles. This is primarily due to the stringent regulatory interventions by governments in response to increasing greenhouse gas emissions and depleting air quality worldwide.

India, too, is actively exploring cost-effective and viable solutions to address poor air quality in several of its cities. India, which meets more than 80% of its oil demand through imports is also focusing on reducing its excessive dependence on oil imports.

The country has set a goal of a significant shift to an all-electric public fleet by 2030, necessitating attention and action by players across sectors including automobiles, power and utilities, and oil and gas.

Stats of Electronic Vehicles in India.

• Number of EVs:?As of August 2023, there are a total of 13,92,265 EVs registered in India. This includes both two-wheelers and four-wheelers.
• Growth rate:?The EV market in India is growing rapidly. In 2021, the sales of EVs grew by 168% compared to the previous year.
• Market share:?Two-wheelers account for the majority of the EV market in India, with a market share of over 90%. Four-wheelers account for the remaining 10% of the market.
• Top states:?The top states for EV sales in India are Uttar Pradesh, Karnataka, and Maharashtra.
• Government incentives:?The Indian government is offering a number of incentives to promote the adoption of EVs. These incentives include tax breaks, subsidies, and interest-free loans.
• Challenges:?The main challenges to the adoption of EVs in India are the high cost of EVs, the lack of charging infrastructure, and the range anxiety of EV owners.

key drivers of the growth of the EV market in India

• Government incentives: The government of India has announced a number of incentives for EV buyers, including tax breaks, subsidies, and interest-free loans. These incentives have made EVs more affordable for consumers.
• Rising fuel prices: The rising prices of petrol and diesel have made EVs a more attractive option for consumers. EVs are cheaper to run than petrol or diesel vehicles.
• Increasing awareness of environmental benefits: There is a growing awareness among consumers about the environmental benefits of EVs. EVs produce zero emissions, which help to reduce air pollution.
• Technological advancements: There have been significant technological advancements in EVs in recent years. These advancements have made EVs more efficient and reliable.

NITI Aayog Projections Towards 30% Electric Vehicle Penetration Target?

Electric Vehicle Projections as Per NITI Aayog Mandate of Achieving 30% EV Penetration By 2030 The transactional market size in 2019 was $807 Mn, of which 97% of total EV transactions were in three-wheeler segment 70% of all EVs in 2030 are expected to be commercial fleet and passenger vehicles.

EV In India: The Consumer Side

4W Electric Vehicles in India: The Consumer Side of the Story - Range of Electric Vehicles in India the Most Popular Topic of Discussion

Distance travelled on a single charge and availability of charging infrastructure will determine the fate of EV adoption in India.

• Sustainability of electric four-wheeler was an important factor for Indian consumers with 45% sentiment score.
• 36% positive sentiment towards instant torque, indicate speed is a decisive factor in influencing decision making.
• 8 years warranty announced by TATA on its Nexon EV received 61% positive sentiment.

Environment Friendly: Key Driver for Electric 4W Adoption in India?

4W Electric Vehicles in India: Brand Comparison

Brand Equity of Tata Nexon EV Outpaces Others in Terms of Performance and Value Creation?

Morris Garages Bags High Score on Features but Lacks Behind Its Peers in The Context of Range

Price sensitivity and brand value play a vital role in the context of EVs as well, Tata Nexon has higher brand equity score in terms of range despite having the lowest distance coverage among the three.

2W Electric Vehicles in India?

Cost Of Electric 2W Is the Most Popular Topic of Discussion Among Indian Consumers?

Battery Replacement Cost: Key Driver for Electric 2W Adoption in India

Affordability Of Electric 2W: Key Concern for Middle Class?

• 66% of the Indian consumers believe adoption of EV two wheeler will reduce fossil fuel usage
• 83% of the Indian consumers have shown negative sentiments towards slow charging.
• 45% positive sentiment expressed towards electric two wheelers with a larger traveling range.

2W Electric Vehicles in India: Brand Comparison

Brand Value Shaping Customer Perception for Electric 2W?

Okinawa Perceived with Superior Features While TVS Spearheading the Range Factor

Software application enablement and lower charging time can act as a crucial element for EV two-wheeler startups in order to counter the brand value and trust associated with established motorcycle brands of the country.

Factors Driving India’s Electric Vehicle Market

• Reduced Lithium-Ion Battery Prices?
• Climate Change?
• India Is World’s Third Largest CO2 Emitter in Absolute Terms?
• India Has the Lowest CO2 Emission Per Capita Among the BRICS Nations
• Scarcity Of Fossil Fuels?
• India was the third largest oil consumer in the world in 2018.

Electric Vehicles: How Is India Buying?

While the government is pushing the rapid adoption of electric vehicles and incentivizing industries through its policies and subsidies, the sales are still sluggish compared to other markets in the world. This is because of a gap in how consumers perceive electric vehicles compared to their conventional counterparts.

Major factors behind slow penetration of electric vehicles:

• A high price, which is around 2-2.5 times more than a comparable conventional vehicle.
• Range per charge
• To offer a higher range, a higher battery capacity is needed in the vehicle which leads to an increase in the vehicle’s price and increases the price gap.

On the other hand, lack of awareness on the advantages of electric vehicles is a deterrent.

• Electric vehicles offer a significant advantage on operating cost (running cost plus maintenance cost) which could be as low as one-fourth of that of a conventional vehicle.
• In comparison to personal vehicles, commercial vehicles such as taxis, buses and three-wheelers run 4-5 times longer distances every day. Therefore, for such high-mileage vehicles, savings on operating cost will pay back the initial high purchase price much faster compared to low mileage vehicles.

Conclusion

The electric vehicle (EV) market in India is growing rapidly, driven by government incentives and the increasing awareness of the environmental benefits of EVs. The government of India has set a target of 30% of all new vehicles sold in India to be electric by 2030.

To achieve this target, the government has announced a number of incentives for EV buyers, including tax breaks, subsidies, and interest-free loans.

There are a number of challenges that need to be addressed in order to accelerate the growth of the EV market in India. These challenges include:

• High cost of EVs: EVs are still more expensive than petrol or diesel vehicles. This is due to the high cost of batteries.
• Lack of charging infrastructure: There is a lack of charging infrastructure in India. This makes it difficult for EV owners to charge their vehicles.
• Range anxiety: Some consumers are concerned about the range of EVs. They worry that they will not be able to travel long distances without having to recharge their vehicles.

Despite these challenges, the EV market in India is expected to grow rapidly in the coming years. The government's incentives and the increasing awareness of the environmental benefits of EVs are likely to drive this growth.

Here are some of the ways to overcome the challenges and accelerate the growth of the EV market in India:

• Reduce the cost of EVs:?The government can provide subsidies to EV manufacturers to reduce the cost of EVs. They can also encourage the use of locally manufactured batteries to reduce the cost of batteries.
• Build a robust charging infrastructure:?The government can build a robust charging infrastructure across the country. This will make it easier for EV owners to charge their vehicles.
• Address range anxiety:?The government can promote the use of long-range EVs. They can also provide incentives for EV owners who install home charging stations.

By addressing these challenges, the government can accelerate the growth of the EV market in India and help to reduce air pollution and improve the environment.

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