Challenges of EV revolution: How to bring it on a larger scale

Judging by the number of electric vehicles (EVs) launched during the recent AutoExpo 2023, it is evident that the segment is poised to imminently dislodge fossil-fuel-powered cars, trucks, and even two-wheelers from their privileged place on Indian roadways. 

As the union government’s initiatives, incentives, and policies, targeted at boosting the electric vehicle industry, gain momentum, the target of at least 30 per cent electric vehicle penetration by 2030 seems achievable for the world’s fastest-growing economy. These schemes and initiatives create demand incentives for EVs and urge the deployment of charging technologies in parts of the country. 

Data shows that around 90 per cent of car owners in India are willing to switch to EVs. And with every passing year, the numbers of people looking forward to shifting from fossil-fuel run vehicles to EV are rising. It is not just the individual users; cab-hailing services also increase their EV usage. At first blush, the perceived costs of EVs might seem higher, attributable to significant capital expenditure (capex) costs required for their manufacture. However, in the long run, EVs offer users comparatively lower operating prices, thereby enticing users with their affordability. In fact, because of their affordability, individual daily commuters also prefer EV cab-hailing services. And with growing awareness of eco-friendly vehicles, people opt for EV options whenever possible. 

However, the planet’s health and affordability remain relevant if proper infrastructure supports users’ demand for electric vehicles. Even though India is just in the nascent phase for EVs, it still has laid policies and organized special initiatives to support the highly potential EV market. In a written reply in the Rajya Sabha, Union Minister for Road Transport and Highways, Nitin Gadkari, said there are 5151 EV charging stations in India. This lack of charging infrastructure and a need for proper wiring or earthing cables for EVs is a significant hindrance to the EV revolution.  

The revolution also faces the hurdle of the high capital expenditure costs required for EV manufacturing. The costs associated with building EVs can be substantial, from acquiring materials for battery production to building charging infrastructure. As a result, EVs often come with a higher price tag than their fossil fuel counterparts. 

Additionally, coal has underpinned the expansion of electricity generation in India. This dependency on coal creates a hurdle for lithium energy sources, which until recently, were primarily imported from China and Hong Kong. Lithium-ion batteries power electric vehicles, wind turbines, and solar panels. Therefore, this dependency significantly impacts not only the EV revolution but also the sustainable goals of India. 

Nonetheless, decoding these hurdles as mere bottlenecks before a broader, more prospective road ahead, the stakeholders have taken various actions to ramp up the EV revolution. Regarding EV charging infrastructure, Counterpoint Research states India is likely to have 10,000 public charging stations built nationwide, by 2025. The Government of India’s goal to achieve net zero emissions by 2070 was announced by our honorable Prime Minister, Shri Narendra Modi, at the COP26 summit in Glasgow. In tandem with this, the government has also announced various tax breaks and subsidies and implemented a National Electric Mobility Mission Plan to accelerate EV growth in India. Backed by this support, more and more automobile companies are developing and promoting new technologies to make electric vehicles more dependable and cost-effective. 

The most recent breakthrough to tackle the challenges of the EV revolution was the discovery of lithium reserves in Reasi, Jammu & Kashmir. Being the first of their kind to be discovered in India, these reserves will lead to India surpassing China in its availability of lithium, increasing demand and drastically reducing the battery costs for EV users. 

It is said that a revolution is usually borne out of constraints. Despite the challenges posed by inadequate infrastructure, high capex costs and other constraints, the electric vehicle (EV) revolution continues to evolve. As more and more companies are entering the EV market, be it to provide cabs or electric commuting services to employees, economies of scale are also driving down the cost of production. The increasing awareness of the environmental impact of fossil fuels is motivating individuals and businesses alike to embrace EVs, contribute to sustainable efforts, and leave a greener imprint. With a little push by, provided by government aid and a conscious effort to improve the EV infrastructure, the EV revolution will accelerate towards electrified future paths.

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