Future of Electric Vehicles- Considering the Indian EV Market

For decades, global automakers have been frantically attempting to discover innovative and sustainable alternatives to fossil fuels. The general deterioration of the ecosystem has not been a hidden result of the combustion of fossil fuels across the planet. And today, more than ever, there is a pressing need to transition away from fossil fuels and move toward more environmentally friendly alternatives.

The entire globe has now joined hands and vowed to work toward a carbon-neutral, zero-emission planet. Electric cars would be a critical component in achieving that objective. Countries such as the United Kingdom, France, Norway, and Germany have even passed legislation prohibiting the sale of non-electric vehicles by 2025.

In India, Electric vehicles are the future but dealers find it tough to sell. The worldwide electric vehicle market is expected to expand at a CAGR of 26.8% from 4,093 thousand units in 2021 to 34,756 thousand units by 2030. India has already shown a strong desire to play a key role in this automotive paradigm change.

Furthermore, India has expressed its intention to become the world’s largest Hub for electric vehicles in the future. Electric automobiles are seen as a potential alternative by industry executives.

Electric automobiles have a lot more to offer than just environmental advantages. To name a few, autonomous driving choices, tailored smart assistance solutions, and 5G integrated next-generation technology.

  • autonomous driving choices
  • tailored smart assistance solutions
  • 5G integrated next-generation technology

Electric Vehicles, in comparison to traditional internal combustion engines (ICE Vehicles), have a significantly reduced running cost. Electric cars are 75-80 percent less expensive to operate and maintain on average, which translates to lower maintenance costs. As a result, for many consumers with heavy consumption, this is an essential issue. This is true across form factors since charging a battery is far less expensive than refueling a tank.

Future of Electric Vehicles in India

The future of Electric vehicles in India is bright. In India, environmental pollution has nearly reached critical levels. India is ranked in the top five countries in the Climate Risk Index 2020, indicating that it is vulnerable to climate change.

As a result, it appears that there are no other choices except to adopt e-mobility.

To address environmental concerns, the Indian government has chosen to encourage the use of electric vehicles (EVs) to minimize pollution.

However, according to Castrol’s research, new car buyers would not purchase electric vehicles until 2030 due to a variety of issues.

One of the most important aspects is the Lack of proper EV infrastructure. Regardless of the drawbacks of using and marketing electric vehicles on Indian roads, the total number of EVs on Indian roads is expected to reach almost 100 million by the end of the financial year.

Types of  Electric Cars

Electric cars are one of the most current vehicles that operate on electricity rather than traditional fuels like gasoline, diesel, or compressed natural gas. The batteries in electric automobiles can be recharged and reused. In India, there are three types of electric vehicles that are now available:

  • Hybrid Electric Vehicles (HEVs)
  • Plug-In Hybrid Electric Vehicles (P HEVs) 
  • Battery power Electric vehicle (BEVs) 

What Are Hybrid Electric Vehicles and How Do They Work?

An internal combustion engine and an electric motor that uses energy stored in batteries power hybrid electric cars. A hybrid electric vehicle’s battery cannot be charged by plugging it in. Instead, the battery is charged by the internal combustion engine and regenerative braking. Because of the additional power offered by the electric motor, a smaller engine may be possible.

When the engine is halted, the battery may also power auxiliary loads and decrease engine idle. These elements work together to improve fuel efficiency without compromising performance.

What Are Plug-In Hybrid Electric Cars and How Do They Work?

Batteries power an electric motor, while another fuel, such as gasoline, powers an internal combustion engine in plug-in hybrid electric vehicles (PHEVs). The ICE, a wall outlet, or charging equipment can all be used to charge PHEV batteries, as well as regenerative braking. Usually, the vehicle works on electric power until the battery is nearly exhausted, at which point it converts to an internal combustion engine (ICE).

What is a Battery power Electric vehicle (BEVs)?

A battery electric vehicle (BEV), also known as a pure electric vehicle, only-electric car, or all-electric vehicle, is an electric vehicle (EV) that relies only on chemical energy stored in rechargeable battery packs for propulsion (e.g. hydrogen fuel cell, internal combustion engine, etc.).

Internal combustion engines (ICEs) are replaced with electric motors and motor controllers in BEVs. They have no internal combustion engine, fuel cell, or gasoline tank since they get all of their power from battery packs. 

History of Electric Vehicles 

Electric vehicles (EVs) have a long history dating back to the mid-nineteenth century. Anyos Jedlik devised a new sort of electric motor in 1828.

He built a miniature model vehicle that could be powered by his new motor. Robert Anderson, a Scottish discoverer, discovered a primitive electric vehicle between 1832 and 1839.

Professor Sibrandus Stratingh of Groningen, the Netherlands, and his German colleague Christopher Becker constructed a small-scale electric vehicle powered by non-rechargeable primary cells in 1835.

The vehicular land speed arrived about 1900, even though its origins stretch back to the nineteenth century.

When compared to internal combustion engine vehicles, the speed of electric battery-powered automobiles was first excessively slow. As a result, consumers would be uninterested in electric vehicles.

However, by the twenty-first century, the situation had altered. People began to be concerned about the pollution, harmful gas emissions, and other environmental disasters caused by hydrocarbon-fueled vehicles.

Market Scenario of Electric Vehicles

EVs have been gaining popularity outside of public transportation since 2010. The most startling figure is that over 1.2 million electric vehicles had been delivered globally by September 2016.

The global acceptability of electric vehicles reached a tipping point at this time. The rate of adoption was so rapid that by 2019, almost 4.8 million automobiles had been sold, with 10 million units sold by 2020.

Electric car production is getting increasingly popular, and its market share is anticipated to grow significantly. By 2022, India’s GDP is anticipated to increase by a staggering 25%.

The best aspect is that, in addition to lowering pollution, EVs can reduce oil imports by $60 billion by 2030. Currently, imports account for 82 percent of India’s oil needs.

As a result, it is clear how advantageous it will be for the Indian economy if the import cost is lowered.

The Benefits of Using an EV

The environmental friendliness of EVs is the key reason that makes them the victor in the automobile business. Several other elements, however, are just too essential to be overlooked.

First and foremost, Consider the Environment

Electric automobiles have the potential to significantly reduce air pollution in Indian cities. These automobiles utilize batteries instead of internal combustion engines, which produce no pollutants. These cars also assist to reduce noise pollution by emitting little or no sound.

Operational Costs are Reduced

The use of electric vehicles is projected to save around 75-80 percent on gasoline costs. EVs have 75 percent fewer moving components than regular automobiles, which means they require far less maintenance.

Running Cost of Electric Vehicles/EVs

The considerably lower running costs that electric vehicles promise should be the driving factor behind their appeal in India. With current gasoline prices, this pull is projected to grow much greater. On the Tata Power network, fast charging the Nexon EV costs Rs 112.50 for 15 minutes on the CCS2 charger that suits the SUV, or Rs 18.56 per kWh.

However, you are unlikely to utilize these fast-charging networks in the same manner that you use gas stations. The majority of EV owners will choose the included wall box installation. The Nexon EV needs at least 8 hours to charge.

On the other hand, with petrol prices at Rs 97.86 on May 10, filling the 44-liter fuel tank in the petrol Nexon costs Rs 4,306 with petrol rates at Rs 97.86. And, based on the petrol AMT Nexon’s ARAI efficiency number of 16 km, the range should be 704 km, whereas the Rs 302 you spend recharging the EV would provide you 312 km, according to ARAI data.

This is a conservative estimate, but because these statistics might fluctuate greatly depending on usage patterns, we’ll keep both ARAI estimates for consistency. The Nexon EV costs Rs 0.97/km to run with these figures, which is substantially cheaper than the petrol Nexon’s Rs 6.12/km.

Most owners can anticipate traversing 75,000 km or 15,000 km per year over a five-year period, which is well within the EV’s eight-year battery guarantee period. The Nexon EV should cost Rs 72,750 to run over this period, compared to Rs 4.59 lakh for the petrol Nexon. Even after factoring in a 15% rise in fast charging prices and battery deterioration, the EV only costs Rs 83,663 to run over five years.

Electric vehicle’s market share in India

Market Scenario of Electric Vehicles in India

The Indian Electric Vehicle Market size was valued at 5 billion in 2020 and is anticipated to grow to USD 47 billion by 2026, with a CAGR of over 44% during the forecast period (2021 – 2026).

The COVID-19 epidemic has influenced the Indian electric vehicle market, causing supply chain delays and the closure of production plants as a result of ongoing lockdowns and travel restrictions across the country. However, the electric vehicle (EV) sector in India is still in its infancy. Due to numerous government efforts and policies, it is anticipated to develop significantly throughout the projection period.

Following the adoption of the FAME India plan, which aims to move towards e-mobility in the face of rising international policy commitments and environmental concerns, the EV market in India has gained substantial traction. 

Furthermore, India has the world’s largest untapped market, particularly in the electric two-wheeler category, and because this sector is open to 100 percent foreign direct investment under the automatic route, the market is projected to grow throughout the projection period.

Will Electric Vehicles Become More Popular in India?

According to Google Trends, there has been an increase in interest among the general public for electric automobiles in compared to electric two-wheelers and ICE or petrol/diesel cars in the previous few years.

For a variety of reasons, industry executives believe that electric automobiles are a viable choice for the Indian market.

According to Akhil Aryan, CEO and cofounder of ION Energy, timely adoption, combined with the electrification of existing vehicles and the expansion of charging infrastructure, will create a shift, the effects of which will be felt in metropolitan cities, especially given the fact that pollution levels have reached catastrophic levels.

Furthermore, with the median age of Indians being 27, Zoomcar founder Greg Moran stated that the younger generation is motivated by innovation, sustainability, and environmental protection. Various established conglomerates and startups are assuring indigenous availability of products by producing automobiles, components, and batteries together.

What can the government do to further promote electric Vehicles?

By 2030, the Indian government hopes to have 30 percent of its vehicles run on electricity. Special policy measures such as lowering the GST on electric vehicles to 5% compared to 28 percent for combustion engines INR 1.5 lakh tax exemption on loans to buy electric vehicles INR 10K Cr allocated to FAME II to push electric mobility through standardization

The Union Cabinet has proposed customs duty exemption on certain EV parts in 2019.

To localize the value chain, the cabinet announced a five-year phased manufacturing program (PMP) that would run through 2024. To far, over a dozen states have published or proposed electric car regulations, with Delhi being the most recent.

“We will be pushing for the construction of larger battery plants in the near future. Amitabh Kant, CEO of Niti Aayog, recently stated, “We are open to hearing to new ideas and pushing them, therefore I encourage all founders to push the boundaries.”

More incentives, tax savings, or refunds for all stakeholders in the mix, including manufacturers and consumers, were also mentioned by the industry leaders Inc42 talked with.

  • Facilitating access to capital for both R&D and manufacturing
  • Promoting indigenous technology and capacity
  • Building infrastructure to support shared mobility
  • Offering a permit distribution system for shared micro-mobility services rather than a tendering system to open up the market
  • Promoting mobility-as-a-service using EVs Phasing out ICE vehicles After April 1, 2025, 60 percent of new vehicles sold should be zero-emission vehicles, according to OEMs. This may be implemented gradually, with a goal of 60 percent by 2025.

Even for new brands, end-user financing for EVs is available at interest rates comparable to those for conventional automobiles.

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