Why is India lagging in electric vehicle adoption?
In a recent interview, Elon Musk said that the demand is not the problem in the EV industry but the actual problem is to meet the demand with sufficient production. According to Musk, last year's chip shortage gave Tesla an advantage. In other words, the company learned to build cars with fewer chips, eliminate the use of auxiliary chips, and use chips for different purposes. Tesla's next goal is to use batteries for various purposes such as to increase autonomy with power storage. The electric vehicle ecosystem is one of the world's most promising long-term investment goals for any investor. Investors are looking for diversification opportunities amid slower growth in India.
Findings of ‘Accelerating Transport Electrification in India by 2030’ by JMK Research
According to a recent statement from the Ministry of Roads and Transport, the adoption of electric vehicles in the country tripled last year. But according to a recent study named ‘Accelerating Transport Electrification in India by 2030’ by JMK Research suggests that EV policy goals and incentives in all states should be aligned with national forecasts and incentives for electric vehicle sales. NITI Aayog has set clear targets for E2W, E3W, and E4W, but so far only a few states/union states have set targets on similar routes. Some states such as Maharashtra, Chandigarh, Punjab, Karnataka, and UTs have separate targets for each vehicle segment but the rest are yet to align the targets as per the vehicle segment.
With the increasing popularity of EVs, many states and UTs have implemented EV policies in the past three to four years. Recently Ladakh EV policy was launched to accelerate the adoption of EVs in the UT. However, some policies are still in the preparation stage, but state and national forecasts tell a very different story from reality. National EV sales forecasts are available in percent and absolute terms, but the absolute targets are not the same for every state. According to JMK Research, there is an anomaly. This is either a percentage of new vehicle registrations or a statewide total.
Factors behind the slow adoption rate of Electric Vehciles in India
Lack of EV fleets in Public Transport
We all know that shared mobility in particular the state bus fleets play an important role in the transition from traditional vehicle to electric mobility. Several states have set themselves the goal of converting part of their bus fleets to electric vehicles within a given year. However, states such as Meghalaya, Tamil Nadu, and Karnataka still do not have conversion rates or strict public transport schedules due to which the adoption rate in these states is very slow. While Meghalaya plans to phase out Meghalaya State Transportation Corporation's traditional buses with green buses, the Tamil Nadu State Transport Authority (STU) aims to convert 5% of its state buses to electric vehicles every year. year. According to JMK Research, this has led to the inconsistency in the transition to electric vehicles that we see every year across the country.
Lack of Charging Infrastructure
The price per kWh for the electric car must take into account the financing of the investments necessary to create the charging points and strengthen the infrastructure of the electricity networks. In addition, over time, the switch from the fleet to all-electric vehicles will require additional electrical energy equivalent to around ten nuclear units. For its use, the electric vehicle must have an appropriate electricity distribution infrastructure. We must therefore invest to create charging points and strengthen the network in newly constructed buildings and apartments. More and more charging stations on the highways will make it easy for an EV driver to plan a long-distance journey with an EV. EV charging stations at petrol pumps will attract people to adopt more and more EVs for their daily commute.
Social acceptability
Assuming that the electric vehicle is less polluting and quieter for cities and contributes to reducing global warming, the question of social acceptability is not raised. And yet….
The massive arrival of electric vehicles in our cities, then on our roads is not a simple evolution of the motor from thermal energy to electric, but a real revolution such as society has experienced during the transformation of carriages into automobiles. Like many consumers already for their homes, the electric vehicle calls into question the energy policy to have "clean" electricity (and not just "green"). The “flying carpet” effect of the clean and quiet electric vehicle is certainly attractive. Are our contemporaries ready not to lose their patience while waiting for “refueling” or their freedom by not having their car recharged? Willing to pay for a more expensive vehicle for cheaper electricity consumption, but for how long? Are you ready to forget the pleasure they get from an engine roaring under a phallic design body and not to fear vehicles that silently lead into traffic?
