• 13 June 2024

Electric Cars in India, Is India’s infrastructure ready for Electric Cars

Aug 17, 2023

This article delves into the dynamic world of electric cars in India, exploring the emergence of homegrown manufacturers and the integration of advanced technologies. From economic incentives to charging infrastructure, we’ll unravel the various factors propelling the rise of electric mobility in the country. Join us on this journey as we uncover how electric cars are not only redefining transportation but also shaping a cleaner, more sustainable future for India’s automotive landscape.

Key Highlights

India’s Electric Vehicle (EV) Goals:

  • India aims for electric vehicles to comprise at least 30% of all new automotive sales by 2030.
  • According to NITI Aayog, by 2030, 80% of two- and three-wheelers, 40% of buses, and 30%-70% of cars in India will be EVs.

Emission Goals:

  • India pledged at the COP26 summit to achieve net-zero emissions status by 2070.
  • The country aims to lower its emission intensity by 45% from 2005 levels by 2030.

Energy Consumption and Demand:

  • The transport sector accounts for 18% of total energy consumption in India, equivalent to about 94 million tons of oil-equivalent (MTOE) energy.
  • If current energy consumption trends continue, India would require an estimated 200 MTOE of energy supply annually by 2030 to meet demand.

Potential Savings from EV Adoption:

  • Industry analysts suggest that India could save over $14 billion (€13.5 billion) annually in crude oil imports through widespread adoption of EVs.
  • The adoption of two- and three-wheeler EVs is expected to lead the way to this transition.

Charging Infrastructure:

  • To meet decarbonization goals, India would need 2.9 million public chargers to accommodate 102 million EVs.
  • As of June (year not specified), India had 934 charging stations catering to various vehicle classes, while China had around 900,000 charging stations.

Challenges to Electric Mobility:

  • Challenges hindering accelerated electrification include inadequate charging networks, limited EV models in the market, uncertainty around battery costs, and weak consumer awareness.

Government Initiatives:

  • The Indian government introduced the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) program, along with supply- and demand-side incentives to promote EV adoption.
  • Some states have set their own ambitious EV targets; Delhi, for instance, aims for 25% electrification by 2024.

India’s push for electric vehicles (EVs) is gaining momentum despite challenges. While the first electric car was developed in the 1800s, recent years have seen companies like Tesla, Volkswagen, and Nissan striving to establish EVs as the preferred mode of transportation. This focus extends to India, a developing nation keen on boosting EV adoption.

EV Sales in India So far

Electric Vehicle Stats:

  • 9% urban Indian households planning to buy an EV in 2020 (Care for environment listed as top reason)
  • 65% of potential EV buyers will spend less than 15 lakhs (Higher price is the top reason for not considering EVs)
  • 27% considering buying an EV; 10% unsure
  • 13% buying due to lower total cost of ownership
  • 52% buying for contribution towards a cleaner environment
  • 19% buying due to avoiding fuel costs
  • 7% buying in hope of government subsidy
  • 7% buying for other reasons
  • 38% planning to spend 8-10 lakhs on EV
  • 27% planning to spend 10-15 lakhs on EV
  • 23% planning to spend 15-20 lakhs on EV
  • 10% unsure of EV purchase
  • 27% consider EVs more expensive than regular vehicles
  • 15% cite lack of charging stations in city/town
  • 3% say limited choices of EV models in their budget
  • 10% don’t know enough about EVs
  • 24% don’t need to purchase a vehicle at this time
  • 13% don’t have funds to purchase a vehicle
  • 8% have other reasons for not considering EVs

Survey Platform and Demographics:

  • More than 32,000 responses received from over 21,000 unique citizens located in 180 urban districts of India.
  • Approximately 23% of respondents were women, while 77% were men.
  • 51% were from Metro/Tier 1 cities, 37% from Tier 2 cities, and 12% were from Tier 3 cities.

India is making strides toward a hybrid or full-EV transportation system. The government and private companies are heavily invested in driving this transition, and while challenges remain, the nation is on the right path.

The days when an electric automobile couldn’t match the range that a tank of fuel could provide are long gone. Additionally, although potential customers of electric cars may still have some degree of range anxiety, this concern is lessening.

The availability of charging stations around the nation has made it simpler to operate an electric vehicle nowadays, even one with a limited range. Additionally, they offer a long range to ensure that one can travel far distances without having to stop charging.

Need for EVs in India:

Pollution from petrol and diesel vehicles is a major concern, with fossil-fuel vehicles contributing significantly to particulate matter pollution and CO2 emissions. EVs offer a cleaner alternative to address this pollution problem.

EV Penetration:

EVs are gaining ground in India, especially in public transport. However, current EV penetration is less than 1% of the total automobile market, primarily due to insufficient infrastructure and higher costs.

Government Policies:

Both central and state governments have policies to promote EV production and adoption. The FAME program incentivizes EV purchases, while GST reductions and other initiatives support the shift to EVs.

Automobile Leaders and EVs:

Maruti Suzuki: Plans to develop electrification technologies by 2025.

Tata Motors: Launched successful EVs and plans to introduce more affordable electric cars.

Mahindra and Mahindra: Invests significantly in EVs, including e-buses.

Hero Motocorp: Leading in the two-wheeler segment with a range of electric bikes under Hero Electric.

Challenges and Solutions:

Establishing adequate charging infrastructure through public-private partnerships.

Considering various charging models (home, commercial, swapping, etc.).

Lowering road tax and registration fees for EVs.

Investing in improving electric 2-wheelers for wider adoption.

Encouraging EVs for services like cabs and logistics.

Providing incentives for domestic battery production to reduce dependence.

Enhancing electric grid density for rural EV usage.

Incorporating green practices like solar energy for sustainable charging stations.

Best Range EVs | Cost Per Kilometer

Electric cars: Cost per kilometers
ModelsRange (Kms)Cost Per Kilometer (₹)
Hyundai Kona Electric4520.52
Mercedes-Benz EQC4451.68
MG ZS EV3400.62
Tata Nexon EV3120.71
Tata Tigor EV2131.42
Mahindra e-Verito1811.67
Mahindra e2o Plus1401.41
Calculation: Using a 3.3kW AC charger at ₹8 per unit, a 5-hour charge uses 16.5 units of electricity.

Also, read https://thelogicalpie.com/top-10-most-influential-business-man-woman-in-2023/blog/

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