By: Mayur Misra, Director & CEO, Corrit Electric
For several years India has been on the mission to adopt the biggest revolution in alternative energy transportation. And with the bans on sales of ICE vehicles, consumers are shifting heavily toward EVs. However, when we look at the future, it is all automatic and electric vehicles. Once again, increasing petrol prices have put the limelight on electric scooters – a mode of transport gaining market supremacy with each passing day. The present-day revision to the government’s FAME Phase II scheme carries an increased subsidy rate of Rs 15,000 per kWh for e-scooters. To utilize the subsidy, scooters need to have a minimum capacity of 80 km/h and a minimum ultimate speed of 40 km/h.
Tech is the need of the hour to revolutionize the electric two-wheeler segment in India. Several startups and major automobile manufacturers have brought forward EVs with the vision of creating a greener & cleaner environment for the present and future generations. The electric scooters, designed to save the environment from carbon emissions, are made for all age groups. Automobile dealers have hinted that EVs have become the most popular means of transportation these days.
The major challenge in the electric vehicle market is the awareness of EVs for adopters. The next-generation buyers (GenZ & millennials) pay more attention to innovation, and they need a ride that can match their level of excitement and energy. They look for chic colours & innovative design topped with a comfortable ride experience. Bringing forward some of the features of an electric two-wheeler scooter include:
● Less charging time.
● IoT enabled and Bluetooth connected
● Better acceleration
● Distinctive ground clearance & better ride experience
● Low maintenance.
Centre and State governments have been pushing for cleaner electric vehicles. India’s target is to sell 30% private cars, 70% commercial vehicles, 40% for buses, and 80% for 2-3 wheelers by 2030. The government has given exemptions and made policies to consider buying EVs. GST has been reduced to make buying easier for consumers. EV manufacturers will also get a boost and encouragement from the government in the form of subsidies & incentives. From pre-covid times, EV two-wheelers sales have gone up by 132%.
The major constraint at the moment for EVs is restricted charging infrastructure. The government has undertaken multiple initiatives to aid India’s manufacturing and adoption of electric vehicles, including involving private and public agencies – NHAI, BEE, IOCL, EESL, PGCIL, HPCL, NTPC, etc. Charging stations will be primarily solar-powered, and there are a lot of companies and start-ups who have been waiting to grab this opportunity. Presently, India has a total of 1,640 operational public EV charging stations. Including the major cities like Pune, Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Ahmedabad & Surat, among others. The charging infrastructure market will also grow faster with the significant demand for EVs.
It is evident that the demand for electric two-wheelers has surged in the market. In India, all the OEMs claim that their unit’s annual production capacity can be ramped up to 1-2L units per annum in a short term with the new factories in progress. As a result, it is anticipated that companies will be able to multiply their production capacity by almost ten times, reducing production timelines and costs. Most of the global manufacturing is heavily dependent on China for all the raw materials. So self-reliance or ‘Atma Nirbharta’ cannot be achieved overnight.
India’s strategy at the moment for a future that’s driven by electric vehicles and fuelled by lithium is driven by careful research and analysis of the supply chain. While India manufactures most of the components of an EV domestically, imports for Lithium-ion from countries internationally puts us at a disadvantage, leading to ramped up costs. Supply chain management remains one of the most critical challenges that the country is facing with this respect at present. However, it is exciting to see that start-ups are sourcing up to 80% of their parts indigenously except for the battery cells & packs. Over time, industry leaders and patrons hope to find a more sustainable alternative to importing Lithium-ion.
With new policies in place, things look brighter, and investments have started pouring in. In Delhi, road taxes & registration fees are wholly exempted by the government on electric vehicles. Finding sustainable solutions to fossil fuels is the aim of the nation. As a result, India’s automotive industry is poised for an EV boom. Since two-wheelers have a more dominant market in India than any other country, public and private entities operating in this space have had to focus on the electric two-wheelers segment propelling India’s drive to a cleaner & greener future. Today, the electric two-wheeler market is expected to grow 43.4 % between 2021-to 2027. EVs are the future of India because they make economic sense to the consumer front as well. Having a lower maintenance cost further adds to the appeal of owning an EV.
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After a lot of turmoil and patience currently, the costs of EVs are at par with their petrol counterparts. All the credit for this goes to the start-ups doing hard work to improve & bring innovations with efficiency by increasing the joy & minimizing the emission. There are automobile companies whose vision is to contribute to a sustainable future of making India a carbon-neutral or carbon-negative nation. Automakers have been in a quest for new & sustainable alternatives to fossil fuels. The environmental degradation caused by burning fuels is a fact that can no longer be denied or hidden. Therefore the pressing need to switch from fossil fuels to renewable energy can’t be put off any further.
The way electric mobility is progressing forward in states like Mumbai, Karnataka, and Kerala is phenomenal. However, while the government and public institutions are doing their part in promoting and supporting the EV transition, the onus of further enabling widespread adoption falls on private players entering this space.
Disclaimer: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of The Indian Express Group or its employees.
