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The Current Landscape of Electric Vehicles in India Developments and Challenges
The Current Landscape of Electric Vehicles in India Developments and Challenges
on Advanced Technology and Engineering Trends (ICATET-2024), 24-25 June 2024, ACEIT Jaipur
30.2 kWh 1.2L Turbocharged 21.2 kWh Lithium- 1.5L Petrol / 1.5L
Battery/Engine Capacity
Lithium-ion Petrol / 1.5L Diesel ion Diesel
After analysing all the data, we get: less time. The expansion of the charging infrastructure will
help mitigate the convenience gap between charging and
a) Powertrain and Performance: EVs like the Tata Nexon
fuelling.
EV and Mahindra eVerito are equipped with electric motors
that offer instant torque, resulting in better acceleration This comparative analysis demonstrates that while there
compared to their ICE counterparts. For instance, the Tata are still challenges related to range and initial cost, the
Nexon EV accelerates from 0-100 km/h in 9.9 seconds, technological advancements in EVs by Indian
while the ICE version takes 11.5-13.5 seconds. manufacturers are making them an increasingly viable and
b) Range and Efficiency: The range of EVs is steadily attractive option for consumers. Continued innovation and
improving, with the Tata Nexon EV offering a range of 312 investment in EV technology are expected to further
km on a single charge. Although the range is lower enhance their performance and affordability, driving greater
compared to the mileage of ICE vehicles, ongoing adoption in the Indian market.
advancements in battery technology are expected to bridge
3. POLICY FRAMEWORK
this gap further.
c) Cost: While the initial purchase price of EVs is higher A. National Policies
due to the cost of the battery, the overall cost of ownership
is lower because of reduced fuel and maintenance The Indian government has introduced several
expenses. EVs have fewer moving parts and do not require policies to promote EV adoption. The National Electric
oil changes, which significantly lowers maintenance costs. Mobility Mission Plan (NEMMP) aims to achieve national
d) Environmental Impact: EVs have zero tailpipe fuel security by promoting hybrid and electric vehicles [9].
emissions, making them a cleaner alternative to ICE The FAME scheme, launched in 2015, provides incentives
vehicles. This is particularly beneficial for reducing urban for the purchase of electric and hybrid vehicles and supports
air pollution and contributing to climate change mitigation infrastructure development [10].
efforts.
B. State Policies
e) Charging vs. Fuelling: Charging times for EVs have
improved with the availability of DC fast chargers, which Several Indian states have formulated their own EV
can charge up to 80% of the battery in about an hour. policies to attract investments and promote local
However, fuelling an ICE vehicle still takes significantly manufacturing. States like Karnataka, Tamil Nadu, and
7th Int. Conf. on Advanced Technology and Engineering Trends (ICATET-2024), 24-25 June 2024, ACEIT Jaipur
Maharashtra offer tax incentives, subsidies, and - Foreign Exchange Rates: Fluctuations in currency
infrastructural support to boost EV adoption [11]-[12]. exchange rates can affect the cost of these imported
components, adding uncertainty to pricing.
4. MARKET DYNAMICS
iii. Manufacturing Scale:
A. Market Growth
- Economies of Scale: The EV industry in India is still
The EV market in India is witnessing robust growth,
nascent, and production volumes are relatively low. Higher
driven by increasing environmental awareness and
production volumes are essential to achieving economies
supportive government policies. The market for electric
of scale, which can reduce the per-unit cost of
two-wheelers is particularly strong, with companies like Ola
manufacturing.
Electric and Ather Energy leading the segment [13]-[14].
- Local Manufacturing: Limited local manufacturing
B. Consumer Acceptance
capabilities for key components mean higher costs.
Consumer acceptance of EVs is growing, though However, efforts are being made to develop local supply
challenges such as range anxiety, high initial costs, and chains.
limited model availability persist [15]. Awareness
B. Infrastructure Deficiencies
campaigns and educational initiatives are essential to
address misconceptions and promote the benefits of EVs Despite progress, the charging infrastructure in India is
[16]. still inadequate. Rural areas and smaller towns have limited
access to charging stations, hindering the adoption of EVs
C. Investments and Partnerships
beyond metropolitan regions [21]-[22]. The development of
There has been a surge in investments and strategic a robust, nationwide charging network is imperative for
partnerships in the Indian EV sector. Global players like comprehensive EV adoption.
Tesla are eyeing the Indian market, while domestic
C. Technological and Supply Chain Issues
companies are entering into joint ventures with international
firms to leverage technology and expertise [17][18]. The reliance on imported components, particularly
batteries, poses a challenge to the sustainability of the EV
5. CHALLENGES
ecosystem in India. Developing a local supply chain and
A. High Costs investing in indigenous technology are critical to
overcoming this dependency [23]-[24].
The high initial cost of EVs remains a significant barrier
to widespread adoption. Although battery costs are D. Regulatory and Policy Hurdles
declining, they still constitute a substantial portion of the
While policies are supportive, inconsistencies and
vehicle’s price [19]. Efforts to localize manufacturing and
delays in implementation at the state and national levels can
economies of scale are expected to bring down costs in the
create uncertainties for manufacturers and consumers [25].
future [20]. Factors Contributing to High Costs:
Streamlining regulatory processes and ensuring cohesive
i. Battery Costs: policy execution are necessary to foster a conducive
environment for EV growth [26]. Regulatory and policy
- Significant Portion of EV Cost: The battery is the most hurdles refer to challenges and obstacles related to the
expensive component of an EV, accounting for 30-40% of creation, implementation, and enforcement of regulations
the total vehicle cost [19]. Lithium-ion batteries, which are and policies that impact the growth and development of a
currently the industry standard, involve costly raw sector. In the context of the electric vehicle industry, these
materials like lithium, cobalt, and nickel. hurdles can significantly affect both manufacturers and
consumers, potentially slowing down the adoption and
- Declining but Still High Prices: Despite a global decline
expansion of EVs. Consumers may also face barriers, such
in battery prices, which fell from around $1,100 per kWh
as limited incentives or lack of supportive infrastructure,
in 2010 to about $137 per kWh in 2020, the cost remains
which can deter them from switching to electric vehicles.
substantial.
Addressing these challenges requires coordinated efforts
ii. Import Dependence: from policymakers, industry stakeholders, and advocacy
groups to create a more conducive environment for the EV
- Imported Components: Many components, especially market. Table 2 summarizing these hurdles along with
advanced batteries and power electronics, are still references for further reading:
imported, which adds to the overall cost due to import
duties and taxes [20].
7th Int. Conf. on Advanced Technology and Engineering Trends (ICATET-2024), 24-25 June 2024, ACEIT Jaipur
Lack of Cohesive Policy Fragmented execution of policies results in uneven growth and
[26]
Execution can disadvantage certain regions or stakeholders.
Frequent changes or unclear regulations can deter investment and
Regulatory Uncertainty [26], [27]
slow down industry progress.
Lengthy approval processes for setting up EV infrastructure and
Bureaucratic Delays [28]
manufacturing facilities hinder timely project execution.
Complex Approval Complicated and multi-layered approval processes can delay the
[26], [29]
Processes launch and expansion of new EV models and infrastructure.
Inadequate Charging Policies supporting charging infrastructure development are often
[30]
Infrastructure inconsistent, affecting EV adoption rates.