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India’s Arduous Journey To Electrification

To all of the automakers around the world, EV has become their designated future. However, in India, there are still many obstacles towards EV market’s blooming and booming. In fact, not only in India, when it comes to EV, it seems that the go-to adjective following the subjective is always alternative. How can the EV industry strengthen its presence among middle-income population will be the determinate factor for the industry to promote to the next level.

In India, it is difficult to settle down the 400,000 charging stations required to provide the EVs on the road with enough charging resources. It seems that something is still missing in this market to fully diminish the ores that thwart the EV blueprint India government is laying out.

India buys, according to livemint, approximately 25 million autos each year. It will spend upwards an annual of $65 billion to apply the electrifying plan. At presence, middle-income Indian households are concerned of the high cost of EVs, but the demand of EVs is still gladly on optimistic rise. The high upfront cost of a new EV may result in high research and EV battery expenses, together with a shaky supply chain of raw material and, as predicted, an insufficient economies of scale.

According to Research and Markets’ India Electric Vehicle Ecosystem Market Outlook 2030, it is estimated that the EV industry will develop at a CAGR of 43.13% during 2019 to 2030 and charging infrastructure’s installation will expand at a CAGR of 42.38%. The US’s general absence in mass EV production and India’s high demand of lithium, cobalt, nickel, and manganese – the must-have-metals for EV battery manufacturing pose a challenge the Indian EV market must face.

The Indian government has set out $4.6 billion incentives for battery manufacturing facilities that are equipped with modern technologies and consequently, EV battery costs would significantly decrease in the following months and years. Increased expenditures in research in the EV industry has posed a serious obstacle that must be eliminated in the future. This obstacle along with poor production capacity is deterring sales profit, while potentially putting a lift in economics of scale.

COVID-19 also plays an important role in the process as a deterring factor in EV development. Although the situation makes online shopping popular than ever, the adoption of EV as a transportation tool is going to be a prolonged process because of it.

India must work out a domestic solution to solve these challenges posed. To follow the rest of the world on this unstoppable trend of EV booming and manufacturing, it is mandatory for India to cooperate with the rest of the world as it strengthens its own supply of EV batteries.

Post time: Mar-24-2022

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