The future of mobility has reached a fork in the road. Electric Vehicles (EVs) are constantly considered as a part of the solution whenever oil prices rise or climate change is addressed and discussed. EVs are still not popular, despite numerous new Indian firms entering various segments of the EV supply chain, significant cash invested in the space, and large-scale execution efforts. It’s 2021, and it appears that India has finally reached the tipping point for electric vehicles.
Why has EV adoption been so slow?
EV penetration is extremely low at 0.8 percent, despite the debut of devices by existing OEMs (Original Equipment Manufacturers) as well as new players. In India, two-wheelers, three-wheelers, and four-wheelers account for 17 percent, 79 percent, and 4 percent of all EVs, respectively. The following dimensions can be used to examine the causes of failure.
1) A scarcity of new products
The product’s long-term viability was not considered, and EVs were unable to give a sufficient range for intercity travel. The lack of charging stations is widely seen as the primary cause behind EV adoption’s low rate.
2) Budgetary considerations
This large initial cost is unfavorable to Indian clients who would rather have a less expensive IC vehicle.
3) Inadequate infrastructure for charging/swapping
A severe infrastructural bottleneck has emerged due to a lack of battery as well as charger standardization, and also the high capital cost of establishing charging or exchanging stations.
The following are some solutions that will aid in the widespread adoption of electric cars in India.
1) Telematics and connected vehicles
It would be fascinating to see advancements in the software layer of electric vehicles, a layer that would make it easier to build applications on top of them. Connected vehicles create a large amount of data that can be used in a variety of ways.
2) Establishing a reliable charging and swapping infrastructure
The development of tech-first charging systems or networks which are form-factor as well as brand agnostic and also can enable both conventional and fast charging presents a huge opportunity. In the short run, charging is going to be a more interesting strategy than switching. Swapping is the finest option in the long run because it provides a consumer with various benefits. It is no longer necessary to wait 3 or 4 hours to charge a vehicle; instead, the battery can be swapped in less than 5 minutes.
3)Battery Management Systems and Battery Technology
EV batteries may be made more user-friendly, charging and using them might be made easier. The battery management solution could be improved further, and the battery could be redesigned to be more compact, reducing energy loss and increasing performance.
Battery recycling is another area where new ideas are needed. When an electric car’s battery capacity falls below 80%, it becomes unsuitable in the vehicle. They can, however, be used for various purposes, such as energy storage. Battery reusability companies can be a lucrative market for venture capitalists to invest in.
4)Fleet Administration for Commercial Use
Given the significant cost savings associated with operating electric vehicles, we can anticipate strong B2B demand. Companies, on the other hand, would rather lease or even subscribe to EVs than buy them because of the higher upfront costs. As a result, entrepreneurs will have an opportunity to develop new ways of delivering EVs to B2B clients and enabling effective fleet management at scale.
5)Mobility as a Service
Due to a lack of purchasing power, upwards of a billion Indians don’t even own a personal vehicle. Despite this, India’s roads are extremely congested, with dangerously high levels of pollution. One of the most effective methods to address this is to provide Mobility as a Service (MaaS), in which customers do not own automobiles but can use them as needed. Because the initial cost of an electric vehicle is higher than that of an IC vehicle, MaaS becomes essential for widespread adoption.