India’s burgeoning population and economic prowess have triggered a noticeable surge in car ownership. This has also resulted in a significant uptick in emissions, posing a formidable environmental challenge. However, Battery Electric Vehicles (BEVs) are gaining traction in India, offering promising solutions to both environmental concerns and daily transportation needs.
This aligns with a broader global trend. Rystad Energy’s forecasts indicate 14.5 million passenger EVs will be sold worldwide in 2023, signifying a 38% year-on-year increase and capturing a 19% share of the total car market.
India has set ambitious EV targets, aiming for 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two-wheelers and three-wheelers to be electric by 2030. These ambitious targets hold the promise of a substantial reduction in harmful emissions, benefiting both public health and the environment.
Despite skeptics’ concerns, it becomes evident when analyzing the life cycle of BEVs that battery manufacturing’s emissions, while present due to energy-intensive mining and production processes, constitute a relatively small portion of the overall emissions profile. Moreover, as India transitions to cleaner energy sources, emissions associated with battery manufacturing are expected to decrease.
This holds true across all geographies: BEVs, regardless of the country of operation, emit at most half the carbon dioxide equivalent (CO2e) emissions of diesel or gasoline cars across their lifecycle. This advantage remains consistent even in regions heavily reliant on fossil fuels for their power grid. As renewable energy sources progressively replace coal and gas-fired generation, emissions linked to the operation of BEVs have the potential to decrease by as much as 86%.
India’s unique driving patterns, characterized by an annual mileage increase of 0.5%, make BEVs an appealing option. In fact, they can be considered the logical choice in India’s efforts to go green, as vehicle ownership is deeply ingrained in the nation’s culture. Electric scooters, particularly, have carved out a significant niche in the market, offering an affordable and convenient entry point for consumers.
The charging infrastructure for electric scooters is more accessible, with many individuals able to charge them at home. Companies like Ola Electric actively contribute to the growth of this segment. However, electric three-wheelers, especially rickshaws, dominate the commercial vehicle sector, boasting a 35% market share. Their lower operating costs make them an attractive choice for businesses, but to unlock their full potential, improved regulation and more organized markets are needed.
Cost plays a pivotal role in BEV adoption in India and should be a key consideration for manufacturers or new entrants to the Indian BEV market. The manufacturer with the lowest-priced model will win the BEV race, especially in India.
In India, the public views cars as long-term investments that should operate like a Swiss army knife. This is more pronounced when considering that subsidies in the market are no longer available and taxes on imported BEVs are quite high. This is in contrast to many other countries offering tax breaks for BEV purchases.
With the battery pack accounting for over half the cost of a BEV, localization of cell and pack manufacturing is imperative. Car manufacturers can achieve this by setting up offtake agreements with emerging cell manufacturers in the country.
Another significant driver for adoption is the availability of charging stations and supportive infrastructure. As seen in Delhi, a prominent EV market, charging needs are currently met at home and workplaces, underscoring the importance of decentralized charging infrastructure.
An example that India can follow as it searches for improvements in its charging infrastructure is street charging in metropolitan cities, like what is seen in Norway and California. This involves setting up low-powered DC chargers along streets to aid consumers without access to dedicated home charging setups. In general, level 1 and level 2 AC solutions must now make way for DC charging solutions, which would provide more flexibility to charging requirements for the consumer. DC charging is significantly faster than AC charging and can accommodate a wider range of EVs, regardless of their onboard chargers’ specifications.
India holds the advantage of not having to focus on high-powered DC charging applications (with charging power greater than 150 kW) since daily mileage requirements and, consequently, battery pack sizes are generally lower than in the US. However, a unique challenge India faces is an already overstressed power distribution network, meaning an upgrade of this system must occur simultaneously with the rollout of charging infrastructure.
The growing market for electric two-wheelers and the promising future for electric cars signify tangible progress, even as challenges persist, particularly in the transition to electric four-wheelers.
Nevertheless, India’s commitment to a cleaner and greener future is unmistakable. Despite initial manufacturing emissions, India is making significant strides in embracing BEVs, hopefully making them commonplace in the next decade or so – driving us closer to net zero and cleaning the Indian streets for tomorrow’s eager drivers.
