EVs are a rare occurrence in India where over 300 million cars, mostly scooters, and motor-powered rickshaws jam roads. Now, the country is making an ambitious push for what it calls electric mobility, to reduce smog (air pollution that reduces visibility). But even for these relatively simple vehicles, the effort is plagued by technological and logistic barriers. The segment of the EV passenger car may be huge, but for the moment, it is an indoor niche. In March, 25,640 electric vehicles, 90% of which were two and three-wheelers, were sold across the country. Less than 0.2 percent of all vehicles were registered with 400,000 EVs registered in India in 2019.
“Panno received a USD 1,770 million rebates to encourage the government to purchase his mid-range electric vehicle model from Indian car manufacturer Tata, Nexon XZ+. It cost USD 22,740 million, approximately twice the price of the most popular gas-powered models in the company. It is only 200 kilometers per charge, not 315 kilometers promised (195 miles). And because of the lack of charging stations, cannot drive the car away from the city”, said H.S. Panno, an independent contractor for EVs in Delhi.
Officials see electrical power as a solution to the deadly smoke scattering of urban streets, although the most part is powered by heavily polluting coal-fired power plants. New Delhi provides first-time EV buyers with a range of subsidies. There are further incentives to promote the swaps of old gas and diesel vehicles for new electric vehicles, and road tax and registration fees are also exempted from EVs. Around 31 countries in the world have drawn up similar EV policies with different progress levels. Recently, the Nexon XZ+ and Nexon XM have been dropped from their four-wheelers of subsidy eligible vehicles, the New Delhi government.
“The official Indian Automotive Research Association has verified the Nexon XZ+’s 315-kilometer range. However, the actual range depends on factors such as air conditioning, the driving style, and the driving conditions”, said Marc Llistosella, Managing Director of Tata.
The electricity market has grown by 20 percent annually, with five main players dominating, Tata, Mahindra & Mahindra Ltd., MG Motor India, Olectra Greentech Ltd., and JBM Auto Ltd. Start-ups join the fray as well. Due to lack of demand, local car manufacturers have been slowed down to make their components and EV’s. For the most part, those who have stepped in, rely on cheap imports that add to poor quality complaints.
Some companies, both, domestic and foreign have taken care of it and dozens of projects are underway. Tata is planning an Indian state of Gujarat production facility for USD 54 million. Japan’s Toshiba-Denzo-Suzuki has created an automotive production hub in west Gujarat to manufacture the Maruti Suzuki and Suzuki motor plants with lithium-ion batteries.
“The lack of charging stations remains a huge hurdle for non-profit focused on sustainable development. The government will need to develop a standardized regulatory framework to monitor the quality of technology and safety parameters to provide the supply side for the work. In building its automotive industry, which employs more than 35 million people either directly or indirectly and contributes over 7% to the country’s gross national product, India has tried to follow the leadership of the United States of America, Japan, and China. The country’s leaders aim to double exports of vehicles and components in the next five years to help repair the damage caused by the pandemic”, said Moushumi Mohanty, head of electric mobility at the Centre for Science and Environment.
