Future of Electric Vehicles in India

Introduction - Is the future of electric vehicles bright?

Many Indians are showing interest in shifting from fuel-based to electric and are curious about the future of electric vehicles in India. Since the world has been following fuel-based transportation for more than a hundred years. Hence it takes many years for a complete shift.

Furthermore, Electric vehicles could make up as much as nearly half of the global car sales by 2035 report. Certainly, I believe there is a bright future for electric cars is still in the cards.

Currently, there are more than 380 electric vehicle manufacturers in India. Also, with an increase in the demand for electric vehicles, I think this number is expected to increase even further.

With the increase in inflation, the cost of capital increased. Investors are more active in funneling money into EV startups, further contributing to the development of electric vehicles and related products.

Table of Contents

Raw materials for electric vehicles

The main component of electric vehicles is their batteries, which are considered the heart of the electric vehicle. For instance, need lithium, cobalt, and nickel to manufacture the lithium-ion battery. It’s not just used for EVs but, also for all other electric products we use like mobiles, laptops, etc.

To reduce weight and power consumption, indeed electric automakers use aluminum, and copper to distribute the electricity around the electric vehicle.

Not all of these are readily available or available in vast supply. Certainly, I think this may cause serious concern. For the mining of other metals like lithium and cobalt, the markets have seen high levels of investment over the past three or four years.

Secondly, the market hasn’t faced many raw materials-related issues yet. Because we are at the starting stage of the electric vehicle era. Furthermore, as the production and demand increase, we may face raw material shortage-related problems.

I believe this issue can be reduced through effective battery recycling and reuse can recover valuable materials, which further reduces the demand for new raw materials and lowers the costs.

Range anxiety

Range anxiety is the term that describes the concern of electric vehicle owners, who are worried about running out of battery power and leaving stranded.

Unfortunately, India still lacks a robust EV charging infrastructure and other related developments. Further, the cost of EV charging stations is a bit higher. I guess this makes long-distance travelers choose fuel-based vehicles over electric ones.

These fears will diminish as batteries increasingly more powerful making people realize that they’re often not driving enough to make the range an issue. Also, increasing the number of charging stations across India with good distribution will help. Also, read top EV charger manufacturers in India.

If the industry can address these challenges quickly, the recognition of electric vehicles will grow faster than experts predict.

Electric vehicles price may fall - Even sooner than you think

Batteries power the EV and the same increase the cost too! At present, nearly a third of the price of an EV is its batteries. To match the price of fuel-based vehicles to electric vehicles, The batteries need to be cheaper.

For the next three years, according to research China, Japan, and South Korea will be the main producers of electric batteries. Will provide an oversupply of batteries and dip the prices down.

Certainly, the development of better battery chemistry is also on the cards. Which leads to higher energy density and longer life span, potentially reducing costs.

For instance, the arrival of a solid-state battery, which is capable of increasing the range per charge from 300 to more than 600 miles will ensure a better future of electric vehicles in India.

Support from Indian Government

Surprisingly, The Indian Government has been actively promoting the adoption of electric vehicles to reduce pollution and dependence on fossil fuels. Further boosting the future of electric vehicles in India.

FAME India Scheme

FAME stands for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles.
Provides subsidies to the buyers of electric vehicles.
Also support the development of charging infrastructures.

Tax Benefits

The GST tax on electric vehicles has been reduced compared to conventional ones.
Also, several states in India offer tax exemptions or reductions on registration fees for EVs.

Charging Infrastructure

Certainly, the Indian government is investing is setting up public charging stations. Also promoting private players to invest in charging infrastructure.

Production Incentives

Therefore, focus on developing a domestic EV manufacturing ecosystem as well as offering incentives to electric vehicle manufacturers.

Conclusion

Indian electric vehicle market will gain significant growth in the upcoming years. Together, the support of government policies, advancements in technologies, and an increase in awareness. Eventually, India is well positioned to transition towards more sustainable transportation.

The demand for electric vehicles increases as well as gives a tremendous opportunity for local and international companies to invest in and contribute to the growth of India’s EV development.

FAQ

1. Will electric car sales increase in India?

Electric vehicle sales in India are expected to rose by about 66 percent in 2024.

2. What is the future of EV stations in India?

The future of EV stations looks bright, with strong government support, and also, the charging infrastructure is rapidly expanding.

3. Is it worth buying an electric car in India now?

EV as significantly lower operating costs than fuel-based vehicles. One will expect a good ROI in the long term.

4. Will EV be cheaper in future?

Yes, there will be significant price reductions in EVs shortly.

5. Will electric cars last long?

Most electric cars last between 10 – 20 years.

6. What is the replacement cost of an EV battery?

The EV battery can cost around 2.5 lakhs to 5 lakhs.