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Challenges faced while scaling up EV adoption
Challenges faced while scaling up EV adoption

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The concept of mobility is changing. Countries across the world are encouraging electric vehicles through subsidies and regulations, and consumers too are eager to adopt EVs.

Though the entire ecosystem as well as the players present are eager to drive greater adoption of EVs across the country, however still challenges exist. These include –

 

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  1. Technology related challenges –
    1. Safety and security related challenges continue to plague the industry. Many consumers are still apprehensive to purchase EVs as the industry is still adapting to new EV technologies and developing the battery packs, cells (imports), packing, and setting up the BMS system. To this effect, fire and safety norms for batteries as well as charger performance testing need to be put in place, which are currently missing. While the established OEMs have their safety procedures and standards in place, it is the newer entrants who need to adhere to stricter standards and invest more on technology without compromising on safety.
    2. Mileage – The range provided by the electric vehicle still is a concern for many contemplating purchase of EVs. Consumers increasingly are desiring higher range for travel across cities in electric vehicles.
    3. Focus for OEMs – OEMs continue to face shifting focus. There is confusion whether to focus all technological energies to be BSVI ready or focus on hybrid vehicle technology or focus on EVs. Clarity towards this is needed.
    4. Tech ecosystem - More players are needed in the technology ecosystem leading to shortening of development cycles thereby eventually bringing the price down. Tech integrators need to play an even more integral role and provide more technologies integral to the entire ecosystem and develop more to make EV adoption more accessible and affordable.

 

  1. Government –
    1. OEMs and other companies require clarity regarding the subsidies rolled out by the govt.
    2. There is not a singular country-wide EV policy. Each state has different individual policies. Also given the overall targets set by the govt., it is necessary that individual industries and sectors should be targets so that overall targets can be easily achieved.
    3. A single window / portal is needed for purchase and clearances is needed for ease for all the players.
    4. Currently, the govt does not have any incentives, especially for tech companies, to encourage creation and development of clean mobility solutions and helping the country in achieving the sustainability goals by 2030.

 

  1. Ecosystem related challenges-
    1. Local manufacturing – Domestic / local manufacturing has to be strengthened not only to be cost effective but also to attract FDI investments as well.
    2. Talent – The EV industry is facing a talent shortage and there is a great demand for power electronics and software talent.
    3. Supply chain challenges – Currently, the demand for electric vehicles is more than the supply. There is a need for localization in the supply chain to reduce dependence on imports of cells used in batteries.
    4. Ecosystem - More tech companies need to join the ecosystem to develop consolidated platforms to monitor grid requirements and manage grid loads, develop solutions for charging infrastructure and battery health monitoring and future forecasting, develop solutions for easy integration of ecosystem players, supplier and supply chain mapping, battery swapping and battery as a service integration. This would enable users and the players in the ecosystem to log on to one platform and check the requirements and take remedial action as necessary.

 

  1. Charging related challenges –
    1. Consumers are still wary of long charging times and the lack of charging stations available at frequent intervals, which is a deterrent in higher EV adoption. Unless the challenges related to slow chargers as well as installation of various charging stations is solved, this poses as one of the key concerns in EV adoption.
    2. Choosing between charging and swapping is also a confusion as it is not feasible to set up a battery operating station everywhere, leading to increasing costs
    3. Better technologies should be made widely available at affordable costs towards smart charging and grid load monitoring technologies
    4. Only a few companies are utilizing data and technology to monitor charging patterns and manage grid operations and load. There is a need for more tech companies to enter this space to make it more commercially viable

 

  1. Other challenges –
    1. Awareness - Lack of consumer awareness initiatives from the govt. and the industry. A mass awareness campaign should be announced by the govt. to increase EV adoption among the consumers.
    2. Pricing – Higher price of EVs than a regular ICE vehicle is still a deterrent for consumers to purchase the vehicle.
    3. Land availability and cost is a challenge that OEMs continue to face while setting up charging stations.

 

While it may be a while until the entire ecosystem is set up, but this is an industry where the transformation is taking place at an unprecedented pace. There is no doubt that in a few years, majority of the vehicles on the road will be electric.

 

Read more insights about Electric Vehicles in the NASSCOM Report - "The Future is Electric"

NASSCOM Insights – https://community.nasscom.in/communities/engineering-research-design/future-electric-discussion-paper-electric-vehicles-india

NASSCOM website - https://nasscom.in/knowledge-center/publications/future-electric-discussion-paper-electric-vehicles-india


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Vandhna Babu
Principal Analyst - Research

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