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LEADER TALK: IN CONVERSATION WITH Nishant Unnikrishnan, Product Manager and Subject Matter Expert at NeST Digital
LEADER TALK: IN CONVERSATION WITH Nishant Unnikrishnan, Product Manager and Subject Matter Expert at NeST Digital

November 11, 2024

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''India’s EV market is on the rise, but unlocking its true potential will require a strong commitment to infrastructure, technological advancements, and localized manufacturing''

 

 

1. How has the performance of the electric vehicle market in India been in the last few years? What have been the reasons for the growth/de-growth?

The electric vehicle (EV) market in India has seen substantial growth over the past few years, fueled by government initiatives, heightened environmental awareness, and technological advancements. However, it still falls short of the ambitious projections made 3-4 years ago. Key challenges persist, including high battery costs, range anxiety, a lack of charging infrastructure, and ongoing reliability issues with EV batteries. Despite these hurdles, the outlook for India's EV market remains optimistic, with expectations for continued growth in the coming years.

Sales have surged, particularly in the two-wheeler segment, which represents a significant portion of the market. Indian manufacturers are increasingly investing in EV technology, with several companies launching new models and enhancing their production capabilities. Additionally, the Indian government has implemented various policies, such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which provides subsidies for EV purchases and aims to stimulate local manufacturing.

2. Globally, we have witnessed EV sales slumping, with many auto OEMs experiencing a slowdown in this segment. What are some of the reasons for this? Is India insulated from these global changes?

Several factors contribute to the global slump in EV sales, including:

  1. The inability of many EVs to surpass the 400-mile range barrier under typical city driving conditions. While higher-range models are emerging, they are often premium offerings with price tags that may be inaccessible to the average consumer.
  2. High upfront costs, even after accounting for government subsidies.
  3. Concerns regarding battery reliability.
  4. Potential limitations of lithium-ion batteries as they approach their performance caps.
  5. Challenges in the disposal and recycling of used batteries.
  6. Insufficient charging infrastructure.
  7. The continued appeal of traditional internal combustion engine (ICE) vehicles, which offer competitive pricing and features.
  8. Negative consumer perceptions of EVs.
  9. Dependency on non-renewable resources for electricity generation.

Regarding India’s insulation from these global changes, while certain local factors may mitigate some effects, overall trends in the global market can influence consumer sentiment and investment in the Indian EV sector.

3. Battery systems account for 40-50% of the overall vehicle cost in EVs, and battery manufacturing is still very nascent in India, with much being imported. What steps are being taken by organizations and other stakeholders to build this capability and ensure that battery manufacturing is developed in India?

Alternatives to traditional lithium-ion batteries have been explored for a long time. Lithium-ion batteries are mostly at their full potential, so unless something revolutionary emerges in battery technology, it’s highly improbable that EVs will thrive. Since this remains a hot R&D topic, battery manufacturers are skeptical about investing in the market. Most stakeholders appear to be waiting for greater stability before committing substantial funds.

4. Your organization provides vehicle electronics and charging solutions. How is the EV charging infrastructure affecting EV adoption in the country?

The centralization of charging infrastructure needs to be prioritized. EV manufacturers and power DISCOMS, in coordination with state governments, should meticulously plan this. Additionally, planning for the increased power requirements due to EV adoption is essential. Initiatives such as integrating renewable energy (e.g., solar) with EV charging, using cleaner power sources, adopting smart grid technologies, implementing smart charging solutions, and offering discounts during peak renewable energy availability should be promoted and expanded.

5. What are some of the challenges faced in increasing EV adoption in India?

The higher cost of EVs, limited charging infrastructure, and insufficient grid capacity are the major issues hindering widespread EV adoption in India.

6. What recommendations do you suggest for increasing EV adoption in the country? This could be from policy, capability or scale development, demand or supply side support, or in response to any of the challenges faced.

In addition to centralizing charging infrastructure (as outlined in point 4), further actions are needed to support EV adoption:

  1. Increased government initiatives.
  2. Implementation of stringent pollution regulations.
  3. Greater support and incentives for renewable energy resources.
  4. Adoption of a smart grid system.

 

 

 

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