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The Future is Electric - Discussion paper on Electric Vehicles in India

July 27, 2022 5779 1 Engineering Research & Design

The Future is Electric - Discussion paper on Electric Vehicles in India

Before Covid hit the world, there was a steady growth in the adoption of electric vehicles across the globe and more so in India. However, saying that sales of electric vehicles have increased monumentally in the past two years would not be an understatement. Electric vehicles, whether electric 2/3/4 wheelers or others are quickly becoming a mainstay. Automotive OEMs as well as tech system integrators have also become an integral part of the ecosystem, designing and manufacturing various components. In addition, tech startups have also developed many solutions and platforms in electric vehicle ecosystem. This discussion paper titled “The Future is Electric” explores the rationale behind the increased use of electric vehicles in India, the overall architectural deep dive of EVs, the players present in the ecosystem, ranging from the traditional auto OEMs and tier 1s to tech system integrators and tech startups, and the various challenges that everyone across the ecosystem is facing as well as recommendations to further create a more robust ecosystem and scale up the adoption in India.

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  1. Growth of Electric Vehicles
  • 2/3 wheeler electric vehicles have witnessed high double-digit growth in the last 2 years, however, e-4W has witnessed 150% increase in sales. Battery and charging infrastructure markets are also expected to grow substantially, with the govt. providing specific targets for EV adoption.
  1. Reasons for increased adoption of EVs
    • Reasons include rising fuel prices, increasing CO2 emissions, EVs displacing oil, various govt. initiatives including schemes and subsidies, new charging and battery swapping policies, massive advancements in technology, less total cost of ownership of owning an EV in the long run than a regular internal combustion engine (ICE) vehicle, and new models introduced by OEMs to cater to changing consumer preferences.
  1. Ecosystem
    • Not just automotive OEMs, but tech system integrators have also become an integral part of the ecosystem, designing and manufacturing various components. In addition, tech startups have also developed many solutions and platforms in electric vehicle ecosystem.

 

  1. Challenges and Recommendations
  • Some of the challenges include safety and fires, mileage and range, need for more players in the ecosystem, clarity from the govt. on subsidies, a common electric vehicle policy, targets, infrastructure, need for local manufacturing, talent, better battery, charging and vehicle technology, increased awareness and higher prices

Some of the recommendations include need for govt. to standardize safety rules, bring in more incentives, create a scrappage policy for easy scrapping of e-waste, need to integrate tech platforms with charging and battery infrastructure, need for more tech companies to be present in the ecosystem to develop technologies and research, encourage more foreign investment by creating a robust ecosystem, and create more consumer awareness.

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