For faster and better adoption of EVs in India, it is crucial to address the economic and digital disparity as well. Despite the challenges, the electric Vehicle Revolution has created a billion-dollar investment opportunity in India. Here is a report of the Indian EV revolution and electric vehicle challenges and opportunities in India.
Highlights
- The swollen consciousness after the pandemic has favored the EV market abundantly.
- The shortage of coal supply in India throttle is the dependence of electricity in the nation affecting the EV demand.
- For better EV future, the e-waste need to be addressed urgently.
Why is the Indian automobile market making a full tilt towards EVs? Considering the digital and economic divide, how will EVs infiltrate India so swiftly? India is largely dependent on fuel, mostly for automobiles. What are the electric vehicle challenges and opportunities in India?
With the hike in the prices of fuel and the swelling consciousness after the pandemic, the modification in the demand for fuel-run vehicles to electric vehicles is evident.
An eloquent step by the government supporting this shift was seen in the budget of 2019, wherein, the GST rate tumbled from 12 % to just 5%. This is how the government nudges the end-user to prefer EVs.
There has been a rise in the sales of electric two-wheelers by 64% and 68% on four-wheelers. Even though this rise is calculated on a small base, it seems to be optimistic.
Mr. Sushil Chauhan the group CEO and Mr. Manoj Rajput, in one of his podcasts said, “Covid did us a favor as sustainability and people’s preference for greener vehicles increased, as did the slant towards private mobility.
We believe the industry is just getting started with the electric vehicle revolution in India and there are exciting times ahead of us”. India is firmly heading towards the adoption of EVs, however, on the flip side; the nation is confronted by several electric vehicle challenges and opportunities too.”
Current EV scenario
The government of India decided to extend the FAME II policy with an outlay of INR 10,000 crore by 2 years till 31 March 2024. The scheme was launched to incentivize EV buyers, manufacturers, and station providers with an aim to make electric vehicles more affordable for the public.
India being the world’s largest untapped electric vehicles market recently allowed for 100% direct foreign investment under automatic route.
