Welcome boost to EVs but plenty heavy lifting still remains
The push for increasing the use of electric vehicles (EVs) in India just received a boost. The government has finalised plans to invest over Rs 3,600 crore and upgrade 5,500 kilometres of highways to e-highways. Over 100 battery charging and swapping stations will come up along these transport arteries. EVs typically have enough charge for just 200–300 kilometres, and a reliable recharging network is a must if electric mobility is to catch on. In a parallel move, app-based taxi operator Uber has placed orders with Tata Motors for 25,000 EVs for deployment in major cities, including Delhi, Mumbai, Kolkata, Chennai, and Hyderabad. Though a drop in the ocean, the brand value of Tata Motors and Uber combining to put their faith in gasoline-free transportation will greatly impact the acceptance of EVs.
Though India is seeing a small EV revolution, with total EV sales in 2022 surpassing the one-million mark and growth notching a frenetic 206% over the previous year, we have a long way to go. Most of the sales are in the two-wheeler segment. In the most polluting segment of passenger cars, EVs accounted for just 42,000 units compared to 38 lakh traditional fuel cars sold—or just 1.1% of the market. Spreading a positive perception is, therefore, an essential part of the game. In Mumbai, for instance, a large fleet of EV buses, including the revival of the iconic double-decker in its EV avatar, are working as important ambassadors.
However, perception is not the only road bump. If EVs are to make up 30% of all transportation in India by 2030, much more needs to be done in pricing and building infrastructure. EV passenger cars are nearly 40–50% higher priced than their gasoline equivalents, and till this difference narrows, popular demand for electric cars will remain tepid. India is a huge price-sensitive market, and no amount of ‘green’ talk will make a difference if gasoline cars become cheaper. Again, urban densities do not allow private charging points, and an infrastructure of public charging stations is necessary if EVs are to grow.
As of now, India has less than 3,000 public charging stations. Compare that with China’s 1.15 million—representing 65% of the world’s charging points! No wonder a quarter of the cars sold in China last calendar were EVs. The task ahead for us is well cut out.