Inc42 lists the following challenges in the adoption of electric vehicles in India:
Lack of battery cell manufacturing
The complete absence of primary battery cell manufacturing in India means that India is reliant on importing batteries from China, the dominant country in the battery supply chain, manufacturing around three quarters of the battery manufacturing of the EV industry, according to BNEF.
Manufacturers in India also rely on batteries imported from Japan, Korea and Europe, posing the risk of increasing the Southern Asian nation’s trade deficit. According to Inc42, “the Indian market needs encouragement for indigenous technologies that are suited for India from both strategic and economic standpoint, such as aluminium fuel cells.”
Building charging infrastructure
Charging infrastructure will need to be combined with existing refueling stations and alternative locations closer to home, reports Inc42.
According to PV Magazine, The Indian Ministry of Heavy Industries and Public Enterprises has approved the construction of 2,636 charging stations in 62 cities across 24 states and union territories under the second phase of the FAME India (Faster Adoption and Manufacturing of Electric Vehicles in India) scheme.
Further, the Indian government aims to build a network of charging infrastructure throughout the country, to ensure that at least one charging station is available every 25 km on both sides of the country’s highways and roads, PV Magazine reports.
The country’s charging infrastructure needs to be standardized, according to Inc42. While the existing norms require charging stations to install Europe’s CCS and Japanese CHAdeMO charging platforms, setting both up will significantly increase the capital cost.
Increasing battery performance
Durability of batteries needs to increase in order to accommodate the delay in an electric charging infrastructure. This will also allow EVs to be able to compete with internal combustion engine vehicles, reports Inc42. At present, the Hyundai Kona electric leads the electric cars on offer in India, having the highest range of 452 km on a single charge.
Creating the closed-loop mobility ecosystem
According to Inc42, along with charging infrastructure, the establishment of a robust supply chain will be needed for automakers to make the shift feasible at their end. Battery recycling stations will enable the recovery of metals from batteries used in electrification, making the shift to electric cars an environmentally sound decision, even after electric vehicles have aged.
Despite these challenges, Inc 42 reports that industry leaders are optimistic and believe the shift to electric cars will happen very soon, owing to reasons such as the number of industry incumbents and startups making rapid and significant advancements in the EV segment, the growing demand and user as well as institutional interest.