The government is focusing on increasing the sales of electric vehicles in India, but statistics do not seem promising. While Tesla models are pre-booked months before their production, electric cars in India are pretty much gathering dust.
Based on data published by Bloomberg, hardly 8000 electric vehicles were sold over a period of six years in India. These numbers are terrible, considering the fact that electric cars are a rage in the western countries. And things are not expected to change anytime soon.
A few significant reasons that contribute to the lower demand electric vehicles (EVs) in India can be read below.
Let us admit the fact that India is not yet ready for electric cars. Electric cars need an eco-system of high power charging stations and heavy incentivisation. Drivers in India need vehicles that can be refuelled or charged anywhere. And besides a few of them in metro cities, there are no charging stations on highways or in small cities.
Without the installation of proper infrastructure, it is really difficult to earn promising sales figures for electric cars.
EVs are still out of reach of ‘Aam Aadmi’. The recently launched Kona Electric costs above 20 lakh INR. The expected electric SUV by MG Hector is also expected to be launched in the same price bracket. In a price-sensitive market like India, it is essential to offer reliable electric vehicles at an affordable price.
The only way electric vehicles mark a major penetration in the Indian car market is through bringing them within the price range of 7 to 10 lakh INR.
Lack of Major Players in the Market
Likes of Maruti, Hyundai, Honda and Toyota are still looking for the right time to launch their electric counterparts in the automobile market. With no major player selling electric cars, the market is suffering from a trust deficit.
Though launches are lined up for the next year, time will only tell about the response of customers when these trusted giants step out in the electric vehicle game.
Off-shore Manufacturing of Parts
Until and unless local manufacturing electric vehicles doesn’t start in India, prices are unlikely to considerably come down . The lithium-ion battery pack contributes heavily to an electric vehicle. If these batteries are procured locally, then it would have a significant impact on the cost of production.
It is not a change that can be witnessed in a year or two. The industry giants and the Government need to come together to boost the electric car market in India to reduce the dependency on oil, and hence reduce pollution.
To Green Driving!