The alarming harm and pollution caused by the emissions from the ICE vehicles gave birth to electronic vehicles that would work as an alternative to ICE vehicles. The use of electric vehicles has increased drastically in India during the past five years, but the market is still far from being competent enough with internal combustion (ICE) vehicles. Especially for electric two-wheelers (E2W), which are occasionally viewed as low-hanging fruit for EV adoption, the year 2021 has been favourable for the sector. Companies and governments alike have affirmed their unwavering support for the adoption of electric vehicles as the EV industry expands. The government established the Faster Adoption and Manufacturing of Hybrid and EV (FAME) initiative in 2015 with a $130 million first investment in electric car subsidies in order to make EV adoption in India simpler. The government increased the EV subsidy in FAME II, its second iteration, to $1.4 billion in 2019. By March 2022, the government hopes to have at least 1 million high-speed electric two-wheelers on the road, as part of FAME II. Through the initiatives of the Indian government, rising gasoline prices and more customer awareness, the incipient sector definitely received the boost it needed. In order to bring EVs to the Indian people, India still has a long way to go and must address the following major obstacles.
Challenges in the adoption of EV:
- Inadequate charging infrastructure:
Insufficient access to the charging facilities of EVs is one of the biggest obstacles to the widespread adoption of electric vehicles. The charging infrastructure needs to be expanded immediately. Government and businesses must collaborate to build new infrastructure and instal charging stations in significant cities and along critical routes for this to happen. Repurposing gas stations is a great idea that has earned support globally and is beginning to gain favour here as well, but it does have some drawbacks. One problem is that, depending on the charging station and the size of the EV’s battery, charging an EV could take a very long time. Chargers need to be located in areas where people may leave their cars parked for a long time because charging takes a long time. We should reevaluate the charging geography in light of this. Installing charging stations closer to office and business complexes will be essential.
- Anxiety over the shortage of electricity:
The second most frequently cited barrier to EV adoption is the alleged disadvantage of range. The majority of people experience “range anxiety” because they worry that an EV won’t have the range to take them where they need to go. It shall be mentioned that businesses are investing in products with increased efficiency and mileage. However, the energy density of the battery is a crucial factor in making those capabilities possible. The cost of the goods will go higher as a result of this. Even today, EVs have enough range to easily cover the average daily commute of their users. Things like battery switching and improvements to the infrastructure for charging could assist.
- Financial restrictions:
The cost of electric vehicles is one of the major obstacles to their widespread use. An EV can be justified by the need to address the climate catastrophe, but is it less expensive than a fuel-based vehicle? Currently, the cost of the battery placed in the cars makes owning an electric car more expensive than buying an ICE vehicle. Manufacturers are working with the supply chain for the production of electric car batteries to reduce prices and boost overall efficiency with the goal of reaching cost parity by 2025, if not earlier. Having said that, government subsidies are currently assisting in bringing expenses to parity. In addition, the EV Sector finds it challenging to operate in a country with several economic problems due to the limited credit alternatives and hefty EMI. Depending on the bank and the consumer, the interest rate today for a combustion engine vehicle ranges from 10 to 14 per cent. The same is roughly 20–25% for an electric vehicle. Financial hindrances might develop to be one of the biggest barriers to the adoption of EVs.
- Limited production of EVs:
Another outshining obstacle to the widespread use of electric vehicles is their restricted availability. Some consumers may have started thinking about electric car possibilities as a result of the recent spike in petrol prices, but they might have been disappointed by the dearth of electric vehicles on the market. The availability of models continues to impede the widespread adoption of e-mobility even while mainstream legacy automakers, early EV pioneers, and rising startups are rapidly expanding the range of electric vehicles accessible, from micro-mobility to heavy-duty industrial vehicles. Although it may be the most evident hurdle to EV adoption, this is undoubtedly a substantial roadblock affecting EV adoption rates.
- In capable battery technology:
The production and distribution chain for batteries is another major obstacle to the extensive adoption of EVs. New mining and supply networks are necessary to allow EVs. The most popular and commonly used EV energy source is a lithium-ion battery. We don’t produce lithium-ion batteries or their components. India is reliant on imports for EV batteries, which drives up the cost of these essential parts and eventually, EVs. The cost gap between ICE and EV automobiles is primarily due to this. India should concentrate on producing battery-related critical components domestically to help boost product quality and dependability. Such a high degree of dependence might also have an effect on India’s goals for EVs or its foreign trade strategy. Focusing on alternative battery technology is also crucial.