Electric vehicles (EVs) are automobiles that run on electricity only. They are propelled by one or more electric motors powered by rechargeable battery packs. Electric vehicles are cleaner than petroleum-fuelled vehicles and are seen as a promising solution to global warming.

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Indian government is making strong push in favour of the electric vehicles or the e-vehicles. Government is also encouraging or sometimes even forcing auto industry to shift towards the e-vehicles. While e-vehicles have their benefits over normal vehicles, the topic of e-mobility seems to be missing from the agenda of the government.

E-vehicles reduce the localized pollution and are important in the cities like Delhi, Pune, Lucknow etc. Such vehicles would also reduce the dependence on the petroleum, import of which has adverse effect on Indian economy. E-vehicles are also instrumental in reducing the emission of green-house gases and many health hazards.

Challenges facing the transition:

• Price Volatility:
  • The first has to do with policy volatility. E-mobility is a nascent industry in India and most of the developing countries. Capital costs are high and the payoff is uncertain.
  • Inconsistencies remain. For instance, while electric vehicles are taxed at 12% under the goods and services tax (GST), batteries were taxed at 28% until recently. This has now been lowered to 18% but the discrepancy still exists.
• Lack of policy certainty: Cannot frame in Isolation:
  • The lack of policy certainty spills over into perhaps the single most important element of enabling e-vehicle usage: charging infrastructure.
  • Lack of attention on building charging infrastructure.
• Local and Private Investment results in Low Cost production Technology:
  • Localization is another tricky area, as the strife caused by the rupee’s depreciation has shown.
  • India does not have any known reserves of lithium and cobalt, which makes it entirely dependent on imports of lithium-ion batteries from Japan and China.
• Short Driving Range and Speed
  • Most of these cars have range about 50-100 miles and need to be recharged again.
• Battery Recharge Issues
  • An electric car takes about 4-6 hours to get fully charged. Therefore there is a need for dedicated power stations as the time taken to recharge them is quite long.
• Silence as Disadvantage
  • Silence can be a bit disadvantage as people like to hear noise if they are coming from behind them
  • An electric car is however silent and can lead to accidents in some cases.
• Limited seating capacity
  • They are not meant for entire family and a third person can make journey for other two passengers bit uncomfortable.
• Not Suitable for Cities Facing Shortage of Power
  • Cities already facing acute power shortage are not suitable for electric cars.
  • The consumption of more power would hamper their daily power needs.
• High cost
  • The primary reason for the current high prices of EVs is the expensive battery

Way forward:

• For EVs to contribute effectively, we need commensurate efforts in developing an entire ecosystem.
• Need to shift the focus from subsidizing vehicles to subsidizing batteries because batteries make up 50% of EV costs.
• Increasing focus on incentivizing electric two-wheelers because two-wheelers account for 76% of the vehicles in the country and consume most of the fuel.
• A wide network of charging stations is imminent for attracting investment.
• Work places in tech parks, Public bus depots, and Multiplexes are the potential places where charging points could be installed. In Bangalore, some malls have charging points in parking
• Corporates could invest in charging stations as Corporate Social Responsibility compliances.
• Addressing technical concerns like AC versus DC charging stations, handling of peak demand, grid stability etc.
• Private investment in battery manufacturing plants and developing low cost production technology is needed.
• India is highly dependent on thermal sources, which account for about 65% of current capacity. As EV adoption increases, so should the contribution of renewables.
• Need for a policy roadmap on electric vehicles so that investments can be planned.
• Acquiring lithium fields in Bolivia, Australia, and Chile could become as important as buying oil fields as India needs raw material to make batteries for electric vehicles.
• Providing waiver of road tax and registration fees, GST refunds and free parking spaces for EVs.