What a time we’re living in where the future is stabilizing to become fully electrified. Electric grids are gradually getting stronger, and self-plug-in is waving newer trends as electric vehicles (EVs) in India are widely gearing up across the roads.
A stronger focus on policies is driving the momentum for electric vehicles (EVs) globally. India has been a vital part as overall public spending on subsidies and incentives doubled in 2021 to nearly USD 30 billion.
Many countries including India have bullish approaches to bringing more and more EVs on the roads. But is it just diminishing the carbon emission or is it also to vape-off multi-country strategies for crude oil aka hydrocarbons.
Recently, Unsoo Kim, Managing Director(MD), Hyundai Motor India was elated about the growth of the EV sector in India mentioning to The Economic Times that he didn’t expect this rapid expansion of EVs in India and now Hyundai India is coping up with this swift shift.
Compared to six(6) odd years back today we have around five(5) times more electric car models today, worth mentioning – 450 models.
Why Reports Are Optimistic About the EV Market in India
India for years has been an automobile hub, showcasing a bright 7.1 per cent which is 49 per cent of the manufacturing GDP giving millions of organized and unorganized employment.
CEEW Centre for Energy Finance (CEEW-CEF) underlined that the EV market in India will be a US$206 billion opportunity by 2030 if India maintains steady progress to meet its ambitious 2030 target. This would require a cumulative investment of over US$180 billion in vehicle production and charging infrastructure.
Another report by India Energy Storage Alliance (IESA) projects that the Indian EV market will grow at a CAGR of 36 per cent by 2026. The EV battery market is also projected to grow at a CAGR of 30 per cent during the same period.
The Glitch – EV Minerals?
Battery manufacturing is the primary element for motivating the EV sector in the coming time. But currently, critical minerals prices and availability seem to be a vital thought-point amidst strong commitments toward diminishing carbon emissions and promoting electric vehicles(EVs) and their growing sales.
These critical minerals are essential for battery manufacturing. There is a global tension may it be the China-US trade wars or the Russia-Ukraine war, global associations and entities are trying to bring together the need for critical minerals further fostering the supply-demand of Electric Vehicles across the globe.
To give an example, prices of lithium which is the crucial element for electric vehicle(EV) batteries are perennially soaring. Reports state that in May 2022, the price was seven(7) times higher compared to 2021. Worrisome! On the other hand, the prices of cobalt and nickel have seen the prices to newer heights.
Hence, the prices of battery packs could also increase by 15 per cent compared to the current status quo. If not known, Russia is a major exporter of battery-grade nickel to the world. Meanwhile, expanding the trade-ties further with India, the Australian government has announced to supply of critical minerals needed for India’s electric vehicles and other related projects.
EVs in Search of More Charging Stations
There are charging stations but are they enough? Hence experts and vital peepers like me think that EV charging infrastructure can be a further bottleneck for the Electric Vehicle(EV) industry, especially in a country like India. Hence consolidated efforts are needed to address sustainable, maintainable, feasible & available appropriate charging infrastructures.
Charging infrastructure must keep pace with the growing sales of EVs. Inadequate fast charging options are a vital page need to be read by OEMs and suppliers.
There has also been concern that EV chargers are disproportionately located in middle and upper-class neighbourhoods, creating an additional hurdle for low-income EV drivers.
Likewise, people who live in apartment buildings may find it difficult to charge at home, making convenient public charging infrastructure critical for overcoming this obstacle.