India’s electric vehicle (EV) industry is seeing increased interest, investment, and innovation. New model launches and the strengthening of favorable policies drive the shift to clean transportation. However, despite such encouraging news, India’s EV market share remains less than expected, which raises questions about what is holding the industry back.

Let’s see the current trends defining India’s EV journey and why it is essential to overcome key challenges in order to achieve true transformation.

New EVs Are on the Way, Here’s What to Expect

The EV ecosystem in India is going to see a flood of “new electric vehicles specifically designed for Indian roads and users.” The upcoming launches aim at

• Urban-friendly range
• Cost-effective pricing
• Practical yet compact design
• Improved comfort for everyday commutes

Manufacturers are catering to the increasing demand for vehicles that are eco-friendly, reliable, and Indian infrastructure-compliant. Whether passenger cars or commercial EVs, this category is expanding rapidly with domestic as well as foreign players heating up on both sides.

EV Sales Up, But Market Share Still Modest

A recent market report indicates that while “EV sales have increased significantly between 2014 and 2023,” their “market share in the overall automotive sector remains modest.” Here’s what the data tells us:

Sales of “electric two-wheelers (E2Ws)” have improved, especially in states with both central and local policy support.

Subsidy programs have boosted demand, with sales rising by over 12% for every increase in financial support. Countries with specific EV policies recorded more than 50% more two-wheeler EV sales than those without such national incentives.

Even with such a step, electric two-wheelers account for just “4% of overall two-wheeler sales as of late 2023.” Electric three-wheeler cargo versions of vehicles have gained ground in areas that provide focused state incentives and affordable solutions.

The Way Forward for India’s EV Aspirations

India will reduce carbon emissions and become a world EV manufacturing hub. To do this, the country must move beyond launches and incentives. A strong EV ecosystem is built on

• Scaling efficient charging networks.
• Facilitating local battery manufacturing.
• Making vehicle finance affordable.
• Educating consumers and driving trust.

These building blocks will assist in diverting consumer choice away from internal combustion engine (ICE) vehicles and bring India nearer to its net-zero targets. 

What’s Slowing Down EV Adoption in India

One of the largest implications of the report is that ‘subsidies alone aren’t enough.’ Consumers still experience challenges such as

• Limited public charging infrastructure.
• Poor awareness and confidence about EV performance.
• High initial costs and limited availability of finance.
• Inconsistent policy implementation at the state level.

According to experts, for India to succeed in its 2030 EV objectives—the sale of 30% electric vehicles and 80% adoption in two- and three-wheelers—there must be a “greater focus on long-term infrastructure and policy certainty.”

EV Market at a Turning Point

India’s journey towards electric mobility is reaching a turning point. The arrival of new EV models indicates a positive industry sentiment, but real progress depends on removing the systemic barriers to adoption.

India can realize its electric mobility ambition by combining product innovation with funding, policy changes, and supporting infrastructure. This will revolutionize not only how we travel but also how we create a sustainable future.

In a strategic move to bolster electric vehicle (EV) adoption and manufacturing, the Indian government has unveiled a new policy offering significant incentives to global automakers. The policy aims to attract foreign investment by reducing import duties for companies committing to local production.

Key Highlights of the Policy

Under the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI), automakers investing a minimum of ₹4,150 crore (approximately $500 million) in local manufacturing within three years can import up to 8,000 EVs annually at a reduced customs duty of 15%, down from the previous rates of 70% to 110%.

To qualify, companies must meet revenue requirements once production begins. In the fourth year, approved firms are expected to report at least ₹50 billion in revenue, increasing to ₹75 billion in the fifth year. Failure to meet these targets could result in a penalty of up to 3% on the revenue gap.

The policy also mandates that automakers achieve 25% domestic value addition (DVA) by the third year, increasing to 50% by the fifth year.

Global Automakers’ Responses

Several global automakers have expressed interest in the new policy. Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia are considering setting up manufacturing operations in India to capitalize on the incentives.

However, Tesla has indicated a preference for establishing sales outlets without committing to local production, rendering it ineligible for the benefits under the new scheme.

Vietnam-based electric vehicle manufacturer VinFast’s planned $2 billion investment in establishing an EV manufacturing facility in Tamil Nadu has failed to qualify for benefits under India’s incentive scheme. To become eligible, VinFast must make an additional investment of ₹4,150 crore.

Domestic Automakers’ Concerns

Indian automakers, including Tata Motors and Mahindra & Mahindra, have raised concerns about the reduced import duties, fearing increased competition from global players. They argue that the policy could undermine domestic manufacturers who have already invested heavily in local EV production.

India’s EV Market Outlook

Currently, EVs make up only 2.5% of India’s car market. The government aims to boost this share to 30% by 2030. The new policy is a step towards achieving this goal by encouraging global participation in the Indian EV market.

Conclusion

India’s new EV policy presents both opportunities and challenges for global and domestic automakers. While the incentives are attractive, the stringent requirements and competitive landscape necessitate careful strategic planning. As the application window opens, the automotive industry will keenly observe how these developments unfold.

Electric vehicles (EVs) are driving us toward a sustainable future, and the battery technology behind them is evolving quickly. Let’s break down the different types of electric vehicle batteries that power these incredible machines.

1. Lithium-Ion Batteries (Li-ion): The Most Common Type

• Most common: Li-ion is top-notch for modern EVs because they pack a lot of energy into a small space and weight. 

Types of Li-ion Batteries:

• NMC (Nickel Manganese Cobalt): These are a go-to for EVs due to their solid balance of energy density, power, and life. 
• LFP (Lithium Iron Phosphate): Super safe and long-lasting, great where safety is a big deal. 
• Lithium Manganese Oxide (LMO): Good energy and safety, fitting for various uses, including EVs. 
• Lithium Titanate: Known for quick charging and durability—ideal where fast charges are key. 

2. Nickel-Metal Hydride (NiMH) Batteries: Common in Hybrid Cars

These are common in hybrid cars, giving a good mix of energy and power.

• Pros: 
  • Safer than Li-ion. 
  • More lasting than old-school batteries. 
• Cons: 
  • Less energy per weight than Li-ion. 
  • Heavier and bigger—so, not the best for all-electric cars.
    

3. Lead-Acid Batteries: Old but Reliable

Common from way back: Lead-acid batteries powered early electric cars and are still around for backup power and some old electric cars.

• Pros: 
  • Cheap and easy to find. 
  • Trustworthy and safe. 
• Cons: 
  • Not so much power packed in—means less drive distance. 
  • Greater in size and weight than others. 
  • Don’t last as long as Li-ion or NiMH batteries. 

4. Solid-State Batteries: The Future of EV Power

New and super exciting! They could totally switch up how electric cars work. Think of it like… they pack more power, charge faster, and… they’re safer, too. For electric cars, that’s a big deal, you know? More power, quicker charges, better safety—it’s all good. And that’s what these batteries bring to the table.

• Pros: 
  • Packs more power—think longer drives. 
  • Charges quick. 
  • Safer, thanks to the solid stuff they use inside. 
• Cons: 
  • Still figuring things out—it’s early days… 
  • Might cost more than the usual Li-ion batteries. 

5. Ultracapacitors: Not Your Usual Battery

Ultracapacitors store energy in an electric field, not chemically.

Use them in:

• An electric vehicle for quick power when speeding up or braking. Helps a lot! 

FAQs about Electric Vehicle Batteries

1. What’s the best kind of battery for electric vehicles?

Most electric cars use Lithium-Ion batteries. They’re really good because they have a lot of power and last long. Of course, some of the best ones are Nickel Manganese Cobalt and Lithium Iron Phosphate batteries.

2. How long do these batteries last?

Lithium-Ion batteries typically last 8-10 years. But—here’s the thing—it’s not just the battery that matters. How you use it, the weather, and how you take care of it play a big role. And other types? Like NiMH and Lead-acid? They usually don’t last as long.

3. Will solid-state batteries take over for EVs?

Totally! They pack more punch, charge faster, and are safer than old-school batteries. But, they’re still being worked on—and yeah, they cost more right now.

4. Can I switch out my EV battery?

Sure can, but your wallet might feel it. Lots of car makers have got your back with replacement services or warranties that go for a while.

5. What makes ultracapacitors different from batteries?

Ultracapacitors hold energy in an electric field—think of it like a temporary hangout. Batteries, though, keep it locked in chemically for the long haul. Ultracapacitors burst with energy fast but don’t last long. Often, they team up with batteries to step up the game.

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  Article By
  Sourabh Gupta