The 9th edition of the ETAuto EV Conclave commenced on December 11 in New Delhi. It is a two-day event, December 11-12. India is undergoing a massive shift in the dynamics of auto fuel with electric vehicles (EVs) adoption as a major agenda.
The discussion touches upon all the prevailing trends, roadblocks, and future prospects for the country to become a leading player in the EV market.
S-Curve in EV adoption
“I believe though we are a niche segment in the passenger vehicle market, the EV adoption has been very good,” said Jyoti Malhotra, MD, Volvo Car India. Volvo Car India’s EV car sales comprises 25% of its current sales, he added.
The reason attributing to this fast adoption is the availability of home-charging spaces, dismissing range anxiety, and digitalisation.
Understanding the consumer pattern behavior, Malhotra stated, ‘S curve. “Whenever new technology comes, it accelerates, then it sort of platoons and then again it takes off… we are currently at the second stage.”
‘Fear of the unknown’ is a common practice observed in consumer behavior, where the potential buyers and people around them are afraid of accepting any new technology. However, Malhotra is optimistic about the increasing EV adoption in the luxury car segment.
Durability and customer reliance on electric vehicles is required to build consumer confidence for trying a new technology. Anil Dua, Co-Founder, Lectrix EV, said, “The moment you look at durable vehicles, EVs don’t have a good reputation, we are trying to improve that with our products.”
ICE or EV?
“Other than India and China, most of the other economies, the customers are preferring more ICE,” said Rajat Mahajan, Partner, Deloitte India. He emphasised how people who considered EVs in the past are rather circling back to ICE. Policies, schemes, and other initiatives by the state governments across the world have given the drivers’ seat to the acceptance of EVs in the auto market. He believes EV sales will be decreased again once the government pulls back all the benefits while buying an EV.
Bringing technology to the discussion, Sameer Sankhe, Chief Digital Officer, Genesys International Corporation Ltd., said, “In the future, cars will take a lot of pictures and we will have a lot of data for generative AI use.”
Battery cost, a gamechanger in EV adoption
The batteries, which approximately comprises 40% of an EV cost, is a ‘game changer’ in EV penetration, stated Vivek Vikram Singh, MD and Group CEO, Sona Comstar. The current adoption of EVs is slower than expected, which makes the country’s 2040 target of electrification a difficult task to accomplish.
Though he emphasised how humans expect a lot from a newly launched technology (EV) other than waiting for at least 15-20 years. “I don’t think the mild hybrids of today will survive this change which is coming again.. But again battery prices are everything,” stated Singh.
Challenges in adoption journey
The EV adoption target is evolving and is undergoing a slower adoption curve than expected attributing to multiple reasons. Highlighting about those Hardeep Singh Brar, Head – Marketing & Sales, Kia India said, price disparity, unavailability of charging infrastructure,production scale and range anxiety.
The price gap between EVs and ICE, acts as a major hurdle on the pathway of adopting EVs in the country. He further said the gap will be reduced with the reduced cost of batteries. “Right now the volumes are low, once the volumes go up, the pattern prices will come down and hence the price will go down,” he added.
Sanjeev Kulkarni, COO of BillionE, said, “The cost of operation of a 55-ton electric truck can be comparable to that of a diesel-powered truck.” He also emphasised on the efficiency of electric vehicles when compared with ICE.
“According to our data, 85% of the customers charge their EVs at home. Charging infra is becoming underutilised which is becoming a concern for investors,” stated Satinder Singh Bajwa, Chief Commercial Officer, JSW MG Motor India. JSW MG Motor India’s current portfolio comprises 60% of EVs. He emphasised on a robust charging infrastructure, and curbing range anxiety. He further highlighted how the current charging stations are under utilised. “That’s where it is becoming a challenge for even the people who are coming forward to set up the charging infrastructure because they have to look at the viability of those investments that they are making.
‘One’ alternative fuel
Auto industry experts bet on ‘one’ alternative fuel solution, instead of multiple by the government. Brar believes instead of promoting hybrid adoption from various state governments, the GoI should bring higher incentives for EVs as they are zero emission vehicles, unlike hybrids. “If you are advocating EVs you push for EVs. If you are advocating hybrids, then you advocate for hybrids,” stated Brar.
The discussion underscored the collaborative efforts from both the OEMs and the GoI to reduce battery cost, and change consumer fear before adopting a new technology, after which India can become an EV leader across the globe.
