There are over a total of 330 Million Vehicles in India, out of which only 1.5 Million are Electric. Though growing rapidly, the electric mobility sector is still in its nascent stage in India. Lack of reliable, accessible, and affordable charging infrastructure is the prime obstacle towards the mass adoption of electric vehicles (EVs) in India.
Before the widespread EV penetration, availability and accessibility of reliable charging infrastructure must happen. Growth in EV adoption in the absence of sturdy charging infrastructure will be challenging.
Moreover, The electric mobility ecosystem requires an effort from multiple stakeholders working in synergy. It is compelling to develop a general understanding of the stakeholders involved and the hurdles they face.
Original Equipment Manufacturer (OEM)
An OEM makes the product according to the buyer’s specification with a customized design, material, dimensions, and functions. In our case, OEMs are the ones lifting the heavy load. They create the charging infrastructure, batteries, Electric Vehicles, and their parts. It is crucial for OEMs and start-ups to understand the actual demand and adoption trends for the electric mobility ecosystem. The adoption trends determine the development of supply chains and the up-gradation of the products from standard technologies to the emerging ecosystem. Additionally, newer business models need to arise transitioning and supporting the change.
Power utilities will have to take the lead in the successful development of a sustainable electric mobility ecosystem. The rise in electricity demand
from EVs presents an opening for the power utilities with raised revenue. Strengthening the present infrastructure to cater to such demand requires extensive investments and participation from organizations.
Government and regulators
The government is the key stakeholder in the development of any new technology or sector. Suitable policies and regulations, quick decisions, and active participation from the government constituents the perfect recipe for a growth hack. The Government of India has proposed that 2-wheelers below 150cc sold in the country after March 31, 2025, and 3-wheelers sold after March 31, 2023, should be Electric Vehicles.
The GoI started the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) in two phases approving the financial aid of over INR 9,500 Cr. It is focused on charging infrastructure, technology development, and demand creation by reducing taxes.
The government must actively identify the policy and regulatory barriers to aid private sector investments in the sector. Subsequently, the government has to balance the transition of the existing automotive industry in adopting newer technologies, protecting jobs, and maintaining its economic participation.
Affordable and accessible land is of utmost importance to drive the business viability of the charging infrastructure operations.
Unlike gas stations that require huge spaces to setup, charging stations operates on an entirely different business model. Parking Stations, Malls, Restaurants, retail stores should host chargers. People can quickly charge their vehicle as they park and leave for 30-60 minutes. This way, charging stations do not require their independent land and can be inculcated with existing real estate. Real estate plays one of the deciding parameters that affect the expansion of an electric mobility ecosystem.
Oil and gas
The whole atmosphere revolves around pushing towards reduced emissions and switch to cleaner, greener energy. Oil and gas companies are in front of the line to face the stress of the new investments towards renewable sources of energy. Oil and gas companies need to stay relevant and figure out new business models that can support them.
Consumer attitude toward newer technologies determines their adoption bias. The purchase cost of EVs is found to be a barrier to adoption amongst consumers. The total cost of ownership is lower for Electric Vehicles due to electricity as the running fuel. People face range anxiety, an outlook challenge that has resulted in the low uptake of EVs.
Historically, A vehicle that can entirely run on electricity was built in the 1870s. It has been successful only in a few niche markets. However, it was only until the last decade that an opening for electric mobility was made. We believe this opening is here to last. Electric Vehicles are an inevitable mode of transport throughout the world.
In our next article, we will talk about why Electric mobility is an inevitable future. Stay tuned! Subscribe to our Newsletter below:
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