What Are The Issues India's Rising EV Industry Is Witnessing And What Could Be Done? LML CEO Yogesh Bhatia Explains

India is making significant strides in promoting sustainable transportation, with Electric Vehicles taking the lead. The adoption of electric vehicles has been steadily increasing, as visible in the sales figures last year. In 2023, EV sales surged by 49 per cent compared to the previous year, reaching 1.53 lakh units. This momentum has carried into 2024, with January witnessing a new record of 81,000 EV units sold. However, despite this progress, there are still significant hurdles to overcome on the path to widespread EV adoption.

Talking about this issue to Jagran English, Yogesh Bhatia, MD and CEO, LML said, "One key area that demands thorough attention is the development of a robust charging infrastructure. While progress has been made in expanding the charging network, with 12,046 EV charging stations in operation as of February 2, 2024, this infrastructure is still insufficient to support an expanding EV fleet". "Moreover, most of these charging stations are concentrated in urban areas, leaving tier- 2, tier-3 cities and rural areas underserved," he added.

"Furthermore, there is a lack of ultra-fast charging options on highways to support long-distance travel. Such situations lead to range anxiety among EV users, fearing they may run out of charge during long journeys. Thus, there is an acute need for an extensive charging infrastructure, which is strategically located and takes into account traffic patterns and population density,” Bhatia said, adding, "this issue is being given utmost importance by the government through various initiatives, including FAME I and II."

Speaking about the efforts to ramp up the number of EV charging stations in public areas, Bhatia said, “More EV charging stations are being set up such as in parking lots, multi-story complexes and fuel stations. Home-charging stations are also being encouraged to provide enhanced charging convenience to EV users. Some EV charging stations are also utilising solar energy, which is a great step towards promoting sustainability.”

Another key challenge in the road to widespread EV adoption is the high upfront cost of EVs, mainly due to expensive batteries. Commenting on this, Bhatia said, "Despite a noted dip in battery prices over the years aided by government incentives and subsidies, they still represent a significant expense. To further drive down costs, it is essential to boost investment in battery manufacturing within India and also amp up research efforts into battery technology. Lowering battery prices will make EVs more affordable, thus spurring increased customer uptake and catalysing a transformative shift in the EV industry."

In order to address these challenges and cater to the evolving EV market, a strategic approach is crucial, Bhatia noted. Talking about this strategic approach, he said, “One key aspect is the implementation of targeted state-level EV regulations to effectively address the unique needs and challenges of each region. Customised incentives, regulations, and subsidies in the form of tax breaks, registration fee waivers, and direct financial support are necessary to stimulate consumer interest and drive EV sales.”

Policymakers are also leaving no stone unturned to create a conducive environment for EV manufacturers and consumers alike. The government has also introduced regulations mandating minimum emission standards for vehicles, pushing automakers to invest in cleaner technologies.

Adding onto this, Bhatia stated, “The responsibility of driving the bigger change does not solely rest with the government. It necessitates a collaborative approach involving consumers, industry stakeholders and the government. Only through collective action can we achieve a greener, more energy-efficient transportation system in India. Needless to say, the bright future of EVs is evident with the current pace of developments in the industry. However, it is crucial to resolve the challenges soon with the right policies, investments, and partnerships. This, in turn, would pave way for India to become a global leader in electric mobility, setting an example for other nations to follow.”