From Skepticism to Enthusiasm: India’s Journey in Embracing Electric Vehicles

Parati
12 min readSep 28, 2023

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Until a few years back, Indian consumers displayed considerable skepticism towards electric vehicles (EVs), and this skepticism was justified by several factors like high upfront cost, range anxiety, lack of charging infrastructure, and safety concerns. According to a report by the International Energy Agency (IEA), in 2020, EVs constituted just 0.22% of India’s total vehicle sales, showcasing the low adoption rate. One significant reason behind this reluctance was “range anxiety,” as highlighted by the IEA’s data, which showed that many potential buyers were concerned about the limited driving range of early EV models.

The scarcity of charging infrastructure was another critical factor affecting adoption rates. Data from the Society of Indian Automobile Manufacturers (SIAM) indicated that the number of public charging stations in India was significantly lower than the required amount to support widespread EV use. This lack of infrastructure further deterred consumers from considering electric vehicles as a viable option.

The high upfront cost of EVs was a substantial deterrent as the electric vehicles in India were often priced at a premium compared to their conventional fuel-based counterparts. This price gap made EVs unattainable for many Indian consumers. Concerns over safety were other reasons that made EV penetration in India lag behind by many folds.

EV Performance and Range

Electric Vehicle (EV) performance and range are two things that are highly questioned and debated by common people before cornering down to buying an EV. Range refers to the maximum distance an electric vehicle can cover when its battery is fully charged. It is calculated by dividing the amount of energy in the batteries (kWh) by the efficiency of the vehicle (kWh/mile). The median range of EVs have increased multi-folds due to the advancements in technology since 2011. For instance, Nissan Leaf, a mid-range EV car in 2011 had a range of 73 miles per single charge and in 2022, the range of Chevrolet Bolt is 247 miles per single charge. Currently in India, the KIA EV6 is the longest range EV with a driving range of 708 km.

Let us discuss some of the following factors that impact the overall performance and range of an electric vehicle (EV):

  • Battery Size: The biggest factor that determines the range of an EV is the capacity of its battery. A larger battery will typically have a longer range, but it will also be heavier and more expensive.
  • Driving Style: Aggressive driving, such as rapid acceleration and braking, can significantly reduce an EV’s range. Driving smoothly and at a steady speed will help to maximize range.
  • Speed: The faster an EV travels, the more energy it consumes. Driving at lower speeds will help to improve range.
  • Temperature: Extreme temperatures, both hot and cold, can impact the range of an EV. In cold weather, the battery may need to work harder to heat the cabin, which can reduce range. In hot weather, the battery may overheat, which can also reduce range.
  • Load: The weight of the load in an EV can also impact its range. A heavier load will require more energy to move, which can reduce range.
  • Motor Power and Torque: The motor is responsible for converting electrical energy into mechanical energy, and its power and torque will determine how fast the car can accelerate and how much it can tow.
  • Tire pressure: Underinflated tires can increase rolling resistance, which can reduce range.
  • Aerodynamics: The shape and design of an EV can also impact its aerodynamics. A more aerodynamic design will help to reduce drag, which can improve range.
  • Battery degradation: Over time, the battery in an EV will degrade, which can reduce its range. The rate of degradation will vary depending on the battery chemistry and how the EV is driven.

It is important to note that these are just some of the factors that can impact the range of an EV. The actual range that an EV can achieve will vary depending on a number of factors, including the specific model and trim level, the driving conditions, and the driver’s habits.

Advanced Digital Tools and Technologies Bolstering the EV Adoption

The Electric Vehicle (EV) ecosystem is evolving rapidly, and various digital tools and technologies are playing a crucial role in its development and adoption. Here are some key digital tools and technologies that are aiding the EV ecosystem:

  • EV Charging Apps: Mobile applications provide real-time information on the location and availability of charging stations. They also facilitate payment, reservation, and navigation to charging points.
  • Telematics and Connectivity: EVs are equipped with telematics systems that offer features like remote monitoring, over-the-air updates, and data analytics. These systems improve vehicle performance and user experience.
  • Battery Management Systems (BMS): BMS software monitors battery health, performance, and state of charge. It helps maximize battery life and ensures safe operation.
  • EV Range Estimators: Apps and in-car systems provide accurate range estimates based on factors like battery charge, driving style, and weather conditions. This helps reduce range anxiety.
  • Energy Management Systems (EMS): EMS optimizes charging and discharging of EV batteries, taking into account electricity rates, grid demand, and renewable energy availability.
  • EV Fleet Management Software: Businesses use software to manage fleets of electric vehicles efficiently, monitoring vehicle location, charging, maintenance, and optimizing routes.
  • Grid Integration: Smart grid technologies allow utilities to manage EV charging loads intelligently, reducing strain on the grid and enabling demand response programs.
  • EV Charging Infrastructure Planning Tools: These tools help governments and businesses plan the deployment of charging infrastructure by analyzing data on traffic patterns, EV adoption rates, and demographic trends.
  • EV Incentive and Rebate Platforms: Online platforms and apps provide information on government incentives, rebates, and tax credits for EV buyers, encouraging adoption.
  • Digital Twins: Digital twin technology creates virtual models of physical EV components or entire vehicles. It aids in design, testing, and predictive maintenance.
  • EV Marketplaces: Online platforms connect buyers and sellers of new and used electric vehicles. They provide detailed vehicle information, pricing, and reviews.
  • AI and Machine Learning: AI algorithms are used for predicting charging patterns, optimizing routes for EVs, and improving battery efficiency.
  • Blockchain: Blockchain technology can be used for secure and transparent transactions related to EV charging, energy trading, and data sharing.
  • Augmented Reality (AR): AR applications can assist with vehicle maintenance and repair by providing real-time visual instructions and diagnostics.
  • Eco-Driving Apps: These apps provide real-time feedback on driving habits to help users maximize energy efficiency and extend the range of their EVs.
  • EV Data Analytics: Advanced analytics tools process vast amounts of data generated by EVs to gain insights into usage patterns, energy consumption, and performance.
  • Regenerative Braking Systems: These systems capture and convert kinetic energy during braking into electric energy, which is then fed back into the battery for reuse.
  • Navigation Systems: GPS and navigation apps can provide routes optimized for EVs, including charging station waypoints and range considerations.

These digital tools and technologies are essential for enhancing the user experience, extending the range, improving the efficiency, and accelerating the adoption of electric vehicles in the modern transportation ecosystem. They also play a crucial role in supporting the integration of EVs into the broader energy and transportation infrastructure.

Startups Slaying the Digital Game

Nesh.Live

Founded in 2012 and headquartered in Chennai, Nesh.Live is a startup that offers a unique solution. Their innovative technology enables Original Equipment Manufacturers (OEMs) to gather and transmit data to the cloud for subsequent analysis, generating valuable insights and reports regarding engine health and driver behavior.

At the core of their offering is the software-as-a-service solution known as Nesh LIVE, which is integrated into vehicles during the design phase. This software collects data directly from the vehicle and securely transfers it to the Nesh LIVE cloud platform. Leveraging the power of Artificial Intelligence, the data stored in the cloud is processed to produce actionable insights and decision-making points. These insights benefit a wide range of stakeholders, including manufacturers, vehicle owners, service networks, and fleet operators.

Nesh.LIVE collaborates closely with electric vehicle (EV) manufacturers throughout the vehicle engineering process, identifying specific sensory points necessary for data extraction. They achieve this through the implementation of custom-designed telematics control units (TCUs) equipped with edge processing capabilities. These TCUs play a vital role in real-time predictions of battery range and state of charge, enhancing the overall functionality of EVs.

Numocity

Established in 2018, Numocity is a Bangalore-based startup that offers a comprehensive solution for Charge Point Operators (CPOs). It empowers CPOs to effectively monitor the real-time status of their charging stations. Simultaneously, it provides end-users with access to vital information about the charging stations, including the types of chargers available (such as AC and DC, fast DC chargers), their availability status, and precise charger locations.

Numocity’s proprietary software platform, known as NumoCMS, serves as a valuable tool for customers. It facilitates the tracking of charging stations, recording charging transactions, setting tariffs, and remotely resetting charge points, all without the need for a physical presence at the charging station. NumoCMS also supports CPOs in offering services like managing charging sessions, handling reservations, and staying updated, which is especially beneficial for operators dealing with intricate multi-vendor charging stations.

Battrixx

Established in 2018 and situated in Mumbai, this innovative battery startup specializes in tailoring a diverse selection of cutting-edge lithium-ion battery modules and packs, including a sophisticated Battery Management System (BMS), explicitly designed for four-wheeled electric vehicles.

Battrixx’s lithium-ion battery packs stand out as among the top choices ideally suited for Indian road conditions and varying temperatures. This distinction arises from their impeccable safety features and compact design, which have been meticulously engineered.

Their unique Battery Management System (BMS) takes center stage by providing intelligent battery management that places a strong emphasis on comprehensive pack monitoring and safety assurance. Beyond this, Battrixx offers complete customization options for the battery packs, including dimensions and cell configuration, to ensure the most efficient and optimal usage tailored to individual needs.

Revolt Motors

The Revolt App “MyRevolt” has several key features such as the Digital Remote key to start the bike with a tap on your phone, Voice Assistance to control your bike using voice commands for an immersive riding experience, Swipe Start/Stop to effortlessly start and stop your Revolt bike with a gesture on your smartphone, detailed log of your daily rides like distance, duration, and energy consumption. The app also has a live bike location to keep track on your bike’s location at all times, real time. Geo fencing is another astounding feature that sends alerts to your smartphone when the bike exits specific areas.

Government Initiatives

Nearly one-fifth of global greenhouse gas emissions comes from the transport sector though pipelines emissions. To put an end to the air pollution caused by vehicles and decarbonize the transport sector, India rolled out the website e-AMRIT at the COP26 Summit in Glasgow. The website will function as a one-stop destination for all information on electric vehicles. It addresses various aspects of EVs like charging facility locations and EV financing options as well as information about investment opportunities, government policies, and available subsidies for drivers and manufacturers.

India’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) policy is a government initiative aimed at promoting the adoption of electric and hybrid vehicles to address environmental concerns, reduce pollution, and promote sustainable transportation solutions. The FAME policy comprises two phases: FAME 1 and FAME 2.

Source: InsightsonIndia

FAME 1 (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles — Phase 1):

FAME 1 was launched in April 2015 and had a primary focus on promoting electric and hybrid vehicles in the country. It offered a range of incentives and subsidies to manufacturers, buyers, and other stakeholders to accelerate the adoption of electric vehicles. Some key highlights of FAME 1 included:

Incentives for Manufacturers: FAME 1 provided incentives to manufacturers to produce electric and hybrid vehicles and their components in India. This encouraged domestic production and reduced the cost of these vehicles.

Demand Incentives: Under this phase, buyers of electric vehicles received direct cash incentives, reducing the upfront cost of purchasing an electric vehicle.

Charging Infrastructure: FAME 1 aimed to develop charging infrastructure for electric vehicles across the country, making it more convenient for users to charge their vehicles.

Research and Development: The policy also supported research and development efforts in electric mobility, battery technology, and related areas.

FAME 2 (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles — Phase 2):

FAME 2 was launched in March 2019 as an extension and enhancement of the FAME 1 policy. It introduced several new elements to accelerate the adoption of electric mobility:

Incentives for Electric Buses: FAME 2 included incentives for electric buses used in public transportation, aiming to reduce emissions in urban areas and improve the quality of public transport.

Higher Subsidies for Electric Two-Wheelers and Three-Wheelers: The policy increased subsidies for electric two-wheelers and three-wheelers, making them more affordable for consumers.

Charging Infrastructure Expansion: FAME 2 continued the focus on expanding charging infrastructure, especially in cities and along highways.

Phased Implementation: FAME 2 was designed to be implemented over three years, ensuring sustained support and growth in the electric vehicle market.

Overall, the FAME policy, through its two phases, has played a crucial role in boosting electric vehicle adoption in India by providing financial incentives, promoting domestic manufacturing, and expanding charging infrastructure. It aligns with India’s commitment to reducing emissions, combating pollution, and transitioning to a more sustainable and eco-friendly transportation ecosystem.

Source: Times Of India

According to this data, it is clear that these policies have certainly helped and are helping India progress towards its G20 presidential goal of transitioning to clean energy.

FAME 3 Anticipated

As the G20 Summit has recently concluded, we can see a lot of emphasis on transition to clean energy and addressing climate change. Hence, the upcoming FAME 3 policy is anticipated to include a lot of schemes beneficial for the EV sector.

The Positive Consumer Perception Shift

Consumer perceptions towards electric vehicles (EVs) in India have undergone a notable transformation over the years. Initially, potential buyers were hesitant due to concerns related to limited range and safety issues. However, today, there is a perceptible shift in their perception, driven by various factors such as improved safety standards, government policies, advancements in battery technology, and the establishment of a more accessible charging infrastructure.

Source: https://www.jmra.in/html-article/17246

Eco-Friendly: As awareness of environmental issues grows, more people are recognizing that EVs offer a cleaner and greener alternative to traditional internal combustion engine vehicles. EVs produce zero tailpipe emissions, reducing air pollution and contributing to better air quality. Additionally, the use of renewable energy sources for charging makes EVs even more environmentally friendly. Consumers appreciate the reduced carbon footprint, lower noise pollution, and overall sustainability that EVs bring, aligning with their desire for eco-conscious transportation options. This positive perception is driving increased adoption of EVs and fostering a more sustainable future.

Safety Standards: In recent years, safety standards for EVs in India have seen significant enhancements. The Bharat New Vehicle Safety Assessment Program (BNVSAP) introduced stringent safety norms for vehicles, including EVs, in 2019. These standards encompass important aspects like crash testing, airbags, and safety features. As a result, consumers now have greater confidence in the safety of EVs.

Government Policies: The Indian government has played a crucial role in shaping the perception of EVs through its policy initiatives. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, initially launched in 2015 and subsequently extended, offers financial incentives to both manufacturers and consumers of EVs.

Advancements in Battery Technology: The evolution of battery technology has addressed one of the major concerns of consumers — range anxiety. Lithium-ion batteries, which power most modern EVs, have seen substantial improvements in energy density, allowing for longer driving ranges on a single charge. Innovations like solid-state batteries promise even greater range and safety in the near future, further boosting consumer confidence.

Charging Infrastructure: The development of an accessible charging infrastructure has been pivotal in changing consumer perceptions and addressing range anxiety. Government and private players have made substantial investments in setting up charging stations across the country. For instance, in 2021, the Indian government announced plans to install 22,000 charging stations across 1,000 cities under the FAME scheme. Additionally, private companies like Tata Power and ChargePoint are rapidly expanding their charging networks.

Bottomline

Indian consumers are gradually warming up to the idea of electric vehicles. According to a study by Deloitte, 65% of Indian consumers are now considering purchasing an EV, reflecting the changing sentiment. Furthermore, India’s EV market is poised for substantial growth, with forecasts suggesting that it could reach 63 million EVs on the road by 2030.

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Parati
Parati

Written by Parati

Leading Business & Technology Consulting Firm In India