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  • Writer's pictureRicha Shetty

What is the Future of Electric Cars in India 2022?

Updated: Jul 17, 2023

The International Energy Agency cites that by 2020 up to 20 million electric vehicles will ply the road, a number that is expected to go up to 70 million by 2025, India's automotive future looks electric. There is a definite and structured push towards the automotive sector for a sustainable and greener future in India in the coming time.

During the same period,(2020-2025) a 24%, 23%, 60%, 9% 6.5%, 8.6%, 8.5%, and 21% drop is predicted at the prices of motors, controllers, electric vehicle supply equipment (EVSE), thermal management systems, power distribution modules (PDMs), vehicle interface control modules (VCIMs), high-voltage cables, and DC-DC converters, respectively. As a result, the Indian electric vehicle component market, which reached $536.1 million in 2019, would advance at a CAGR of 22.1% between 2020 and 2030 (forecast period).

In this article, we will talk about How India turns to electric vehicles to beat the pollution? Future scopes of electric vehicles in India? Should India postpone its electric vehicle producing plans for the next ten years due to COVID impact? India's Electric vehicle policy 2030, and many more. Know more about the Top 6 Trends in Green Driving Habits for Your Fleet

Future of Electric Cars in India

EV Adoption Campaigns:

The fact remains that the core of e-mobility is obviously the EV itself. We have previously seen cities like Delhi and Kolkata lead the way for mainstream e-mobility. These cities promoted the use of e-rickshaws to lower operation and economical costs. There are reportedly over one lakh e-rickshaws on the streets of Delhi while Kolkata is also following suit. This development is also encouraging a jump in EV sales for personal use as well. Learn more about our Accident Reconstruction solution for vehicles and cabs

The newly launched ‘Switch Delhi’ Campaign has seen a great response so far which is an encouraging sign for the EV industry. The campaign was introduced to promote the adoption of EVs. Owing to its success, some leading two-wheeler companies have stated that they will be launching new EV models in the nation’s capital. Must Read: Elon Musk: Cheaper, More Powerful Electric Vehicle Batteries are 3 Years off

Last-mile Deliveries are going Electric?

For the longest time, India’s delivery ecosystem was dominated by trucks. They were the only answer to transporting goods large and small to various destinations. Then came bikes, vans, and smaller modes of transport that changed the whole delivery-system. These developments combined with the increasing demand have sparked massive growth in the industry. However, the downside is an increased carbon footprint. It creates a negative impact on the environment and the general health of people. Plus, the evidence of air pollution is obvious in densely populated cities like Delhi, Bangalore, Mumbai, etc. Read, Also: South Korea to Overhaul Subsidy Scheme for Electric Vehicles (EV)

Challenges and Issues for EV in India:

Breaking away the old norms and establishing a new consumer behavior is always a challenge. It is common to find users anxious about the speed and range of EVs. Thus, a lot of sensitization and education is needed, in order to bust several myths and promote EVs within the Indian market. There are a number of challenges in the adoption of electric vehicle cars in India in the near future. These include:

  1. Price factor

  2. Lack of battery cell manufacturing

  3. Charging infrastructure

  4. Battery performance

1. Price Factor

The average price of a car in India is too low, compared to other countries. Say, for example, an average family in the US or Europe would consider buying a car if it costs somewhere around 30000-35,000 USD. But in India, the average price of a car is approximately 10,000 USD. This is where the first challenge arises. Electric cars as you know are highly-priced compared to their diesel or petrol counterparts. So the average citizen in India would not be interested if the prices don't fall under the 10,000 USD range. Know more about what is Green Driving and How Does it Affect Fleet?

2. Lack of battery cell manufacturing

There is an absence of primary battery cell manufacturing in India which poses the risk of increasing our trade deficit. At the moment, most manufacturers rely on batteries imported from Japan, China, Korea, and Europe. Hence, the Indian market needs encouragement. See the list of countries contributing to the success of usage-based insurance.

3. Building charging infrastructure

The big challenge is of course charging infrastructure which will need to be combined with existing refueling stations and at alternative locations closer to homes.

4. Increasing battery performance

At present, the Hyundai Kona electric has the highest range of 452 km on a single charge among electric cars available in India, which could change in the years to come.

Contact us for a quick 14 day demo of our Traxroot Fleet Maintenance Software to understand how our software can take better care of your electric vehicle, and turn it into a super-powerful machine. Visit our FAQ page for some frequently asked questions on fleet management.


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