Wider EV Adoption in India May Take Time
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Rising air pollution and falling inventory of natural resources require India to shift towards cleaner alternatives. At this point, switching to electric vehicles (EVs) is the need of the hour. Both government and private players have been doing their best to encourage electric mobility in India. However, research organization Bloomberg New Energy Finance (BNEF) believes that wider adoption of electric vehicles in India, especially four wheelers, will take more time compared with other countries.
According to Shantanu Jaiswal, head of India research at BNEF, the Indian market is not ready for mass adoption of EVs as they cost more compared with diesel- and petrol-run vehicles. While speaking to Entrepreneur India during the World EV Show, organised by Trescon, Jaiswal said that in ten years, electric four-wheelers will reach parity with combustion engine vehicles after prices of batteries drop.
Explaining the chicken and egg situation in the EV space, Jaiswal said sales of EVs need to pick up to generate demand for the charging infrastructure. He also clarified this does not mean that roads need to be flooded with vehicles first and only then can the infrastructure be built. “Both vehicles and infrastructure need to go hand-in-hand, however, the starting point should be the sale of vehicles,” said Jaiswal.
He also explained that EV makers will not be able to achieve localization at one go. It has to be done at every step.