Challenges in adopting electric vehicles technology in India

India is zipping ahead on its path to embrace electric cars as automakers as well as the government are gearing up to bring electric mobility to the country. The government wants only electric vehicles to ply on India’s roads by 2030 as part of its commitment to reduce greenhouse gas emissions under the global agreement on climate change, and to reduce spending on oil imports, which, according to one estimate, could double to an annual $300 billion by that year.

The urgency comes against the backdrop of the fact that six Indian cities, including capital New Delhi, are among the 15 most polluted cities in the world ranked by the World Health Organization (WHO) last year.

In the past 12 months, four other countries have come out with a definite time frame to ban the sale of ICE vehicles in favour of EVs. The Netherlands and Norway want to do it by 2025. The UK and France want to phase out ICE vehicles by 2040. The UK has said it won’t even allow vehicles running on traditional fuel to ply on its roads from 2050.

Policy think-tank Niti Aayog has recommended offering fiscal incentives to EV manufacturers and discouraging privately-owned petrol- and diesel-fuelled vehicles. The draft national energy policy states: “EVs are an area of huge interest to India as it holds the potential of reducing the demand for liquid fuel.”

The challenges:
While the transformative push for electric vehicles has become a cause célèbre for India and the world, it presents challenges along with opportunities. India lacks critical infrastructure and necessary technology to start manufacturing EVs. Efficient components such as high-density batteries remain a key challenge. Other key challenges are:

Lack of clarity in policy: Indian auto makers are beginning to scramble to acquire electric technologies. Some manufacturers think the government’s target is too ambitious, and it is moving too fast. The government should give clarity on the policy front as the auto industry cannot switch to BS-VI emission standards, and then to CNG and then to electric vehicles overnight.

Charging infrastructure bottlenecks: The conversation surrounding electric vehicles in India has been around chargeable battery EVS, so the primary issues arise on account of electricity generation and charging infrastructure. The government hasn’t specified how it plans to generate uninterrupted electricity in cities, where power shortages are routine, let alone provide universal access to electricity in the hinterland.

Surge in electricity demand: Another related risk is that of EV charging leading to a surge in electricity demand which in turn may put at risk India’s already stretched electricity distribution networks.

Job loss in oil industry: The issues that need to be considered are job losses in the components industry, the number of upcoming oil refineries and how dependence on petrol will be reduced, the downstream and upstream sectors in the petrol business, and the investments that will possibly go bad in these sectors.

Raw material constraint: Factors specific to the business such as the raw material for batteries, and if they would lead to import dependence on another set of countries will also have to be considered. India does not have enough lithium reserves for manufacturing lithium-ion batteries. This could lead to a substantial change in the country’s energy security priorities, with securing lithium supplies, a key raw material for EV batteries, becoming as important as buying oil and gas fields overseas.

Recycling hurdles: These new lithium-ion batteries are too poisonous and should be recycled properly. The recycling process is so demanding that even Germany has its doubts. It’s also very expensive.

Charger issue: Another issue is whether to go for AC (alternating current) or DC (direct current) chargers. While an AC charger takes around six hours to charge an EV, DC chargers are faster and take around 40 minutes to one hour to fully charge a vehicle.

China’s competitive edge: Indian firms have also warned about the EV story going the solar module way with most solar power developers sourcing modules and equipment from countries such as China, where they are cheaper.

Way Ahead
A clear policy objective supported by a cohesive and coordinated approach of relevant Ministries and Departments, a supportive tax infrastructure, and rising participation of market forces?—?all indicate that India is about to embark on a new journey, which in itself can be full of challenges. But a committed stewardship would successfully secure a brighter future composed of cleaner and greener environment, enhanced global competitiveness and an investment hub full of great possibilities.

By: Dr. Vivek Rana