India Electric Car Market Dynamics

Factors influencing of India Electric Car Market (Dynamics)

vaibhav patil
vaibhav0222@gmail.com

Drivers

On the Environmental Pollution Index (EPI) 2018, India is among the bottom five countries in the environmental health category and ranked 178 out of 180 as far as air quality is concerned. India’s CO2 emissions increased by an estimated 4.6% in 2017.
The ultra-fine particulate matter (PM2.5), emitted by fuel-based vehicles, are harmful. Their concentration in the air have increased over the past decades leading to around 1,640,000 deaths annually in India.
To reduce the air pollution, government has decided to shift from conventional fuel-based vehicles to electric vehicles in addition to implementing several stringent norms.

India is currently following Bharat Stage IV (BS IV) norms and would be moving to BS VI emission standard by 2020, skipping BS V.
The government has decided to go directly from BS IV to BS VI fuel standards due to environmental degradation, growing pollution levels, and health hazards caused by vehicular pollution.
This is a step toward a more sustainable and cleaner environment.
As a result, reduction in the usage of conventional fuel-based vehicles is expected, thus increasing the demand for electric vehicles.
With BS VI coming into effect, India would come at parity in automotive market with the U.S., and other developed European countries across the globe.



Restraints

Lack of adequate number of charging stations is one of the majors restrain spotted in the Indian electric car market.
The charging infrastructure is the most decisive factor for electric car sales in the country.
The limited or inadequate availability of charging stations, coupled with lack of adequate financial schemes for the growth of such infrastructure, hinders the adoption of electric cars by customers.
In addition, the technological challenges such as limited electric range and long charging time are also expected to affect the adoption of electric car in the country.

Indian electric car market  classification:-

TECHNOLOGY

Based on the technology, the Indian electric car market has been categorized into

battery electric vehicle (BEV),

plug-in hybrid electric vehicle (PHEV),

and hybrid electric vehicle (HEV).

BEV category held the largest share in the Indian market, contributing over 70% sales volume in 2017.

BATTERY

On the basis of battery, the Indian electric car market has been classified into

Lithium-Iron-Phosphate (LFP),

Lithium–Nickel–Manganese Cobalt Oxide (Li-NMC), and others.

The “others” category includes other Li-ion based batteries,

such as Lithium–Titanate oxide (LTO) battery,

Lithium–Nickel–Cobalt–Aluminum oxide (NCA) battery,

nickel–metal hydride (NiMH) battery,

and lead acid battery.

LFP battery-based electric car was the largest category in the market,

contributing over 65% sales volume in 2017,

 owing to the benefits such as high current rating, thermal stability and safety levels, and long cycle life.