Friday, July 23, 2021
By CarKhabri Team
From EVs To Hybrid Vehicles: Dynamic Shift In Auto Industry
The Indian automotive industry has succeeded in coming out from the impacts of the global pandemic COVID-19. The industry is coming back on track. According to the Indian Automotive Industry Report published by IBEF, the Indian Automotive industry stands fifth in the global automotive market. It would be interesting to know that two years back in 2019 the Indian Automotive Industry was ranked seventh in the global automotive market. The hike of two positions is although appreciating, this is not good from its worst impacts on the environment. The increase in the demand for vehicles where at one side puts an extra pressure for production on the vehicle manufacturers. On the other hand, it increases the hazardous pollution in the air.
Impacts on the Environment: With an increasing number of two and four-wheelers the level of pollution in India has reached an excessive level during the last two decades. This level is increasing dynamically with an increasing number of fuel operated vehicles on the Indian roads. However, it doesn’t mean that the government is not aware of all these issues, and has been regularly focussing on the attempts to move to green technology. These efforts have fortunately started showing the results and the policymakers are taking serious actions towards the increasing problem of pollution.
The efforts adopted by the government are receiving support from all segments of society and the need for alternative fuel options is felt necessary. This change is speculated to bring a revolution in the Indian automotive industry. To understand the future of the Indian automotive industry, the GfK Automotive Syndicate Monitor Study 2020 was conducted. The major factors on which this study focussed included the introduction of new technology in the vehicles, consumers buying behaviour, and autonomous cars.
Change in the Behaviour of Indian Customers: Interestingly the Indian car buyers are shifting to alternative fuel options, this includes both hybrid and electric cars. According to the study at present, 6% of the car owners in India are driving cars based on alternative fuel. This number will hike dynamically to 21% with the buyers willing to buy an electric car. It is believed that apart from the increasing cost of fuel, the consumers are understanding their responsibility toward society and the environment. There are lots of consumers who are willing to buy hybrid electric vehicles.
It would be interesting that today a person buying a car is keen to know about all the fuel options available for his car in the market. The alternative fuel options available for the Indian buyers in the Indian automotive industry are
- The electric vehicles
- Plug-in hybrid electric vehicles
- Non-plug-in hybrid electric vehicles
- Fuel cell electric vehicles
- Hydrogen fuel cell electric vehicles.
Challenges behind the Adoption of Electric Vehicles in India: Although there is an increase in the sales of electric vehicles in India including both two and four-wheelers. The results achieved are not very satisfactory, and people still hesitate in buying an electric vehicle. Some of the reasons which are responsible for this slow growth are:
- Absence of charging infrastructure facilities
- High-cost of vehicles
- No subsidy from the government.
These are the three major reasons which are responsible which are stopping the buyers from buying electric vehicles. How to overcome these problems is one of the important questions in front of policymakers and industry experts. It should be remembered that there is huge potential for the growth of vehicles running on alternative fuel options. The transition is less at present but the future of vehicles based on alternate fuels is bright.