Friday, October 14, 2022
By CarKhabri Team
These 5 Tips Can Foster EV Sales In India (Part II)
With increasing concern for go-green, the use of electric vehicles in India and the world is gaining momentum. Despite various efforts for the adaptation of electric vehicles, the growth is not according to expectations in India. On the other side, our neighbour country China, stands at the top position in manufacturing electric vehicles. With some best selling electric cars in the Indian car market like the Tata Nexon EV, Hyundai Kona, and a few more to name the growth is not satisfactory.
Continuing our last blog titled “These 5 Tips Can Foster EV Sales in India (Part I), this blog discusses the reasons for China dominating the global EV segment, and the lessons India can learn from it.
- Subsidies: There is no provision for encouraging subsidies to the manufacturers of electric vehicles in India. Whereas China had focussed on this subject a decade ago. To reduce the cost of manufacturing the Chinese government encouraged the use of the latest technology and offered substantial subsidies to the manufacturers of electric vehicles. The government of China provided 33% of sales subsidies to manufacturers, suppliers and buyers.
- Battery Manufacturing: The cost of batteries is the main reason behind the increased manufacturing cost of electric vehicles. Keeping this problem in concern, the Chinese government focussed on the production of electric batteries. At present, China, Japan and Korea are positioned in the top-three positions of countries manufacturing batteries for electric vehicles.
- Development of Electric Vehicles: In a statement given by Chinese President Xi Jinping, in 2014, he said, “'Electric vehicle development is the only way his country can transform from a major automobile country to an automobile power”. With this, he also set a goal of 20% EV mobility in car sales by 2025. Industry experts believe that China will touch this mark three years ago, by the end of this year.
- Infrastructure Development: After subsidies to manufacturers, the absence of suitable infrastructure for the adaptation of electric mobility is also one reason for India lagging in the EV segment. The government of China made the development of appropriate infrastructure for electric vehicles a national priority. At present, there are more than 5 lakh charging stations in China. This number is expected to increase in the coming future. With this, the government is also focussing on developing sufficient battery swapping stations.
Lessons India Can Learn From China: To increase the adaptation of electric mobility the most important lesson is to reduce the cost of EVs, focus on manufacturing electric batteries and develop a suitable charging network. Along with this, the introduction of contemporary features in electric vehicles will attract buyers towards them. The people in China are no longer dependent on government subsidies for electric vehicles, on the contrary, they prefer to buy these vehicles because of new features that are not available in fuel-based vehicles.
These are some lessons that India can adopt for increasing the adaptation of electric mobility in the country.