Two/three-wheelers in India will go electric first: EY report forecasts

India’s Minister for Road Transport and Highways, Nitin Gadkari, recently announced the country’s intention to move towards electric vehicles (EVs). He also said that the government will soon bring in a policy on the same.

However, mass adoption of EVs in India faces significant hurdles such as the lack of charging and support infrastructure. While Gadkari had also said that the government was in the process of planning installation of charging stations, more news on developments has not been forthcoming.

India does have great scope for the adoption of EVs, given the number of vehicle categories that are used for private and commercial purposes — two-wheelers, three-wheelers, buses, cars, etc. Notably, Tata Motors has already kicked off trials for its electric bus that can seat up to 34 passengers in Guwahati.

According to a report from EY, two-wheeler fleets and three-wheelers will be the first to adopt EVs in India, followed by intra-city buses, corporate cabs and government fleets.

The report says that fleets will be the early adopters because the basis for their purchase is the total cost of ownership (TCO) and not just the acquisition cost of the vehicle.

Two-wheelers are an important area for the adoption of EVs as India is the world’s largest two-wheeler market and these vehicles are widely used for transportation and commute. Also, the maximum daily run of a two-wheeler in India is 100 to 150 km and generally intra-city, making it amenable to electrification. With regard to intra-city buses, the route predictability will help in the development of charging infrastructure. However, pricing remains a challenge owing to heavier batteries required for buses.

However, the report also takes note of challenges that the country faces when it comes to adoption of EVs.

One of the major hurdles is that the sticker price of EVs remains high thanks to the high cost of lithium-ion batteries.

Another roadblock is that the number of EV models offered in India are very few and have a short range — up to 140 km for an electric car — making them unviable for user groups. Further, the report pegs the number of community charging stations in the country at just 206 and observes that this would require scaling up for mass adoption of EVs.

As auto-makers the world over signal their intent to move towards EVs, setting the ground for their sustainability in India seems the first step that needs to be worked towards.