How far have we come?
Electric Vehicles are going to be a thing in the future. We have been listening such statements ever since, and the thing now seems true. We are in that phase. But till what extent? How far have we come? And what are the milestones to be achieved in order to revolutionise the entire automobile sector?
During the coming few years, not only the disruption in the field of automobiles continue to change the way we commute, but also render the traditional predictions about the future of the electric vehicle industry by the ‘experts’ inaccurate. The auto industry has been approaching an inflection point, and we are about to witness that change and the paradigm shift.
What is the reason?
The constant decrease in the cost of Lithium-ion cell technology, and increasing efficiency in the battery technology has been one of the major driving factors for this movement.
As time passes, cost of technology in any industry decreases and the efficacy of the product increases, but in the case of lithium ion battery cells, the curve has been going down pretty quick, and this is one of the main reasons why electric vehicles have started to enter the affordable car market segment from the luxurious car market segment.
The ICE (Internal Combustion Engine) vehicle costs have been constantly increasing and so is the cost of operation because of the increase in global fuel prices. This can be validated with the fact that last year in 2018, the sales of Electric Vehicles crossed a million unit mark.
This is a positive indication towards the upcoming change that is being adopted at a mass level.
The 200 mile Electric Vehicles cost has been reducing and by 2020, they will be at a comparable price of the mid level ICE vehicles. Along with that, if we incorporate the savings which are associated with the lower maintenance of the electric vehicles and reduction in the charging costs as compared to the fuel in the ICE vehicles, the crossover of the prices will be sooner than anticipated.
The US and EU markets have been early in adopting the change because of the mature economies, but unlike other sectors, China this time hasn’t been laggard in adopting the new and drives in a significant number of share in the global electric vehicle market.
From the above graph, it can be clearly seen that India is a new entrant in the Electric Vehicle scenario, but it will catch up fast, based on the demand levels because of the population factor.
Electric Vehicles Market scenario in India
In India, both the electric vehicle market and the acceptance of the electric vehicles are in its early stage and the adoption rate is less than 1%. But this is the indication of the opportunity that an entire new market is available for the auto manufacturers. The government is planning to roll out new policies favouring the electric vehicle adoption among the masses, but there needs to be an implementation of a strategic roadmap for the path further. The Indian EV market is still facing the Chicken -Egg issue, in which major players are not ready to put out new electric models because of the lack of a charging infrastructure. In addition to that, the source of resources which are used to produce energy in the country are not renewable sources.
Thus, the electric vehicles have made meaningful progress in various countries and have surpassed major predicted milestones (some of them sooner than later). The manufacturers such as Tesla are trying to push their limits and ramp up the production capacities of both the vehicles and the battery manufacturing units. EV segment is expanding from consumer cars to pick up and adventure vehicles (Rivian) and, new entrants are coming up with new designs. China being one of the houses of innovation is a home to various electric vehicle startups such as Nio, Byton and many more. Experienced players in other niche industries such as Dyson (Vacuum Cleaners) are planning to enter the market with a new research and production unit in Singapore. The road to future thus looks green🌱