India’s Electric Vehicle Rise: A Deep Dive Into The Future Of Electric Vehicles

Challenges and opportunities

India’s reliance on imported lithium-ion batteries and components raises costs and exposes the sector to global risks. Currently, electric vehicles in India are priced at almost twice that of conventional vehicles. Other challenges include limited driving range, few product options, grid issues and inadequate charging infrastructure. Incidents of vehicle fires due to insufficient battery testing have also hampered adoption.

Despite these challenges, there are significant opportunities. Deloitte’s 2024 Global Automotive Consumer Study reveals that 42% of Indian consumers are concerned about the lack of public charging stations, while 43% are concerned about charging times. To achieve 30% penetration of EV sales by 2030, an estimated 5.6-5.8 million public charging stations are needed. Renewable energy will be key to powering these stations and promoting on-site power generation.

Future prospects and technological progress

India needs to focus on policy support, supply chain investment, local battery manufacturing and improved charging infrastructure. Building domestic R&D capabilities, exploring alternative battery technologies (such as calcium and sodium ions) and developing a regulatory framework for component manufacturers are essential steps.

The Deloitte report also points to the potential of alternative fuels. While EV adoption will continue to grow, green hydrogen and biofuels are expected to gain ground. By 2040–2045, green hydrogen as a fuel could overtake EVs due to technological advances and reduced costs.

Application

The future of EVs in India is promising, driven by strong government support, technological advancements and changing consumer preferences. While challenges remain, the opportunities for growth and innovation in the EV sector are immense. With continued efforts, India is poised to become a major player in the global EV market, paving the way for a sustainable and eco-friendly automotive future.

Source: Deloitte