Revolutions don’t necessarily start with revolutionary ideas; sometimes, they start with normal things done in a revolutionary way.
We often emphasize the upcoming EV Revolution in India, and while the phrase brings up many good points to highlight and shows the better side of the scenario, it often conceals the not-so-good side of this upcoming revolution.
There still are a lot of challenges standing in the way of this revolution and the biggest one being the misunderstanding and underestimation of the current scenarios that make us question whether India is ready for an Electric Vehicle revolution just yet.
To understand where we stand, let us first analyze the current EV scenarios and discuss the segment-wise sale of electric vehicles in India.
Current EV Scenario and Segment-Wise Sale of EVs in India
When discussing the sales of EVs in India, we need to understand that EV comes in different forms and the demands vary heavily based on areas.
So, it is extremely important to analyze each sector one by one to get the best understanding of this scenario.
Uttar Pradesh, Karnataka, Tamil Nadu, Delhi, and Maharashtra were the top-leading sellers and consumers of EVs this year.
While the year 2022 marked a sale of around 4 Lakh electric vehicles, the cumulative count for EV sales in India reaches a figure of 10 Lakh and is expected to rise even more as the year progresses.
While the market was heavily dominated by the sales of two-wheelers, with a 55% share of the total sale, a decent part of sales was contributed by the three-wheelers reaching an estimated figure of 35% this year.
This data is meaningless if we don’t compare it with the past years to thoroughly analyze the increase in sales and derive a better conclusion.
According to the latest data and reports, every sector has shown growth in sales in the year 2022.
Electric two-wheelers have shown a growth of 75%, electric three-wheelers have shown a sign of progress with around a 102% increase in sales, electric cars touched the benchmark with an increment of 275% sales this year, while the least spoken e-buses touched a mark of 220% increase in sales, thus establishing a pattern of only growth with the year progressing.
The trends are progressive even for the remaining 2022, with Tata Motors emerging as the top player in the market this year.
Now let us talk about the challenges in the EV sector that are potentially hindering the exponential growth trends in some sectors while indirectly boosting sales in other sectors.
As said, the solution lies in the problem itself and since we are looking for the best solution, let’s understand the problems to their best first.
Challenges in the EV Sector
There are many challenges in the EV industry that constantly hinders its sales and popularity, but the biggest challenge is the lack of awareness and reality check of the misconceptions built around the ongoing challenges of the EV industry.
For instance, while everyone talks about the mileage of EVs and constantly compares them to the other conventional options, no one talks about how the same EV could be made more powerful with the existing mileage, making sure that mileage stands as no hindrance in the way of the green revolution.
To resolve this problem, we took a step ahead and started to make people more aware of EVs with our community titled “Humans Of EV,” which is by and for all the humans of EV.
India is known for providing quality alternatives at the best prices around the world. Thus, India holds the potential to boost its sales at the domestic as well as international levels if we overcome the basic challenges standing in the middle of the development processes.
Investment Opportunities in the Indian EV Sector
With the EV sector being the trending marketplace globally and governments all over the world supporting the EV revolution, the EV sector right now stands as a very strong and secure opportunity, even for business enthusiasts.
49% of India’s manufacturing GDP comes from the automobile industry, which makes it 7.1% of India’s gross GDP contribution.
Now, according to a treaty, the Indian government has agreed to reduce the emissions by 30-35% by the year 2030, and in order to achieve the target, they need to emphasize more on the sales of EVs and people actively choosing EVs over conventional alternatives.
This makes the EV sector a very active marketplace, and a great investment opportunity in the coming future as the electric vehicle market is estimated to touch a goal of 2 billion dollars by the end of 2023.
By the year 2025, the electric two-wheelers market alone will rise to 4-5 Million dollars.
Not just the EV marketplace but also the utilities associated with it will encounter a rise making EV stations and charging solutions a prime demand in the upcoming EV Revolution.
Choosing a Business Model
At such a point, choosing the correct business model to proceed with is a very important aspect.
Understanding your market and acting upon it with the best possible approach is what saves you extra effort and reaps maximum benefits.
There are two business models that come to play in terms of establishing the charging solutions – destination users and hub users.
The destination users model is about choosing places with natural demands, such as airports, malls, and other public places with active traffic.
The Hub user model focuses more on leveraging attractive benefits to the customers and, thus, attracting a fleet of customers.
Choosing the correct model will make you move in the grid of EV Revolution in the correct pattern.
Considering all the points so far, India is more than ready for the big EV Revolution, but now the question is, is India prepared for this EV Revolution?
Follow up with our next blog to know the answer!