The Challenges and Expectations With EVs In The Year 2022

Electric vehicles (EVs) offer a way to transition away from fossil fuels in the transportation industry. Electrification of the transportation sector can also provide benefits in terms of increased energy potential and reduced pollution in the environment. However, the future of electric bikes in India has serious concerns about fulfilling the long-term energy need for charging electric vehicle batteries with clean and renewable energy sources. Furthermore, the issue of long-term sustainability of EVs is exacerbated by the risk of unavailability of critical material resources used in EV batteries. This is because the extraction of a number of these material resources has serious environmental consequences as well as ethical and social issues.

Expectation and Challenges Identified for Electric Bike and Scooters

Even though the electric vehicle market in India in 2022 has grown rapidly, EVs still account for only about 3% of sales. As a result, there is still more work to be done. Various factors have a detrimental impact on the EV adoption rate. Some major factors have been listed below that are affecting the adoption of EVs.

Lack of EV Charging Infrastructure

Promoting electric bikes is one thing and making it a reality is quite another. When you're asking a large group of people to take up EV, you need to have a complete system ready. The accessibility of charging stations is one of the most important aspects of the system.

Despite being the second most populated country, locating a public EV charging station in India is extremely difficult. Though the Central Government has announced plans to install charge stations for electric vehicles at 22,000 petrol pumps across India, their top objective is to set up charge stations for electric vehicles on specific NH, highways, and populated cities like Delhi. Still, a long way to go!

Therefore, when riding an electric scooter from one end of a large city to the other, there is a dearth of public EV charging infrastructure, which causes worry. Even if you use Google Maps to locate a nearby EV charging station for the electric scooters in India, you’ll always feel disappointed, because it is like finding a needle in a haystack.

Batteries need to evolve

The material resources used in making an EV battery increases the cost of lithium-ion batteries. This major issue continues to haunt the market of electric scooter in India. Lithium-ion batteries are a group of battery chemistries that use a variety of anode and cathode materials in their construction. Lithium-cobalt oxide (LCO) is the technology that is currently most prevalent in consumer applications, even though it is generally considered inappropriate for automotive applications due to its inherent safety issues.

Currently, chemical companies and element producers see the electric vehicle industry as accounting for only a small fraction of their overall revenue. However, they are optimistic about the growth and technology revolution.

The advent of Li-ion Phosphate batteries, which have become an overnight sensation in the country, is another new technology in the battery market. The safest and most long-lasting battery technology is Li-Phosphate. This is due to the thermal and structural stability of lithium iron phosphate. This means it's noncombustible and resistant to decomposition at high temperatures. It is resistant to thermal meltdown and will remain cool at room temperature.

Subsidy But No Auto Loans on EVs

Even though the government has announced tax exemption for those who own an electric vehicle in India, the country is still seeing less revenue generated in the sales of EVs. This is because the financial institution is providing auto loans on electric cars with higher interest rates compared to conventional cars. On top of that, only about 5% of electric two-wheelers are now financed, compared to more than 60% of petrol two-wheelers.

This is because the majority of banks, except a few private banks, do not finance automobiles in the EV industry. Furthermore, state banks rarely lend more than 75% of the vehicle's value, and the loan repayment time is quite short. The interest rate may be as high as 14%.

The continuous growth of the potential market of electric bikes in India will rely on new battery technology, the lucrative schemes and financial plans launched by the government in support of EV buyers, and the price of gasoline.