Below are five reasons why car buyers can put off their decision and wait for electric cars:
Government leads the way
Though M&M is already selling electric cars in India, one swallow does not make a summer. Electric mobility requires a big push. And that push has already happened. The government is placing orders for 10,000 electric cars with private companies. First phase of bidding is already over. Tata Motors will supply 250 cars and M&M will supply 150 in the first phase. State-run firm Energy Efficiency Services Ltd (EESL), which has placed the order, seeks to push adoption of electric vehicles in India by this mega order. The government order is expected to kickstart the market. EESL will lease out these vehicles to government departments. Within a few years, the government might replace a large part of its fleet with electric vehicles.
Infrastructure cropping up
The biggest problem in the way of electric mobility in India is lack of charging infrastructure. That's why the leader M&M could not bring in the revolution despite hard attempts. Adoption of electric vehicles requires mass-level efforts. The huge government order followed by more such orders in future will necessitate building of charging stations. India has nearly 56,000 fuel stations but only a little more than 200 charging stations. The change has already begun. Recently, Indian Oil Corporation became India's first oil marketing company to set up a charging station at a petrol pump in Nagpur. More such charging stations will crop up next year.
The leader joins the race
Japanese automakers Suzuki Motor and Toyota Motor have finalised an agreement to manufacture and sell electric vehicles in India within three years. Suzuki sells one in every two passenger vehicles in India through local unit Maruti. If such a mass-production company starts selling electric vehicles, adoption will be quick.
The industry trend
Honda Cars India Limited (HCIL) is readying an electric vehicle strategy aligned with the needs of the Indian market. HCIL, the Indian subsidiary of the Japanese carmaker, is evaluating developing country-specific battery electric vehicles addressing the issue of affordability and its suitability under Indian traffic conditions. Honda globally expects as much as 65% of its sales to come from electrified vehicles in 2030. It has already established within Honda R&D (Japan) an Electric Vehicle Development Division—a specialised team which is in charge of developing the entire vehicle including the powertrain and body—to increase development speed of EVs.
Honda joining Suzuki and Toyota in India's electric race means more automakers will be compelled to join and electric vehicles will soon become the hottest industry trend in India. Korean car maker Hyundai is already evaluating its green mobility solution for the Indian market.
Expect these companies to launch activities to promote widespread acceptance and use of electric vehicles in India. These will include setting up of charging infrastructure, human resource development including training for after-service technicians and systems for appropriate treatment of end-of-life batteries.
The policy push
The government has set an ambitious target of having only electric cars by 2030. And it has shown it has no intention to sleep on its plans. In September, Union road transport and highways minister Nitin Gadkari warned automakers that he could even use coercion to meet the target. "We should move towards alternative fuel... I am going to do this, whether you like it or not. And I am not going to ask you. I will bulldoze it," Gadkari said. This means the government will try to disincentivise production of petrol and diesel vehicles every way it can while incentivising electric vehicles. This is necessary to make the transition faster.