We all know that the country is currently standing on the cusp of an electric car revolution in the automotive space. But we are in interesting times as far as the private car ownership is concerned. As it is, the demand for conventional- petrol and diesel-fuelled cars is at an all-time low. Even as the Transport Minister Shri Nitin Gadkari announced recently that the diesel and petrol vehicles won’t be completely banned in lines with the future going to be driven by an all-electric revolution, there’s an increasing concern about car sales. Moreover, according to the latest industry estimates, it also turns out that the demand for EVs in India is a bit unstable from the standpoint of future estimates.
So, one wonders- just what is happening on ground zero. Just how dampening is the nature of the demand for electric cars in India?
Well, on that note, here’s what you need to know.
Whilst the imminent future promises a lot of excitement on the EV trajectory, particularly in the light that the technology-powered cars will be a part of the mainstream, the past data concerning the sales of EVs in India dampens hopes.
So why is that? According to an incisive report published in a leading print daily in the country, as far as the past 6 years data is concerned, then the EV sales barely reached the 8,000 figure mark. If that doesn’t give an idea about the predicament surrounding the ‘would-be’ key constituent of car sales, then one wonders, what will?
The market realities, quite simply, point to one direction. And it’s that while there’s a lot of excitement to see a robust growth of EVs in India, with drivers, commuters, motorists and the entire paraphernalia expecting a green future of the country driven by a rise in EVs, what dampens the spirit of potential buyers is the car cost.
So it suffices to say that while the excitement is there, it is hampered somewhat by the expected per unit cost (of the cars).
Apart from that, the fact that some current carmakers haven’t really been able to sell a mighty lot of EVs drives home the point that while the future looks promising, in reality, the conversion- i.e., number of private EVs running on roads in the future still proves an uphill climb. And what could substantiate that other than suggesting that Kona was able to sell no more than 130 SUVs in the month of August?
But wait! That’s not all. There are some more telling data that should concern the drivers of India’s biggest car revolution in the course of the imminent future.
LiveMint pointed to some growing concerns by highlighting some ground realities:
The Kona sells for about $35,000 while the average Indian earns about $2,000 a year — and the best-selling gas guzzler costs $4,000. Yet Kona’s sticker price only kicks off the conversation about why EVs aren’t gaining traction in India —there’s also a lack of charging infrastructure, a reluctance by banks to finance purchases and an unwillingness among government departments to use EVs as directed.
Barely more than 8,000 EVs were sold locally during the past six years, according to data compiled by Bloomberg. China sells more than that in two days, according to BloombergNEF projections.
So all of that said, what’s interesting is to foresee and predict what might happen to the demand of the EVs in India in the upcoming 2-3 years, perhaps the most crucial period that may help one ascertain the future possibility of India going completely ‘green.’
What is preventing you from selling your old car and upgrading to an electric car? Let us know your thoughts in the comments below