Electric Vehicles increase the electricity demand but help to reduce greenhouse gas emissions and fossil fuel consumption. Lowering the co2 intensity of power generation would be essential to ensure that higher electric vehicle deployment is combined with more rapid decarbonization of electricity generation.
The significant factors driving the market are the availability of comprehensive range models, upgraded technology increasing customer awareness, and availability of subsidies and tax rebates. Last year saw the biggest annual increase in registrations with more than 175,000 electric vehicles registered, showing a growth of 66% in 2019.
If we want to transfer all the automobile cars into electric cars by 2050, we might face the challenges below.
Charging infrastructure: There are approximately 700+ cities in India. And every city has more or less than 65000+ fuel pumps themselves. But when it comes to electric charging stations, there are 300 charging stations in the whole country. There is a good chance of one not getting a charging station nearby when they need one. The governments are planning to increase the number of electric charging stations.
Higher cost: One of the biggest challenges is the higher cost of electric vehicles. There is a vast difference in prices between fuel vehicles and electric vehicles. The price of fuel vehicles starts from 7 lakhs; electric vehicles start from 60 lakhs. The vast difference makes the accessibility poorer.
Lack of technology: Another challenge is lacking enough technology. If a wholly fuelled vehicle can go up to 600kms approx., a fully charged vehicle can run up to 120kms only.
Impact of EV components & materials: India mainly depends on China when it comes to technical materials. And to produce a maximum number of electric vehicles, the country will depend on China, which is a massive challenge due to political issues with China.
Lack of skilled workforce: To produce EVs, the factory will need skilled workers who have keen knowledge about EVs and Technologies.
Possible disruption in the automobile sector: There is a possible disruption of already existing automobile vehicle companies. They should be given time to make the transaction to produce electric vehicles from automobile vehicles unless they face a massive disruption due to sudden changes in demands.
There are many factors of the current Market demand that you must include:
- Natural household incomes
- Industrial or corporate market demand for electric vehicles
- Mass transport substitutes and other relative prices
- Complements and their relative prices that includes charging rooms, vehicle maintenance costs, and many more.
- Government subsidies that are paid directly to customers
- Any massive impact of rules and regulations
- Credit and their costs that includes interest rates on EV cars and other financial deals
- Modifying tastes and customizing preferences that includes environmental issues amongst customers while making any big decisions.
Also, you must consider the factors of the market supply that includes:
- Components and its costs that are utilized for manufacturing purposes. For example, batteries, hardware, and many others.
- E-Vehicle manufacturing productivity
- Scaling economies in EV manufacturing
- The number of manufacturers and producers that are currently present in the market
- The influence of any government subsidies that are paid directly to the producers
- The effect of taxes levied by the government on the producers
- The current impacts of the massively changing and evolving production technologies or innovations.
- Meeting regulatory, compliance, and other environmental factors within this industry along with the costs incurred during this process.
Anticipating a world dominated by electric vehicles, materials scientists are working on two significant challenges. One is how to cut down on metals in batteries that are scarce, expensive, or problematic because their mining carries harsh environmental and social costs. Another is to improve lithium ion battery recycling so that the valuable metals in spent car batteries can be efficiently reused.
Keeping all the factors in mind, you can now understand how the electric vehicle demand is increasing in the current battery industry. With more and more EV vehicles being promoted in the market, this industry is going to boom up by the year 2025. Furthermore, the industry is now focusing on reducing the carbon dioxide in the air and making vehicles more environmental-friendly.