While global EV sales remain low, examples from other countries indicate that four factors – a mix of push and pull – could determine the
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pace of EV penetration in India:
• Regulations and incentives: Many countries have promoted e-mobility through a range of incentives, but these alone did not
drive EV penetration. A supportive ecosystem that also establishes strict regulations on carbon emissions and regulations driven by
strategic intent (eg, reduce current account deficit and geographic dependence driven by crude oil) indirectly prompts the higher adoption
of EVs
• Technology: As a large component of the overall EV costs, high battery prices impact manufacturing and sales. Improved
technology can reduce battery costs, increase efficiency, and improve driving range, making EVs more accessible and attractive to
potential customers
• Infrastructure: Easy and affordable access to charging infrastructure – both standard AC charging as well as rapid DC
charging – is a key to meeting customer needs
• Customer demand: High upfront acquisition cost as the top deterrent to EV penetration. Creating a pull among customers by
creating an economical cost proposition will be crucial in encouraging customers to invest in EVs
Source: “The future of mobility in India: Challenges & opportunities for the auto component industry” by McKinsey & Company
The way forward for e-mobility in India
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