From range anxiety to finding a charging station, the issues hindering faster adoption of electric vehicles explained

Veronica Richards March 22, 2022 Car Loans Comments Off on From range anxiety to finding a charging station, the issues hindering faster adoption of electric vehicles explained 14 Views

All over the world and in India, major automakers have concluded that the future of the automotive industry belongs to electric vehicles (EV). Although a latecomer, the arrival of e-mobility has sparked a transformation in the automotive industry. In addition to having zero tailpipe emissions, electric vehicles have other advantages. They are very convenient to drive and are less expensive to maintain and operate. They also require less maintenance and can be recharged at home.

Despite their obvious benefits, people are hesitant to buy electric vehicles, mainly because of the myths surrounding them. Here’s a look at some of the myths and how they miss the mark.

It is difficult to find a charging station:

One of the main obstacles to the adoption of electric vehicles is the lack of charging infrastructure. According to a survey by Grant Thornton Bharat-FICCI, India would need to have 400,000 charging stations in place by 2026 to meet the demand for two million electric vehicles on the road, Mint reported.

The Center has taken several initiatives to expand EV charging infrastructure to promote EV manufacturing and adoption. At present, there are a total of 1,640 public EV chargers operational in India, of which 940 stations are in Pune, Ahmedabad, Surat, Bengaluru, Hyderabad, Chennai, Mumbai, Delhi and Kolkata. To further improve charging facilities, the government has set up 678 public electric vehicle charging stations between October 2021 and January 2022 in these nine cities.
EVs are expensive: Cost is another big concern for the EV buyer. At present, electric vehicles are available for as little as Rs 12 lakh in India. The Tata Tigor, with the new Ziptron powertrain, is available at Rs 11.99 lakh and Rs 12.99 lakh (ex-showroom, Delhi). Another local automaker, Mahindra Group, offers the e-Verito for Rs 12.96 lakh to Rs 13.22 lakh (ex-showroom, Delhi). Although electric vehicles are slightly more expensive than ICE cars, the initial cost can be offset by lower running and maintenance costs.

Financing EVs is difficult: Retail financing for electric vehicles in India has been slow to recover. A recent report by government think tank Niti Aayog and Rocky Mountain Institute (RMI) India said there is scope for the country’s banks and non-banking financial firms (NBFCs) to reach a electric vehicles of Rs 40,000 crore by 2025, PTI reported.

Recognizing the need to provide loan facilities for the purchase of electric vehicles, the report highlighted the need to include the facility in the Priority Sector Lending (PSL) guidelines of the Reserve Bank of India (RBI). At present, State Bank of India is offering green car loans to its customers. The bank is offering a 20 basis point interest rate discount over other auto loans to those applying for EV loans.

Electric vehicles will go further than expected: Electric cars have the reputation of only being able to move around town. However, that is a thing of the past. Tata Tigor EV has a range of 306 km per charge which can take you from Delhi to Jaipur.

(Edited by : Thomas Abraham)

First post: STI

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