More charging points required to boost adoption of EVs: Niti Aayog
Premium- The Niti Aayog report said that reduction in battery cost is also crucial for self-sustenance of electric mobility as battery contributes 40% of the total vehicle cost
A Niti Aayog report on penetration of Electric Vehicles (EVs) has said that a higher ratio of charging points to electric vehicles will be required to boost adoption of EVs in the country during the initial stage.
Emphasizing the need for technological improvements as a crucial factor for accelerating adoption of EVs, the report said that reduction in battery cost is also crucial for self-sustenance of electric mobility as battery contributes 40% of the total vehicle cost.
“On an average, the battery contributes 40% of the total vehicle cost and accordingly the rate at which the vehicle manufacturing cost will reduce can be assumed to be 40% of the rate of reduction of the battery cost," the report titled ‘Forecasting Penetration of electric two-wheelers in India’ said.
The price of petroleum and electricity tariff are both assumed to increase in the coming years. However, the rate of increase of electricity price will be less than that of petroleum.
Fuel price in a given year is estimated based on the present cost and the rate of its increase, the report added.
The report further stated that policy measures incentivizing improvements in Internal combustion (IC) engine technologies and fuel quality have become increasingly difficult and costly.
“At certain point of time in future there may be an appropriate ecosystem for enforcement
of a regulation towards electric mobility or other clean transport options.
But as the present analysis shows, there are plenty of opportunities for accelerating adoption of electric vehicles through technological improvements and other interventions," the report said.
Enhanced adoption of electric vehicles can also be driven by enhanced performance due to technological improvements, the report said.
“Higher specific energy batteries may improve the range of the vehicle and improved electric motors may offer higher power and speed, removing the gap between electric vehicles and conventional IC engine vehicles," it added.