The Hyundai Motor Co. Launched the Kona SUV, India’s first electric SUV this summer. Months
passed, in the population of about 15 crore drivers only 130 Kona SUVs were sold throughout
August. This showed the difficulties of car makers for stepping into the EV industries in the fourth
biggest auto market.
The Kona is sold for $35,000 but an average Indian earns only $2000 per year. Apart from the pricing
there are other difficulties involved in the transaction towards Electric vehicles such as lack of
charging infrastructure, a reluctance by the banks to finance purchase and an unwillingness among
the government departments to use EVs as directed.
The automakers all around the world wants to enter one of the biggest economy in the world, but
the reality is no automaker can offer an electric vehicle for a price that a common Indian citizen
could afford to. Even if the government offers the subsidy it is not enough for a common Indian to
buy an EV.
BNEF said that, More than half of the passenger vehicle sold in India costs less than $8000. Electric
cars cannot achieve the price range of gasoline cars until the early 2030s. The consumers like EVs
and they are excited about them, but they stop at the moment when they hear about their price.
Another issue in switching over to the Electric vehicle is the charging infrastructure. India has an
estimated 650 charging stations for cars and SUVs in 2018 according to BNEF which isn’t enough for
the huge population that we are living in.
The EV market might have a bright future in India, but not without the support of the government.
The government should take responsibilities over the problems in the EV market and take necessary
steps to rectify the hurdles faced within the community. They must take steps to improve the
charging infrastructure and should analyze the best ways to make the EVs affordable.