Electric vehicles (EVs) are revolutionizing transportation worldwide, offering a superior driving experience, cleaner energy, and tackling carbon emissions. However, despite advancements in EV range, more than 60% of potential EV users still face range anxiety—the fear of running out of charge. Alongside this, there are two other major EV challenges, EV resale value and repairability (can a regular mechanic fix an EV if it breaks down?)
1. Range Anxiety in Electric Vehicles
Range anxiety is the fear that the vehicle’s existing range won’t last until reaching a charging station. Earlier, limited battery capacity caused range anxiety, but with advancements, EVs today EV offer ranges of upto 500 km or even more.
Now, the concern has shifted to charging anxiety—the worry about where and how to charge the car, especially during long journeys. This anxiety comes from gaps in charging infrastructure, particularly in rural areas where the density of charging stations remains low.
Data Insights
Today, electric vehicles (EVs) in the Indian market offer a range between 250 km to 500 km. For instance, with a 30 kWh battery, an EV can deliver around 250 to 300 km, which is sufficient for daily use. However, surveys show that over 70% of consumers expect a range of 400 km or more to feel confident about using EVs for long drives or intercity travel.
While EVs excel in performance, comfort, and overall driving experience, range anxiety remains a major roadblock for buyers. Users constantly need to plan their long-distance journeys carefully, which adds to the hesitation in adopting EVs for extended trips.
Current Solutions:
- Home Charging: Home chargers like 7.2 kW chargers are common, while in the European market, 11 kW on-board chargers are available for faster home charging.
- DC Fast Charging: At DC fast charging stations, EVs can be charged at a rate of 50-60 kWh, depending on the battery capacity. The average charging time is 1 to 2 hours. However, challenges such as limited charging station availability and long queues still exist.
- Portable Charging: Portable chargers and on-demand charging services, like Hopcharge, provide convenient charging solutions for EV users.
Battery advancements are also addressing range concerns. Modern EVs, such as the Tesla Model S and Lucid Air, offer over 400 km of range. In India, players like Tata Power and others are working to expand fast-charging infrastructure. Globally, companies like Tesla have introduced superchargers that significantly reduce charging time, making long journeys more feasible and convenient.
| Electric Vehicle | Battery Capacity |
|---|---|
| Tesla Model S | 100 kWh |
| Tesla Model 3 | 60 kWh |
| BYD Atto 3 | 60 kWh |
| Tata Nexon EV | 40.5 kWh |
| MG ZS EV | 50.3 kWh |
| Hyundai Kona Electric | 39.2 kWh |
| Ather 450X (Electric Scooter) | 3.7 kWh |
| Ola S1 Pro (Electric Scooter) | 4 kWh |
Average Daily Commute Distances:
- Urban Daily Commute: 30-40 km
- Suburban Daily Commute: 50-60 km
- Intercity Travel (Long Drives): 200-300 km
2. Charging Infrastructure Problem
Charging infrastructure is a major hurdle to the growth of electric vehicles (EVs). Except for China, which has 288 charging stations per 1,000 sq. km, most countries lack robust networks. In comparison, India has only 4 charging stations per 1,000 sq. km. This inadequate infrastructure leads to range anxiety among buyers.
Challenges:
Even where charging stations exist in India, many are non-functional, with broken cords, unsecured setups, and poor grid quality. As a result, users face frequent issues that hinder EV adoption and the expansion of charging networks. Currently, there is one charging station for every 130 EVs in India, far behind the global standard of one station for every 20 EVs.
Current Solutions:
To bridge this gap, new startups and companies like Tata Power, Delta Electronics, and IOCL are working on expanding India’s charging infrastructure. The Indian government is also mapping charging stations to improve accessibility. However, a new challenge arises with multiple charging apps from various providers, creating uncertainty about charger availability. Companies like Tata are addressing this by offering unified apps to locate charging stations and help users plan their journeys efficiently.
3.EV Cost Barriers
India is a highly cost-sensitive market, making EV adoption more challenging due to affordability issues. The majority of car buyers fall in the ₹6-12 lakh range, but very few EVs are available in this price bracket. Even in the two-wheeler segment, EVs remain more expensive than internal combustion engine (ICE) vehicles. The high cost is primarily due to battery packs, which are the most expensive component, with most batteries imported from China, increasing dependency and cost. Additionally, raw materials like lithium and cobalt significantly influence EV pricing.
Challenges:
Although lithium-ion battery prices have fallen by 89% over the last decade, the cost is still high. Further challenges include the rising prices of raw materials and the reduction in subsidies, such as FAME II incentives in India. Dependence on imports adds geopolitical and economic challenges, making affordable EV production difficult.
Current Solutions:
- Battery Innovations: Companies are exploring alternatives like sodium-ion batteries, which could reduce costs and are suitable for Indian conditions.
- Government Initiatives: Incentives like FAME II and tax credits help bring down EV costs.
- Research and Development: Innovations such as aluminum-air batteries (pioneered by Tesla) aim to further lower battery costs.
- Local Manufacturing: Efforts to establish domestic battery production and reduce dependency on imports are underway, helping drive affordability and innovation in the EV sector..
Explore More: India’s electric vehicle market journey
4. Resale Value of EVs
In India and the Asian market, bikes and cars are primarily purchased for commuting, and resale value is a key factor influencing purchase decisions. While internal combustion engine (ICE) vehicles generally retain good resale value after 5-7 years, the same cannot be guaranteed for electric vehicles (EVs). Concerns over battery health, longevity, and replacement costs make EV resale uncertain, which discourages buyers despite the savings on running costs.
Challenges:
The main challenge lies in the battery condition of EVs over time. Batteries degrade with use, leading to doubts about their performance and lifespan, which directly affects resale value. Unlike ICE vehicles, where resale is more predictable, buyers remain skeptical about EVs, fearing significant losses when reselling.
Current Solutions:
To address these concerns, manufacturers are introducing buyback policies to guarantee resale value. For instance, MG Motors offers a buyback plan for its vehicles, including the Comet EV, which ensures a pre-determined price if the vehicle meets specific mileage and time criteria. Such initiatives provide buyers with assurance, making EV purchases more attractive. As a result, these programs have positively impacted sales and are becoming a key strategy to build customer confidence in the EV market.
5. How to Repair the EVs?
In tier-3 and rural cities, auto drivers and local users often perceive electric vehicles (EVs) as unreliable. If an EV breaks down, there is limited support infrastructure to assist them. While traditional vehicles have widespread service centers and local mechanics to handle repairs, EVs lack this accessibility, as servicing often requires specialized expertise and tools.
Challenge:
Local service providers, though widely available, are generally not well-trained or equipped to diagnose and repair electric vehicles. Unlike internal combustion engine (ICE) vehicles, which can be repaired anywhere, EVs often need to be taken to authorized service centers, creating a dependency that increases downtime and inconvenience for users.
Current Opportunity:
This challenge can be turned into a market opportunity. Training local mechanics, establishing widespread EV service centers, and creating mobile repair solutions can bridge this gap. As EV adoption grows, this opens the door for new businesses and startups to provide repair services, training programs, and innovative support infrastructure—creating jobs and building confidence in EV reliability. This will be explored further in the next blog post.
Conclusion
In this discussion, we have explored in detail the key roadblocks for EV adoption and how to overcome these challenges. Issues like charging infrastructure gaps, the cost barriers that slow Electric Vehicle expansion, and how industries, nations, and global players are tackling them. Additionally, the innovative market solutions addressing these challenges, paving the way for a more efficient and accessible EV future.
