Meeting India’s EV transition goals: challenges and opportunities

The government is working tirelessly to eliminate manufacturing and EV adoption barriers in India. While there are some challenges regarding uniformity of subsidies, regulatory policies, and so on, we must remember that India is still in the early stages of the EV revolution. Many areas for improvement are already being addressed through policies such as PLI and FAME 2. The government recently stated its intention to eliminate the current price parity between EVs and ICEVs to incentivise users further to choose electricity, who are currently deterred only by the high upfront cost.

The policies implemented over the years, from MNRE to FAME 1 and FAME 2 to PLI, have given the industry, OEMs, component manufacturers, technology firms, and end users alike a phenomenal boost, and all have benefited significantly, causing the shift and acceptance of EVs in India that we see around us today. We anticipate and are confident in the government’s goal and commitment to India’s transition to electricity.

In Delhi, for example, a 4KWH HSS E2W costs ₹ 165,000 but receives a central subsidy of ₹60,000, bringing the purchase price down to ₹99,999. Furthermore, Delhi’s state subsidy allows for an additional INR 22,000 subsidy on the same vehicle, bringing the effective cost to the consumer to ₹77,000. This makes the vehicle’s pricing appealing to the end user. However, this does not apply to a consumer purchasing the same vehicle in Bihar, which has the FAME 2 subsidy but lacks the additional luxury of an ₹22,000 reduction.

To ensure absolute price uniformity at the highest possible subsidy returns, a pan-India state-level fixed policy must be implemented to ensure uniform sales regarding pricing, which has otherwise forced OEMs to hold back supplies and manufacturing in states where policies regarding sales and or manufacturing are unfavourable.

When we consider the current challenges and growth of the Indian EV industry, we can see that only a few brands, including Okaya, have begun designing and manufacturing their vehicles. R&D, mould making, raw material procurement, patents, and liquidity flexibility in future models remain slow and costly. Although these elements
will be incorporated into the ongoing production line of vehicles produced in the next 2-3 years, the upfront challenges act as a barrier for new entrants into the OEM space because the ROI (assuming funding is not an issue) alone is a distant vision, even for brands already established as champions of the Indian 2-wheeler market.

Furthermore, it is well known that most EV technology is not indigenous, particularly the battery and motor. For new entrants into this field, sourcing the right technology that trickles down into the product range to offer higher financial feasibility to OEMs is a critical factor that can make or break the brand. Aside from
batteries and motors, what distinguishes an EV from a traditional ICE bike is that they are synonymous with gizmos and gadgets. However, retrofitting vehicles with aftermarket parts causes more damage in the long run due to reliability and warranty issues. Finding companies that offer true technology integration, such as IoT-based seamless connectivity, BMS, and so on, is a difficult task because, as previously stated, India is a newcomer to the EV space, with many established companies and start-ups still finding their footing.

With growing EV companies in India, our USP is our four-decade-long lineage, experience, and leadership. Okaya, Okaya Infocom, Microtek, and their subsidiaries have been t the forefront of battery, software, and technology development for over 40 years. We have been a symbol of trust and a pioneer not only in the Indian subcontinent, but in over 50 countries around the world, leading in batteries, battery charging, inverters, software, EV charging, solar and street lighting, and countless other products and services. Keeping this in mind, we found ourselves in an ideal position to enter the electric vehicle space, and thus Okaya EV was born.

Our commitment to excellence, whether in service, technology, or battery, which has been the pillar of our organisation for decades, that customers have come to trust and rely on, differentiates us from other brands. With our E2W range offering the best mix of performance, quality, reliability, and value for money combined without after-sales support, we are set to lead the E2W industry in India.

Expertise shared by Anshul Gupta, Managing Director, Okaya Electric Vehicles