Future of E-Mobility after COVID-19

Lockdown and the ensuing suspension of civil and commercial activity all over the world thrust upon us, a mirror on an even more existential threat: Climate change. The forced shut-down led to many changes with some unexpected benefits, of that the world saw a substantial decrease in greenhouse emissions across the world in 2020, resulting in reduced air pollution.

Transportation contributes to over 140 million tonnes of CO₂ emissions annually. In fact, according to the World Air Quality Report, 2019, 17 Indian cities have record-breaking pollution levels where Transport remains one of the key contributors of CO₂ emissions. COVID-19 has encouraged us to reassess the concept of transportation, making it a key area to address in our pursuit to meet the UNFCCC (The Paris Agreement 2015) goals on climate change.

The Covid19 pandemic has brought about many fundamental changes in people’s lives including the way we commute. There are two clear trends emerging globally– Firstly, a shift towards private transport, and secondly, the rise of Micro-mobility (smaller vehicles) especially for short-distance commutes. These, coupled with increased understanding of threats to the environment we live in, creates immense scope for the EV Industry in India.

Apart from environmental benefits which include reduced CO₂ emissions and tackling climate change, there are more reasons to encourage electric mobility in India. Reducing emissions, electric mobility can address the serious risks to health posed by continuously deteriorating air quality. The lower running cost of vehicle ownership will provide better transportation options to lower income groups and the rural parts of India. Last but not least, the EV ecosystem will be a significant part of our economy, creating new skills and millions of new jobs. However, the biggest enabler of the electric vehicles market in India, will be technology. The development to reduce cost of Li-ion batteries has already made Electronic Vehicles (EV) a viable option to ICE. However, success at scale will require sustained innovation in Electric Drive train, Battery engineering and In-vehicle Experience Technology.

Green mobility is gaining traction in India. The narrative and support from (central and state) governments and corporates, bodes well for the industry Tesla’s entry into the Indian market has only piqued the consumers interest in the Electric Vehicle segment. There is also, a general excitement around electric vehicles and a higher number of consumers are now open to considering electric vehicles as an option. However, the real beach-head for India’s mobility market will be the Micro-mobility space with electric bicycles, scooters, bikes and auto-rickshaws. Easy to navigate on crowded roads, these lightweight vehicles are seeing an upward rise. It will be safe to say that the next 5 years will be a fascinating period for the Indian EV market and could see a huge transition towards electric vehicles.

While high capital cost and lack of charging infrastructure are key reasons for the slow adoption of EVs currently, the bustling activity in the start-up ecosystem, investments by established Auto companies and an increased push by the Government, will help unlock the market potential paving the way for exponential growth. And given that the future of mobility will be Electric, Connected and Autonomous, it is not a far-fetched to confess that the pandemic has also hastened the shift towards green vehicles.

- Raghu Kerakatty, CEO, Toutche Electric