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Factors affecting adoption of electric vehicles in India: An exploratory study
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Abstract
Although necessary, there are a large number of complex factors involved in making mass adoption of Battery Electric Vehicles in a developing country like India, a reality. This qualitative study encompasses exploration of the drivers for, barriers to, and support mechanisms involved in making this transition successful. 41 in-depth interviews across multiple stakeholders such as automobile manufacturers, suppliers, academicians & consultants, BEV owners, potential customers, and government officials were conducted. Inclination of the government towards investment in R&D and offering financial & non-financial benefits were identified as major drivers. Poor infrastructure and prevalent product related technical issues, high cost of manufacturing due to raw material imports in the country, and insufficient legislative support around incentives offered to customers came up as major barriers. Impactful awareness and promotional campaigns by govt and industry, increased collaboration between industry and academia, continuous testing and improvisation of vehicular performance could serve as support mechanisms.
Introduction
According to World Health Organization (WHO), nine out of ten people in the world breathe polluted air, leading to an estimated global death toll of 7 million people every year (World Health Organization, 2018). Vehicular discharge is one of the main contributors to this pollution (World Health Organization, 2019). It is even concerning that out of the ten most polluted cities, globally, nine are from India (World Health Organization, 2018). Many conventional vehicles have been non-compliant with the Indian emission standards, releasing different toxic gases into the atmosphere (Dey and Mehta, 2020). There is a general understanding that conventional vehicles running on fossil fuels must gradually be replaced by battery electric vehicles (BEVs), as they are more environment-friendly, energy-efficient, and produce lesser noise pollution.
The Indian Government envisaged a policy of ‘only electric vehicles’ on the road by 2030, and in the process, they are encouraging the sales of hybrid and electric vehicles (IEA, 2020). Under this initiative, the Indian government introduced several ‘perks’ such as an additional income tax deduction on the interest paid on loans taken to purchase BEVs and setting up incubation centers for start-ups working in the BEV space (India Brand Equity Foundation, 2021). Furthermore, under the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, 11 Indian cities have been shortlisted for introducing BEVs within their public transport fleet (India Brand Equity Foundation, 2021). Despite these measures, statistics show that the BEV adoption percentage in India stood at a mere 1% in 2020 (Society of Manufacturers of Electric Vehicles India, 2020).
Even though the positive initiatives are taken by Indian government to promote various utility prospects that BEVs would serve, unfortunately, there still seems to be resistance to BEV adoption. There are multiple reasons for this resistance cited by different stakeholders. For instance, several Indian automakers tend to resist migrating their manufacturing setups to BEVs due to the high infrastructure cost. Prospective customers tend to exhibit inhibitions in adoption due to range anxiety, price, or resale (Soni, 2019). Suppliers have shown resistance due to dependency on import of the raw materials for batteries, especially lithium and nickel, that lead to undue delays in the supply chain (Taheri et al., 2011). However, this resistance needs to be understood and then addressed. In this study, we attempt to explore the barriers, drivers, and support mechanisms for adopting BEVs from a multi-Indian stakeholders’ perspective.
Specifically, we believe that understanding the ‘barriers’ would help in identifying bottlenecks at various levels, which can then be worked upon. The ‘drivers’ would help in assessing the stakeholders’ motivation to buy, as well as identify facilitators that promote the proliferation of BEVs. Finally, ‘support mechanisms’ would elucidate the collaborative ecosystems needed by various stakeholders for nationwide adoption. Thus, understanding these three areas would provide a complete and comprehensive view of an emergent market like India.
In fact, by identifying the ‘barriers’ would help us find “Why is BEVs still not a medium of mass transport?”. Exploring the drivers to BEV adoption, we attempted to answer the question: ‘What stimulates the smooth adoption of BEVs?’ and finding out the support needed for BEV adoption, we specifically answer the question: “What support ecosystem needs to be developed to make BEVs mainstream?”. Existing studies thus far have captured perspectives in the context of developed economies, while we chose to revisit the topic from the perspective of a developing economy, India. Here, it may be noted that while considering BEVs, ...
LƯU Ý:
Tài liệu được chia sẻ bởi Anh "Quocphong Nguyen" Admin Group "Free Load Tài Liệu" và chỉ được dùng phục vụ mục đích học tập và nghiên cứu.
Abstract
Although necessary, there are a large number of complex factors involved in making mass adoption of Battery Electric Vehicles in a developing country like India, a reality. This qualitative study encompasses exploration of the drivers for, barriers to, and support mechanisms involved in making this transition successful. 41 in-depth interviews across multiple stakeholders such as automobile manufacturers, suppliers, academicians & consultants, BEV owners, potential customers, and government officials were conducted. Inclination of the government towards investment in R&D and offering financial & non-financial benefits were identified as major drivers. Poor infrastructure and prevalent product related technical issues, high cost of manufacturing due to raw material imports in the country, and insufficient legislative support around incentives offered to customers came up as major barriers. Impactful awareness and promotional campaigns by govt and industry, increased collaboration between industry and academia, continuous testing and improvisation of vehicular performance could serve as support mechanisms.
Introduction
According to World Health Organization (WHO), nine out of ten people in the world breathe polluted air, leading to an estimated global death toll of 7 million people every year (World Health Organization, 2018). Vehicular discharge is one of the main contributors to this pollution (World Health Organization, 2019). It is even concerning that out of the ten most polluted cities, globally, nine are from India (World Health Organization, 2018). Many conventional vehicles have been non-compliant with the Indian emission standards, releasing different toxic gases into the atmosphere (Dey and Mehta, 2020). There is a general understanding that conventional vehicles running on fossil fuels must gradually be replaced by battery electric vehicles (BEVs), as they are more environment-friendly, energy-efficient, and produce lesser noise pollution.
The Indian Government envisaged a policy of ‘only electric vehicles’ on the road by 2030, and in the process, they are encouraging the sales of hybrid and electric vehicles (IEA, 2020). Under this initiative, the Indian government introduced several ‘perks’ such as an additional income tax deduction on the interest paid on loans taken to purchase BEVs and setting up incubation centers for start-ups working in the BEV space (India Brand Equity Foundation, 2021). Furthermore, under the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, 11 Indian cities have been shortlisted for introducing BEVs within their public transport fleet (India Brand Equity Foundation, 2021). Despite these measures, statistics show that the BEV adoption percentage in India stood at a mere 1% in 2020 (Society of Manufacturers of Electric Vehicles India, 2020).
Even though the positive initiatives are taken by Indian government to promote various utility prospects that BEVs would serve, unfortunately, there still seems to be resistance to BEV adoption. There are multiple reasons for this resistance cited by different stakeholders. For instance, several Indian automakers tend to resist migrating their manufacturing setups to BEVs due to the high infrastructure cost. Prospective customers tend to exhibit inhibitions in adoption due to range anxiety, price, or resale (Soni, 2019). Suppliers have shown resistance due to dependency on import of the raw materials for batteries, especially lithium and nickel, that lead to undue delays in the supply chain (Taheri et al., 2011). However, this resistance needs to be understood and then addressed. In this study, we attempt to explore the barriers, drivers, and support mechanisms for adopting BEVs from a multi-Indian stakeholders’ perspective.
Specifically, we believe that understanding the ‘barriers’ would help in identifying bottlenecks at various levels, which can then be worked upon. The ‘drivers’ would help in assessing the stakeholders’ motivation to buy, as well as identify facilitators that promote the proliferation of BEVs. Finally, ‘support mechanisms’ would elucidate the collaborative ecosystems needed by various stakeholders for nationwide adoption. Thus, understanding these three areas would provide a complete and comprehensive view of an emergent market like India.
In fact, by identifying the ‘barriers’ would help us find “Why is BEVs still not a medium of mass transport?”. Exploring the drivers to BEV adoption, we attempted to answer the question: ‘What stimulates the smooth adoption of BEVs?’ and finding out the support needed for BEV adoption, we specifically answer the question: “What support ecosystem needs to be developed to make BEVs mainstream?”. Existing studies thus far have captured perspectives in the context of developed economies, while we chose to revisit the topic from the perspective of a developing economy, India. Here, it may be noted that while considering BEVs, ...
LƯU Ý:
Tài liệu được chia sẻ bởi Anh "Quocphong Nguyen" Admin Group "Free Load Tài Liệu" và chỉ được dùng phục vụ mục đích học tập và nghiên cứu.
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