To some, the market for electric vehicles in India may seem rather dismal. Wile electric cars do exist, they haven’t found popularity among the general population. The reasons are many, and most of them are quite justifiable. The lack of infrastructure makes it difficult for EV owners to drive on roads that are in bad shape. Add to this the lack of charging points for electric cars and you’ve got a non starter. Owning an EV is realistic, but driving one on an everyday basis becomes almost impossible.
Coupled with these issues, there is a dire need for electricity in India, and energy costs are so high that state governments are often at odds with each other to purchase electricity from corporations and the public sector which is powering houses. While bad road conditions, lack of EV charging points and lack of energy in the form of electricity already force people to buy diesel or petrol-based cars, there is still hope.
A study by Deloitte Touche Tohmatsu Ltd estimated that Indian market has a promising potential for electric vehicles, which amounts to 4% of the target market of automobile drivers. Considering the nation’s population, it is indeed a very large market. G.M. Pillai, a civil service officer revealed at a two-day seminar “Sustainable development: Challenges and Opportunities” that the government is working towards setting up a National Council on Electric Mobility, which so far has not seen a lot of traction.
The Issue of Developing Nations and a Market Preference for Gas-guzzling Vehicles
Developing countries and under-developed countries are usually over-burdened with increasing rates of population, growing number of industries, poor infrastructure and a lack of grass-roots level knowledge of clean fuel and green vehicles. Thus, countries like India, and many in Latin America and Africa continue to be some of the most polluted and overpopulated nations in the world. In India, an increasing number of citizens are striving for upper middle class status and this phenomenon is driving tastes.
In a country like India, where possessing a car is usually a status symbol, and a sign of “having arrived”, the demand for larger more energy-hungry cars is unfortunately very high. In cities like New Delhi, Bangalore and Bombay (Mumbai), those who can afford prefer to purchase high end cars in order to avoid using public transportation. The end result is an increasing number of gas guzzling four wheeled automobiles spewing exhaust into an already industry-polluted atmosphere.
Beginnings of an EV Revolution in India
One of the pioneers in the field of Electric Vehicles in India, Reva Electric Car Company (RECC) started their arduous journey in 1994 in Bangalore. The announcement of an all electric small car that would not contribute to emissions did cause a stir in the late 90′s and the car sold well in larger cities like New Delhi and Bangalore. However, the market for electric vehicles remained stagnant, as a car like Reva could only be driven for short distances. The existing road conditions, traffic and weather conditions forced Reva manufacturers and other EV-inclined auto companies to re-imagine how electric vehicles could be reach a mainstream audience in a country that still has bullock carts running alongside large luxury sedans.
Comparing Reva Electric Car Company and Tara International’s Products
If one were to consider home grown startups focussing on making electric vehicles popular in India, there would be two major players: Reva Electric Car Company (RECC) and Tara International. While Reva is already a household name in India, Tara International is less well known. It has however been a topic of discussion among green activists recently who prefer using electric vehicles and are more flexible to new technology.
Tara International has three four wheelers in its product list which include Tara Titu, Tara Tiny and Tara Quiet.
- Tara Tiny, the company’s projected electric car is proposed to be the world’s least expensive car at Rs. 99,000 (approx USD 2,450).
- It would be operated by battery and seat 4 passengers.
- With a recharge duration of 8 hours and a driving charge of 120 kilometres it could be a car of choice for many in smaller towns.
- Given its max speed of 50km/h this car would not be well suited to larger cities such as New Delhi.
- However, it costs just 1 cent (40 paisa) to drive it for a kilometre based on current electricity rates.
- More expensive versions of Tara Tiny and Tara Titu achieve 60 km/h and therefore could accommodate higher speed roads.
Reva NXR by REVA Electric Car Company, which was acquired by Mahindra and Mahindra, are improved versions of the company’s previous and pioneering model REVA, which was a 2-seater.
- The NXR has 3 doors, seats 4 people and can reach a maximum speed of 105 kilometres.
- It also has a range of 160 kilometres once its lithium-ion battery is charged.
- Reva NXR need 8 hours to charge completely, but there are models that suit metropolitan cities with a good achievable speed and a larger range of distance (160 kilometres) on a single recharge.
- Reva NXR is priced at Rs. 400,000 or $9,000 US, which makes it more expensive than Tara International’s Tara Tiny.
What Suits Indian Auto Market the Best?
Tara International’s EV models seem to be more suited for smaller towns with less traffic and shorter distances to cover, while Reva’s NXR is more suited for larger cities where one has to drive for longer distances. Moreover, Tara Tiny could be marketed to a less affluent population, whereas Reva NXR costs as much as an entry-level gas-based small car.
There are definitely signs of the Indian EV market improving, with Toyota Prius, General Motors’ Chevrolet Volt, Chevrolet Electric Spark/Chevrolet E-Spark and Hyundai i10 Electric about to enter the Indian mainstream auto market. While these are multi-national companies, the Indian auto manufacturers like Reva and Tara International have already created a firm base for EV market growth.
