Safety/ Reliability
Concerns regarding fires, Electronic malfunctions, Vehicle Servicing/ Repair and Vehicle/Component Life |
Costs
xEVs have 53% higher upfront costs (component & developmental) which prevent TCO parity with ICE. There is lack of after-market impacts resale value & leads to limited/ costly retail finance (~2X rates) & with lower (50-75%) LTVs. Have higher insurance costs due to lack of historic performance data and the Inverted duty structure leads to receivables tie-up for component players.
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Skillset/ Indigenous technology
There is limited skillset across value chain (cell chemistries/ power electronics, sensors) & production, servicing and lack of indigenous technology/ IPs. |
Material/ Component Access
There is lack of raw material access for cells/ magnets/ semiconductors (xEVs require 2X ICs), leading to low Domestic Value Add |
Charging
The chargers/battery available are with limited/no interoperability in India. Availability, clearances & cost issues for locations & upstream power infra and low & non-uniform grid load capacity are also major concerns and low utilization rates also impact business viability. |
Exports
Indian xEV market is <2% share of global auto & auto component trade. We have Low indigenous capability in xEV components (only 12% exports are electrical/electronic parts), limited know-how in aftermarket and cell chemistries/ power electronics/ sensors and limited Testing infrastructure for conformity to global standards |
