The burgeoning infrastructure for EV charging, coupled with favourable economics and greater efficiency, positions them as the frontrunners in the race towards a cleaner future
India stands on the precipice of a transformative era in transportation, with Electric Vehicles (EVs) at the forefront, already redefining the way we commute. The Economic Survey 2023 paints an optimistic picture of India’s domestic electric vehicle market, forecasting a vigorous growth trajectory.
It anticipates a compound annual growth rate (CAGR) of a staggering 49 percent between 2022 and 2030. By the dawn of the next decade, the annual sales of EVs are projected to reach an impressive figure of 10 million. This is not just a revolution; it’s an electric renaissance in the making.
This growth is driven by several factors, including government policies and incentives, increasing awareness about climate change, and advancements in EV technology. When compared to hydrogen-powered vehicles, EVs offer greater energy efficiency, lower costs, and a more developed infrastructure.
This article delves into the comparison between Electric Vehicles (EVs) and Hydrogen Fuel Cell Vehicles (HFVs), highlighting the myriad reasons why EVs emerge as a superior choice over hydrogen-powered vehicles.
Efficiency
Efficiency stands as a critical parameter in evaluating the sustainability quotient of these vehicles. Here, EVs unquestionably take the lead. While HFVs struggle with less than 40 percent energy efficiency, the majority of battery-powered electric vehicles proudly tout an efficiency rate hovering around 80 percent.
This stark disparity translates into a consequential difference: for every 100 watts of energy produced, EVs utilise nearly 80 watts to power the vehicle. Forecasts paint a compelling future, with battery electric vehicles projected to reach an impressive 81 percent overall efficiency by 2050, a stark contrast to the anticipated 42 percent for hydrogen fuel cell electric vehicles.
Cost and Infrastructure
In the realm of affordability, EVs emerge as the more economically viable option. The cost-intensive nature of establishing hydrogen plants adds a significant overhead to the production of hydrogen fuel cells, rendering them pricier. Moreover, the dearth of hydrogen refuelling infrastructure presents a definite challenge, both in terms of time and investment.
Comparatively, the cost dynamics heavily favour EVs. Presently, hydrogen-powered cars carry a weighty price tag, primarily attributed to the incorporation of expensive materials like platinum, carbon fibre, and titanium. Additionally, the manufacturing costs for automakers of hydrogen-cell cars remain high due to their nascent stage compared to the relatively more established EV technology.
It is being argued that the cost of hydrogen fuel cells has witnessed a remarkable drop of over 80 percent in the past five years, signifying an encouraging trend. However, inherent challenges persist in the production and storage of hydrogen.
Government Initiatives
The government's commitment to nurturing the EV ecosystem is manifest in the launch of transformative schemes such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme, boasting a substantial budget of Rs 10,000 crore.
Additionally, the introduction of the Production-Linked Incentive (PLI) scheme specifically tailored for Advanced Chemistry Cells (ACC) stands as a testament to fostering innovation and domestic manufacturing, earmarking an impressive budget of Rs 18,100 crore.
Facilitating convenience and efficiency, the Battery Swapping Policy has emerged as a game-changer, streamlining the process for swapping batteries in electric vehicles and enhancing their usability. Furthermore, the establishment of a dedicated Special Electric Mobility Zone underscores the government's commitment to creating conducive environments that promote and encourage the widespread adoption of electric vehicles.
The government has also slashed the Goods and Services Tax (GST) on EVs, dropping it from 12 percent to just 5 percent. That's a big difference compared to the hefty 28 percent GST rate plus an extra 22 percent for regular vehicles.
On top of that, registration fees for battery-operated and electric vehicles have been waived, a move designed to encourage more people to make the switch. Another great step is the Ministry of Power's decision to allow selling electricity as a service for EV charging. It's all about creating better infrastructure for clean, electric transportation.
Conclusion
In the realm of sustainable transportation, EVs currently stand as the more practical and cost-effective choice. The burgeoning infrastructure for EV charging, coupled with favourable economics and greater efficiency, positions them as the frontrunners in the race towards a cleaner future.
As technology continues to evolve and governments bolster their support, the future of transportation undeniably veers towards an electric paradigm.
The trajectory is set, the wheels are in motion, and the destination of a cleaner, greener future draws closer with every charge.
(Rohan Shravan, Founder and CEO, Tresa Motors)