Adoption of high speed rails can aid in growth of India’s EV adoption rate like China
To enhance the electric vehicles penetration in India, it has to expand its high-speed rail networks like China. In the year 2008, China adopted EV high-speed trains. One of the reasons for the country’s successful EV adoption which stands at 48 percent. Adoption of high speed rails running on batteries will aid in reducing concern about running out of battery due to lack of charging infrastructure in the country. It will help in better travelling for people in terms of reliability and convenience. Additionally, it will promote a strong relation between growth of high-speed train network and EV market growth in the country.
China’s EV adoption
As per the latest study of 328 cities in China for the period of 2010 to 2023 indicates strong relation between EV and high-speed train networks. Currently, China has a remarkable success in terms of EV vehicles which accounts for 48 percent. This large share includes hybrid vehicles as well as its extensive high-speed trains.
In the year 2008, China started its first EV train which currently covers 96 percent of the region with the capacity of 500,000 and more. In the year 2014, Tesla came and started to develop EV vehicles. The country successfully achieved 22 million EV cars running on its roadways by the year 2023. It is higher than the half of the international EV trends in the world.
Though, EV penetration was not at the same level in all parts of China. The cities connecting to the high-speed rail network recorded higher adoption of EV vehicles than other regions. It resulted in expanding the EV market by about 1.22 percentage points and sales volumes by 91.39 percent.
India’s EV adoption
In India, the auto market recorded lower than 3 percent of EV cars sold in the previous financial year. The reason for this is the lack of availability of charging infrastructure in the country which accounts to 25,000 leading to discouraging consumers to buy electric vehicles. Even the auto manufacturers faced the issue of insufficient incentives to build extensive charging stations networks like China which account for around 3 million charging stations. In India, EV car owners charged their cars at home. It seems fine but it is good in terms of driving in the city only. When it comes to driving long distances, there is always anxiety among consumers about running out of battery.
Railway Infrastructure in India
India largely considers highways as its prominent transport infrastructure. The country has had railways since British rule and today its infrastructure and development suffers from underinvestment. The express service via railways in India only accounts to average speed of 32 miles per hour in the period of April to November 2023. The speed of regular trains in India is about 22 miles. Compared to this, the speed of railways in China is 10 times faster. Further, it plans to accelerate to more than 31,000 miles in the current year.
India plans to launch its first bullet train connecting Mumbai and Ahmedabad which is still in work-in-progress phase. It is projected to be completed by the year 2026.
In recent times, there is a possibility of India contracting its import duties on auto due to the rising pressure of tariffs from the USA. Additionally, Tesla is planning to launch some cars in India in the near term. It will lead to higher competition in the EV market in India. In present times, the EV market is strongly dominated by companies like Tata motors and JSW MG Motors which account for 58 percent and 25 percent of EV market share, respectively.
Apart from Tesla, companies like BYD and Suzuki are also planning to expand EV models in India. It is projected to lead to growth of the EV market in India to the level of the European or American EV market which is in the range of 10 to 25 percent. Though, there is a long way for India to reach at the level of China’s EV market which is currently positioned at 45 percent.
In conclusion, EV high-speed rails can act as a great push for higher adoption of EV in India along with the prevailing tax rebates and subsidies in the country.
The image added is for representation purposes only