Content & Communications-Vipin Labroo: A case for small and sensible electric cars

As electriccars become increasingly popular with a huge amount of content being dedicated to how these are well on the way to becoming a viable alternative to conventional ICE technology using cars, it is time to consider if the electric car can become every man’s car. That is a function currently being performed by sensible and small petrol-powered hatchbacks.

Not everybody can buy a Tesla or the other high-priced electric luxury cars that are the flavour of the times, which means that the average Joe is pretty much untouched by the so-called electric vehicle revolution. What about the average man or woman who uses the car to drive to work, pick up children from school and buy groceries from the neighbouring supermarket? When will they be able to drive around in an environment and pocket- friendly small-sized electric car that doesn’t require them to drown in debt to be able to buy? For until that were to happen, the move to electric vehicles as far as personal mobility is concerned would largely remain the sole preserve of the rich and the well-off.

There is an urgent need to focus on making small reasonably priced electric cars available to everyone who uses a personal car to get about. Small electric cars have many advantages over their larger counterparts. From being easier to park in tight spaces and better manoeuvrability in traffic, they also consume less energy than larger vehicles because of their lower weight. Importantly these can be charged by using a standard 120-volt-outlet making it possible for people living in apartments who may not have easy access to charging stations.

Small and sensible electric cars are the way forward on account of their low carbon footprint and affordability. According to a BCG report people are likely to start switching to electrified vehicles en masse by 2030.[1] The report further predicts that by 2026 electrified vehicles will account for more than half of the light vehicles sold globally. It also suggests that battery pack costs will drop to $75 per kWh and that the global market for BEVs (Battery Electric Vehicles will rise to 28%.

Nowhere is the case for a small and sensible electric car greater than in India where 75% of the private cars sold are small cars. Electrifying these cars, even while keeping them affordable is a challenge to meet. That apart there is an urgent need to upgrade the infrastructure.[2] According to IBEF (Indian Brand Equity Foundation) estimates, the Indian electric vehicle market in India is expected to grow to Rs. 50,000 crore (US$7.09 billion) by 2025.[3]

Globally the electric vehicle market is expected to hit $823.75 billion by 2030.[4] A 2018 report by McKinsey, there should be about 120 million electric vehicles on the road by 2030.[5] With the stage set for rapid electrification of electric vehicles globally in the near future, the focus should shift to making small and easily affordable electric cars to help make the move to EVs truly successful across the world.