According to Global Electric Mobility Readiness Index (GEMRIX 2022), Norway has emerged as the electric vehicle (EV) adoption leader across the globe. Management consulting firm Arthur D. Little’s GEMRIX focuses on four major parameters to gauge EV adoption trend—markets, customers, infrastructure and governments. GEMRIX has been calculated for 15 countries of which India holds the 11th rank in terms of market readiness for EV adoption.
The Index is designed to compare the market conditions for EV and internal combustion engine (ICE)-driven vehicles. An EV readiness score of 100 means that in a given country, it is equally beneficial to buy and operate an electric vehicle as one with an internal combustion engine. The overall usage of electric vehicle (EV) has been on a rise over the last two years across the globe, says the GEMRIX 2022 report.
“Norway has a Global Benchmark score of 115, clearly indicating that EVs are emerging as the popular choice for mobility among citizens in that country. This is followed by three other distinct groups of countries comprises Ambitious Followers China (Score 83), Germany (76), the UK (74) and Singapore (74), which possess all prerequisites for EV mobility and where EVs are on the verge of becoming mainstream,” the report said. It added that starters like India—which has a score of 31—face major challenges in costs and infrastructure.
“While studying global EV markets, we found that market readiness and EV adoption are driven by different factors in different regions. In some markets, environmental friendliness is the key, while in others, it’s the cost of the EV. Many countries, especially those in our Starter group including India, primarily focus on costs,” Barnik Chitran Maitra, Managing Partner & Chief Executive Officer, India & South Asia, Arthur D. Little, said.
The report said that in India, with 40 different types of vehicles on offer, customers enjoy a good variety. However, this is mainly in the two- and three-wheeler space while private cars in India do not have a significant share of the EV market yet. China in contrast offers more than 100 different models with around half of those being passenger cars.
“In Starter countries, competition grew significantly, driving prices down and pushing up quality. Electric two- and three-wheeler sales grew at 132 per cent and 102 per cent, respectively, in the financial year 2022, reaching large scale production, leading to sales prices decline. Combined with the recent increase in oil prices, the total cost of operating electric two- and three-wheelers is much lower than that of other vehicles,” the report said.
“EVs are here to stay. However, despite the mature globalisation of the automotive industry, markets and their requirements differ significantly around the world. These differences must be acknowledged to successfully implement a ‘once-in-a-century’ disruption like the change from fossil fuel energy to electric energy – from molecules to electrons. At the same time, effective government policies as a response to climate change and air pollution must look at promoting EV adoption at a faster pace,” Andreas Schlosser Partner, Global Head of Automotive, Germany, Arthur D. Little said.
