Understanding The PUSH & PULL for the Indian EV Industry - India Renewable Energy Consulting – Solar, Biomass, Wind, Cleantech
Select Page

by Narasimhan Santhanam



This posevnext-logo-v-smallt is a part of EV Next’s EV Perspectives.

EV Nexta division of EAI, is a leading market intelligence & strategic consulting firm for the Indian e-mobility sector.


 

Get to know about 1000+ EV innovations from EVI2: Electric Vehicle Innovation Intelligence from EVNext

 

This post is part of a series titled ” EVolution or rEVolution? Strategizing for EV Growth in India ” from EV Next Perspectives. See all posts for this series from here.  See the previous post  Highlights of the Indian EV Industry, an EAI Perspective

Understanding The PUSH & PULL for the Indian EV Industry 

 

How should a country such as India strategize for electric vehicle growth?

The answer to this question requires that before we even look at electric vehicles, we first need to appreciate the ‘country characteristics’. The clues to an optimal strategy for electric vehicles lies as much in the country, as in the electric vehicles themselves!

As a country, India is neither China (authoritarian) nor any of the highly developed countries (wealthy). We are a democratic, developing nation. This characteristic has significant implications for the EV growth strategy.

Markets can grow through sheer market forces alone – the needs and desires inherent in these market forces can create sufficient enough PULL for vigorous growth. Markets also grow through an external PUSH (government mandates, incentives) that facilitates end users to increase consumption, leading to growth.

For a product such as electric vehicles, a country such as China with an authoritarian structure, can rely on PUSH. Developed countries can rely significantly on PULL, with their populations having both the aspirations and the wealth to afford high cost electric vehicles – though in fact even these countries have required significant PUSH for EV growth in the recent past!

India’s country characteristic implies that any growth strategy needs to incorporate both the PULL and PUSH drivers. A strategy that aligns external incentives with fundamental market forces to create a “resonance” is what is needed to create a boom in the electric vehicle sector.

How indeed does one start design a growth strategy that balances the PUSH and the PULL?

A good way would be to understand the PULL dimension quite well, and design the PUSH and other components of the strategy such that they leverage the PULL. Put differently, when pressure is applied to something that already has good attraction and little resistance, things move much faster.

In our decade long work in the clean energy sector, our consulting team at EAI has observed many times how the prevailing government’s policies and incentives are designed and implemented independently, without appreciating how well aligned these are to the market forces.

Governments, in India and elsewhere, are quite good at designing strategies dominated by policies and incentives, as these are what they understand quite well. The same governments are usually poor in understanding markets and appreciating the needs and drivers.

This post is part of a series titled ” EVolution or rEVolution? Strategizing for EV Growth in Indiafrom EV Next Perspectives. See all posts for this series from here. See next post The Needs & Drivers of the Indian EV Market.

The complete list of bogs in the series-

  1. Highlights of the Indian EV Industry, an EAI Perspective
  2. Understanding The PUSH & PULL for the Indian EV Industry
  3. The Needs & Drivers of the Indian EV Market
  4. Constraints, Challenges and Avenues for EV Adoption in India
  5. Strategizing for India’s EV Growth
  6. EV Next’s Strategy Recommendation for India’s EV Growth – Summary & Analysis
  7. India’s EV Growth – EVolution or rEVolution? – the conclusion

Read more of our perspectives and opinions on: Indian EV Market Intelligence | Indian EV Strategy | Indian EV Policies | R&D and Innovation | Supply Chain | Indian EV Manufacturers | Adoption Trends | Electric Vehicle Impact | Indian EV Industry Highlights | Know how of Indian Emobility | Needs & Drivers | Constraints for EV adoption | Growth Strategies | Recommendations |


evnext-logo-v-small

Know more on how EV Next can assist your business in your strategy for the e-mobility and electric vehicles sectors, Here

Wish to know everything about India’s EV market from one place? Check out the India EV Expert Guide, an 800 page comprehensive guide to the Indian EV marketHere


 

Get to know about 1000+ EV innovations from EVI2: Electric Vehicle Innovation Intelligence from EVNext

 


Tags


drivers for ev adoption

incentives

India electric vehicle strategy

plans

Copyright © 2024 EAI. All rights reserved.