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Global Electric Mobility Readiness Index (GEMRIX 2022) has revealed that Norway is the world’s leading EV adoption country. Arthur D. Little, a management consulting firm, uses GEMRIX to measure EV adoption trends. It considers four key parameters: markets, customers, infrastructure, and governments. GEMRIX was calculated for 15 countries, of which India is the 11th in market readiness to adopt electric vehicles.
The Index compares the market conditions for EVs and ICE-driven vehicles. A score of 100 indicates that it is equally advantageous to purchase and operate an electric vehicle in a country than one with an internal combustion engine. According to the GEMRIX-2022 report, electric vehicle (EV), usage has increased over the past two years.
“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 comprising 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,” said Barnik Chitran Maitra, Managing Partner & Chief Executive Officer, India & South Asia, Arthur D. Little.
According to the report, India has 40 types of vehicles available. Customers have a wide choice. This is however mainly in the two and three-wheeler market, while private cars in India don’t have a large share of the EV marketplace. China, however, offers over 100 models, with roughly half 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,” said Andreas Schlosser Partner, Global Head of Automotive, Germany, Arthur D. Little.