Gear up for a 10,000-ft view of the EV industry in India.
Quite like the remote-controlled cars that entertained us as children, an electric vehicle (EV) has two main components – a battery and a motor. The rest of the running gear is identical to petrol or diesel-driven vehicles. In a full-size electric vehicle, all you need to worry about is the level of charge left in the battery, and nothing else. Since no fuel is burnt in an electric vehicle, there’s no noise and no smoke, which is great news for the environment.
In addition to this, EVs need very little maintenance, and that reduces the stress of ownership. Besides, you have to spend very little on consumables, because there are very few moving parts. Lower the ownership costs and you suddenly have a very interesting product on your hands. Driving an electric vehicle is almost like meditation – no wrestling with a gear shifter, and absolutely no worries about burning up the clutch because there isn’t one.
The impact of Covid-19 on businesses is unprecedented, and the severity of the lockdown and challenges faced by the domestic economy have been starkly brought out by the 23.9 percent contraction in the GDP in Q1FY 21. Among sectors, the lockdown has caused significant disruption in manufacturing sector activity, with the automobile sector, which contributes ~22 percent of the manufacturing and nearly 7 percent to the overall GDP, facing severe hardships. Recently, the sector started showing gradual recovery signs, but revival is largely attributed to pent up demand which materialised particularly during the festival season. What’s much more worrisome is that the investments have taken a backseat, that too at a time when the Indian government is increasingly supporting the adoption of Electric Vehicles (EVs) through various policy initiatives and is pushing to accelerate the same, with the vision of EVs constituting 30 percent of the overall vehicles on road in India by 2030.
The world is at the cusp of a mobility revolution, one in which vehicles will be shared, connected, and have zero emissions. Rapid technological evolution is driving this shift in transportation around world. In a country like India, more than 80% of the vehicles sold are two- and three-wheelers, which when combined with buses are the preferred mode of travel of a majority of the people. Unsurprisingly then, India is the world’s largest two- and three-wheeler manufacturer and second largest bus manufacturer. It goes without saying that electric mobility must encompass this crucial segment to make any difference in the country.
Recently, the Indian government extended its Production-Linked Incentive scheme to 10 key sectors and marked out an outlay of ₹18,100 crore for advanced chemistry cell batteries. This will provide a boost to the battery manufacturing ecosystem in the country and give a huge impetus to cell manufacturing, along with the domestic manufacturing of cathodes, anodes and separators.
The future of electric commercial vehicles
2020 will see an overall 7% contraction in global battery electric commercial vehicle markets. 2021 is expected to show a significant recovery, with 47% growth in the battery electric sector. And hybrids are going to play a major role, leveraging on the new Chinese policy direction, which is imminent. These are just a few takeaways from latest Interact Analysis report on the commercial vehicle sector, with a particular focus on the battery electric and hybrid market.
After a severe COVID-induced setback in 2020, the industry is predicted to make a swift recovery in 2021. Hybridisation is the favoured solution for most long-distance vehicles; while full electric is preferred for city buses and last-mile delivery vehicles, according to Interact Analysis, a consulting firm based in London.
After a 7% decline in the market for battery-electric commercial vehicles in 2020, which was the continuation of a decline in 2019 and was largely due to Chinese subsidy policies, the sector will bounce back in 2021.
“India has achieved its voluntary target of reducing emissions intensity of its GDP by 21 per cent over 2005 levels by 2020 and is poised to achieve 35 per cent reduction well before the target year of 2030,” Javadekar said in the virtual event. Emission intensity is the volume of emissions per unit of GDP.
India can save on crude oil imports worth more that Rs 1 lakh crore ($14 billion) annually if electric vehicles (EVs) are to garner 30% share of country’s new vehicle sales by 2030, according to an independent study released by the Council on Energy, Environment and Water (CEEW) on Monday.
The increase in electric vehicles penetration could also increase the combined market size of powertrain, battery and public chargers to more than Rs 2 lakh crore ($28 billion), in addition to creating 1,20,000 new jobs in this sector.
In addition, a substantial number of new jobs are likely to be created in emerging areas such as battery recycling, telematics and allied construction and services.
The minister said he is scheduled to make an hour-long presentation on EVs before the Chief Justice of India post-Diwali. He was addressing a virtual “Electric Mobility Conference 2020 – The Spark Revolution in India” by industry body FICCI.
NIIF is delighted to share its insights on Green Growth Equity Fund, a Fund anchored by National Investment and Infrastructure Fund (NIIF) and Department for International Development (DFID), UK Government as a part of the extensive collection of case studies published by World Economic Forum’ Global Future Council.
The case studies are aimed at exploring frameworks and examples that can help bring the vision of sustainable infrastructure into reality.
Healthy lungs have become a rarity in Indian patients – even among children and non-smokers.
Air pollution is a growing problem around the world, and is linked to the severity of COVID-19 cases.
A new campaign by doctors in India aims to raise awareness about this issue and to compel decision-makers to take action.
The Delhi government has exempted all battery operated vehicles from registration fee under its electric vehicle policy. Earlier this week, the government had waived road tax on all electric vehicles.
Electric Vehicle Policy announcing incentives of up to Rs 1.5 lakh on the purchase of four-wheelers, Rs 30,000 on two-wheelers, auto-rickshaws, e-rickshaws and freight carriers.