Electric vehicles in India- scope and challenges

Importance of EVs, Market Scenario and Government of India Initiatives. EVs will play an important role in moving towards the initiation of green energy and changing the economy around the world.

1. Department of Ceramic Engineering NATIONAL INSTITUTE OF TECHNOLOGY ROURKELA Seminar and Technical Writing (Autumn 2021) Course Instructor: Prof. Debasish Sarkar Presented by Abhishek Kumar Roll no. 519CR1003 Electric vehicles in India- scope and challenges

2. Introduction Why the need ? Market Scenario Challenges Government Initiatives Measures to boost the industry EV Startup Hubs Around the Globe Startups in India Future prospective Contents 2

3. 3 Introduction An electric vehicle (EV), having one or more electric motors or sometimes traction motors for propulsion as an alternative to the traditional fossil fuel. In early 1830s , the first electric carriage was built and later on, the first electric automobile was manufactured in 1891 in the United States. EVs will play an important role in moving towards the initiation of green energy and changing the economy around the world. Types of electric Vehicle: Hybrid Electric Vehicle Plug-in Hybrid Electric Vehicle Fuel Cell Electric Vehicle Hybrid Electric Vehicle Plug-in Hybrid Electric Vehicle

4. 4 Why we need EVs? Image Source: DataAnalysis Labs Fast reduction of fossil fuels . P urpose of EVs has a significant reduction in air pollution (CO 2 emission) and reduction of crude oil usage. With changing livelihood around the world, electric vehicle is the need for upcoming generation. Facilitate employment growth employment growth and economy of country. Climate Risk Index 2020 published by German watch; India’s rank has degraded in world’s vulnerability ladder from 14th in 2017 to 5th in 2018. So, this is the main reason for India to build electric vehicles to fight against the reliance on fossil fuels.

5. 5 Why we need EVs? (Cont.)

6. Electric Bike Petrol Bike Power: 2 to 4 units of electricity (15 Rs) Fuel: 1 Ltr Petrol (100 Rs approx.) Range: 100 Km approx. Range: 50 Km/ Ltr approx. Cost: 1 Km = 10-15paise 50,000 Km = 5000Rs Cost: 1 Km = 2 Rs 50000 Km = 1 Lakh Rs 6 Why we need EVs? (Cont.)

7. 7 14 Out of the 15 most polluted cities of the world are in India 36% Of NOx emissions in Delhi were due to vehicles in 2016 25% Of PM2.5 emissions in Delhi were due to vehicles in 2016 Why we need EVs? (Cont.)

8. 8 D rivers behind electrification trend Co 2 reduction Potential Image Source: The Boston Consulting Group

9. 9 Market Scenario : EVs outside India In Norway , having highest sales registered as plug-in electric in 2020. Automobile industry of China is rapidly adopting EVs and having target to build around 5 lakh public charging stations by 2022 . UK and France are aiming for 100% electric cars by 2040 . W orld investment in EVs increased up to 28% in 2020 year on year to USD 139 billion. BNEF EV outlook claims that the manufacturers have lined up about 500 EVs to be rolled out by 2022.

10. 10 Market Scenario : EVs outside India (Cont.) Image Source: Statista

11. 11 Market Scenario : EVs in India Presently in India, the EV market shares is about 1% of total vehicle sales in which 95% of shares in electric two-wheelers vehicle sales. Govt. of India offered 1100 Cr to TATA Motors Ltd for manufacturing around 10,000 electric cars to inhibit the pollution problems in the cities. Govt. of India started FAME II ( Faster Adoption and Manufacture of Electric Vehicles ) and also National Electric Mobility Mission policies for increasing the sales and production of EVs in India. G overnment has also a target to turning all 3-wheelers vehicles to run on batteries by 2023, and similarly, 2-wheelers are aimed at by 2025. . W orld’s alarming for rising pollution and the extinct of fossil fuels, India has delayed to start replacing their alternate way of mobility.

12. 12 Market Scenario : EVs in India (Cont.) Image Source: Vahan Dashboard, JMK Research R egional R egistered EV sales from Jan-Dec

13. 13 Challenges in Indian EV Industry I nitial cost L imited of choice of EVs Una wareness  R ural electricity distribution problem Charging time L imited of EV charging station C ustomer support and services Anxiety in consumers L imited l ithium reserves for battery production Cost of battery Although the government push toward electric vehicles and the enthusiasm of the public, the electric vehicle sector encounters some major problems in the Indian market. Most common mentioned problems to purchase EVs in India Purchase Price Driving Range Charging Capability Charging Infrastructure Availability Image Source: ANS MarketPro Analystic

14. 14 Government Initiatives TUG OF WAR The government is in a hurry to set up stiff EV deadlines. Motown India wants a calibrated approach. A recent meeting on EVs between NITI Aayog and industry turned frosty Govt’s push Worried about pollution and environment problems created by fossil fuels Rising oil import bill poses economic and strategic challenges There are concerns India might miss the global EV bus if rules are delayed. Worried that India Inc may, if left to itself, move too slow. Believe Make in India bet needs a concerted push to catalyze local manufacturing Industry’s angst Auto industry is staring at one of the worst sales slowdowns in its history Leapfrogging to BS-VI norms already poses challenges, including Rs 70.000-cr investment FAME2 just set out an EV road map so a stiff deadline for EV 2-&-3-wheeler is uncalled Poor EV ecosystem policy worry capex-heavy sector that employs millions Industry prefers tech-agnostic norms ; consider 100% switchover to any technology

15. 15 What India needs to focus on to boost EV Industry ? Govt. of India should focus on developing R&D facilities for EV ecosystems to achieve the ‘ Make in India ’ goal. R olling out relaxation to the consumers for buying EVs as well as to the industries in terms of taxation . C harging ecosystem should be quickly developed. So that, the installation of chargers in parking areas, street areas, and any public space also helps in promoting EVs. G overnment and industries should have to use aids and promotions to boost the sales of EVs. Startups will play an important role in developing the electric mobility sector all over the world.

16. 16 India needs to focus on to boost EV Industry (Cont.) 4 key areas where the Government should focus on to accelerate EV adaption in India Building Infra-structure for charging Capital Access for small businesses and startups Policy Changes for permit & land allotment to set up EV Promoting Mobility as a Service like incentives

17. 17 EV Startup Hubs Around the Globe

18. 18 Major Startups in India Company Brief Profile Major Funding Ather Energy Based in Bengaluru & founded by Tarun Mehta and Swapnil Jainin 2013 with focus in Electric Scooter. Hero Moto corp. and Mr. Sachin Bansal invested $51-million in May 2019. Yulu Based in Bengaluru & founded by Amit Gupta in 2017 with focus in Electric Scooter. Bajaj Auto invested $8-million in Nov2019. Ola Electric Mobility Based in Bengaluru & co-founded by Ankit Jainin 2017 with focus in e-rickshaws, autos and cars. Soft Bank Corp, the Arun Sarin family, Ratan Tata and Matrix invested $306-million in two tranches-$56million in February 2019 and $250 million in July 2019.

19. 19 Major Startups in India (Cont.) Company Brief Profile Major Funding BattRE Based in Jaipur & founded by Nishchal Chaudhary in 2017 with focus in Electric Scooter. Former Tata Motors 'President Gajendra Chandel invested an undisclosed amount and the company plans to raise Rs.7 crore by the year ending 2020. E-Trio Based in Hyderabad & founded by Satyapoorna Chander Yalamanchili in 2017 with focus in Electric Cars. Around Rs. 10 crore through various investors. SmartE Based in Delhi & co-founded by Goldie Srivastava in 2014 with focus in e-rickshaw. Japanese conglomerate Mitsui & Coinvested $15-million in July 2019.

20. 20 Pillars of Electric M obility E cosystem RE-ENERGISING SYSTEMS Charging and swapping infrastructure OTHER FACTORS Manufacturing capacity, research and development, power grid ELECTRIC VEHICLE All-electric, plug-in hybrid, hybrid BATTERIES Lithium Ion batteries – NMC, LTO, LFP Battery Management System

21. 21 Future perspective C apitalization of the rising players like Ola and Uber , as well as food delivery companies, is also likely to help in the development of two-and four-wheeled EVs. If the government’s 2030 goals are achieved, then India could save Rs.10 lakh crore expenditure on gasoline and crude oil imports. Nowadays, the development of charging stations for e-mobility is the only main challenge. Delhi recently developed charging stations space for e-rickshaws . With decreasing the price of batteries by nearly 70% since 2012, electric vehicles are probably to be as low-priced as fuel-power-driven vehicles within a year.

22. 22 Future perspective (Cont.) More initiative like NTPC has already developed its first indoor space charging station in Vishakhapatnam having facilities to charge more than two electric vehicles at the same time. Recently, the lead-acid batteries problem was solved by using carbon additives which shows the enhanced electrochemical performance of the batteries helps in increasing the sales and production of personal and commercial electric vehicles too. L ithium-ion batteries are featured for fast charging and high electrochemical performance and having high demand in the latest electric vehicles. More developments in cathode materials , such as increasing nickel content, can improve their performance, safety, and capacity retention.

23. 23 References https://auto.economictimes.indiatimes.com/news/industry/opinion-the-indian-ev-policy-puzzle/77329178 https://www.financialexpress.com/auto/car-news/fame-ii-stricter-norms-lead-to-slump-of-electric-vehicle-sales-in-h1/1748428/ https://www.financialexpress.com/auto/electric-vehicles/delhi-chief-minister-arvind-kejriwal-delhi-switch-ev-campaign-electric-cars-bikes-charging-stations/2188455/ https://www.cars24.com/blog/delhi-ev-policy-subsidy-for-electric-cars-upto-1-5-lakhs-and-more-benefits/ https://ecogears.in/top-10-challenges-for-electric-vehicles-in-india/ https://www.financialexpress.com/auto/industry/fame-ii-electric-vehicle-incentives-ev-adoption-india-electric-cars-hyundao-kona-ev-mg-zs-ev/1994282/ https://auto.economictimes.indiatimes.com/news/industry/ktaka-is-the-first-state-in-india-with-vision-to-be-ev-capital-of-indiacm/70921525 https://evreporter.com/maharashtra-ev-policy/ https://www.thehindu.com/news/national/telangana/ts-to-unveil-all-inclusive-ev-policy-today/article32975969.ece https://economictimes.indiatimes.com/news/economy/policy/gst-on-evs-slashed-to-5-from-12/articleshow/70407309.cms?from=mdr

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