CURRENT AFFAIRS
COULD ELECTRIC VEHICLES BE A DREAM TURNED
REALITY FOR INDIA ?
INDIA'S transition to electric mobility is not only about
showing support to United Nations Conventions on
Climate Change but also fighting air pollution and
reducing our dependence on import-dependent fossil
fuel, it's also about augmenting jobs, growing the
economy, creating the necessary infrastructure for
supporting ICE (Internal Combustion Engine) and BS 4
(Bharat Stage 4) and retaining a competitive global
advantage by creating an enabling environment for ICE
and electric vehicles to co-exist while allowing
transition to EV.
While India is operating in the same global context as
other countries who have adopted an EV policy, it has a
unique mobility pattern which other countries do not share.
an EV policy for India must be tailor made to India's
particular needs. While vehicle growth in India is rapid,
ownership per 1000 population has increased from 53 in
2001 to 167 in 2015, a key difference between India and
other countries and the types of vehicles being used. India
uses a large variety of motorized transport on roads and
it's auto segments are quite different from that of most of
the world. Based on the last six years of sales data, the
vehicles on Indian roads are estimated to consist of
(1) Two-wheelers : 79 % of the total number of vehicles.
(2) Three-wheelers : Including tempos : 4 % of the total
number of vehicles.
(3) Buses and large goods vehicles like trucks : 3 % of
the total number of vehicles.
(4) Economy Four-wheelers (cars costing less than RS
1 million) : 12 % of the total number of vehicles.
(5) Premium Four-wheelers (cars costing higher than
RS 1 million) : 2 % of the total number of vehicles. In India
premium four-wheelers (cars) are only 2 % of the total
sales. However, most advanced technologies are available
in this category in global markets. In the near term, India
should foster early adoption of vehicles by premium
customers which will pave the way for consumer comfort
with electrification, raise aspirations
for indigenous products and make advanced technology
available in the market.
The presence of world-class technology will help India
build a world-class ecosystem for high-quality component
and subsystems usable for all kinds of vehicles. In longer
term, India should establish technological and
manufacturing leadership in the economy segment of the
market.
The prevalence in India of small vehicles such as two-
wheelers, three-wheelers, economy four-wheelers and
small goods vehicles require a unique set of technological
and industrial capabilities.
Here, India has an opportunity to take a leadership role in
the electrification of small vehicles. India's potential
volumes for these vehicles as the nation grows, lays the
foundation for transformational manufacturing and
industrial policy. That focuses on the development of
technological expertise and industrial capabilities in the
production of small electric vehicles which cannot only
meet domestic demand but can also place India in a
position of global leadership.
As other countries begin to look at smaller vehicles with
appropriate specifications, India can establish a position of
leadership based on domestic demand. Beyond significant
domestic for smaller vehicles, another aspect of the Indian
mobility market is supportive of electrification; it's high level
of sharing. Shared mobility in India has exploded.
changing the way India travels. Taxi aggregators such as
Ola and Uber increases from 130 million rides in 2015 to
500 million rides in 2016, leading radio taxis to account for
72 % of the overall market. This high penetration of shared
mobility in India increases both vehicle utilisation, which
plays to the economic advantages of EVs, and also
creates natural and large-scale purchases of EVs.
MAKING EVS ECONOMICALLY VIABLE : The limiting
factor of batteries on driving range may be addressed by
developing an ecosystem of fast-charging or swapping of
batteries. This can be achieved by creating requisite
infrastructure, possibly even every kilometer, in dense
areas. As a result an important question arises as to what
kind of strategy can make EVs, especially small vehicles,
economically viable. The general strategy should address
two key variables affecting the costs of EVs; battery costs
and fiscal policies that either increase the costs of an ICE
vehicle or decrease the costs of an EV. Broadly speaking,
approaches exist to reduce battery costs - reducing the
number of batteries that an electric vehicle needs and
making batteries cheaper on a per kilowatt-hour basis. For
the first approach, reducing the batteries needed for a
given EV, there are two key pathways :
(1) Providing charging infrastructure : The limiting factor
of batteries on driving range may be addressed by
developing an ecosystem of fast-charging or swapping of
batteries, by creating an infrastructure, maybe even every
kilometer, in dense areas. A smaller battery will lower
costs by reducing the total weight of the vehicle, resulting
in higher energy-efficiency and improved ability to upgrade
as the technology evolves. Charging infrastructure can be
rolled out on a city by city basis with select cities and
regions leading the transition. This would be consistent
with global experience where 33 percent of all EV sales
take place in only 14 cities where charging infrastructure is
widespread and convenient to use.