E-Mobility+ October Issue 2020

O C T O B E R

POWERING

SMART,

ELECTRIC,

EFFICIENT

2 0 2 0

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V O L U M E

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I S S U E

MOBILITY

PERSPECTIVE

CAN ROBUST

BE THE KEY TO INDIA'S EV AMBITIONS? WHAT ARE THE DRIVERS FOR THE RISE OF EVS IN LAST-MILE LOGISTICS?

Insights PREREQUISITES & POSSIBILITIES FOR INDIA’S E-MOBILITY AMBITIONS

www.emobilityplus.com

6

CONT POLICY DEBEIEF

05 INDIA NEWS

07 PERSPECTIVE

16 WHAT ARE THE DRIVERS FOR THE RISE OF EVS IN LASTMILE LOGISTICS?

23 WILL DELHI EV POLICY TO GET 5 LAKH NEW ELECTRIC VEHICLES BEAR FRUIT IN THE NEXT 5 YEARS?

29 CAN ROBUST CHARGING INFRA BE THE KEY TO INDIA'S EV AMBITIONS?

TENT IN CONVERSATION

12

10

RAJEEV YSR

SANKARI SIVA

Chief Operating Officer Avaan India

Managing Director, EMF

14 SHRI ANIL SRIVASTAVA Shri Anil Srivastava Principal Consultant & Mission Director, National Mission on Transformative Mobility & Battery Storage, NITI Aayog

INSIGHTS

27 PREREQUISITES AND POSSIBILITIES FOR INDIA’S E-MOBILITY AMBITIONS.

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E-Mobility+ October 2020

POLICYDEBRIEF GOVERNMENT: CENTRAL

SECI Invites Agencies To Implement Business Opportunities In Electric Mobility Sector

Government Extends Deadline For EV Components Localisation By Six Months

Solar Energy Corporation of India (SECI) has invited the Expression of Interest from Agencies for the identification and implementation of business opportunities in the electric / transformative mobility space. The last date to submit EOI is 07December – 2020. Scope of work of successful agencies includes in demand creation, demand aggregation, setting up charging infrastructure, introduction of new and innovative products, market development, capacity building etc for three years. SECI intends to empanel agencies for the identification and implementation of business opportunities in the electric / transformative mobility space in line with the national target of raising the share of Electric Vehicles (EVs) to 30 % of total no. of vehicles by 2030 along with associated infrastructure.

The department of heavy industries extended the deadline for the localisation of several components under its phased manufacturing programme (PMP) for electric vehicles (EV) from October 1 to April 1 next year, offering a breather to the industry. Compliance with the PMP is a condition for availing subsidies. To get demand incentives under the Rs. 10,000-crore second phase of the Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) scheme, companies must gradually increase the local sourcing of components for their EVs as stipulated in the PMP. The components for which the centre extended the date for mandated local procurement were traction motors, motor controllers, vehicle control units, on-board chargers, convertors and instrument panels. EV makers said localisation of EV components gets difficult as there wasn’t sufficient demand in the country for suppliers to invest in a manufacturing setup. The PMP was introduced by the government with the intention of allowing imports of key components until there was sufficient local demand for EVs and then gradually increasing the localisation requirements for availing demand incentives. The Phase-II of the FAME scheme has a financial outlay of Rs 10,000 crore for a three-year period starting April 2019. The scheme gives direct subsidies to buyers of electric vehicles. About 27,200 electric vehicles have been subsidised at an expense of Rs 95 crore by September 10 this year already.

DHI Releases Revised PMP Under FAME 2 The Department of Heavy Industry (DHI) recently released a revised notification regarding Phased Manufacturing Program (PMP) for xEV parts for eligibility under FAME 2. According to the notification mentioned parts across vehicle segments need to be locally manufactured to be eligible for benefits under FAME 2. The document also mentions traction battery packs will need to be assembled locally whereas the option of importing cells and BMS ( Battery management system ) is provided. As compared to the last amendment this new rules provides 6 to 12 months for localisation of 2W and 3W traction motors, controllers and DC to DC converters.

DHI Invites Proposal For Setting Up EV Charging Infrastructure The Department of Heavy Industry (DHI) has recently Invited proposals for availing incentives under FAME II for the deployment of 1544 No.s of EV Charging Infrastructure on Highways/Expressways. Last date of Submission of Proposal is on 07-12-2020. Each charging station must at least host one CCS II or CHAdeMO of minimum 50 KW EVSE AND one DC 001 of 15 KW such that one CCS II and CHAdeMO EVSE can be found in an interval of 4 consecutive charging stations.

| OCTOBER ISSUE 2020

Vehicle Scrappage Policy-Set to Come Out Soon A Vehicle Scrappage policy is set to come out soon under which recycling clusters may be established near ports, such that India will emerge as the world' s leading automobile manufacturing hub in five years as key raw material available from scrapping steel, aluminium, and plastic are bound to be recycled, bringing down automobile prices by “20-30 percent”. The proposed policy, once approved, will be applicable to all vehicles. Union Minister Nitin Gadkari has said that the new scrapping policy will be such that old cars, trucks and buses will be scrapped. Vehicle scrappage policy has the potential of not just putting old and polluting vehicles off Indian roads but also injecting life into the automobile industry due to fresh demand. With resale value of vehicles beyond 15 years being extremely low, these vehicles can be sent to scrap yards with some sort of monetary compensation to owners which could ensure two benefits - incentive for owners to get rid of such vehicles and putting these polluting vehicles out to help the environment.

PG 5

E-Mobility+ October 2020

GOVERNMENT: STATE

Karnataka Proposes 20% Subsidy On Installation Of EV Charging Stations The state' s government has proposed a subsidy of 20 per cent or ₹ 10 lakh, whichever is higher, to individuals interested in setting up public EV charging stations. Setting up an EV charging station costs anywhere between ₹ 30 lakh to ₹ 40 lakh.

There hasn' t been an official announcement in this regard yet, considering this is still a proposal. However, the report quotes an official as describing the subsidy as a means to encourage people to invest in installation of EV charging stations. The EV Policy of Karnataka intends to achieve 100% electric mobility in certain vehicle segments by 2030. At present, Bengaluru has 70 EV charging stations with 126 chargers out of which most of them are installed in the public areas. More 150 charging stations will be installed as per the government-sanctioned orders. The state has proposed to make at least one charging station available in a grid of 3kmX3km and one station at every 25 km on both sides of highways/roads.

Delhi Government Under Its Recent EV Policy Exempts Road Tax On Battery-Operated Vehicles Delhi transport minister Kailash Gahlot said that the government in the national capital has exempted road tax on battery-operated vehicles under its new Electric Vehicle Policy. The Transport department, in its notification, stated that the Lieutenant Governor of the National Capital Territory of Delhi exempted the tax levied upon all battery electric vehicles with immediate effect under the Delhi Motor Vehicle Taxation Act, 1962. Kailash Gahlot shared this news with a tweet. In August 2020, the Delhi government introduced the new Delhi Electric Vehicle Policy, 2020, with the aim to increase the adoption of EVs in the national capital region. The new policy proposed tax waivers, charging and swapping infrastructure establishment, battery cycling ecosystem, and creating a non-lapsable State EV Fund. The government also offered financial incentives for EV buyers in the region. Under the policy, e-rickshaws, electric two-wheelers, and goods carriers will receive incentives of ₹ 30,000. Purchasers of electric cars will receive intensive ranging from ₹ 10,000 to ₹ 150,000. It also planned to boost the adoption of battery electric vehicles, so they contribute to 25% of all new vehicle registrations by 2024.

Gujarat Announces Subsidies For Promotion Of EV The Gujarat government has recently announced a scheme for the promotion of electric two and three-wheelers in the state.The state government will be offering subsidies to EV in the state. School (class IX and above) and college students who buy electric two-wheelers will get a government subsidy of INR12,000, while rickshaw drivers and self-employed persons who buy electric three-wheelers will get a subsidy of INR 48,000 per vehicle. The government has set a target of having 10,000 electric two-wheelers and 5,000 electric three-wheelers on the roads in the current fiscal year. The government has also announced that 10 public charging stations will be set up in Ahmedabad, Vadodara, Surat and Rajkot to facilitate charging of e-vehicles. And a sum of INR 50 lakh has been earmarked for setting up these charging stations. The event also marked the Esigning of 10 MoUs between IITs, IIMs, BISAG, Anand Agricultural University and GSRTC, Gujarat Gas, GUJCOST, GLPC, the chief town planner, GSBTM and Knowledge Consortium of Gujarat.

| OCTOBER ISSUE 2020

PG 6

E-Mobility+ October 2020

INDIANEWS

PARTNERSHIPS

Fourth Partner Energy And Lithium Urban Technologies Associates With HIDCO To Set Up EV Charging Stations Lithium Urban Technologies and Fourth Partner Energy in alliance with HIDCO will set up an EV charging station at New Town, Kolkata under the new brand Powerbunk. The company claimed that this will be India’s largest EV charging network in a public charging station.The company will set up 25 charging points. The partnership will create more than 3000+ direct and indirect jobs in the state of Kolkata. Lithium added that “There is growing interest around the country in EVs, and while we began with employee transport, there’s clearly a way to get into many other segments too.” Lithium had earlier set up infrastructure for charging in Gurgaon and Pune.

eMatrixmile And Magenta Sign An MoU To Develop 10,000 EV Charging Infrastructure For EV Vehicles A Memorandum of Understanding (MoU), has been signed between eMatrixmile India Pvt Ltd and Magenta EV Solutions Private Limited for installation and commissioning of ‘QYK POD’ charging stations with associated infrastructure & stations in Mumbai, MMR and Maharashtra region. The alliance comes in the framework to install around 10,000 electric charging stations across India in sustained phases. eMatrixmile a Mumbai-based company is envisioning to provide sustainable and on-demand transportation solutions through its Rental EV scooters – QYK, a business model redefining smooth, shareable mobility options. Magenta is a pioneering company in the EV charging technology backed by Hindustan Petroleum Corporation Ltd (HPCL), Shell, and Microsoft.

| OCTOBER ISSUE 2020

Uber India To Add 1,000 Electric Cars In Partnership With Lithium Urban Technologies Uber announced a new partnership with Lithium Urban Technologies, that is among India’s largest electric vehicle fleet operators. They will deploy over 1,000 electric vehicles for Uber India’s Rentals and Premier services over the coming months. The roll-out focuses on the cities of Delhi, Mumbai, Bangalore, Hyderabad and Pune. It is the second such announcement from Uber in quick succession since the company pledged to green its global operations by 2040.

Uber says their drivers are running 100 electric vehicles such as Mahindra eVerito and Tata Tigor EV on its platforms. The partnership with Lithium Urban Technologies will increase this number ten-fold.

Ampere Electric And Bounce Partner To Accelerate Shared Mobility On Electric Scooters Ampere Electric, a wholly-owned electric mobility subsidiary of Greaves Cotton Ltd., strengthens its performance range of E Scooters with a renewed focus on shared and rental electric mobility solutions. Ampere Electric’s partnership with India’s leading bike rental platform Bounce is enabling faster adoption of electric scooters and providing sustainable and affordable last-mile connectivity and superior customer experience. Ampere is customising the scooters for Bounce making it more accessible and convenient for consumers to make a transition towards sustainable mobility solutions.

Bounce has ordered 3,000 Ampere electric scooters on the platform as part of the initial roll out.

eBikeGO Looks At Scaling Operations In Partnership With Assar eBikeGO said it has roped in reform-centric advance service firm ASSAR as its strategic partner, to promote and deploy over 10,000 electric bikes in a year to various e-commerce and logistics companies. In the first quarter phase, the alliance is looking to deploy 3,000 electric two-wheelers across seven cities with targets of nearly 900 in Delhi, 700 in Mumbai, 700 in Bengaluru, 200 in Pune, 150 in Amritsar, 150 in Hyderabad and 200 in Jaipur. The partnership plans to address the home delivery logistics requirements of a variety of e-commerce players and service providers.

PG 7

E-Mobility+ October 2020

INSIGHTS:

Tata Motors Rolls Out A New Limited-Period Subscription Offer On Nexon EV With the festive season kicking in, Tata Motors announced a special ‘Electrifying Subscription’ offer on the Tata Nexon EV, for a limited-period, till November 30, 2020. Available for the first 100 subscribers only, this attractive offer allows customer to avail India’s best-selling electric SUV at an allinclusive fixed rental starting at just Rs.34,900/- per month, without the hassles of traditional vehicle ownership such as road tax and registration, insurance renewals, servicing and maintenance. Discerning customers can select the tenure of their subscription from a minimum period of 12 months to 24 and 36 months. This service is being offered in 5 major cities – Delhi/NCR, Mumbai, Pune, Hyderabad and Bengaluru. Offered in partnership with Orix Auto, this subscription package includes comprehensive insurance coverage, on-call 24×7 roadside assistance plus free maintenance with periodic servicing and doorstep delivery.

Moreover, customers will also get a complimentary personal EV charger that can be installed at their home or office, as deemed convenient. The facility can be easily accessed online with end-to-end support available.

Following the tenure of their subscription, customers can either choose to extend it or just return the vehicle.

ICRA: Electric Vehicles Penetration To Remain Low In The MediumTerm ICRA Ratings has ruled out any meaningful domestic penetration of electric vehicles (EVs) in the key automotive segment like the PVs and the CVs, given their high prices; and absence of strong direct and indirect financial stimulus from the Government encouraging EV adoption. It believes that battery swapping will face strong resistance from automobile OEMs due to a possible impact on their product differentiation capabilities as well as pricing flexibility. Its acceptance therefore will be limited to certain less complex automotive sub-segments like the 3W. Further, given the importance of battery hardware and software in the overall performance of an EV, battery swapping will face strong resistance in technologically complex products like cars or two-wheelers. It also believes that battery design along with battery management system (BMS) is a core technology of any OEM/platform. Hence it may be difficult for the OEMs to share them with competitors, which may limit the success of battery-swapping in India.

| OCTOBER ISSUE 2020

Ather To Set Up India’s Biggest Electric Vehicle Public Charging Infrastructure Ather Energy, the Bengaluru based electric vehicle startup has earlier revealed plans on launching across 9 new markets in India. The company has already finalised setting up 135 public fast charging stations. It currently operates 37 fast charging stations in Bengaluru and 13 in Chennai.

The company has signed MOUs with partners like PPZ mall management, VR Mall, restaurant/cafe chains like Little Italy, Chai Kings, Blue Tokai, retail outlets like Sangeetha mobiles. Thanks to the new partnerships, the company now has access to more than 250 locations in India. Claiming that it is one of the few OEMs in the country to have set up and having contributed towards building up an electric vehicle dedicated ecosystem. In the Phase 1, the company aims to install around 5-10 fast charging points in each of the new markets on its road map.

Mahindra’s Revolutionary iMAXX Telematics Connected Vehicle Technology Set To Transform Indian Vehicle Fleet Management Mahindra Truck and Bus (MTB), a part of the USD 19.4 billion Mahindra Group, announced the launch of its revolutionary connected vehicle technology, Mahindra iMAXX. This new Telematics platform is fitted into Mahindra’s BS6 emission norms compliant CV range, including the BLAZO X range of HCVs, FURIO range of ICVs & LCVs and CRUZIO range of buses. The new Mahindra iMAXX technology, coupled with the tried & tested BS6 engines (mPOWER and MDI Tech) with FUELSMART technology and robust aggregates, retaining over 90% of the parts of the erstwhile BS4 vehicles, will help fleet owners and transporters transition to the BS6 ownership experience smoothly and efficiently. With the right telematics platform, like Mahindra iMAXX, enhanced fleet operations efficiency leads to higher asset productivity/ fleet utilization, lower costs of operations and higher fleet safety. The core capability of the Mahindra iMAXX embedded device is to absorb large scale, high frequency engine and allied system data securely, and transmit on a real-time basis over 4G airwaves for server processing. To put this in perspective, the amount of data transmitted through the Mahindra iMAXX device from the vehicle is on an average 600% higher than the previous generation telematics systems available in the market. Once such a large amount of data comes into Mahindra iMAXX cloud servers, the machine learning algorithms and artificial intelligence models put in place at the Mahindra iMAXX digital twin platform level helps provide accurate, reliable and predictive business and engineering insights.

PG 8

E-Mobility+ October 2020

BUZZ

Mahindra’s All-New Thar Crosses 9,000 Bookings Mahindra & Mahindra Ltd. (M&M), part of the USD 19.4 billion Mahindra Group, announced that its legendary SUV, the All-New Thar has already crossed 9,000 bookings, since its launch on October 2, 2020. This, despite only 18 cities being part of phase one markets where test drive and demo vehicles are available. The All-New Thar becomes the only SUV in the 4X4 lifestyle category to record this booking milestone in such a short span of time. The AllNew Thar has also appealed to a whole new set of urban lifestyle-seekers, who have shown significant interest in the Convertible Top and Automatic Transmission top end variants. Since its launch on October 2, 2020, the All-New Thar has received over 36,000 enquiries and more than 3.3 lakh website visitors.

Ultraviolette Plans To Raise Up To $75 Million In One Year TVS Motor Company-backed electric motorcycle startup Ultraviolette Automotive plans to raise up to $75 million in the next 12-14 months. Part of the funds will be raised via equity and a small portion of debt in series C next year.

Ultraviolette is talking to several strategic investors who can help the startup beyond primary funding-related requirements. The startup aims to produce and sell up to 10,000 units of the F77 in the first 12 months of its launch.

Mindspace Business Parks REIT Joins EV100 Mindspace Business Parks REIT, with one of India’s largest Grade A office portfolios, has pledged to transition to 100% electric mobility by expanding electric vehicle charging infrastructure for clients across all its business parks by 2030. Mindspace Business Parks REIT becomes the first real estate entity from India to join the Climate Group’s global EV100 initiative, which brings together nearly 90 international companies committed to making electric transport the new normal by the end of this decade. With an office portfolio that covers five integrated business parks and five quality independent offices, Mindspace Business Parks REIT has over 200,000 employees coming in to work each day at its business parks, pointing at an opportunity to positively empower and influence a large populace.

Additionally, Mindspace Business Parks REIT portfolios’ owned EV vehicles which are used to ferry employees in and around the business parks provides clients a first-hand experience of an EV, encouraging them to make the switch.

The whole fleet will be switched to electric by 2030.

| OCTOBER ISSUE 2020

MG Developer Program & Grant For Auto-tech Start-ups In a bid to promote innovation while strengthening India’s urban mobility space, MG Motor India has now commenced the second phase of its initiative – MG Developer Program & Grant 2.0. The initiative is aimed at identifying and endorsing new-age solutions that improve customer experiences as well as the efficiency of the automotive sector. MG Developer & Grant is conducted in partnership with global technology leaders including Adobe, Cognizant, SAP, TiE-Delhi NCR, Unlimit, and MapMyIndia. It is further open to external developers – such as students, startups, innovators, inventors, and tech enterprises – as well as internal teams of MG Motor and its channel partners. The program, which focuses on ground-breaking innovations in Connected Mobility, Charging Infrastructure, Electric Vehicles and Components, Car Buying Experiences, AI & ML, Batteries and Management, Voice Recognition, Navigation Technologies, Customer Experiences, and Autonomous Vehicles, is expanding its scope in the second phase with a wider ambit including new categories such as Sustainability, Ease of business and Innovation in times of Covid19.

Citroen In Plans To Bring Affordable EV For India French automaker group PSA is ready to enter the Indian market. It has started the testing of mid-size SUV C5 Aircross.

Priced at around Rs.8 Lac, this EV will launch somewhere around 2022. It is a mini crossover UV. Citroen has a modest sales target of 3,000 units per annum for this SUV in India with a mid-term plan of selling 1 lakh cars.

Tesla Plans To sell Electric Cars In India By Next Year India’s electric vehicles market is expected to get a boost with global leader Tesla planning to bring its cars to the country next year. Musk had earlier this month said on Twitter that the company was ready to enter the Indian market next year.

However, it is not clear whether Musk will announce a Tesla plant in India or source them from other facilities. In Asia, Tesla has only one Gigafactory, located in Shanghai, China.

The Indian government has been pushing global automakers to set up domestic manufacturing facilities.

PG 9

INCONVERSATION

SIVASANKARI TP MANAGING DIRECTOR EMF

There are other companies manufacturing motors for EV applications in India. In what all aspects, is EMF-I's work and scale of work distinct from them?

We h a v e l o c a l i z e d t h e ma j o r i t y o f c o mp o n e n t s b y i n v e s t i n g h e a v i l y i n ma k i n g a l l t h e mo u l d s , f i x t u r e s , j i g s & o t h e r e q u i p me n t s f o r o u r mo t o r ma n u f a c t u r i n g s e t u p i n I n d i a . Ou r mo t o r s a r e r e d e s i g n e d , c u s t o mi z e d ma n u f a c t u r e d a s p e r c u s t o me r n e e d s . Ou r p r i c e s a r e a l r e a d y c h e a p e r t h a n i mp o r t e d Ch i n e s e p r o d u c t s & i t wi l l c o n t i n u e t o b e mo r e a t t r a c t i v e a s t h e v o l u me i n c r e a s e s . We o f f e r l o c a l wa r r a n t y a n d o t h e r l o c a l s u p p o r t we a r e i n t h e p r o c e s s o f g e t t i n g I P 6 7 & AR AI Co mp l i a n c e c e r t i f i c a t i o n f o r o u r mo t o r s . We a r e t h e o n l y c o mp a n y f o c u s i n g on developing new technology mo t o r s s u c h a s S R M, S y n RM, a n d P MS M c a t e r i n g t o t h e n e e d s o f E V a s we l l a s o t h e r e l e c t r i f i c a t i o n a p p l i c a t i o n s wi t h R &D i n v e s t me n t s i n t h e s e a r e a s . Ou r p r o d u c t i o n c a p a c i t y i s 1 2 0 0 0 mo t o r s p e r mo n t h , s o we wi l l d e l i v e r t h e mo t o r s o n t i me wi t h q u a l i t y a s p e r c u s t o me r n e e d s . We h a v e b u i l t s t a t e o f a r t s e mi a u t o mo t i v e p r o d u c t i o n facility for better quality & p r o d u c t i v i t y wh i c h t r a n s l a t e t o l o we r p r i c e wi t h h i g h e r v o l u me .

Rationale behind product selection | Why hub motors?

Cu r r e n t l y n o b o d y i s d o i n g Hu b ma n u f a c t u r i n g i n I n d i a . Br i n g i n g d o wn t h e c o s t o f Hu b mo t o r wi l l b e e n a b l e mo r e g r o wt h f o r t h e l o w s p e e d t wo wh e e l e r ma r k e t .

| OCTOBER ISSUE 2020

"OUR MOTORS ARE RE-DESIGNED, CUSTOMIZED MANUFACTURED AS PER CUSTOMER NEEDS." Price comparison between your motors/controllers VS equivalent performance imports We wi l l b e c h e a p e r t h a n i mp o r t e d mo t o r s i n I n d i a .

P e r f o r ma n c e - wi s e t h e r e mi g h t n o t b e mu c h d i f f e r e n c e , b u t we wi l l enhance the quality & reliability though production processes. For e x a mp l e we wi l l o f f e r I P 6 7 r a t i n g wh i c h i mp o r t e d mo t o r s d o n o t h a v e . We wi l l a l s o p r o v i d e a f t e r s a l e s s u p p o r t s u c h a s wa r r a n t y a n d r e p a i r s e r v i c e s , a n d we leverage on the local ma n u f a c t u r i n g e c o s y s t e m f o r quicker response.

What all vehicle segments will your products cater to?

Starting from low end personal mo b i l i t y d e v i c e s l i k e c y c l e s , s c o o t e r , mo t o r c y c l e & E - Ri c k s a w a l l t h e wa y u p t o L CV’ S & other electrification applications such as agriculture EV ma c h i n e r y , s o l a r i r r i g a t i o n p u mp s .

How will Indian manufacturing of motors and controllers help the Indian OEMs? T y p i c a l l y Ch i n e s e i mp o r t e d products none of them have wa r r a n t y a t a l l , n e i t h e r t h e y c a n s u p p o r t wa r r a n t y b e c a u s e o f t h e b u s i n e s s mo d e l . F o r a n e n d c u s t o me r wa r r a n t y i s v e r y mu c h i mp o r t a n t i n r e a l i s i n g v a l u e o f product & long life of the p r o d u c t , t h i s wa s v e r y mu c h provided by local Indian S u p p l i e r . P r o d u c t wa r r a n t y b y t h e s u p p l i e r a p a r t t h e OE MS i s i mp o r t a n t e l e me n t i n c o s t reduction. Local suppliers can u n d e r s t a n d a n d wo r k wi t h OE MS o n t h e n e e d s o f l o c a l ma r k e t i n p r o d u c t d e v e l o p me n t & c u s t o me r n e e d s b y c h a n g i n g t h e product.Local supplier chain can reduce the cost of Inventory local supplier can also reduce t h e t u r n a r o u n d t i me s u b s t a n t i a l .This all you help in reducing the wo r k i n g c a p i t a l o f OE M. Of c o u r s e , e n h a n c e v a l u e t o t h e c u s t o me r wi t h r e l i a b l e p r o d u c t .

PG 10

Any data points regarding the current and forecasted size of market you're going to address, import numbers Ou r P r o d u c t i o n c a p a c i t y wi t h 3 s e mi a u t o ma t e d wi n d i n g i s t o t a l l y 4 , 2 0 , 0 0 0 u n i t / y e a r . Th i s i s t h e t a r g e t v o l u me we a r e p u r s u i n g i n t h e n e x t f e w years.

Market-readiness and official launch plan We have been doing motors for the last 4 years though through manual process, which has taught us a strong understanding of how to get the manufacturing process.Our product have already been through sample testing and proto production & is about to be launched in customer production.

We offer local warranty and other local support we are in the process of getting IP 67 & ARAI Compliance certification for our motors." | OCTOBER ISSUE 2020

Any pre-orders you’d like to highlight Customers name bit early to disclose, in couple of months when we have better relationships with them.

Brief profile of the key management team | What is the vision and aspirations behind EMF-Innovations?

The management behind EMFi are seasoned entrepreneur, technologist & EV industry experts.EMFi’s vision is to accelerate the EV revolution for sustainable future with next generation of electric motors. Our focus is to develop high power, high torquedensity power trains for electric mobility & other electrification application

What is the current team-size? How many people do you expect to employ going forward?

Currently we are 30 plus people when we operate full installed capacity we will be hiring another 70 people or more.

PG 11

INCONVERSATION

RAJEEV YSR CHIEF OPERATING OFFICER AVAAN INDIA

Please tell us about the journey of Avaan's EV business. How did it all begin and how has the journey been so far?

It all began out of necessity and c o mp u l s i o n . Y e s ! ! we a l l mi g h t h a v e h e a r d o f " Ne c e s s i t y a s t h e mo t h e r o f i n v e n t i o n " a n d i t ' s t h e s a me c a s e wi t h o u r s t o r y t o o . I t a l l b e g a n 2 y e a r s a g o - On e o f o u r e s t e e me d c u s t o me r s wa s p a r t o f t h e E V 1 0 0 c a mp a i g n a n d hence the need to convert all mo b i l i t y s o l u t i o n s t o e l e c t r i c arose. Though a challenge at t h a t t i me , we e mb r a c e d t h e s a me a n d b u i l t s o l u t i o n s a r o u n d i t . Th i s s o l u t i o n wa s we l l r e c e i v e d a n d a p p r e c i a t e d b y t h e e - c o mme r c e f r a t e r n i t y a n d s i n c e t h e n we s t a r t e d s e r v i n g c u s t o me r s s u c h a s Bi g b a s k e t , Ama z o n e t c .

Avaan is a big name when it comes to Last Mile Delivery Solutions. What have been the key factors for the success of this journey?

Be i n g f i r s t mo v e r s i n t h e i n d u s t r y has both advantages and d i s a d v a n t a g e s . Wh e n we f i r s t

| OCTOBER ISSUE 2020

"WE ARE LOOKING FOR PARTNERSHIPS AND FRANCHISEES ACROSS THE COUNTRY TO REGISTER FASTER GROWTH." started our deliveries in 2018, t h e v e h i c l e s a n d mo d e l s a v a i l a b l e we r e v e r y l i mi t e d i n n u mb e r a n d e v e n a mo n g t h e available ones, quality and r e l i a b i l i t y o f t h e p r o d u c t s wa s a n i s s u e . No n e o f t h e b i g p l a y e r s we r e f o c u s i n g o n E V Ca r g o a s a l l ma j o r o n e s we r e b e h i n d e l e c t r i c b u s e s o wi n g t o 4 4 % o f v e h i c l e c o s t s u p p o r t e d b y Go v t a s s u b s i d y . On l y a h a n d f u l o f s t a r t u p s we r e t r y i n g t o a d d r e s s t h i s i s s u e a n d wi t h s u c h unpredictable behaviour of the p r o d u c t s , o u r d r i v e r c o mmu n i t y also started to lose confidence in t h e p r o d u c t a n d t e c h n o l o g y . Bu t t h e n we u n d e r s t o o d t h a t we need to invest our skin in the g a me t o c a r v e o u t a s u c c e s s story in the long run.

Hence instead of waiting for our driver partners to purchase the vehicles, we bought the vehicles and deployed them with the Driver cum delivery persons to build confidence among our partners.

We started working with OEM partners to develop a retrofitted TATA ACE EV which is robust and reliable in operations. Right vehicle and trained man power are the key factors for the success of this journey.

What have been some essential learnings in the Covid times which you plan to implement going further?

Co v i d t i me s h a v e b e e n t i me s o f testing, reinvention and reflection.

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The First few days were shocking to us as we were not very clear on how to take our operations forward. Nevertheless, we maintained the safety of employees as our first priority and equipped them with needed protective gear. Highest levels of hygiene and sanitation were maintained and continued our operations during the lockdown too.

Our guest houses accommodated delivery partners and prevented them from contacting their families. Infact those were the times where our efficiency and productivity increased owing to shifts of customers going online especially in the groceries business. Apart from the EVs business, a new business model vertical called Avaan Excess Baggage was pivoted during pandemic. The offerings as per this is that customers can book Avaan Excess Baggage while booking their flight ticket and we move their luggage to their destination at almost 1/3rd the price airlines would charge the customers.

Kindly tell us about the different business models in use and the product types currently being provided by Avaan.

Ou r d i f f e r e n t b u s i n e s s mo d e l s a r e 1 . We p r o v i d e e l e c t r i c v e h i c l e s o n l e a s e - t a k i n g c o mp l e t e c a r e o f ma i n t e n a n c e a n d u p keeping of the vehicle.

2 . P r o v i d e E Vs a n d a l o n g wi t h d r i v e r a n d d e l i v e r y p a r t n e r s We a l s o p r o v i d e c u s t o mi z e d s o l u t i o n s s u c h a s s t o r e s o n wh e e l s , wh e r e we t a k e c a r e of t h e c o mp l e t e b u i l d o f t h e v e h i c l e , t r a i n e d ma n p o we r t o t a k e o u r c u s t o me r ' s b r a n ds c l o s u r e t o t h e c u s t o me r .

What strategies are being implemented at Avaan to ensure further scaling up and expansion of its EV journey?

We a r e l o o k i n g f o r p a r t n e r s h i p s a n d f r a n c h i s e e s a c r o s s t h e c o u n t r y t o r e g i s t e r f a s t e r g r o wt h .

| OCTOBER ISSUE 2020

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INCONVERSATION

SHRI ANIL SRIVASTAVA PRINCIPAL CONSULTANT & MISSION DIRECTOR, NATIONAL MISSION ON TRANSFORMATIVE MOBILITY & BATTERY STORAGE, NITI AAYOG Let's start by talking about manufacturing. India's Electric vehicle manufacturing sector has great growth potential.

How can we unleash the same and bring the sector to forefront in driving India's economy?

E V t e c h n o l o g y i s s i mp l e e x c e p t technology involved in cell ma n u f a c t u r i n g . I n d u s t r y wi l l h a v e to get control over the supply chain and enhance the size and s c a l e o f ma n u f a c t u r i n g b e c a u s e t e c h n o l o g y i s k n o wn p r o v e n , a n d o l d . I n d u s t r y mu s t c a p t u r e s c a l e s i n q u i c k e s t p o s s i b l e t i me a n d g o v e r n me n t p o l i c i e s a n d d u t y structures should also e n c o u r a g e i t wi t h d o me s t i c v a l u e addition. India’s approach to t r a n s f o r ma t i v e mo b i l i t y i s s h a r e d , connected and electric to reduce n a t i o n ’ s f o s s i l f u e l i mp o r t s a n d p o l l u t i o n l e v e l s . Ou r j o u r n e y t o wa r d s a c l i ma t e r e s i l i e n t a n d clean energy society is under p i n n e d o n e l e c t r i c mo b i l i t y a n d r e n e wa b l e p o we r d e l i v e r e d through innovations from startups.

Cu r r e n t l y b a t t e r i e s c o mp r i s e o f 30-40 percent of the cost of an E V a n d we i mp o r t c r i t i c a l c o mp o n e n t s f r o m Ch i n a a n d other countries. Local ma n u f a c t u r i n g c o u l d h e l p b r i n g t h i s d o wn , wi t h f a s t e r r o l l o u t o f b a t t e r y ma n u f a c t u r i n g a n d e mb r a c i n g i n n o v a t i v e b u s i n e s s mo d e l s t h a t r e d u c e c a p i t a l c o s t f o r c o n s u me r s . E l e c t r i c Ve h i c l e s a l o n g wi t h E n e r g y S t o r a g e applications have the potential t o d r i v e I n d i a n E c o n o my because of the country's sheer size and scale.

| OCTOBER ISSUE 2020

"WE HAVE TAKEN SIGNIFICANT STEPS TO KEEP PACE WITH CUTTING EDGE TECHNOLOGIES." With the government emphasis on the FAME scheme and Make in India initiative, what are the opportunities for EV manufactures and supply chain in India?

Could you elaborate on some of the Government's proposed global initiatives to provide a strong push to growth in the entire Electric mobility ecosystem?

T h e De p a r t me n t o f He a v y Industries has sanctioned 5595 e-buses to be deployed in 64 c i t i e s t h r o u g h OP E X mo d e l a n d 2636 charging stations in 62 c i t i e s a c r o s s 2 4 S t a t e s / UTs . As per the current plan, the g o v e r n me n t a i ms t o i n s t a l l 1 7 5 g i g a wa t t s o f r e n e wa b l e c a p a c i t y by 2022 and hopes to achieve around 40% non-fossil fuel p o we r e d c a p a c i t y b y 2 0 3 0 . S o f a r , I n d i a h a s mo r e t h a n 8 0 g i g a wa t t s o f s o l a r g e n e r a t i o n c a p a c i t y . Go v e r n me n t i s e mp h a s i z i n g t h e F AME s c h e me but electric vehicles are going to c o me a n d b e a d o p t e d e v e n wi t h o u t F AME . I n d u s t r y n e e d s t o accept and adopt this t e c h n o l o g y s i mp l y b e c a u s e i t i s a better option and it is inevitable.

A proposal to incentivize setting u p Gi g a f a c t o r i e s i s u n d e r c o n s i d e r a t i o n wh i c h i s o u t p u t based rather than input-based. It me a n s , s u b s i d y i s l i n k e d t o t h e capacity creation and the level of i n d i g e n i s a t i o n . Dy n a mi c d u t i e s c o u l d b e o t h e r t o o l s t o p r o mo t e a d v a n c e d c e l l c h e mi s t r y i n p l a c e of the traditional batteries.

Ac r o s s t h e n a t i o n , 1 5 S t a t e s h a v e already prepared and published their EV policies; they all have s e t t a r g e t s t o s wi t c h t h e i r f l e e t t o e l e c t r i c mo b i l i t y . I n a d d i t i o n , t h e y h a v e a l s o c o me u p wi t h b o t h fiscal and non-fiscal incentives f o r E V a n d B a t t e r y ma n u f a c t u r e r s .

T h e Mi n i s t r y o f P o we r h a s revised its charging guidelines, n o w i n c l u d e s Ca p t i v e Ch a r g i n g S t a t i o n a n d B a t t e r y S wa p p i n g

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S t a t i o n me c h a n i s ms . Mo RTH h a s notified sale and registration of e l e c t r i c v e h i c l e s wi t h o u t batteries.

These initiatives are to create a level playing field for EV Industry to catapult India as a global p o we r f o r E V s . I n d u s t r y p l a y e r s h a v e c o me o u t wi t h i n n o v a t i v e b u s i n e s s mo d e l s t h a t wi l l b o o s t rapid adoption of EVs in India.

Currently hydrogen fuel is in the offing, how can India's EV sector prepare itself for this technology and reap the future benefits of it?

We h a v e t a k e n s i g n i f i c a n t s t e p s t o k e e p p a c e wi t h c u t t i n g e d g e t e c h n o l o g i e s . Na t i o n a l T h e r ma l P o we r Co r p o r a t i o n L i mi t e d ( NTP C) h a s i n v i t e d global expressions of interest to provide 10 hydrogen fuel cell buses and cars in Leh and De l h i . A h y d r o g e n f u e l c e l l b u s wa s l a u n c h e d i n 2 0 1 9 i n I n d i a b y T a t a Mo t o r s i n c o l l a b o r a t i o n wi t h t h e I n d i a n S p a c e R e s e a r c h Or g a n i z a t i o n ( I S R O) a n d I n d i a n Oi l ( I OCL ) .

In your view, how can we strengthen our EV charging infrastructure ecosystem, for a healthy growth of EV in India?

Ch a r g i n g f a c i l i t i e s a t g o v e r n me n t o f f i c e s a n d o t h e r c o mme r c i a l centres, parking lots and residential locations are good starting points. Public transport depots and vehicle fleet depots are also good locations, especially to serve dedicated vehicle fleets. For such fleets the savings in operating costs could j u s t i f y t h e i n v e s t me n t i n c h a r g i n g i n f r a s t r u c t u r e . T h i s s e g me n t wi l l f u r t h e r g r o w wi t h ma n d a t e d adoption targets, localization of k e y c o mp o n e n t s , c l e a r guidelines on regulations and standards and EV adoption in p u b l i c t r a n s p o r t a r e s o me o f t h e k e y l e v e r s f o r t r a n s f o r ma t i o n .

So far, India has more than 80 gigawatts of solar generation capacity. Government is emphasizing the FAME scheme but electric vehicles are going to come and be adopted even without FAME." | OCTOBER ISSUE 2020

What change in attitude and mindset of the industry would you like to see for the development of the EV sector in India?

I n d u s t r y mu s t e x p l o r e i n n o v a t i o n s i n b a t t e r y t e c h n o l o g y , h y d r o g e n f u e l c e l l s , wh i l e mo v i n g t o wa r d s v i a b l e b u s i n e s s o p t i o n s t o ma k e t h e u p f r o n t c o s t o f E V a c c e p t a b l e . To s t a y c o mp e t i t i v e , I n d u s t r y n e e d s t o d e v e l o p E V c l u s t e r s , u p g r a d e e mp l o y e e s k i l l s t o ma t c h t h e g l o b a l d e ma n d a n d e x p l o r e c o n s u me r a wa r e n e s s p r o g r a ms a n d c i r c u l a r e c o n o my o p p o r t u n i t i e s .

Industry players in India have to develop c o n f i d e n c e t o l e a d t h e wo r l d . Th e c o u n t r y h a s a l l t h a t , i n c l u d i n g t h e s i z e wh i c h c a n t a k e i t t o a g l o b a l l e a d e r s h i p p o s i t i o n . At t i t u d e s a r e changing and stakeholders are gaining c o n f i d e n c e a n d g e t t i n g i n t o t h e mi n d s e t o f g l o b a l l e a d e r s . Al t e r n a t i v e b u s i n e s s mo d e l s a n d s t a r t u p s wh i c h a r e e me r g i n g a r e e x t r e me l y e n c o u r a g i n g f o r t h e g r o wt h o f t h i s s e c t o r .

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PERSPECTIVE

WHAT ARE THE DRIVERS FOR THE RISE OF EVS IN LAST-MILE LOGISTICS?

In India, the rise of last-mile delivery has increased tremendously in the last couple of years. Rise of online retail platforms like Amazon, Flipkart, food delivery apps like Swiggy, Zomato have increased the demand of the last-mile delivery ecosystem, especially in urban areas, adding more vehicles to the roads. Infact, a recent study by the World Economic Forum shows that the demand for urban last-mile delivery will increase by 78 percent by 2030, and this will lead to the addition of 36 percent more delivery vehicles in the world' s top 100 cities. This will also increase the carbon emissions by 30 percent by 2030 if effective and right intervention doesn' t happen at this time. Hence, it is a good opportunity for EVs to intervene in the last mile deliveries leading to their growth in the same. Let' s find out more about what are some of the driving factors for the rise of EVs in last-mile logistics from our experts. . .

| OCTOBER ISSUE 2020

PG 16

SAMHITA SHILEDAR

PRANAV LAKHINA,

SENIOR ASSOCIATE, ROCKY MOUNTAIN INSTITUTE

ASSOCIATE, ROCKY MOUNTAIN INSTITUTE

L a s t - mi l e l o g i s t i c s i s a c r i t i c a l p i l l a r o f a c i t y ’ s e c o n o my , p r o v i d i n g c i t i z e n s a n d b u s i n e s s e s wi t h t h e n e c e s s a r y g o o d s , a n d i mp r o v i n g t h e i r q u a l i t y o f l i f e . Wi t h i n c r e a s i n g u r b a n i z a t i o n a n d p o p u l a t i o n , r i s i n g i n c o me l e v e l s , r a p i d l y g r o wi n g r e t a i l s a l e s , a n d t h e b o o mi n g e - c o mme r c e ma r k e t , I n d i a ’ s l a s t - mi l e f r e i g h t mo v e me n t i s e x p e c t e d t o i n c r e a s e at the rate of 9 percent over the next decade, doubling the a s s o c i a t e d CO 2 e mi s s i o n s a c c o r d i n g t o R MI a n a l y s i s . T h e “ l a s t mi l e ” i n e - c o mme r c e c o mmo n l y a c c o u n t s f o r 5 0 percent of the total logistics cost and disproportionately c o n t r i b u t e s t o a i r p o l l u t i o n a n d c a r b o n e mi s s i o n s . He n c e , a n e f f i c i e n t l a s t - mi l e d i s t r i b u t i o n wi l l b e c r i t i c a l t o r e d u c i n g c o s t s a n d e mi s s i o n s .

I n t e r n a l c o mb u s t i o n e n g i n e ( I CE ) v e h i c l e s r u n o n f o s s i l f u e l s a n d e mi t c a r b o n e mi s s i o n s a n d P a r t i c u l a t e Ma t t e r ( P M) a n d Ni t r o g e n Ox i d e ( NOx ) e mi s s i o n s . E l e c t r i c v e h i c l e s ( E Vs ) p r e s e n t a n o p p o r t u n i t y t o r e d u c e b o t h t h e o p e r a t i o n a l c o s t s a n d t h e v e h i c u l a r e mi s s i o n s a s s o c i a t e d wi t h t h e i n c r e a s i n g e - c o mme r c e a c t i v i t i e s , t h e b e n e f i t s o f wh i c h c a n b e p a s s e d o n t o t h e c o n s u me r s a n d s o c i e t y .

Th e ma r k e t f o r f r e i g h t E Vs i s g r o wi n g i n ma n y p a r t s o f t h e wo r l d . Th e g l o b a l E V c o mme r c i a l ( f r e i g h t ) ma r k e t i s d o mi n a t e d b y Ch i n a a n d E u r o p e , r e p r e s e n t i n g 9 7 p e r c e n t o f t h e g l o b a l f r e i g h t E V f l e e t , wh i l e I n d i a ’ s s h a r e i s l e s s t h a n 0 . 1 p e r c e n t a c c o r d i n g t o a BNE F a n a l y s i s . Al t h o u g h t h e c u r r e n t E V p e n e t r a t i o n i n t h e l a s t mi l e f r e i g h t s e g me n t i s l o w i n I n d i a , i t i s p o i s e d t o i n c r e a s e i n t h e c o mi n g f u t u r e d u e t o t h e f o l l o wi n g s i x k e y d r i v e r s – P o t e n t i a l t o l o we r p o l l u t i o n : E Vs d o n o t h a v e a n y t a i l p i p e e mi s s i o n s a n d e mi t l e s s CO 2 e mi s s i o n s c o mp a r e d t o I CE v e h i c l e s . Ac c o r d i n g t o o u r a n a l y s i s a t RMI , l a s t - mi l e 3 - wh e e l e r d e l i v e r y E V i n I n d i a e mi t s 4 0 p e r c e n t l e s s CO 2 e mi s s i o n s , h a s n o t a i l p i p e e mi s s i o n s , a n d c o n s u me s 8 0 p e r c e n t l e s s e n e r g y p e r k i l o me t e r ( k m) c o mp a r e d t o a n I CE 3 - wh e e l e r . He n c e , t h e r e i s a n i n c r e a s i n g e mp h a s i s b y s t a t e g o v e r n me n t s t o e n c o u r a g e t h e a d o p t i o n o f E Vs i n l a s t mi l e d e l i v e r y through supportive policies.

Technical and operational feasibility: Distances traveled by last-mile delivery vehicles can be covered by current EV options and battery capacity offered by them. Last-mile delivery vehicles often have predictable routes, and they leading example of the cost-effectiveness of EVs. can also be a good candid either at the driver’s home or at the company’s base.

Fleet decarbonization goals by the private sector: Many big firms such as Flipkart, Big Basket, Swiggy, Zomato, Amazon, and IKEA have set targets to reduce carbon emissions from their fleets. Hence, they are committing to invest in electric vehicles for their delivery operations.

Supportive policies environment: National and state governments are promoting EVs as a means to reduce air pollution and fight climate change through policies like FAME II and Delhi’s EV policy. These policies offer purchase incentives and provide an exemption from registration and taxes for EVs. Innovative market culture: EVs are an emerging business opportunity for many innovative startups in the manufacturing space, both for vehicles and batteries. These startups are working with different logistics companies to produce fit-to-purpose vehicles.

These drivers make the last-mile deliveries ripe for electrification. A multi-stakeholder collaboration for onthe-ground deployment of electric last mile delivery vehicles can build on these drivers. Deliver Electric Delhi, a pilot launched by the Dialogue and Development Commission of Delhi and Rocky Mountain Institute (RMI), exemplifies this approach. The pilot is working with partners to deploy electric vehicles for last-mile deliveries and document their experience by convening vehicle manufacturers, logistics companies, charging infrastructure providers, electric distribution companies, and government players. Last-mile electrification can generate positive momentum and establish an early leading example of the cost-effectiveness of EVs.

E c o n o mi c f e a s i b i l i t y : E Vs h a v e 5 0 p e r c e n t l e s s ma i n t e n a n c e c o s t a n d 8 0 p e r c e n t l e s s f u e l c o s t c o mp a r e d t o I CE v e h i c l e s o v e r t h e i r l i f e t i me . E v e n t h o u g h t h e u p f r o n t c o s t o f E Vs i s mo r e t h a n I CE , b a t t e r y p r i c e s a r e p r o j e c t e d t o r e d u c e f r o m 1 5 6 $ / k Wh i n 2 0 1 9 t o 6 1 $ / k Wh i n 2 0 3 0 , wh i c h i s e x p e c t e d t o b r i n g l a s t mi l e d e l i v e r y E Vs a t a c o s t p a r i t y wi t h I CE s .

By s wi t c h i n g a wa y f r o m f o s s i l f u e l s , E Vs a l s o p r o v i d e t h e p o t e n t i a l t o r e d u c e t h e c o u n t r y ' s o i l i mp o r t b i l l s .

| OCTOBER ISSUE 2020

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RAHUL GOPE, SPECIALIST, E-MOBILITY & CASE, NOMURA RESEARCH INSTITUTE

Go v e r n me n t a g e n c i e s h a v e p r o j e c t e d E - Mo b i l i t y t o g r o w i n a b i g wa y t h r o u g h v a r i o u s i ni t i a t i v e s l i k e F i s c a l I nc e nt i v e s , Ta x b e n e f i t s , P r e f e r e n t i a l Tr e a t me n t & S t r i c t e r CAF É No r ms t o p r o mo t e c o mme r c i a l u p t a k e of E V s . Ac c or di ng t o Ni t i Aa y o g - RMI p r o j e c t i o n s , p e n e t r a t i o n o f E V s b y 2 0 3 0 c o u l d b e a s h i g h a s 8 0 % i n 2 W/ 3 W.

Wi t h “ Gr e e n Mo b i l i t y ” t a k i n g t h e c e n t e r s t a g e , l e a d i n g l o g i s t i c s p l a y e r s a r e s l o wl y mov i ng t owa r ds a dop t i on of E V s i n t h e i r c o n v e n t i o n a l f l e e t . Ama z o n f o r e x a mp l e , h a d e x p r e s s e d p l a n s t o d e p l o y 1 0 , 0 0 0 E V s i n I ndi a b y 2 0 2 5 . F l i p k a r t on t h e o t h e r h a n d h a d p l a n s t o e l e c t r i f y 4 0 % o f i t s f l e e t b y Ma r c h , 2 0 2 0 . Ma n y h y p e r l o c a l de l i v e r y c omp a ni e s l i k e B i g Ba s k e t , Gr o f e r s a r e u n d e r t a k i n g p i l o t a c t i v i t i e s f o r E V d e p l o y me n t .

| OCTOBER ISSUE 2020

PG 18 PG 23

Last mile logistics in India is highly dependent on 3PL who mostly operate on leasing models (Dry lease/ Wet lease).

Currently these companies maintain heterogeneous fleets consisting of conventional IC Engine vehicles and vehicles using “Green Technologies� like CNG/LNG (e. g. in Delhi NCR).

W i t h r i s i n g p e n e t r a t i o n o f E V s , t h e e c o s y s t e m o f G o o d s C a r r i e r s i s e x p e c t e d t o b e i n c re a s in g l y c o m p l e x , c h a r a c t e r i z e d b y v e r y s t r i n g e n t S e r v i c e L e v e l A g r e e m e n t s ( S L A s ) , l a r g e r n u m b e r o f s t a k e h o l d e rs a n d a d d it io n a l c h a l l e n g e s f r o m s t r a t e g i c p l a n n i n g a n d o p e r a t i o n s p e r s p e c t i v e . F o r i n s t a n c e , t h e E - C o m m e rc e c o m p a n ie s n o w a re r e q u i r e d t o i n s t a l l E V C h a r g i n g s t a t i o n s a t t h e i r w a r e h o u s e s , m e a n i n g t h a t i n v e s t m e n t d e c is io n s n e e d t o b e m a d e a b o u t t h e n u m b e r , c a p a c i t y a n d l o c a t i o n o f t h e s e s t a t i o n s . S i m i l a r l y , t h e l i m i t e d d r i v i n g - ra n g e o f E V s , re s t ric t e d b y t h e b a t t e r y c a p a c i t y a n d l o a d i n g , i m p o s e a d d i t i o n a l c o n s t r a i n t s w h e n p l a n n i n g e f f i c i e n t d is t rib u t io n ro u t e s .

For 3PL Fleet Owners, EV Good Carriers pose high upfront cost coupled with financing issues as formal financing options for EVs are not as evolved as those for ICE vehicles. As per industry reports, ICE vehicles are available on zero down payment at 8-10% interest, whereas for EVs, 25-30% down payment is expected at ~15% interest rates.

Absence of an established second hand market also contributes to financing risks.

Despite challenges, the logistics ecosystem in India is set to move towards E-Mobility to capitalize on three pillars| OCTOBER ISSUE 2020

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REDUCE OPEX ( RUNNI NG) COST OF FL EET BY 30- 40%.

BENEFI TS OF LOWER TCO OF EVS OVER L I F ETI ME OF VEHI CL E:

Du e t o h i g h u p f r o n t c o s t o f E Vs a n d Ch a r g i n g I n f r a S e t u p , t h e f i r s t y e a r r u n n i n g T CO a nd Re v e n u e mi g h t s e e m l e s s l u c r a t i v e v i s - Ã - v i s I C e n g i n e v e h i c l e s . Ho we v e r , a t a f l e e t l e v e l , To t a l b e n e f i t s o v e r t h e l i f e t i me o f v e h i c l e s f r o m r e d u c e d OP E X s i g n i f i c a n t l y o u t we i gh h i g h e r CAP E X i n v e s t me n t , t h u s ma k i n g E V a l u c r a t i v e o p t i o n i n t h e l o n g r u n .

CONTRI BUTE TO DE- CARBONI ZATI ON GOAL S OF THE ORGANI ZATI ONS .

As c o mme r c i a l o p e r a t o r s mo v e t o wa r d s a n a l t e r n a t i v e , c l e a n e r a n d d i v e r s i f i e d f l e e t mi x , t h e p e n e t r a t i o n o f E V Go o d s Ca r r i e r s i n l a s t mi l e l o g i s t i c s wi l l r i s e i n t h e c o mi n g y e a r s .

Wh i l e c o s t wi s e E V g o o d s c a r r i e r s l o o k a t t r a c t i v e , s i g n i f i c a n t a d v a n c e me n t s i n t e r ms of r a n g e , e f f i c i e n c y , c o s t , v e h i c l e , b a t t e r y & c h a r g i n g i n f r a f i n a n c i n g a r e n e e d e d t o p r omot e u p t a k e o f E V Go o d s Ca r r i e r s . I n t h e i mme d i a t e f u t u r e , s p e c i a l i z e d a p p l i c a t i o n s l i k e P os t Of f i c e S e r v i c e s , Ga r b a g e Va n s mi g h t s e e t r a c t i o n .

| OCTOBER ISSUE 2020

PG 20

RAHUL GOYAL FOUNDER, REPUBLIC MOTORS

Th e d a i l y d i s t a n c e c o v e r e d f o r d e l i v e r i e s i n t h e c i t y i s t y p i c a l l y 8 0 t o 1 0 0 k m. I t wo u l d c o s t t h e d i e s e l v e h i c l e driver ₹200-300/day on fuel and EV driver ~₹28-60/day on electricity.

LOW PER CHARGE COST Th e f u t u r e o f l a s t - mi l e d e l i v e r y i s a n t i c i p a t e d t o b e E V driven as there are several factors that give EVs an upper h a n d i n t h e mi c r o - l o g i s t i c s s p a c e . To b e g i n wi t h , i t ’ s b e c a u s e o f t h e e c o n o mi c s o f E Vs : L o we r c o s t s a n d e a s i e r o p e r a t i o n s . I n I n d i a , p r o d u c t i v i t y g a i n i s ma s s i v e a s E V s c a n h e l p o v e r c o me s e v e r a l i n e f f i c i e n c i e s i n l a s t - mi l e delivery, especially savings on fuel and asset cost. The i n i t i a l c o s t o f a n I CE v e h i c l e ma y b e l o we r ( f o r n o w) , b u t E Vs a r e s i g n i f i c a n t l y mo r e e c o n o mi c a l c o n s i d e r i n g t h e t o t a l c o s t o f o wn e r s h i p o v e r t h e l i f e t i me o f a n a s s e t .

1. LOW TOTAL COST OF OWNERSHI P

E l e c t r i c 3 Ws e n t a i l a r u n n i n g c o s t o f 5 0 t o 6 0 p a i s e p e r k m v i s - a - v i s mo r e t h a n Rs 3 . 0 p e r k m b y t h e i r d i e s e l c o u n t e r p a r t s . Ov e r t h e l i f e o f t h e a s s e t , t h i s a d d s u p t o s i z a b l e o p e r a t i o n a l s a v i n g s . Th e t i me t a k e n t o a c h i e v e t h e p a r i t y wi t h I CE c o u n t e r p a r t s d e p e n d s l a r g e l y o n a s s e t u t i l i z a t i o n me a s u r e d i n t e r ms o f d i s t a n c e c o v e r e d b y t h e v e h i c l e . De s p i t e t h e h i g h e r c o s t o f a c q u i s i t i o n , d u r a b l e e l e c t r i c v e h i c l e s d e l i v e r e c o n o mi c b e n e f i t .

Ca l c u l a t i o n s s h o w i f y o u a r e d o i n g mo r e t h a n a 1 0 0 k m a d a y , t h e p a r i t y wi t h I CE v e h i c l e c a n b e a c h i e v e d wi t h i n a y e a r Wh i l e t h e mo n t h l y E MI o n b o t h t h e v e h i c l e t y p e s i s a l mo s t t h e s a me ( a p p r o x i ma t e l y ₹ 1 0 , 0 0 0 - 1 2 , 0 0 0 p e r mo n t h ) , t h e a c t u a l s a v i n g s c a n b e o b s e r v e d i n mo n t h l y ma i n t e n a n c e a n d f u e l .

3. POLI CY SUPPORT

F AME I I i n c e n t i v e s h a v e b e e n c r i t i c a l t o t h e r i s e o f o r g a n i z e d e l e c t r i c 3 Ws b y t a k i n g t h e e d g e o f f t h e h i g h p r i c e o f 3 Ws r u n o n L i t h i u m- i o n b a t t e r i e s . F o r e x a mp l e , K i n e t i c Gr e e n & S h a k t i S t a r i n L 5 c a t e g o r y r e c e i v e s a F AME I I i n c e n t i v e o f I NR 5 9 , 5 0 0 b r i n g i n g t h e c o s t o f a c q u i s i t i o n ( I NR 2 , 3 8 , 0 0 0 ) c l o s e t o i t s d i e s e l c o u n t e r p a r t s t h a t c a n c o s t b e t we e n 1 . 7 t o 2 . 2 l a k h s f o r s i mi l a r p a y l o a d c a p a c i t y a n d p e r f o r ma n c e . BS - VI I CE v e h i c l e s a r e e x p e c t e d t o c o s t e v e n mo r e .

Th e p r i c e d i f f e r e n c e b e t we e n a l e a d - a c i d b a t t e r y e - 3 W a n d L i t h i u m- i o n e - 3 W wi t h s i mi l a r c o n f i g u r a t i o n c a n b e b e t we e n I NR 4 5 , 0 0 0 t o I NR 6 0 , 0 0 0 . Ho we v e r , Go v e r n me n t i n c e n t i v e u n d e r F AME I I i s a p p l i c a b l e o n L i t h i u m- i o n b a t t e r y v e h i c l e s . L i t h i u m- i o n b a t t e r y p a c k s p r e s e n t a b e t t e r p r o p o s i t i o n g i v e n a d v a n c e d b a t t e r y c h e mi s t r y t h a t c a n c h a r g e f a s t e r ( r u n mo r e k ms p e r d a y ) a n d p r o v i d e a b a t t e r y l i f e o f mo r e t h a n 4 y e a r s Ce n t r a l Go v e r n me n t ’ s p u s h t o wa r d s E V a d o p t i o n i n c o mme r c i a l a n d p u b l i c t r a n s p o r t s p a c e , c o u p l e d wi t h s t a t e l e v e l E V p o l i c i e s p r o p o s i n g i n c e n t i v e s f o r e l e c t r i c 3 wh e e l e r s h a s b e e n i n s t r u me n t a l i n t h e r i s e o f E Vs i n c a r g o s p a c e . S u c h n o r ms a r e i n s t r u me n t a l i n l e n d i n g a c o mp e t i t i v e e d g e t o e l e c t r i c v e h i c l e s v i s - à - v i s c o n v e n t i o n a l I CE c a r r i e r s f o r cargo applications.

LOW MAINTENANCE | LOW FUEL COST

E Vs wi l l h a v e l e s s e r r e s t r i c t i o n s i n t e r ms o f e n t r y i n t o k e y me t r o a r e a s c o mp a r e d t o t h e c o n v e n t i o n a l L CV s u s e d i n i n t r a - c i t y o p e r a t i o n s . Ad d i t i o n a l l y , u r b a n c i v i c b o d i e s a c r o s s t h e c o u n t r y wa n t t o p r o mo t e e l e c t r i c mo b i l i t y t h r o u g h wa i v e r s i n e n t r y r e s t r i c t i o n s a n d t a x a t i o n , e t c . , wh i c h me a n s f l e x i b i l i t y a n d c o s t e f f i c i e n c i e s i n d e l i v e r i e s t o k e y u r b a n d e ma n d p o i n t s .

2. RI SI NG COSTS OF FOSSI L FUELS

HIGH GOVERNMENT SUPPORT | HIGH SUBSIDY

Ri s i n g c o s t s o f f o s s i l f u e l s s i g n i f i c a n t l y i n c r e a s e t h e c o s t o f o p e r a t i o n s wi t h a f o s s i l f u e l - d r i v e n f l e e t . Wh e r e a s t h e mo r e y o u u s e a n E V f l e e t t h e mo r e y o u s a v e , t h e r e b y r e d u c i n g o u r d e p e n d e n c e o n c r u d e o i l . I t ’ s a s i mp l e Ca p e x v s . Op e x c o mp a r i s o n . Wh i l e t h e b a t t e r y ma y c o s t mo r e wh e n y o u f i r s t b u y i t , o v e r t h e c o u r s e o f t h r e e y e a r s (let’s say), it’ll cost you less in electricity costs to charge t h e v e h i c l e t h a n i t wo u l d t o r u n t h e s a me n u mb e r o f k i l o me t e r s o n p e t r o l o r d i e s e l . I t wi l l a l s o o f f s e t t h e i n i t i a l cost of the battery.

4. CORPORATE COMMI TMENT TO SUSTAI NABI L I TY

Op e r a t i o n a l c o s t b e n e f i t o f E Vs i s t h a t t h e y r e q u i r e l e s s t i n k e r i n g a n d ma i n t e n a n c e t h a n I CE v e h i c l e s . I t ma k e s p e r f e c t s e n s e f o r c o mme r c i a l f l e e t o p e r a t o r s t o b r i n g d o wn t h e i r r u n n i n g c o s t t o mo r e t h a n h a l f b y u s i n g e l e c t r i c v e h i c l e s f o r d e l i v e r i e s t o L a s t Mi l e .

S t u d i e s s h o w t h a t E V s a r e a l r e a d y e c o n o mi c a l l y v i a b l e i f usage per day is 100 to 200 km – an ideal scenario for c o mme r c i a l f l e e t s . Th i s s c e n a r i o i s e v e n mo r e a p p e a l i n g i n a n e n v i r o n me n t wh e r e f o s s i l f u e l p r i c e s a r e r i s i n g d a y b y - d a y a n d b a t t e r y t e c h n o l o g y a d v a n c e me n t s a r e d r i v i n g E V c o s t s l o we r .

| OCTOBER ISSUE 2020

E - c o mme r c e c o mp a n i e s a n d t h i r d - p a r t y l o g i s t i c s p l a y e r s a c r o s s t h e b o a r d a r e c o mmi t t i n g t o i n c l u d i n g e l e c t r i c vehicles in their fleet as a part of their sustainability initiatives Ba c k i n J a n u a r y 2 0 2 0 , Ama z o n I n d i a ma d e a n a n n o u n c e me n t t o i n c l u d e 1 0 , 0 0 0 E Vs ( b o t h 3 Ws a n d 4 Ws ) i n i t s f l e e t o f d e l i v e r y v e h i c l e s b y 2 0 2 5 . Ac c o r d i n g t o r e p o r t s , t h e o v e r a l l o u t l a y f o r t h i s c o mmi t me n t i s v a l u e d a t Rs 2 5 0 - 3 0 0 c r o r e .

I K E A i n t e n d s t o b e 1 0 0 % e l e c t r i c g l o b a l l y i n t e r ms o f mo b i l i t y b y 2 0 3 0 . Th e i r Hy d e r a b a d s t o r e wa s f i r s t o f i t s k i n d t o i n t r o d u c e e l e c t r i c v e h i c l e s f o r d e l i v e r y o f s ma l l c a r g o t o c u s t o me r h o me s i n I n d i a . F l i p k a r t h a s c o mmi t t e d

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to replacing 40% of its delivery fleet with EVs. Companies like Amazon, BigBasket, Grofers and Swiggy have been using Electric vehicles for home deliveries for over a year.

STRONG CORPORATE COMMITMENT 5. EVS ARE FAR LESS COMPLEX AND HELP PROVIDE TRANSPARENCY

EVs are far less complex and help provide transparency to the organizations in terms of reducing hidden costs

SEEMA AHLUWALIA MANAGING DIRECTOR - BUSINESS STRATEGIES, TECHCON ENTERPRISE LIMITED HK

E V - 2 W / 3 W u s a g e f o r L a s t mi l e s l o g i s t i c s f o r p e o p l e a n d g o o d s h a s b e e n a g a me c h a n g e r . I t h a s s i g n i f i c a n t l y b o o s t e d t h e g r o wt h o f t h e o n l i n e s h o p p i n g ma r k e t i n Ch i n a o wi n g t o a d v a n t a g e s l i k e q u i c k a n d l o w d e l i v e r y / f u n c t i o n a l c o s t i n s u c h c o u n t r i e s . I t i s a f o r t h c o mi n g a n d affordable option for people of all financial capabilities.

Th e p r i me b e n e f i t i s t h e l o w o p e r a t i o n a l c o s t - t h e c o s t , wh e n o wn i n g a 2 W E V g e t s c u t d o wn t o a l mo s t 1 / 4 t h a n d d i p s d o wn f u r t h e r wh e n u s i n g i t f o r a p o o l r i d e .

| OCTOBER ISSUE 2020

by smarter tracking features like battery optimization, efficient routes, etc. resulting in long term profitability by integrated analytics on this data. Also, it’s easier to integrate EV with sensors and communication devices (because of the default electronic system). The data recorded from an entire fleet of EVs, can be centrally located. This opens the scope of road analytics, air quality analytics, route optimization and efficiency for the entire fleet.

HIGHLY TRANSPARENT ECOSYSTEM

E Vs p r o v i d e a n a l t e r n a t i v e t o a n d r e d u c e t h e d e p e n d e n c y o n t a x i s , b u s e s e t c . , t h u s f a c i l i t a t i n g e n v i r o n me n t a l l y f r i e n d l y a n d h a s s l e f r e e t r a v e l . Th e ma i n t e n a n c e a n d operational expenditure can be further controlled as the v e h i c l e s p e c i f i c a t i o n c a n b e o p t i mi s e d f r o m 2 5 0 w t o 1 2 0 0 W mo t o r a n d e q u i v a l e n t b a t t e r y s p e c s a n d t h u s h a v i n g a l a r g e p r o d u c t r a n g e wi t h l e s s e r d e v e l o p i n g e f f o r t s a s c o mp a r e d t o I C e n g i n e s o f d i f f e r e n t HP . .

B2 B c o u r i e r o r f o o d d e l i v e r y b u s i n e s s e s c a n h a v e t h e i r o wn e x c l u s i v e i n - h o u s e h u b s c o mp l e t e wi t h c h a r g i n g s t a t i o n s a n d s p a r e b a t t e r i e s t o i mp r o v e t h e o v e r a l l v a l u e c h a i n e f f i c i e n c y wh i l s t c o n t r o l l i n g e x p e n d i t u r e .

Th e s a me mo d e l c a n b e a p p l i e d t o 4 W p i c k u p t r u c k s . T h e cost of the vehicle should be treated as separate from the c o s t o f i t s b a t t e r y . Th e l o g i c wo u l d b e t o t r e a t t h e b a t t e r y p r o v i s i o n l i k e a S i m Ca r d Bu s i n e s s Mo d e l wi t h Te l e ma t i c s . Ba t t e r y c o u l d b e c h a r g e d wi t h p o we r e n o u g h t o l a s t f o r 1 0 0 0 K M. Al i me n t a t i o n f o r r e p e a t i n g t h i s p r o c e s s mu s t b e a r r a n g e d a n d i n t h i s ma n n e r t h e c o s t o f b a t t e r y c a r e c a n b e mi t i g a t e d f o r a wi n wi n .

PG 22

PERSPECTIVE

WILL DELHI EV POLICY TO GET 5 LAKH NEW ELECTRIC VEHICLES BEAR FRUIT IN THE NEXT 5 YEARS? In its bid to promote the electric vehicles, Delhi has recently come out with an ambitious EV Policy and all eyes are set on it. The move has rightly earned praise from all quarters also. Numerous benefits of the policy have been listed out by the Delhi Chief Minister; boosting the economy, creating jobs, reducing air pollution etc.. Expectations have been set that this policy will lead to faster adoption of EVs both in personal and shared mobility segments. Also, the Delhi government aims to register 5 lakh new Electric vehicles in the next 5 years. The question arises if this ambition will bear fruit and will Delhi become India' s EV capital as well. Let' s find out what our experts have to say‌

SHAMSHER DEWAN VP AND SECTOR HEAD, CORPORATE RATINGS, ICRA LIMITED

I n Au g u s t 2 0 2 0 , t h e De l h i Go v e r n me n t s e t a n a mb i t i o u s t a r g e t o f g e t t i n g 5 l a k h n e w e l e c t r i c v e h i c l e s ( E Vs ) o n r o a d b y 2 0 2 4 a s a p a r t o f i t s r e c e n t l y a n n o u n c e d De l h i E l e c t r i c Ve h i c l e s P o l i c y . T h e p o l i c y i s a i me d a t p r o mo t i n g f a s t e r a d o p t i o n o f E V s i n t h e n a t i o n a l c a p i t a l t e r r i t o r y ( NCT) t o mi t i g a t e t h e deteriorating air quality concerns, partly attributable to t h e v e h i c u l a r e mi s s i o n s . I t p r o v i d e s a c o mp r e h e n s i v e package to push the EV adoption in a sustainable and h o l i s t i c ma n n e r t h r o u g h s e v e r a l f i r s t - t i me i n i t i a t i v e s – l i k e a ) t h e f e e b a t e f u n d i n g mo d e l a n d b ) s c r a p p a g e i n c e n t i v e s . Mo r e i mp o r t a n t l y , t h e d e ma n d i n c e n t i v e s o f f e r e d u n d e r t h e s a me wo u l d c o mp l e me n t t h o s e u n d e r t h e Na t i o n a l E V p o l i c y ( F AME - I I ) , t h e r e b y i n c r e a s i n g t h e c o s t c o mp e t i t i v e n e s s o f t h e E V s a n d i mp r o v i n g b r e a k e v e n p e r i o d a g a i n s t t h e i r c o n v e n t i o n a l counterparts.

Th e u n d e r l y i n g e c o n o mi c s f a v o r s a b o t t o ms - u p a d o p t i o n o f E Vs , s t a r t i n g wi t h t wo wh e e l e r s ( 2 Ws ) a n d b u s e s ( t o t h e e x t e n t o f s t a t e - p r o c u r e me n t f o r p u b l i c t r a n s p o r t ) f o l l o we d b y t h r e e wh e e l e r s , s ma l l c o mme r c i a l v e h i c l e s ( S CVs ) a n d p a s s e n g e r v e h i c l e s ( P Vs ) . Th e c a s e f o r f a s t e r e l e c t r i f i c a t i o n i n 2 W s e g me n t i s s t r o n g e r g i v e n t h e t h e i r a ) a f f o r d a b i l i t y ( l o we s t c o s t differential post subsidies vis-Ă -vis conventional v e h i c l e ) , b ) l o w ma i n t e n a n c e a n d r u n n i n g c o s t ( d u e t o i n c r e a s i n g p e t r o l p r i c e s ) , c ) a c c o mmo d a t i v e d a i l y c o mmu t e r e q u i r e me n t s ( wi t h i n e - 2 W b a t t e r y r a n g e ) , d ) l o we r d e p e n d e n c e o n c o mme r c i a l c h a r g i n g infrastructure and attractive product features like quiet engine, detachable batteries and easy operability.

I n c a s e o f b u s e s , a t t h e e n d o f CY 2 0 1 9 , t h e De l h i Tr a n s p o r t De p a r t me n t h a d a f l e e t o f a p p r o x i ma t e l y 6 , 0 5 0 DTC a n d c l u s t e r b u s e s wi t h a n o t h e r 3 , 7 7 0 u n d e r p l a n n e d p r o c u r e me n t . Wi t h l i mi t e d r a n g e c a p a b i l i t i e s o f e - b u s e s a t p r e s e n t ( 2 5 0 - 3 0 0 k m) , a n d 4 - 5 h o u r s r e q u i r e d f o r c h a r g i n g , t h i s s e g me n t i s t h e mo s t v i a b l e t o a d o p t e - b u s e s . Ho we v e r , g i v e n t h e d e b i l i t a t i n g i mp a c t o f Co v i d - 1 9 p a n d e mi c o n Go v e r n me n t revenues in an already challenging fiscal situation, the target of inducting 1,000 pure e-buses in the fleet by 2020 could prove to be a tall task.

| OCTOBER ISSUE 2020

Th e s o l u t i o n , h o we v e r , wo u l d b e t o p a v e t h e wa y f o r t h e P P P mo d e l wh e r e i n i n i t i a l c a p i t a l i n v e s t me n t s a r e c h a n n e l e d t h r o u g h p r i v a t e p a r t n e r s wh o wo u l d s e e k s t e a d y l o n g - t e r m r e t u r n s . I n c a s e o f P Vs , t h e s u b s i d y offered under the policy is only for the first 1,000 r e g i s t r a t i o n s , wh i c h c o u l d h a v e b e e n h i g h e r .

Co n s i d e r i n g t h e s i g n i f i c a n t c o s t - d i f f e r e n t i a l b e t we e n c o n v e n t i o n a l v e h i c l e s a n d E Vs , t h e k e y d r i v e r f o r t h e a d o p t i o n o f E Vs i n t h e c o u n t r y wo u l d r e ma i n t h e i n c e n t i v e s p r o v i d e d b y t h e Go v e r n me n t . Ho we v e r , t h e s e wo u l d n e e d t o b e a u g me n t e d b y n o n - f i n a n c i a l incentives, disincentives for conventional vehicle users a n d t i me - b o u n d ma n d a t e s o n E V t r a n s i t i o n .

Th e De l h i E V p o l i c y h a s u t i l i z e d t h e r e g u l a t o r y i n s t r u me n t s a t i t s d i s p o s a l l i k e wa i v e r o f r o a d - t a x a n d r e g i s t r a t i o n c h a r g e s , t h e o p e n p e r mi t s f o r e - a u t o s a n d t r a f f i c a n d p a r k i n g r e l a t e d e x e mp t i o n s f o r e - c a r r i e r s . I t h a s a l s o l a i d d o wn ma n d a t e s f o r f l e e t o p e r a t o r s i n 2 W (delivery service providers) and e-bus (50% of new p u b l i c t r a n s p o r t v e h i c l e s ) s e g me n t f o r p h a s e d t r a n s i t i o n t o E Vs . Ho we v e r , i t i s mu t e d o n s i mi l a r ma n d a t e s o n p e r s o n a l 2 W a n d P Vs , 3 W a n d S CV s . Al s o , t h e e x p e r i e n c e o f ma t u r e E V ma r k e t s i n d i c a t e t h a t e f f e c t i v e Go v e r n me n t E V s t r a t e g i e s i n c l u d e d me a s u r e s like restriction on conventional vehicle licensing, p r e f e r e n t i a l t r e a t me n t f o r E Vs d u r i n g r e g i s t r a t i o n , l o w o r z e r o - e mi s s i o n z o n i n g i n a r e a s wi t h p r e f e r e n t i a l a c c e s s f o r E Vs e t c . S i mi l a r me a s u r e s c o u l d b e e mu l a t e d b y p o l i c y ma k e r s i n I n d i a a s we l l .

No t wi t h s t a n d i n g t h e mi n o r g a p s , a f a v o r a b l e p o l i c y e n v i r o n me n t t h a t e n c o u r a g e s e l e c t r i f i c a t i o n i s a b i g p o s i t i v e f o r ma k i n g NCT a n E V f r i e n d l y ma r k e t . Wh i l e we ma y d e b a t e o n t h e p a c e o f E V a d o p t i o n i n NCT a n d t h e p r a g ma t i s m b e h i n d i t s t a r g e t o f 2 5 % n e w r e g i s t r a t i o n b y 2 0 2 4 , t h e Co v i d - 1 9 p a n d e mi c r e ma i n s a n u n p r e d i c t a b l e v a r i a b l e t o d a y wh i c h c o u l d a l t e r a n y b e s t l a i d p l a n s . Ho we v e r , t h e c o n t e mp o r a r y r e a l i t i e s (increasing public health and energy costs) do seem to s k e w t o wa r d s a f a v o r a b l e o u t c o me f o r t h e E V s i n t h e long run.

PG 24

DR. RUTH SAYERS OPERATIONS MANAGER, FARADION LIMITED

De l h i h a s a n n o u n c e d a n a mb i t i o u s E V p o l i c y , l a y i n g d o wn t h e ma r k e r f o r o t h e r s t a t e s i n I n d i a . At l e a s t p a r t o f t h e c o n t e x t c o me s f r o m a n a l a r mi n g d e t e r i o r a t i o n i n c l e a n a i r a n d p u b l i c h e a l t h o u t c o me s i n De l h i o v e r t h e l a s t f e w years.

Wh i l e I n d i a n T V c h a n n e l s p r o mi n e n t l y f o c u s e d o n p o l l u t i o n c h a l l e n g e s f o r a f e w s h o r t we e k s i n De c e mb e r l a s t y e a r , i t i s we l l k n o wn t h a t 2 0 1 9 ’ s l i s t o f t h e 3 0 mo s t p o l l u t e d c i t i e s wo r l d wi d e f e a t u r e s 2 2 I n d i a n c i t i e s , wi t h K a n p u r g e t t i n g t h e g o l d me d a l , a h e a d o f De l h i .

A study by the independent International Institute for Ap p l i e d S y s t e ms An a l y s i s ( I I AS A) a n d t h e Co u n c i l o n E n e r g y , E n v i r o n me n t , a n d Wa t e r ( CE E W) f o u n d t h a t mo r e t h a n 6 7 4 mi l l i o n I n d i a n c i t i z e n s a r e l i k e l y t o b r e a t h e a i r wi t h h i g h c o n c e n t r a t i o n s o f P M2 . 5 i n 2 0 3 0 , e v e n i f I n d i a we r e t o c o mp l y wi t h i t s e x i s t i n g p o l l u t i o n c o n t r o l p o l i c i e s and regulations.

Cu r r e n t l y , E V s c o n t r i b u t e t o 0 . 2 9 % o f t o t a l c a r r e g i s t r a t i o n s i n De l h i ; t h e c i t y ’ s g o v e r n me n t i s a i mi n g f o r 2 5 % b y 2 0 2 4 . I n o t h e r wo r d s , 8 3 , 0 0 0 E Vs t o d a y ( o f wh i c h 900 are private cars) are targeted to increase to 500,000 in four years.

An i mp o r t a n t e l e me n t o f t h e p o l i c y i s t h e ‘ f e e b a t e ’ i . e . rebates are given for good behaviour (buying an EV, p r o c u r e me n t o f c h a r g i n g g e a r e t c ) a n d a f e e i s c h a r g e d wh e n g o o d p r a c t i c e s a r e n o t f o l l o we d ( 5 0 % o f t h e Ai r Amb i e n c e F u n d o n c o mb u s t i o n e n g i n e v e h i c l e s wi l l b e u s e d t o f u n d t h e E V p l a n s ) . Th i s i s a s i mi l a r c o n c e p t t o L o n d o n ’ s Co n g e s t i o n Ch a r g e , wh i c h e v o l v e d f r o m a t a x j u s t t o t a c k l e c o n g e s t i o n , t o a d d r e s s wi d e r e n v i r o n me n t a l objectives too.

I n d i a s t i l l n e e d s t o a c c o mp l i s h c o mme r c i a l b a t t e r y c e l l ma n u f a c t u r i n g c a p a c i t y , wi t h a n i n d i g e n o u s s u p p l y c h a i n .

I n 2 0 1 8 , a r e p o r t b y NI TI Aa y o g a n d Ro c k y Mo u n t a i n I n s t i t u t e s a i d t h a t I n d i a wo u l d r e q u i r e a t l e a s t 3 , 5 0 0 GWh o f b a t t e r i e s c o s t i n g o f I NR 2 0 l a k h c r o r e , f o r 1 0 0 % l o c a l production of batteries.

There are macro factors holding the growth back too.

India’s GDP has fallen precipitously this year, more so than any other major economy. For a consumption-led economy reliant on EMIs for purchases such as cars, the subsidies offered may simply not be enough to entice so many users to switch to EV. With the pandemic, supply chains have been disrupted and the central government is still developing a coordinated budget plan for the Electric Vehicle Fund.

Central government borrowing will continue to expand significantly, while tax receipts will fall. In the meantime, it has committed itself to massive rises in education and public healthcare spending, that may push funds available for EV lower down the list of priorities than where it was in February this year. Debtridden DISCOMs may buckle under the extra burden of connecting more charging points, even if the Delhi payouts for doing so were made more generous.

Some of these problems are easier to address than others. Investment in EV will have significant public health benefits too, by reducing breathing ailments and deaths caused by pollution in Delhi.

Battery recycling is a can that could be kicked down the road, given more urgent policy imperatives. The majority of the increase in EV is likely to come from vehicles based on lithium-ion technology. But these batteries are not a one-size-fits-all option for all potential applications, because they prioritize energy density (which helps cars travel farther), over longevity or stability. Sodium-ion batteries are low-cost, safer, more stable and fast to recharge such that it can quickly deliver short bursts of energy. Using alternatives to lithium-ion also hugely derisks the supply chain from a reliance on raw materials that need to be imported into India.

India boasts a broad market in the EV sector, but not a deep one. This places an added imperative on Delhi’s EV policy to succeed, not only for the good of Delhi’s citizens, but for India’s own, bold ambitions to be a global leader in EV. Implementation challenges, policy coordination and a continued economic downturn due to the Coronavirus will remain as the key risk areas.

But as Faradion we are really excited about the potential of this forward-looking and innovative new policy from the Delhi government. We have experience of some of the same challenges in other markets where we have seen substantial interest in our products, including Australia, the US and Germany.

Sitting in Sheffield, UK, we look forward to being part of this growth story.

On l y a b o u t 5 % o f l i t h i u m- i o n b a t t e r i e s a r e c u r r e n t l y r e c y c l e d i n mo r e d e v e l o p e d ma r k e t s l i k e t h e US a n d E U, due to financial, technical and other factors. India does not yet have the large-scale authorised recycling facilities for these batteries it needs, and no guidelines for safe reprocessing.

| OCTOBER ISSUE 2020

PG 25

NAVEEN MUNJAL MANAGING DIRECTOR, HERO ELECTRIC VEHICLES PVT. LTD.

As a c o u n t r y , we h a v e s e t s o me i mp o r t a n t a n d disruptive goals for ourselves.

On e o f t h e m a t t h e h e l m i s t h a t o f t a c k l i n g I n d i a ’ s a i r p o l l u t i o n wo e s . Th e e mp h a s i s o n e l e c t r i c mo b i l i t y , l e s s e r d e p e n d e n c e o n f u e l i mp o r t s , b a l a n c i n g f i s c a l deficit, catapulting India’s EV industry and job creation a mo n g o t h e r s a r e s o me o f t h e i d e a s d r i v i n g t h e d e c i s i o n t o ma k e I n d i a ’ s v e h i c l e s a l e s 1 0 0 % e l e c t r i c over the next decade.

As a n i n d u s t r y , we h a v e f a c e d a n d o v e r c o me ma n y o b s t a c l e s a n d c o n t i n u e t o d o s o . Th o u g h , t h e r e h a s b e e n s u p p o r t wh i c h we h a v e r e c e i v e d f r o m t h e p u b l i c s e c t o r u n f o r t u n a t e l y , t h o s e h a v e n o t e n t i r e l y b e e n me t wi t h u n a n i mo u s a g r e e me n t . Ho we v e r , t h e y e a r 2 0 2 0 s a w a l o t mo r e p r o g r e s s o n t h a t f r o n t f r o m t h e p u b l i c s e c t o r . Of t h o s e , o n e o f t h e p o l i c i e s t h a t h a s t h e p o t e n t i a l t o s t a n d o u t c o mp l e t e l y h a s b e e n t h e E V P o l i c y b y De l h i g o v e r n me n t s . I t h a s t h e r i g h t i n t e n t i o n s , s t r o n g f o u n d a t i o n , a n d c l a r i t y i n wh a t i t wa n t s t o achieve.

Wh e n S h r i . Ar v i n d K e j r i wa l a n n o u n c e d t h e p o l i c y , i t wa s me t wi t h mu c h d e s e r v e d p r a i s e . I t wa s t h e foresightedness of the policy that attracted the a t t e n t i o n a n d f a i t h i n t h e g o v e r n me n t ’ s E V p l a n s . I f we look at the air pollution statistics for the past couple of years, the air quality in the capital has soared to h a z a r d o u s l e v e l s , p r i ma r i l y d u e t o h i g h v e h i c u l a r e mi s s i o n s a n d i n d u s t r i a l a c t i v i t i e s . Th i s i n t u r n h a s g i v e n r i s e t o s e v e r e h e a l t h i s s u e s a mo n g s t c i t i z e n s o f t h e s t a t e . Th e s e h i g h l e v e l s o f t o x i c a i r p o l l u t i o n c o mb i n e d wi t h t h e g o i n g COVI D 1 9 p a n d e mi c p r o v i d e s a d e a d l y c o mb i n a t i o n f o r t h e l u n g s a n d t h u s t h i s p o l i c y o f f a s t e r c o n v e r s i o n a n d a d o p t i o n o f E l e c t r i c Mo b i l i t y b e c o me s e v e n mo r e r e l e v a n t a n d c r i t i c a l t o d a y .

economy, boost the public-transport in the state thereby improve the quality of life and health. In the long-term future, the Delhi Electric Vehicle Policy 2020 will create an entire ecosystem of transportation which will be first of its kind in the country and make the state of Delhi, India’ s first 100% Green Fuel State.

The other positive angle of the policy is that it seeks to strengthen the EV infra of the state to work as a catalyst in rapid adoption of EV. The policy aims at working in that direction and set-up battery charging facilities in every 3km radius which should prove to promote reuse of batteries and sustainability. The policy wonderfully taps on offering employment opportunities to the youth as they will be provided training in the Electric Vehicles segment and with this new technology, a variety of new j obs will be created as will an entirely new Eco System for Clean Mobility.

Going forward, the Delhi Government can also look to develop incubation centers in the state, to encourage young minds to develop newer and better technologies for Electric Vehicles. The most viable ones can be introduced as part of the infrastructure development activity in the state. In terms of the public transport development which is significant if we want to reduce the burden off Delhi roads is the open-permit system for electric autos with the vision to promote zero-emission, last and first mile commute and introduction of electric-only state buses. With the way the Capital is working to ensure it establishes Delhi as the role-model of EV policy makers, I am certain that it will spearhead and force other states to emulate the steps taken by the Delhi Government. I also am confident in it’ s leadership and their ability to be critical of the next steps they take to enforce effective implementation.

Delhi’s EV policy has the prospect of being regarded as a halo policy for other states.

As such, the target of achieving the 5 lakh EV sales mark in the capital seems quite within reach.

Wi t h t h e a n n o u n c e me n t o f t h i s E V p o l i c y , t h e S t a t e Go v e r n me n t s e e ms t o h a v e a l o n g - t e r m f o c u s i n i mp r o v i n g t h e e n v i r o n me n t a l s i t u a t i o n i n De l h i . Of t h i s I am certain because it is the first state to introduce a concrete vehicle scrappage policy. It also tends to p r o v i d e c o n s u me r s wi t h l o w- i n t e r e s t l o a n s o n p u r c h a s e o f t h e e l e c t r i c v e h i c l e wh i l e a v a i l i n g a wa i v e r on registration fee and road tax for e-vehicle. The p o l i c y c e r t a i n l y p r o j e c t s i t s e l f t o b e c o mp r e h e n s i v e a s i t j u s t d o e s n ’ t f o c u s o n ma k i n g c i t i z e n s s h i f t t o o p t i n g f o r E Vs b u t a l s o d e v e l o p t h e o t h e r a s p e c t s i n t h e s t a t e l i k e d e ma n d g e n e r a t i o n , s t i mu l u s t o b o o s t j o b s a n d

| OCTOBER ISSUE 2020

PG 17

INSIGHTS

Prerequisites and possibilities FOR INDIA’S E-MOBILITY AMBITIONS

The adoption of electric mobility in India has been a subject of great interest but seen only moderate progress in recent years. It has become evident, by now, that the future of electric vehicles (EVs) in the country depends, to a great degree, on how rapidly and feasibly we establish a robust charging infrastructure. The lack of adequate infrastructure at present is the main reason behind the hesitancy of both car makers as well as consumers.

Consequently, even though EV prices are declining and there is a respectable range of EVs available today, their adoption is still quite low.

A McKinsey report in 2018 had estimated that India would need about five million public charging points at an investment of approximately $6 billion. However, operators are reluctant to invest in charging infrastructure unless there is a healthy, existing demand for charging services, which will come only when there is widespread adoption of EVs. It is a deadlock of sorts, and it can only be broken if the private sector, at some point, bites the bullet.

URBAN CHALLENGES AND THE IMPORTANCE OF PUBLIC CHARGING It is highly likely that EVs will primarily be an urban phenomenon, at least in the initial stages. However,

| OCTOBER ISSUE 2020

establishing a large-scale network of charging points across a city will be quite a challenge. As EVs take a long time to charge, a single charging station can cater to only a few EVs in any given amount of time.

Consequently, a significantly large number of charging points will be required across the city to cater to a large EV fleet. This will require a huge amount of parking space.

Private charging and workspace charging will be important, and the Government’s guidelines for establishing private charging stations at residences are welcome. However, there is no doubt that the future of EV mobility depends on the provision of public charging facilities. Workspace and residential chargers will complement public chargers, and not the other way round.

Space is scarce and expensive in cities. The average per capita space in India is a hundred square feet. As many as 70 percent of cars in cities like Delhi and Mumbai are parked on the roads. Clearly, to derive better economic value, public charging makes more sense. While home charging can cater to only a single car, the same amount of space in public charging can serve multiple cars. For a country like ours, which is strained for resources, public charging should be the top priority in an EV era.

PG 27

SMART, INTEROPERABLE CHARGERS AND ROBUST ELECTRICITY GRIDS The government’s support will be essential in addressing the issue of parking space while charging.

All parking places must have at least 20 percent of the parking slots earmarked for DC fast-charging stations.

At workplaces, EVs can be charged on small capacity AC chargers of up to 7 KW, while AC chargers of 22 KW can be installed at places like shopping malls, where people often spend hours at a stretch. A “one size fits all” approach obviously cannot work.

Moreover, charging stations should be usable for all kinds of EVs. There is no need to reinvent the wheel for this. Two DC fast-charging standards (CHAdeMO and CCS) are globally accepted. They can be adopted, or adapted, for four-wheelers. On the AC front, Type-2 charging would make the charging station completely interoperable.

As EV charging is dependent on battery and electricity, communication between the battery and the charger, and between the charger and the grid, is essential to ensure safety and reliability of both the vehicle and the grid. There is, in short, a need for smart charging infrastructure as well as adequate electricity infrastructure to supply power at the desired rate. The existing electricity infrastructure needs strengthening and upgrading to be fully EV-ready.

India has potential to support a large and thriving EV ecosystem. Almost all major automobile players have new EV models in the pipeline. The industry is poised to take off as soon as essentials like charging and electricity infrastructure are placed on firm ground. The future of e-mobility in India lies at the convergence of robust charging infrastructure, increased participation by automakers, and successful consumer use cases.

The shift to EV mobility is inevitable, and we should do all we can to prepare for it and embrace it when it comes.

MR. AWADHESH JHA Vice President, Charge & Drive & Sustainability, Fortum India Pvt Ltd.

| OCTOBER ISSUE 2020

PG 28

PERSPECTIVE

CAN ROBUST CHARGING INFRA BE THE KEY TO INDIA'S EV AMBITIONS?

The transition towards electric mobility offers India not only an opportunity to improve efficiency and transform the transport sector but also addresses several issues that the country is currently grappling with. However, adoption of EVs in India has its challenges and one of the top most challenges is the availability of sufficient and efficient charging infrastructure. Already with the limited consumption of E-vehicles in India at present, lack of charging infrastructure directly affects the consumer behaviour and their purchase pattern. Also, setting up charging infrastructure has interdependency on battery and electricity. So, what will lead to the creation of a robust charging infrastructure? Also, do we have the necessary resources for setting up the same? Our experts are here to show us the way‌

providing necessary connections. The transition towards EVs is one of the most promising pathways to increase energy security, reduce oil imports, lower carbon emissions, and improve the air quality.

N. MOHAN DEPUTY GENERAL MANAGER, ENERGY EFFICIENCY SERVICES LIMITED

India is a signatory of the EV 30@30 by the Clean Energy Ministerial, under which it has set a target of achieving 30% sales of electric vehicles by 2030. A significant hurdle to achieving this milestone is the lack of a charging network for potential consumers. A thriving network of home, workplace and public charging infrastructure will play a pivotal role in proliferation of EVs in India. In this respect, several initiatives have been taken by the Government of India towards promoting EVs. Charging of EVs has been recognized as a service and is thereby de-regulated and utilities have been requested to enable setting up of Electric Vehicle Supply Equipment (EVSE) by | OCTOBER ISSUE 2020

The year 2019 saw a significant rise in EV sales in India, with volumes touching 1,56,000 vehicles. This came on the back of newer, more efficient, models in the two and four-wheeler segments. The sales of these models were further buttressed by Government subsidies, and other associated purchase incentives. In the context of an economic shock induced by Covid-19, 2020 too has seen relatively encouraging EV sales. However, in terms of EV penetration in the country, there is still a long way to go. Following are the EV penetration projections done by Rocky Mountain Institute for NITI Aayog for EVs sold by 2030.

As per the analysis, it is estimated that 80% of EV transition is expected from 2 and 3 Wheelers followed by 4 wheelers estimated at 70% (Commercial) and 40% in buses by 2030. Globally also it is seen that the ratio of EV to public charger ranges from 5 to 40 EV / charger. Even with the assumption of 40EV /charger, PG 29

Yet mass adoption of EVs will mean appealing to the millions of households without garages. Nor can people on long road trips rely on better batteries alone. This fact necessitates the need for a reliable network of Public Charging Stations. Carmakers, Governments and commercial charging firms are all investing. Carmakers can differentiate their vehicles by providing a charging network to their customers.

Charge point operators such as EESL, NTPC, REIL, FORTUM etc. , have started investing heavily in Public charging infrastructure in India. Better business models and technology should further increase the availability of charging. EESL has recently set up India’ s first EV charging plaza in the heart of Delhi with an exclusive parking access to EVs where 14EVs could be charged simultaneously. The ultimate aim of EESL is to make charging infrastructure ubiquitous, economical, and accessible.

India would still need an infrastructure to an extent of 2,64,675 (both AC and DC) for 4 wheelers. 2 Wheelers shall likely to follow home or workplace charging points for battery recharging by private vehicles owners.

Commercial 2W and 3W electric vehicles owners could look at swappable batteries mode of recharging along with charging stations at public places for most of their charging needs.

Surveys show that EV buyers’ worries about charging— the availability and speed of charging - remain a big impediment to going electric. Better design of electric vehicles with increased ranges has helped in easing the concerns around range anxiety. However, average trip lengths in India are shorter than that in the developed world, primarily due to higher urban densities. Higher urban densities mean that trip lengths and mode of travel are also unique in the Indian context. About 71% of the population travel less than 5 kms a day, another 14% travel less than 10 kms per day.

Only about 15% travels more than 10 kms a day. Hence, charging on public charging stations on the average trip may not be required if there is adequate charging infrastructure at home or work.

Sales data from SMEV suggests that in the four-wheeler segment, so far, most EVs have been bought by betteroff motorists, i.e., in the luxury segment. These buyers who belong to upper and upper-middle income groups tend to have off-street parking (primarily private garages) with a socket to plug into. Charging times at home are hardly an issue—a standard residential electricity supply and a AC slow charger will charge a battery in a car in about eight hours overnight. | OCTOBER ISSUE 2020

Local city administrations in India should step up as Public charging infrastructure will need to be provided to citizens as a public utility. Immediate action could be taken towards expediting the implementation of EV chargers approved by DHI under FAME India Scheme Phase – II. So, initial basic charging infrastructure could be built to enable EV adoption across segments and subsequently the market could drive the deployment of charging stations. Proper planning will result in a robust network ready for complete EV penetration in cities.

Each city needs to assess the requirements of charging infrastructure and implement efforts in line with the national Governments directives to achieve EV penetration. Efforts will need to be taken by all stakeholders to make the urban infrastructure future ready for sustainable and cleaner transportation.

Additionally, with the advancement of EV technology, charging infrastructure and grid integration facilities, EV popularity is expected to increase significantly in the next decade. Therefore, further technological advancements such as the suitable smart charging infrastructure, reliable communication systems, and coordinated charging system to quantify the impacts on the power grid are essential to ensure maximum benefits from EVs with distributed generators.

India would still need an infrastructure to an extent of 2,64,675 (both AC and DC) for 4 wheelers. 2 Wheelers shall likely to follow home or workplace charging points for battery recharging by private vehicles owners."

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PRAJYOT SATHE INDUSTRY MANAGER - MOBILITY, FROST & SULLIVAN

The increasing adoption of electric vehicles (EVs) in India has a direct impact on the development of EV charging infrastructure. Since India is experiencing traction in the EV market, the availability of a robust charging infrastructure is of paramount importance.

However, the high cost of equipment, long charging times, the dearth of plug and connector standardization, along with the lack of a fixed business model represent a sizable challenge hindering industry growth. Even though the majority of the states across India may function as a single market, various technical, legal, and bureaucratic barriers must be overcome to enable the smooth flow of EV charging business.

Currently the EV charging infrastructure is in a nascent phase in India and approximately 800-1,000 public charging stations have been installed. This includes a mix of both AC and DC charging, however, there are two-three variations in the connector plugs due to lack of standardization of connectors. Majority of pure battery electric vehicles will have a battery pack that will vary between 25-35kWh which will require approximately 8-10 hours to charge via AC charging and about 30-40 minutes with the help of a DC charging station. Although there are specifications provided for AC and DC charging in the form of Bharat EV Charger –AC001 for AC and Bharat EV Charger – DC001 for DC, other charging plugs such as Chademo, Combined charging system (CCS) which also fall under the recommended guideline. In which majority of the EVs (passenger cars) such as Tata Nexon EV, Hyundai Kona EV and MG ZS EV use CCS. The availability of charging stations is increasing in the country. The public DC Charging stations currently operating in the country are currently owned and operated by firms such as TATA power, Magenta Power, BESCOM, EESL etc. With Groups like ABB, Fortum etc. and also considering the public tenders issued by NTPC,EESL and similar government bodies, it is expected that the number of DC charging stations to increase to 5,400 by 2025 All the key EV markets such a China, USA, France, UK, Germany, Netherlands and Norway are focusing on establishing a robust charging infrastructure to enable seamless access to charging stations in all public areas such as shopping malls, petrol stations, parking lots, workplace parking and large retail outlets. There will be a necessity to install charging stations at all such locations in India as residential charging may not be a preferred mode of charging mainly due to lack of private parking space and the time of charge. Dealerships, hotels, residential locations, parking garages and shopping centres are the most attractive locations which will guarantee a business case based on the current business dynamics. | OCTOBER ISSUE 2020

In the long term, gas stations and rest areas on highways will have a great potential. The Indian government has launched a number of initiatives under the FAME II scheme to encourage installation of charging stations by providing cash incentives and tax reduction on EV charging equipment from a budget of Rs. 1,000 crore towards the initiative. Although the government is aiming at a density of an AC charging station at every 3 kms and DC charging station at every 25 kms, it is necessary to determine the density of EVs in a certain locality to achieve maximum utilisation of the equipment.

In future, the development of smart, demand-driven grid management will, therefore, be essential to achieve scalability in the EV charging ecosystem. This calls for a convergence of EV charging with the energy industry.

Additionally, higher levels of charging interoperability need to be achieved in order to enhance flexibility and convenience for EV users. Thus, a solution that can allow for interstate facilities through a single-service marketplace across India will adequately meet user needs.

Since India is experiencing traction in the EV market, the availability of a robust charging infrastructure is of paramount importance. However, the high cost of equipment, long charging times, the dearth of plug and connector standardization, along with the lack of a fixed business model represent a sizable challenge hindering industry growth. Even though the majority of the states across India may function as a single market, various technical, legal, and bureaucratic barriers must be overcome to enable the smooth flow of EV charging business.

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NISHANT ARYA EXECUTIVE DIRECTOR, JBM GROUP

India is moving towards a future when e-mobility would make up a major chunk of the vehicles on the road. The government and industry have been working in tandem doing their best to increase the adoption of electric vehicles (EVs). However, there have been a few bumps slowing down the process of adoption as it’s yet to be gauged if the development of charging infrastructure should happen for people to adopt the vehicles or vice versa. Electric vehicles and charging stations have not entered the discourse for the first time. The infrastructure has to be in place to ensure the greater adoption of the EV technology. In the end, the market will work the problem out by itself. Incidentally, both the “chicken” and the “egg” need to continue with their journey on the ascending growth curve. One thing is for sure, while on the one hand it can’t be delayed, on the other, it has to fall into place. Hence, both need to develop parallelly.

According to the statistics provided by the European Alternative Fuels Observatory, there are only around 120,000 charging points across the EU, with over threequarters of them located in Germany, France, the Netherlands, and the United Kingdom. According to the European Commission’s 2017 Action Plan on Alternative Fuels Infrastructure, that number would have to top 440,000 by 2020 and 2 million by 2025 to support a 7% EV market share.

India’s Niti Aayog had proposed to push for full conversion to EVs, from internal combustion engine (ICE) three-wheelers by 2023, and two-wheelers (for engines with or below 150 cc capacity) by 2025. Under FAME, the Indian government is spending INR 10,000 crore in Phase II, while INR 1,000 crore has been earmarked for charging infrastructure under FAME II from 2019 to 2022. In its suggestion for CO2 limits for cars and vans, the Commission went even further and recommended that the EV market share should hit 15% between 2025 and 2029, topping 30% after 2030.

The lack of charging infrastructure is a real issue for vehicles that run a greater distance than they can cover on a single charge because almost all-electric vehicles, especially the ones for personal use, are charged at night when they are parked. Hence, every morning you have a fully-charged vehicle unlike petrol or diesel cars, which are refilled only at designated stations and at a lower frequency. The point of major debate between industrialists and e-mobility promoters is very much a chicken and egg condition: Is there inadequate charging infrastructure to validate sales of more numbers of these cars? Or, is it a case of insufficient cars not warranting more infrastructure? Some auto players contend that the lack of suitable charging infrastructure is the reason why customers are dissuaded from switching to electric cars, which they explain, do not offer much choice of EV models in their line-ups. | OCTOBER ISSUE 2020

With electronic vehicles (EVs) comes the enormous task of increasing the number of stations for charging and India is gradually going on board on the journey towards obtaining public land to build such charging booths.

Automakers, battery producers, dealers and power beneficiaries are presently in talks to create an ecological environment for charging stations in the country.

SOME SIGNIFICANT CONCEPTS LIKE CREATING A PROMISING GOVERNING SETTING, SUITABLE GUIDANCE AND ENCOURAGEMENTS FOR OWNERSHIP AND OPERATION, AND POTENTIALLY A SET OF PILOT PROJECTS TO LEARN HOW BEST TO BUILD CHARGING AND BATTERY SWAPPING NETWORKS. THE BIG PLAYERS NEED TO SPEARHEAD THE MOVE TOWARDS ELECTRIC MOBILITY TO ENSURE ADOPTION IS SIGNIFICANT. GOING BACK TO THE HISTORY OF ELECTRIC CARMAKER TESLA, IT FOCUSED ON EV CHARGING INFRASTRUCTURE RIGHT AFTER TESLA’S ELECTRIC CAR LAUNCH IN 2012, IT STARTED INSTALLING CHARGING STATIONS WITH ‘SUPERCHARGERS’ ACROSS NORTH AMERICA FOR ITS CONSUMERS. The answer can be grouped into three buckets. One, that the cost of the vehicle is much higher compared to a gasoline vehicle mainly on account of the cost of batteries. Two, the variety of concerns and apprehensions that people have with regard to the usage of electric vehicles. The third concern is the time it takes to recharge the vehicle. Five to eight hours of consistent charging or even one hour in the case of fast charging. A person now is used to less than a few minutes while refilling and anything which is more feels like a very long time. Much like with e-commerce, food delivery and uncountable other businesses before it, the original electric mobility ecosystem just cannot be copypasted from abroad.

India must flash its pathway given the exclusive urban infrastructural conditions and the wildly miscellaneous set of consumer associates on the ground. In May 2014, China began allowing private companies to invest in electric charging and replacement stations when China’s State Grid announced that it would support the development of privately-owned distributed energy resources. Private entrepreneurs, large Chinese companies, private equity funds and companies with excess cash are all looking to get involved. Investments are being made in companies that manufacture charging systems; companies that construct and operate charging stations; and companies that provide a wide range of ancillary services to EV customers.

In India, as consumers, we need to realize that aspects like high initial cost and charging time of electric vehicles are temporary, the benefits of which can be reaped over a long run. Other positives such as reduction in pollution and reduction in oil dependency, are permanent. That is exactly the opposite of petrol vehicles whose disadvantages like pollution and petrol dependency are permanent and their advantages like slightly lower costs and higher range on single refueling vis-a-vis electric ones are temporary and already on their way to obsoletion.

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