A STUDY OF PRESENT SCENARIO OF ELECTRIC VEHICLES IN INDIAN AUTOMOBILES MARKET
Ritesh Dongre
Assistant Professor, SRGBNC, Sanawad Dr. Amrita Soni
Professor of Management Department, Sage University, Indore, India Shubham Pagare
Assistant Professor, SRGBNC, Sanawad
Abstract - The electric vehicle market has been on a path to a positive growth and the year 2021 saw substantial sales, especially in the electric two-wheeler category in India. The Indian electric scooter and motorcycle market has experienced continuous growth since 2014. Electric mobility revolution is considered as a biggest revolution for automotive industrial sector. This revolution came into existence due to depletion of crude oil, fossil fuels, natural gas etc. To overcome this crisis many technologies have been developed by different nations in our world. But there is not much awareness about electric mobility among people in India so that they can use this technology. As this technology is new to people living in India there are many difficulties faced by automotive industries to design electric vehicle which will be affordable and suitable for people. Automotive industries of India are trying to improve battery technology by which they can increase range of electric vehicles to make it affordable and efficient. There is lack of charging stations in India moreover average charging time for an electric vehicle is more due to which people are finding it difficult to use electric mobility for their daily usage. A vehicle having less charging time is not affordable to everyone. Government of India is also implementing different policies for electric mobility to reduce pollution and decrease use of fossil fuels made by transportation. Government is also creating awareness among people for using electric vehicle instead of fuel vehicles.
Keywords: Battery electric vehicle (BEV), Electric vehicle, Lithium-ion battery, Fuel vehicle.
1 INTRODUCTION
The electric vehicle market has been on a path to a positive growth and the year 2021 saw substantial sales, especially in the electric two-wheeler category in India. The total sales of electric two-wheelers, including high-speed and low-speed, in the 12-month period (January-December) in 2021 increased by 132% over the corresponding year 2020. The industry registered sales of 2,33,971 units as against 1,00,736 units sold in 2020. The high-speed electric two-wheelers, which have speeds greater than 25 km/h and require a full license, registered a whopping 425% growth, while the low-speed ones (less than 25 km/h, no license, no registration) grew only by 24%. Sales of electric two-wheelers in India increased 132% in 2021, the Society of Manufacturers of Electric Vehicles (SMEV) said in a new report. Hero Electric, with 34% of the market share, was the top seller, followed by Okinawa (22%) and Ather (12%)—the other two companies with a double-digit market in the top ten. Electric two-wheelers that can go beyond 25km per hour and require a full drivers licence, grew at an even higher 425% as compared to low-speed counterparts which grew only by 24%. Low-speed electric two-wheelers move at under 25kmph and require no licence or registration. According to SMEV, low-speed electric two-wheelers were in demand until 2020, when they accounted for 70% of sales. However, interest waned in 2021, especially in the October-December quarter when their market share dropped to less than 15%. SMEV has attributed this to the subsidies given to high-speed electric two-wheelers under the FAME 2 policy that have made them more affordable than low-speed two wheels.
FAME 2 or Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India is an incentive-based scheme by the government to subsidise the making and buying of electric vehicles including two-wheelers. According to Sohinder Gill, director general of SMEV, the recent changes in EV policy through FAME 2 were game-changing for the EV industry. ―In the last 15 years, we collectively sold around 1 million electric two wheelers, e-three wheelers, e-cars, and e-buses, and we will most likely sell the same 1 million units in just one year beginning January 22," said Gill. He believes that in the next 12 months, sales will
infrastructure. The government has undertaken multiple initiatives to aid India’s manufacturing and adoption of electric vehicles, including involving private and public agencies – NHAI, BEE, IOCL, EESL, PGCIL, HPCL, NTPC, etc. Charging stations will be primarily solar-powered, and there are a lot of companies and start-ups who have been waiting to grab this opportunity. Presently, India has a total of 1,640 operational public EV charging stations. Including the major cities like Pune, Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Ahmedabad & Surat, among others. The charging infrastructure market will also grow faster with the significant demand for EVs. The low-speed segment has had negative growth in the last two quarters of 2021. The market share of the low- speed segment used to be upwards of 70% in all the previous years, and that has dipped to less than 15% in the last quarter of October-December 2021. The electric two-wheeler market is divided into three segments, low-speed, city-speed, and high-speed. While the low-speed segment is waning away, the city speed segment (up to 50 km/h) is gaining traction due to attractive pricing and lower replacement costs of batteries. Adoption in the high-speed segment, i.e. 70 km/h, is low but may increase in the next few years as the battery prices come down. Air pollution is one of the greatest threats in the global context, and in a country comprising of world second largest population of almost a 130 million (equivalent to 17.7% of world’s population), people are finding problematic to breath in most of the metropolitan cities. India is facing some serious air pollution issues since a decade and it is increasing at an alarming rate. The main cause of this exponential increase in the pollution levels is poor fuel quality, old vehicles, inadequate maintenance, congested traffic, poor road condition and old automotive technologies and traffic management system.
1.1 Research Methodology
The study is descriptive type in nature. Such type of investigation is concerned mainly to determine the general nature of problems and variables related to it. This mainly relies on secondary source of information. Research can be defined as the search for knowledge or any systematic investigation to establish facts. It is a descriptive study in which secondary data is derived from various journals, magazines and websites which helped to understand the recent trend in electric automobiles in Indian market. Researcher conducted literature review to interpret the opportunities and challenges in the field of electric vehicles in Indian market. On the basis of available secondary data, the researcher comprehended the present scenario and future scope in electric vehicles in automobile industry in India.
1.2 Objectives:
To describe the present scenario of electric automobile industry.
To know opportunities of electric vehicles in Indian automobile industry.
To understand the challenges in the field of electric automobile in India.
2 ADVANTAGES OF USING ELECTRIC BIKES AND SCOOTERS
The electric vehicles industry is slowly revolutionising the automobile sector with more efficient and powerful electric vehicles that are being released every year. There are many advantages and disadvantages of electric scooters and bikes, but the advantages outweigh the negatives.
Environmentally friendly
Of the electric bike advantages and disadvantages, the biggest selling point for electric two-wheelers is that they are environmentally friendly. They do not burn fossil fuels, nor do they produce smoke, curbing air pollution in the process. This, however, is under debate as the electricity required for charging these scooters is going to be majorly produced by burning coal, which is the largest source of electricity in the country.
Unless the government comes up with cleaner sources of electricity, this may not be the best eco-friendly alternative. That being said, electric vehicles are significantly more environmentally friendly as compared to fuel-powered vehicles.
Lower Running Cost
While electric bikes and scooters are a tad more expensive to purchase as compared to regular two-wheelers, the amount of money you will save on fuel in the long term makes
this an extremely economical choice. With rising fuel costs, more and more people are turning to electric vehicles for lower running costs.
Maintenance
When looking at electric scooter pros and cons, one main advantage is that there are no complex mechanisms. As a result, the maintenance cost of electric bikes is much lower in comparison to regular vehicles.
Storage Space
Electric scooters do not house as many mechanical parts as regular bikes and scooters and thus they have a large storage space that can be used to transport a variety of objects.
Low Noise
Most vehicles produce a lot of noise while being driven. When you step out on a busy street, you can hear dozens of vehicles contributing to noise pollution. Another point in the list of advantages of electric bikes is that they barely make any sound, if at all.
Light weight
Electric scooters are relatively simple and have fewer parts. This makes them compact and easy to park. The lightweight also makes it easy for a driver, since the heavier the vehicle, the more difficult it is to drive it. Among the pros and cons of e bikes, the low weight and compact structure also make it possible to bring your scooter indoors during the rains.
2.1 Disadvantages of Electric Scooters and Bikes
Post the pros in the list of pros and cons of e scooters, here’s a look at the few disadvantages you need to be aware of:
Battery Life
Electric batteries need to be replaced once they are damaged or once they no longer give a good range. Batteries usually last for a year, and cost Rs.13,000-20,000, depending on the rating, brand, quality, and warranties.
Range
The range of an electric scooter is the distance that it will cover in a single charge. The average range of the top electric scooter models in India is 100 km. Moreover, the range decreases with the life of the battery. It takes a good 5 hours to recharge the battery, so it might not be a great option for long-distance travel.
Repair and maintenance
Among the pros and cons of e-bikes, repairs can be a matter of concern as few repair centres or spare parts dealers are available for this new mode of transport. However, over time, as electric vehicles become more popular, repair services will become more mainstream and easily accessible.
Lack of Infrastructure
In many developed countries where electric vehicles are mainstream, charging stations can be found every few kilometres. People can stop and charge their e-cars or e-bikes at the charging stations. However, India barely has any such infrastructure, so taking your electric vehicles for a long ride becomes next to impossible.
Power
When electric vehicles were first introduced in India, they had very low power and could not be driven at high speeds. Eventually, faster e-bikes and e-scooters have been introduced but they are still no match for fuel-powered two-wheelers. Low driving speed is one of the major disadvantages of an electric scooter.
3 INDIA’S POLICY ON ELECTRIC VEHICLES
In 2012, the National Electric Mobility Mission Plan (NEMMP) 2020 was established, under which an incentive scheme, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), was launched in 2015 to reduce the cost of hybrid and electric vehicles and to encourage their penetration in the market. The FAME scheme offers a subsidy on the retail price of passenger cars. These subsidies range from INR 11,000 – 24,000 for mild hybrids, from INR59,000 – 71,000 for strong hybrids; and from INR 60,000 – 1, 34,000 for electric vehicles. Subsidies are also available for two-wheelers, three-wheelers, light-
commercial vehicles and buses. The subsidy from the FAME scheme is not the only incentive mechanism that impacts the market for hybrid and electric vehicles in India. The Central Government of India and some state governments, such as the Government of National Capital Territory of Delhi (NCT of Delhi), provide tax incentives that treat hybrid and electric vehicles preferentially over conventional technologies. As per the recent announcements made by finance minister Nirmala Sitharaman, during the union budget 2020 presentation, the government has increased the import duty on electric vehicles to promote make in India.
3.1 Challenges Ahead
Presently, there are many more challenges to establish the Electric Vehicle future. The major role to run the Electric Vehicle in India is power generation. Without electricity, we cannot imagine Electric Vehicle future. Therefore, responsibility of distribution network increases to supply the electric power without failure. Which can be possible by proper monitoring of the network. Phasor Measurement Unit (PMU) [6-10] measure the voltage and current in real time and protect the network from any failure. In reference voltage stability problem has been discussed and resolve by using the PMU which is installed and the power system buses.
A. High Cost
Cost of buying EV is quite high when compared to that of an ICE vehicle i.e., the average cost of electric cars in India is around 13 Lakh (INR), which is much higher than the average INR 5 Lakh for economical cars run on traditional fuel. These are mainly due to the lithium import for battery making and since batteries make up to about 50% cost of the vehicle therefore EVs are costlier. Lithium is a rare metal which has its high reserves in countries like Chile, Australia, and Argentina.
B. Lack of charging infrastructure
The main hindrance behind commercial viability of EVs in India is inadequate charging infrastructure. India only had 650 charging stations in 2018, whereas China had over 456K charging points in the same year. Other reason creating anxiety is charging time. Battery charger efficiency according to the present available technologies all over the world varies in percentage from low 70s to high 90s.
C. Range anxiety
Range anxiety is one of the most significant roadblocks to EV adoption. EVs generally have shorter range which causes charging fear in consumers mind. At present longest range EV available is Tesla’s model S which has a range of 370 miles per charge. But since Tesla is
not entered the Indian market so Indians do not have reach to this high range vehicle. EVs available in India do not have range more than 500 km per charge. This is deeply associated to the lack of charging infrastructure in the country, and while conventional vehicles can be refueled at petrol stations, such is not the case when it comes to EVs.
3.2 Opportunities Ahead
The electric vehicle market is set to expand owing to the ambitious plans and initiatives of the government. The government has taken a number of steps to incentivize and promote the deployment of electric vehicles and public charging infrastructure to achieve significant electrification by 2030. India is targeting to reduce its excessive oil imports and curb pollution levels across cities in the coming years. Electric vehicles will play an important role in achieving this target.
Source: Adopted from Bloomberg Opinion.
4 SUGGESTION
The Indian automobile industry has been expanding repedly year over year. This growth has been supported by increasing urbanization and increasing disposable income. A rising preference for automobile ownership is also driving the demand for electric vehicles.
However, this growth may not be sustained in the long run if we do not take certain steps immediately.
1. An environment conducive to innovation and research & development should be created. This will ensure that new technologies are developed to help reduce pollution levels in our cities and towns.
2. Government of India needs to encourage the use of electric vehicles (EVs) as they can play an important role in reducing pollution levels in our cities and towns, as well as bring down costs associated with transportation systems due to reduced maintenance costs on EVs compared with conventional internal combustion engine vehicles (ICEVs).
3. There needs to be proper planning with reference to monitoring and control of charging infrastructure as unplanned increase in penetration of EVs in an area can lead to increase in peak load of already stressed distribution network.
4. Large scale penetration of EVs will require both demand side incentives (e.g., tax incentives) and improved charging infrastructures as well as integrated planning for distribution Grid management.
5. There must be investment in R&D for future battery technologies resulting in batteries with much higher specific energy, environment friendly and lower costs. As batteries constitutes 50% cost of EV’s.
6. Government should encourage EV manufacturers to design vehicles with changeable batteries, so that EV owner can just move in the charging station, replace his battery with fully charged battery and move on. The charging station can plan to charge the batteries during off peak time at reduced electricity tariff or direct from roof top solar power.
7. Government should consider lowering taxes on the imports of EVs for a few years to increase consumer awareness and choice.
5 CONCLUSION
From the above study it can be concluded that electric mobility technology is introduced late in India compare to other countries. And Indian people are finding difficult to adjust with this new technology. As if they buy an electric car they cannot use them for daily basis or to travel for a long distances. The reason behind this is poor battery technology which provides less range and requires more time to charge completely. And also there is shortage of charging stations in India where people can charge their vehicles. Automobile industries have introduced alternative to this i.e. battery swapping system but it also has its own drawbacks. Indian people tend to buy vehicle which is affordable and can be used on daily basis. But as the prices of electric vehicle is two high with less range people does not find it affordable to use instead of fuel vehicles. Government is also trying to promote green energy by introducing electric vehicles but due to limitations of this technology in India there is less impact of it. People are also having some myths like using electric vehicle in rainy atmosphere or area having water logging is dangerous. Due to these misconceptions or lack of knowledge about electric mobility technology there is less usage of electric vehicle in India.
EVs have high prospects of shaping the future of transportation sector preventing global warming caused by traditional auto motives that are dependent on the depleting fossil fuels.
EV scenario in world and India is also highlighted along with the EV policy adopted by Kerala. This paper provides an idea about different EV parts, influences and impending course of progress. The EV categories and related terminologies are explained. EVs have huge scope to endorse a healthier and eco-friendly system by integration with smart grid and renewables. Shortcomings in present EVs are discussed in addition to possible answers for further research.
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