EMobility+ September Issue 2020

S E P T E M B E R

POWERING

SMART,

ELECTRIC,

EFFICIENT

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V O L U M E

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I S S U E

MOBILITY

DRIVEN BY #TECHNOLOGY, INSPIRED BY #SUSTAINABILITY. MOBILITY COULD TAKE YOU AROUND THE WORLD IN 80 DAYS. PERSPECTIVE

WILL BATTERY- LEASING BE THE NEXT GAME CHANGER FOR INDIAN ELECTRIC MOBILITY? GOING LONG AND STRONG: WHAT ARE THE LATEST BREAKTHROUGH IN ELECTRIC CAR BATTERY TECHNOLOGY?

Insights Why Ride-Hailing In India Should Go Electric? www.emobilityplus.com

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CONT PERSPECTIVE

14 WILL BATTERY- LEASING BE THE NEXT GAME CHANGER FOR INDIAN ELECTRIC MOBILITY?

18 GOING LONG AND STRONG: What Are The Latest Breakthrough In Electric Car Battery Technology?

26 AUTOMOBILE SUBSCRIPTIONS BUSINESS MODEL FOR EV FUTURE?

31 SALE OF ELECTRIC VEHICLES WITHOUT BATTERIES: What are the Missing Pieces That Puzzled The Manufacturers?

TENT IN CONVERSATION

NEWS

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09 JEETENDER SHARMA Founder & MD, Okinawa Autotech

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10 SULAJJA FIRODIA MOTWANI Founder and CEO, Kinetic Green

SANKARI SIVA Managing Director, EMF

INSIGHTS

21 EV CHARGING INFRASTRUCTURE AFTER COVID-19

22 WHY RIDE-HAILING IN INDIA SHOULD GO ELECTRIC?

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EDITING

CONTENT

Firstview Media

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Sangita Shetty

Ventures Pvt. Ltd.

Ekta Pujari

Ashwini Chikkodi Megha Kottapalli

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DESIGNING Neha Barangali

MOBILITY: DRIVEN BY #TECHNOLOGY, INSPIRED BY #SUSTAINABILITY. Mobility could take you around the world in 80 days.

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E-Mobility+ September 2020

INDIANEWS GOVERNMENT

Government Planning EV Charging Points at 69K Petrol Pumps Across India The government is considering setting up at least one electric vehicle (EV) charging kiosk each at nearly 69,000 petrol pumps across the country to induce people to go for electric mobility.

Besides, the government is also thinking of making it compulsory to install EV charging kiosks at all Company-Owned, Company-Operated (COCO) petrol pumps of state refiners. In a review meeting on EV charging infrastructure, Power Minister RK Singh suggested oil ministry top officials that “they may issue an order for their oil marketing companies (OMCs) under their administrative control for setting up charging kiosks at all COCO petrol pumps”. Other franchisee petrol pump operators may also be advised to have at least one charging kiosk at their fuel stations. If this is executed then it will help achieve “EV charging facility at all petrol stations in the country.” Under the new guidelines of the oil ministry, new petrol pumps must have an option of one alternative fuel. “Most of the new petrol pumps are opting for electric vehicle charging facilities under alternative fuel options. But it will make a huge difference when the existing petrol pumps would also install EV charging kiosks,” the source said.According to the industry estimates, there are around 69,000 petrol pumps in the country. The EV charging facility at all petrol pumps could boost e-mobility in a big way as lack of such infrastructure discourages people from buying EVs. The power ministry has also chalked out a plan to focus on Delhi National Capital Region, Kolkata, Chennai, Hyderabad, Bengaluru, Vadodara and Bhopal for creating EV charging infrastructure in cities as well as on highways to encourage people to switch over to electric mobility.

EESL Signs MoU With CEO Smart City Bhopal For Implementation Of EV Charging Infrastructure In Bhopal Energy Efficiency Services Limited (EESL), a joint venture of PSUs under the Ministry of Power, Government of India recently announced that it has signed an MoU with CEO Smart City Bhopal for the implementation of EV charging infrastructure at 50 locations in Bhopal. Also, recently,EESL announced that it has supplied 10 electric cars to Collector of Bhopal making the state the first smart city to adopt Electric vehicles.

| SEPTEMBER ISSUE 2020

Centre Assures Subsidy For 1000 E-buses And 200 EV Charging Stations For Delhi Delhi Transport minister Kailash Gahlot discussed the issue of installation of charging stations as per AAP government’s new Electric Vehicle policy with Union Power minister R K Singh and said the Centre assured that subsidy will be provided for 1,000 electric buses in the city. The first leg of the policy targets installation of 200 charging stations in Delhi in the next one year, so that there is a charging station within every 3 km. The Delhi EV Policy is being discussed worldwide now. “Mr. Singh has also assured to consider subsidies for 1,000 electric buses in the city. The Centre’s support will act as a huge catalyst to the policy and motivate more people and organisations to switch to EV,” the statement quoting Gahlot said. The EV policy of Delhi government launched on August 7 by Chief Minister Arvind Kejriwal aims at having 5 lakh (25 percent of all new vehicle registrations) electric vehicles in Delhi by 2024.

Along with providing category based incentives, it also aims to develop an effective network of charging stations and infrastructure throughout the city. There are also provisions in the policy to encourage more private players to become partners in the initiative through setting up private charging stations/battery charging points, while ensuring there is enough competition so that the technology is affordable to the common man, the statement added.

EESL To Procure 250 Electric Vehicles From TATA Motors Limited And Hyundai Motor India Ltd Energy Efficiency Services Limited (EESL), will procure 250 electric vehicles from Tata Motors and Hyundai Motor India. The companies were selected through an international competitive bidding process, which was aimed at increased participation. Tata Motors Limited and Hyundai Motor India Limited won the tender and now will supply 150 Nexon electric compact SUVs & 100 Kona electric premium SUVs respectively for government use.

This procurement will utilize 5 Million USD from the recent grant provided by the Asian Development Bank (ADB).

EESL is driven by the objective of facilitating faster adoption of disruptive technology solutions, while balancing economic development and environmental sustainability. With this specific initiative, EESL seeks to create the market for electric vehicles, through its unique business model of aggregation of demand and bulk procurement.

PG 4

E-Mobility+ September 2020

PARTNERSHIPS

Mahindra and REE Automotive Sign an MOU to Establish a Strategic Collaboration for the Development of Electric Commercial Vehicles Mahindra & Mahindra, part of USD 19.4 billion Mahindra Group, and REE Automotive signed a memorandum of understanding (MOU) to explore development and manufacturing of electric commercial vehicles for global markets.Such a strategic collaboration will leverage REE’s revolutionary electric vehicle corner module and platform technology of integrating powertrain, suspension and steering components in the arch of a vehicle wheel. This coupled with Mahindra’s well-established vehicle design, engineering, sourcing capability and manufacturing assets, is set to be a win-win strategic partnership for both companies. The partnership will support REE’s global customer need for 200,000-250,000 electric commercial vehicle units over a few years, including potential Mahindra’s domestic and international volumes. Production would be scaled further to support additional volume in the global as well as Indian market.

Hero Electric Announces Partnership With OTO Capital Hero Electric has recently announced its partnership with OTO Capital, India’s first vehicle leasing startup to provide consumers with affordable and flexible financing options to own their e- scooters and bikes.The partnership will be live across 16 Hero Electric dealers in Bangalore and Pune, with a focus to expand across India in the next few months.

OTO allows customers to lease an E two-wheeler for 12 to 36 months.

| SEPTEMBER ISSUE 2020

Prakriti E-Mobility Partners With Okaya Power To Electrify Its Fleet Okaya Power Group has announced a strategic partnership with Prakriti E-Mobility Private Limited, India’s largest fleet operators of electric four-wheeler vehicles with an aim to provide well-laid-out electric vehicle charging stations for their fleet operations. Okaya EV Chargers come packed with best in class features like fast charging time and most importantly high Energy Density leading to low weight, thereby operating for more kilometers between consecutive charges. Okaya EV Chargers provide noise and pollution-free “first and last” mile connectivity.

Moreover, with Okaya’s growing EV charging footprint they are all set to become the backbone of e-mobility in India.

First Smart Public Charging Station Setup Under Partnership Between BYPL & EV Motors India Private Limited In line with the commitment towards building a robust electric mobility ecosystem, BSES Yamuna Power Limited (BYPL) and EV Motors India Pvt. Ltd. (EVM) have partnered to set-up smart charging stations. As part of this endeavour, the first smart public charging station under this partnership was inaugurated at Patparganj by Delhi’s Deputy Chief Minister, Manish Sisodia in the presence of senior officials of BYPL and EV Motors. Located in the heart of I P Extension, Patparganj, the smart EV charging station, branded ‘PlugNgo’, is enabled with state-of-the-art Central Management System (CMS). This will help to oversee operations of the EV charger and provide on-site and ondemand customer support. It will also provide information on preventive maintenance as and when required.

Depending on the make, an e-vehicle can be fully charged between 45 and 90 minutes. The charging stations under PlugNgo in Delhi are expected to cater to the charging requirements of 15 to 18 cars per day. The newly launched station will be equipped with two types of chargers – DC 50 kW with three guns which can charge Hyundai Kona, MG ZS EV & Tata Nexon, and DC 30 kW with 2 Guns (Both GB/T) which can charge Mahindra e-Verito & Tata Tigor. Two electric vehicles can be charged simultaneously from each charger.

PG 5

E-Mobility+ September 2020

INSIGHTS:

EVage Announces India’s First Home-Built ‘Exoskeleton Structure’ In a step towards recognizing Prime Minister Narendra Modi’s Atma Nirbhar Bharat vision, mobility tech startup EVage announces India’s first home-built ‘Exoskeleton Structure’ that will deliver a common platform for the launch of SUVs, Vans, Delivery Vehicles, and Trucks. The disruptive technology innovation, from which as many as seven diverse kinds of vehicles can be manufactured, has been put together by a special team comprising aeronautical engineers who have worked on manufacturing European supersonic planes and world-class missile propulsion systems apart. The team came together five years ago with the aim of easing the agony of manufacturing electric vehicles and conveying them within the reach of the common man in India.

South Korea’s Edison Plans To Set EV Plant in Uttar Pradesh A delegation of South Korean electric vehicle manufacturer, Edison Motors met Uttar Pradesh Chief Minister Yogi Adityanath at his official residence and expressed their desire to invest in the state by expressing their desire to set up an electric vehicle plant in Uttar Pradesh , an official said. According to him, Edison Motors plans to invest Rs 500 crore to Rs 700 crore in the first phase, Rs 1,000-1,500 crore in the second phase and Rs 2,000-3,000 crore in the third phase of its electric vehicle plant which would create employment opportunities for thousands of people.

The company’s distinguished approach was a result of the kind of team they have built. Their team of highly specialized experts has proven the value of this first-of-itskind ‘Exoskeleton Structure’ in India. They have built their first vehicle in the logistics sector – a four-wheel commercial van that has done a test run of over 100,000 km.

Significant innovations achieved in the last five years of R&D: Aerospace inspired structure / Focus on light-weighting Innovation in the bio-friendly material – lighter and stronger than steel Focused on modularity – assembly, and design, EVage can customize the product Proprietary e-platform chassis Integrated powertrain – motor controller, gearbox and battery made from scratch

Tata Motors Rolls Out 1000th Nexon EV Tata Motors announced a significant milestone in the electric vehicle (EV) domain by rolling out the 1000th Nexon EV from its plant in Pune. This landmark has been achieved in just over 6-months after the commercial launch of the vehicle portraying the rapid growth in both interest and demand for EVs. Acknowledged as the most preferred electric car in India, the Tata Nexon EV is the best seller in its segment, helping Tata Motors post a market share of 62% in EVs in Q1FY21.

Tata Motors has consistently catered to the evolving needs of customers for electric cars with the introduction of bestselling in both the fleet (Tigor EV Electric Sedan, with a range of 140 km & 213 km) and personal segments (Nexon EV Electric SUV, with an anxiety-free range of 312 km on a single charge). Designed to offer thrilling, connected drive experience with zero emissions and at an attractive pricing, the Nexon EV has created a unique benchmark in its category. To popularise the access and use of Nexon EV in India, the company recently launched a novel EV Subscription model, ideal for customers preferring ‘usership’ over ownership in the rapidly growing era of shared economy.

| SEPTEMBER ISSUE 2020

Flipkart Eyes Complete Transition To Electric Vehicles By 2030 Flipkart announced its commitment to transition to electric vehicles by joining the Climate Group’s global electric mobility initiative, EV100. The EV100 brings together forward-looking companies committed to accelerating the transition to electric vehicles and making electric transport the new normal by 2030. As a part of this commitment, Flipkart is committing to a phased integration of electric vehicles into its entire fleet by 2030.Flipkart says this transition will be done through placing requirements in service contracts, installing charging infrastructure close to its 1,400 supply chain premises, conducting awareness programs and incentivizing delivery executives towards the use of electric vehicles. Flipkart will spearhead the sector’s sustainability transformation, and support India’s ambition to ensure 30 per cent electric mobility by 2030.Electrification of its entire logistics fleet is a key part of Flipkart’s larger sustainability goal and the EV100 commitment is in line with that. As the first e-commerce player in India to join the globally recognized EV100 initiative, Flipkart will further EV100’s goal of catalyzing corporate leadership for electric vehicles in India. Flipkart will join over 70 companies from across the globe that is committed to accelerate the transition to electric vehicles.

PG 6

E-Mobility+ September 2020

BUZZ

Charging Kiosks Deployment At Fuel Stations Will Boost Electric Vehicles Uptake in India Following the news that the government plans to install electric vehicle (EV) charging kiosks at around 69,000 petrol pumps across India; Animesh Kumar, Director of Automotive Consulting at GlobalData, a leading data and analytics company, offers his view: “The move is expected to boost the uptake of EVs in India. Key factors for largescale adoption of EVs in any market are adequate battery charging or swapping infrastructure and technology, affordable vehicles, plenty of models to choose from, conducive/strict policies and high awareness. The Indian automotive market now has a wide product portfolio of EVs including affordable two-wheelers, electric cars as well as vehicles for public transportation. A vehicle scrappage policy, which is likely to encourage replacement of older vehicles with EVs, is also on the cards. However, the creation of adequate charging/swapping infrastructure is a key hurdle that India needs to overcome.

Detel Launches World’s Cheapest Electric Two-Wheeler Delhi based consumer electronic brand Detel has announced that it has unveiled the world’s cheapest electric two-wheeler Detel Easy at Rs 19,999. The twowheeler is driven by a 6 pipe controller 250 Watt electric motor that has a top speed of 25 kmph. The low speed keeps it outside of stipulations like registration or driver’s license to use it. It has a 48V 12AH LiFePO4 battery that can be charged completely in 7-8 hours and offers 60 km at full charge. The new EV policy in Delhi provides a host of financial incentives for buying electric vehicles in the capital, over and above the subsidies by now being provided under the central government’s FAME scheme.

Electric two-wheelers, auto-rickshaws, and freight carriers are entitled to a subsidy of Rs 30,000 while four-wheelers can benefit up to Rs 1.5 lakh under this policy. It also has provisions for incentives for those looking to trade off their present petrol or diesel vehicles for a new electric vehicle.

| SEPTEMBER ISSUE 2020

BluSmart Has Raised USD 7 Million (Rs ~51 crore) From Multiple Investors Electric ride-hailing platform BluSmart has announced that it has raised USD 7 million (Rs ~51 crore) in funding from multiple investors. The funding round included investors like Inflection Point Ventures, Venture Catalysts, Survam Partners, Mumbai Angels, Chhatisgarh Investments Ltd, JITO Angels, Lets Venture Fund and Kaplavriksh Fund, the company said in a release. The firm has stated that it will utilise the funding for fleet expansion, setting up of more charging infrastructure and further market penetration.The start-up, which currently offers its services across Delhi and the National Capital Region, plans to add thousands of electric vehicles and hundreds of charging stations on its platform in 2021.BluSmart, which raised USD 3-million last September in a seed round, further said that it is in discussions to raise venture debt as well. Electric mobility is the next big thing in India, said Punit K Goyal, Cofounder, BluSmart, adding, “we are also looking at augmenting the EV uptake by expanding fast electric car charging infrastructure for an easy charging practice.”

LATEST

Pledging And Taking Charge For An Electric Future It was World EV Day on 9th September and drivers from more than 60 countries have made a firm commitment to transition to an electric vehicle. India has the 2nd highest number of pledges among 60 countries globally and still counting. The online pledge campaign, which was launched by ABB and Green TV as part of World EV Day, encourages drivers to recognize the crucial role that electric vehicles (EVs) can play in advancing sustainable mobility, making a commitment that the next car they drive will be electric. Results to date are already indicating which countries are in the driving seat when it comes to taking action. The United Kingdom is currently leading the way with 29 percent of sign ups. This is closely followed by India (13 percent) and the United States of America at 11 percent. World EV Day has attracted many partners and industry leaders in celebrating the progress made in emobility and accelerating efforts to build greater support for EVs. The online event has provided virtual seminars on the topics that matter including the Green Recovery and the marketing of electric vehicles. Through social media and Worldevday.org, the event provides a useful hub for emobility resources and insight on driving an electric future.

PG 7

E-Mobility+ September 2020

2W/3W TALK:

Zipping halfway through 2020: High-Speed Electric 2-Wheelers Electric two-wheelers (E2Ws) have been gaining tremendous traction in the past 2-3 years. With falling battery prices and government-supported initiatives and schemes such as FAME, many OEMs have gained confidence to upgrade and develop more advanced and sophisticated E2W models, especially in the high-speed segment.The top 5 leading players in this niche segment cumulatively sold 9,100 units of E2Ws during H1 2020.

Although the sales was drastically affected due to covidinduced lockdown in the months of April and May, the highspeed (HS-E2W) segment is showing signs of growth revival as June witnessed a 149% surge in month-on-month sales. In H1 2020, Hero Electric has taken the lead with about 36% share in the high-speed E2W market. It is followed by Okinawa, Ampere, Ather and Revolt respectively.The prices of HS-E2Ws are steadily approaching that of Internal Combustion Engine (ICE) powered counterparts, stimulating their market demand further. Interestingly, with the narrowing of price gap between the high-speed E2Ws and their ICE-2W equivalents, this premium class of E2Ws are also becoming increasingly efficient, offering greater value for money for the customers.

Electric 3-Wheelers: Spearheading The EV Transition Electric three-wheeler (E3W) has been the persistent frontrunner for EV revolution in India. Among all the electric vehicles sold, E3Ws constitute the major chunk of the EV sales. Albeit, the registered E3Ws in India own a tiny share in the entire E3W stock which is dominated by unorganized players. Registered sales of EVs in H1 2020 (Jan-June) is 54,577 units. Out of this, a whopping 78% i.e 42,513 units are comprised by E3Ws alone. The shift in EV sales across all months is predominantly influenced by respective monthly E3W sales. April and May were the worst hit months because of COVID-induced lockdown. The E3W segment can be categorized into two sub-segments, E3W – Passenger (P) and E3W – Cargo/ Goods (G). E3W (P) receives virtually all demand between the two subsegments which is well reflected in overall E3W sales. In H1 2020, about 96% of the total E3W sales of 42,513 units belonged to the passenger type category.

| SEPTEMBER ISSUE 2020

Sale of 2, 3-Wheeler EVs Sans Batteries Increase Uptake and Promote New Business Models Following the news that the Ministry of Road Transport and Highways India has allowed the sale and registration of electric two and three-wheelers without batteries; Bakar Sadik Agwan, Senior Automotive Consultant at GlobalData, a leading research and consulting company, offers his view: “The cost of ownership, along with the availability of adequate charging infrastructure, is a key factor for largescale uptake of electric vehicles (EVs). While a customer indeed saves on fuel cost, the initial cost of acquisition is high because electric vehicles are costlier. Hence, India’s plan to allow selling and registering electric vehicles without batteries is a welcome move as it will result in significant upfront savings for customers. Under the plan, customers will no longer have to pay for the battery, which amounts to 30-40% of the overall cost at the time of purchase. The move is over and above the existing demand incentives offered by the government under the Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles (FAME). Two and three wheeler command significant market volumes in India. Increase in the uptake of electric vehicles will help the government achieve its ambitious targets regarding electrification.”

PG 8

INCONVERSATION

JEETENDER SHARMA FOUNDER & MD, OKINAWA AUTOTECH

Okinawa is known for innovation which is one of its core values. How is it being taken care of during these Covid times?

Mo r e t h a n i n n o v a t i o n t h e s e t i me s r e q u i r e p r o p e r p l a n n i n g i n t e r ms o f ma r k e t i n g i n i t i a t i v e s , s c h e me s and offers, financing options and overall business strategies.

Ok i n a wa i s r e n o wn e d f o r i t s i n n o v a t i o n i n t e r ms o f T e c h n o l o g y e n h a n c e me n t a n d t h a t we wi l l k e e p d o i n g i t . Y o u wi l l s e e t h a t i n o u r u p c o mi n g p r o d u c t s . Al s o , No wa d a y s c u s t o me r s a r e v e r y p a r t i c u l a r a b o u t t h e p r o d u c t wh i c h t h e y wa n t t o o wn . He n c e , i t s a l l t h e mo r e i mp o r t a n t f o r u s t o introduce best product in the ma r k e t

You currently have Lithium ion and Lead Acid bikes and scooters. So, how important is battery configuration type in an EV? Ba t t e r y i s t h e f u e l o f a n e l e c t r i c v e h i c l e , a n i mp o r t a n t p a r t o f p o we r t r a i n . T h e y a r e r e s p o n s i b l e f o r t h e p o we r o f a n e l e c t r i c v e h i c l e . We a r e n o w f o c u s i n g o n De t a c h a b l e l i i o n b a t t e r y product. Battery helps in synchronizing the different c o mp o n e n t s o f p o we r t r a i n l i k e c o n t r o l l e r a n d mo t o r . Be s t p a r t i s that you can charge it like you c h a r g e y o u r mo b i l e p h o n e . No special infrastructure is needed.

This increases the ease of u s a b i l i t y a mo n g s t t a r g e t audience.

| SEPTEMBER ISSUE 2020

"IT’S TIME TO INTROSPECT AND SEEK OUT THE COST EFFECTIVE SOLUTIONS IN COMING FUTURE." Since the launch in 2015, your company has really grown and become one of the biggest names in EV sector. What according to you have been the major factors that propelled you towards success?

Ma j o r f a c t o r o f Ok i n a wa i s QCD me a n s Go o d Qu a l i t y a t R e a s o n a b l e c o s t wi t h e f f e c t i v e d e l i v e r y , a f t e r s a l e s s e r v i c e & Ou r intense focus on high speed s c o o t e r s , Ab i l i t y t o i n n o v a t e , d e e p n e t wo r k p r e s e n c e & Qu a l i t y p r o d u c t s a r e t h e ma j o r f a c t o r s t h a t p r o p e l l e d u s t o wa r d s success.

Covid has hit the auto industry severely. What have been some key learnings during this period and your future contingency plan?

I t ’ s t i me t o i n t r o s p e c t a n d s e e k out the cost effective solutions in c o mi n g f u t u r e . Av a i l a b i l i t y o f f i n a n c i n g o p t i o n s , f o c u s o n B2 B business, Increase spending on R &D, R OI b a s e d ma r k e t i n g i n i t i a t i v e s e t c wi l l b e n e e d e d t o f l o a t a b o v e t h e wa t e r .

With the Atmanirbhar Bharat and Vocal for Local slogan, are you in any plans to increase the localisation factor considering you are already at a 90% localisation level presently?

Ou r l o c a l i z a t i o n f a c t o r i s 9 2 % a n d v e r y s o o n we wi l l l a u n c h t h e f i r s t b i k e f r o m Ok i n a wa s t a b l e c a l l e d OK I 1 0 0 wh i c h i s g o i n g t o b e a 1 0 0 % Ma d e i n I n d i a p r o d u c t .

We heard you will be launching the motorcycle – the Oki100 sometime later this year. Please tell us something more about it.

As I t o l d y o u i t s g o i n g t o b e 1 0 0 % ma d e i n I n d i a p r o d u c t . S p e e d i s g o i n g t o b e 1 0 0 k m/ h r a n d r a n g e i s g o i n g t o b e 1 6 0 - 1 8 0 k m/ h r .

Al s o t h i s i s g o i n g t o b e a c o n n e c t e d mo t o r c y c l e t h r o u g h Ok i n a wa E c o a p p .

Battery is the fuel of an electric vehicle, an important part of power train. They are responsible for the power of an electric vehicle."

PG 9

INCONVERSATION

SULAJJA FIRODIA MOTWANI FOUNDER AND CEO, KINETIC GREEN

How has your journey in the EV industry been so far? How do you plan to take this journey ahead, scale up and expand?

We s t a r t e d K i n e t i c Gr e e n e n e r g y a n d p o we r s o l u t i o n s i n 2 0 1 5 wi t h a d r e a m t o b r i n g g r e e n mo b i l i t y solutions to India, and to take this innovative technology to the ma s s e s . I t i s t h e l a t e s t v e n t u r e f r o m K i n e t i c a n d F i r o d i a Gr o u p .

Ou r v i s i o n i s t o b e i n n o v a t i v e leaders in the field of affordable g r e e n mo b i l i t y s o l u t i o n s . To d a y t h e c o mp a n y s t a n d s t a l l a s o n e of the leading players in Electric v e h i c l e s p a c e wh i c h o f f e r s a wi d e r a n g e o f b a t t e r y - o p e r a t e d v e h i c l e s s u c h a s E - Au t o s , E - Ca r t s a n d Bu g g i e s . I n t h e l a s t f e w y e a r s , t h e c o mp a n y h a s s o l d about 25,000 units and has ma r k e d t o t a l s a l e s o f c l o s e t o I NR 3 0 0 Cr o r e s i n t h i s n a s c e n t s e c t o r . We a t K i n e t i c Gr e e n p l a n t o e x p a n d o u r ma n u f a c t u r i n g f a c i l i t i e s i n No r t h I n d i a b a s e d o n t h e ' As s e t L i g h t ' p r i n c i p l e a n d b e i n g c l o s e t o t h e c u s t o me r . We r e c e i v e d a n o v e r wh e l mi n g r e s p o n s e f r o m De l h i Me t r o a n d we h o p e t o e x p a n d t h e s c o p e t o v a r i o u s o t h e r c i t i e s wi t h me t r o s e r v i c e s a s we l l a s t o h e l p provide a green affordable public t r a n s p o r t i n t h e n e w s ma r t c i t i e s o f I n d i a . K i n e t i c Gr e e n i s k e e n l y l o o k i n g t o t a p t h e g l o b a l ma r k e t wi t h h i g h - e n d g o l f c a r t s a n d o f f r o a d e l e c t r i c v e h i c l e s a l o n g wi t h o u r J V p a r t n e r , t h e L a mb o r g h i n i f a mi l y . Th e J V i s e y e i n g Rs . 5 0 0 crore revenue over the next four to five years, and garnering a 2.5 p e r c e n t o f t h e t o t a l g l o b a l ma r k e t p i e . Th e c o mp a n y a l s o i n t e n d s t o invest in new technologies for t h r e e - wh e e l e r s a n d wa n t t o e n t e r t h e e x p o r t ma r k e t s . I n t h e n e a r f u t u r e t h e c o mp a n y p l a n s t o double its capacity from current 6 , 0 0 0 e - a u t o s p e r mo n t h . | SEPTEMBER ISSUE 2020

"OUR VISION IS TO BE INNOVATIVE LEADERS IN THE FIELD OF AFFORDABLE GREEN MOBILITY SOLUTIONS."

What have been some key takeaways during these Covid times which can be leveraged going forward once the situation normalizes?

I n t h e mi d s t o f t h e g l o b a l p a n d e mi c , t h e r e i s a n e e d t o focus not just on the developing c r i s i s , b u t a l s o t o g i v e s o me thought to the concerning r e l a t i o n s h i p b e t we e n s u c h e p i d e mi c s a n d o u r a g g r e s s i v e b e h a v i o r t o wa r d s t h e e n v i r o n me n t . P e o p l e a r e understanding the benefits of a g o o d e n v i r o n me n t a n d n o pollution in this situation. Kinetic Gr e e n r e ma i n s v e r y b u l l i s h o n

Kinetic Green has brought a new range of products and we are focussing on survive, revive and thrive strategy. Survive is to generate and conserve cash, revive is to launch products which are exciting in the current economy or environment and cut cost and thrive based on the great promise for electric vehicles in the coming days owing to their benefits of lower running cost, simplicity, and their amazing impact on the environment!

the adoption of electric vehicles in the long run as everybody is becoming more health conscious.

Coming to our sector, due to the Covid-19, the major challenge that the company currently facing is the adoption of shared mobility. In order to avoid the impact, Kinetic Green has brought a new range of products and we are focussing on survive, revive and thrive strategy.

Survive is to generate and conserve cash, revive is to launch products which are exciting in the current economy or environment and cut cost and thrive based on the great promise for electric vehicles in the coming days owing to their benefits of lower running cost, simplicity, and their amazing impact on the environment!

Kinetic Green has brought a new range of products which are complementing our business of electric vehicles. The company has recently introduced new offerings and products which include Kinetic e-fogger and esprayer range for disinfecting outdoor areas like public places, slums, large industrial campuses, hospitals, factories, and

PG 10

r e s i d e n t i a l t o wn s h i p s ; a p o r t a b l e UV Sanitizer, suitable for disinfecting i n d o o r a r e a s l i k e h o s p i t a l r o o ms , o f f i c e s e t c . T h e c o mp a n y h a s a l s o l a u n c h e d a n e - c y c l e . Th e s e n e w offerings are in addition to our core b u s i n e s s b u t a r e mo r e r e l e v a n t i n t h e current social context.

Battery swapping model can work really well for 3 wheelers, a Pilot model on battery swapping was being conducted by your company with Ola last year, how has the same shaped up?

K i n e t i c Gr e e n a n d B P CL f o r g e d a partnership to revolutionize Electric Ve h i c l e s e c t o r wi t h a n a t i o n wi d e Ba t t e r y S wa p p i n g Ne t wo r k . Un d e r t h e alliance, a range of Electric three wh e e l e r s , s p e c i a l l y d e s i g n e d f o r f a c i l i t a t i n g s wa p p a b l e b a t t e r y a n d a 2 mi n u t e b a t t e r y s wa p wi l l b e d e p l o y e d b y K i n e t i c Gr e e n a n d BP CL , wi t h s u p p o r t f r o m I I T Ma d r a s , wi l l p r o v i d e s ma r t L i t h i u m – i o n b a t t e r i e s a n d s e t u p b a t t e r y s wa p p i n g s t a t i o n s a c r o s s t h e c o u n t r y . T h e K i n e t i c - BP CL solution has already been i mp l e me n t e d o n a f l e e t o f K i n e t i c Gr e e n E 3 W a t K o c h i a n d L u c k n o w.

T h e v e h i c l e s u n d e r t h e s wa p p a b l e platform are deployed near the high t r a f f i c me t r o s t a t i o n s a n d o f f e r l a s t mi l e c o n n e c t i v i t y t o p a s s e n g e r s a t just Rs. 10! The operation runs from 6 am to 10 pm and drivers can opt for 1 o r mu l t i p l e s wa p s p e r d a y . Th e p a r t n e r s wi l l n o w e x p a n d t h e a l l i a n c e t o c o v e r ma n y mo r e c i t i e s a c r o s s t h e c o u n t r y o v e r n e x t f e w mo n t h s . Th i s mo d e l i s d e s i g n e d t o a d d r e s s s o me o f the critical concerns and deterrents f a c e d b y t h e d r i v e r s f o r o wn i n g a n d o p e r a t i n g e l e c t r i c t h r e e wh e e l e r s . Du e t o s e p a r a t i o n o f b a t t e r y f r o m t h e E V, initial EV cost is halved and brought b e l o w p r i c e o f I CE c o u n t e r p a r t s .

You currently have vehicles ranging from low- to mediumspeed, any new products lined up in the high speed segment?

Kinetic Green has been making significant strides in innovation in the EV space. We are proud to have a EV R&D center that is recognized and certified by Department of Science and Industrial Research. We have focused on creating Make in India technology and supply chain with over 90% localization levels in our EVs. | SEPTEMBER ISSUE 2020

S i mi l a r l y , s t a r t i n g wi t h t h e s i mp l e r l o we r s p e e d E V s , we h a v e n o w d e v e l o p e d a wi d e r a n g e i n c l u d i n g me d i u m s p e e d E V s a n d n o w a Hi g h s p e e d E V p l a t f o r m. T h i s n e w p l a t f o r m wi l l h a v e E V s wi t h a d v a n c e d technology such as independent suspension, hydraulic brakes and s p e e d s o f a r o u n d 5 5 - 6 0 k mp h . We wi l l l a u n c h b o t h p a s s e n g e r a s we l l a s cargo solution range on this platform shortly.

Any plan on supporting Last mile delivery solutions as the same play an important role in today's times of E-commerce and E-business?

E Vs f o r l a s t mi l e d e l i v e r y a r e a n i mp o r t a n t p a r t o f K i n e t i c Gr e e n ’ s business strategy.

I n t h e c o mi n g mo n t h s t h e r e ma y b e a d i p i n p a s s e n g e r d e ma n d b u t c a r g o v e h i c l e s wi l l g i v e a b o o s t t o o u r b u s i n e s s , d u e t o i n c r e a s i n g d e ma n d f o r “ h o me d e l i v e r y ” i n t h e n e w n o r ma l .

As p a r t o f o u r s t r a t e g y t o t a p t h e opportunities in the cargo carrier ma r k e t , K i n e t i c Gr e e n wi l l l a u n c h a mo d e l wi t h a p a y l o a d c a p a c i t y o f 5 0 0 k i l o g r a ms . Th e v e h i c l e wi l l a l s o b e t h e mo s t p o we r f u l , i n t e r ms o f p e r f o r ma n c e . Th e mo d e l , wi t h a t o p s p e e d o f 5 5 k mp h wi l l b e l a u n c h e d s h o r t l y . I t wi l l h a v e a d r i v i n g r a n g e o f a r o u n d 1 1 0 k i l o me t r e s i n a s i n g l e c h a r g e . We a r e i n v e s t i n g a r o u n d Rs .

20 crore in the ground-up project wh i c h wi l l f e a t u r e i n d e p e n d e n t suspension, hydraulic brakes, and a n e w p o we r t r a i n .

Gi v e n t h e c u r r e n t s c e n a r i o , i t ’ s q u i t e likely that the cargo carrier version wi l l t a k e t h e l e a d f o r s a l e s o f K i n e t i c Gr e e n ’ s n e x t o f f e r i n g . We a r e h o p i n g to get very good orders for this mo d e l f r o m l e a d i n g e c o mme r c e c o mp a n i e s a n d t h e i r l o g i s t i c s p a r t n e r s i n c o mi n g mo n t h s .

Besides the measures being taken by the Government for encouraging and promoting electric vehicles, what more do you think the government should do in this regard especially for recovering from the current pandemic which has hit the Auto industry severely?

The impact of COVID -19 virus has been unthinkable in its scope. The pandemic has caused a significant economic impact on financial markets.

There is an adverse impact on the introduction of this green technology in the country’s EV sector due to factors such as reduction in demand for automobiles, higher risk aversion among customers towards new technology, disruption in supply chain, and uncertainty in oil prices due to COVID-19.

There is a reduction in demand for shared mobility leading to reduced demand for E3W and postponement of investments in EV technology by local component makers. Thus, there is an urgent need for support by the Government in accelerating demand creation for EVs so that the momentum can be continued. This can be done by way of booster incentive under the Fame 2 scheme for a short period of time, say one year, while keeping total budgets the same over the scheme period.

To ensure sustainability of EV off-take in the country as well as possible measures to attract investment for EV parts manufacturing especially in the wake of global development.

We should pitch to encourage existing auto component makers to invest in EV components and also to attract investment in India for EV and EV components. Emphasis should be especially on battery, powertrain components like electric motors, controllers, chargers, converters etc. For this to happen, it is critical that steps are taken urgently for demand creation for EVs in India is created, otherwise we will suffer a chicken and egg situation.

PG 11

INCONVERSATION

SANKARI SIVA MANAGING DIRECTOR, EMF

Pls Tell us about your Product and Services ?

E MF I n n o v a t i o n s d e s i g n s a n d ma n u f a c t u r e s a wi d e r a n g e o f DC Mo t o r s f o r v a r i o u s a p p l i c a t i o n s s u c h a s e l e c t r i c mo b i l i t y , s o l a r i r r i g a t i o n p u mp s , a g r i c u l t u r a l e q u i p me n t a n d s o o n . We ma n u f a c t u r e b o t h o u t e r r o t o r a n d i n n e r r o t o r mo t o r s . T h e o u t e r r o t o r mo t o r s a r e wi d e l y u s e d i n e - c y c l e s a n d e - t wo wh e e l e r s a s h u b Mo t o r s a n d i n n e r r o t o r mo t o r s a r e ma i n l y u s e d i n e t h r e e wh e e l e r s , s o l a r i r r i g a t i o n p u mp s a n d o t h e r a p p l i c a t i o n s .

How has been the journey so far? How do you see your company evolving over the years?

We s t a r t e d o u t d e v e l o p i n g ma g n e t - l e s s DC mo t o r s , e s p e c i a l l y S wi t c h e d Re l u c t a n c e Mo t o r s ( S R Ms ) . Al o n g t h e wa y we r e a l i z e d t h a t i t wo u l d t a k e s o me t i me f o r ma r k e t a c c e p t a n c e o f S R Ms a s c o mp a r e d t o t h e u b i q u i t o u s B r u s h l e s s DC ( BL DC) mo t o r s , s o we s t a r t e d d e s i g n i n g a n d ma n u f a c t u r i n g B L DC mo t o r s in parallel to our SRM d e v e l o p me n t .

T h e BL DC mo t o r b u s i n e s s b r o u g h t u s f a c e t o f a c e wi t h t o u g h p r i c i n g c o mp e t i t i o n f r o m Ch i n e s e - ma n u f a c t u r e d p r o d u c t s .

T o o v e r c o me t h a t , we h a v e s e t u p a s e mi - a u t o ma t e d p r o d u c t i o n facility to get the productivity of Ch i n e s e ma n u f a c t u r e r s , a n d a l s o s t r e a ml i n e d o u r p r o d u c t i o n

| SEPTEMBER ISSUE 2020

"OUR CURRENT FOCUS IS ON CONTINUOUSLY IMPROVING ON TORQUE DENSITY AND POWER DENSITY." process to substantially reduce . ma t e r i a l wa s t e . Cu r r e n t l y we a r e a b l e t o p r o d u c e B L DC mo t o r s s l i g h t l y c h e a p e r t h a n i mp o r t e d mo t o r s f o r h i g h v o l u me o r d e r s

What are the technological advancements that will happen over the time?

We d e f i n i t e l y b e l i e v e i n f o c u s i n g o n ma g n e t - l e s s mo t o r s . Ou r current focus is on continuously i mp r o v i n g o n t o r q u e d e n s i t y a n d p o we r d e n s i t y . T o r q u e d e n s i t y i s a c h i e v i n g h i g h e r t o r q u e wi t h l e s s p o we r , a n d p o we r d e n s i t y i s achieving higher torque by r e d u c i n g t h e we i g h t o f t h e mo t o r s . I n o u r S R Ms , c o n t r o l l e r technology is also a key area of a d v a n c e me n t . We wi l l b e wo r k i n g o n i mp r o v i n g t h e controllers to not only reduce costs but also increase the s mo o t h n e s s a n d r e l i a b i l i t y o f operation.

What will be Post-Covid impact on the industry?

Co v i d - 1 9 h a s l e d t o a s u r g e i n i n t e r e s t i n p e r s o n a l mo b i l i t y d e v i c e s . T h e s e c o n s u me r s wa n t a stylish, convenient and accessible alternative to public t r a n s p o r t wi t h i n c i t i e s , a n d we expect this trend to continue to g r o w e v e n P o s t - Co v i d . L o w s p e e d , l o w p o we r E Vs s u c h a s e Cy c l e s a n d e - S c o o t e r s a r e a t e r r i f i c f i t f o r t h i s n e e d . Th i s s e g me n t o f E V s p r e s e n t s abundant opportunity to e n t r e p r e n e u r s t o o f f e r wi d e ranging solutions to disrupt the c u r r e n t wa y o f i n t r a - c i t y p e r s o n a l travel.

EMF Innovations designs and manufactures a wide range of DC Motors for various applications such as electric mobility, solar irrigation pumps, agricultural equipment and so on.

PG 12

How does EMF support Aatmanirbhar Bharat?

E MF i h a s t a k e n t h e i n i t i a t i v e t o b u i l d o n e o f I n d i a ’ s f i r s t BL DC h u b mo t o r ma n u f a c t u r i n g f a c i l i t i e s , a n d t h e ma j o r i t y o f o u r c o mp o n e n t s a r e a l r e a d y i n d i g e n o u s l y p r o d u c e d wi t h i n I n d i a . Ou r t e a m wo r k s t i r e l e s s l y t o n u r t u r e l o c a l c o mp o n e n t s u p p l i e r s t o me e t wo r l d c l a s s price and quality standards, and we a r e p r o u d t o s a y t h a t o u r S R Ms a r e a l r e a d y 1 0 0 % ma d e i n I n d i a wi t h o u t ma g n e t s t h a t wi l l enhance the local eco system s e l f - r e l i a n t o n mo t o r t e c h n o l o g y .

We a r e a l s o wo r k i n g o n d e v e l o p i n g mo t o r s wh i c h h a v e h i g h e r p o we r d e n s i t y a n d t o r q u e d e n s i t y u s i n g f e r r i t e ma g n e t s t h a t a r e a v a i l a b l e l o c a l l y . Ou r Idea is to grow local eco system wi t h t h e c o mp l e t e l o c a l ma n u f a c t u r e d c o mp o n e n t s .

I n a d d i t i o n , we a l s o b e l i e v e t h a t e n t r e p r e n e u r s c a n a n d wi l l b e the engines of social change, and there are abundant opportunities in the EV space.

T h u s we a r e wo r k i n g o n a p r o j e c t t o s u p p o r t a n d e mp o we r y o u n g people to create and launch their o wn e n t e r p r i s e s , a n d t h r o u g h these enterprises, to take greater responsibility for their lives and c o mmu n i t i e s .

We started out developing magnet-less DC motors, especially Switched Reluctance Motors (SRMs). Along the way we realized that it would take some time for market acceptance of SRMs as compared to the ubiquitous Brushless DC (BLDC) motors, so we started designing and manufacturing BLDC motors in parallel to our SRM development.

It is our hope that through these a c t i v i t i e s we wi l l c o n t r i b u t e t o wa r d s Aa t ma n i r b h a r Bh a r a t .

| SEPTEMBER ISSUE 2020

PG 13

PERSPECTIVE

WILL BATTERY- LEASING BE THE NEXT GAME CHANGER FOR INDIAN ELECTRIC MOBILITY? India' s Ministry of Road Transport and Highways allowed the sale and registration of electric two and three wheelers without batteries. Hence, customers will have the freedom regarding how to procure batteries, which presents new business opportunities to OEMs, energy companies as well as other stakeholders in the battery charging and swapping infrastructure.

The absence of batteries in EVs will proliferate new business models such as battery leasing and renting and help in creating a dedicated ecosystem for battery supply, charging/swapping and servicing. Shared mobility, logistics and delivery companies which are leading the transition to EVs in India will gain significant cost-benefits if the new business models for batteries kick in. We asked some of our experts to throw light on whether the battery leasing model is a gamechanger for the EV industry and here is what they had to say....

DR.RASHI GUPTA FOUNDER & MANAGING DIRECTOR, VISION MECHATRONICS PVT LTD

Re c e n t l y a g r e a t mo me n t u m i s s e e n i n I n d i a f o r e l e c t r i c mo b i l i t y a n d i s s t r o n g l y p r o mo t e d a n d s u p p o r t e d b y I n d i a n g o v e r n me n t .

Ho we v e r , e l e c t r i c v e h i c l e a d o p t i o n h a s b e e n s l o w i n I n d i a . Al t h o u g h , t h e t o t a l c o s t o f o wn e r s h i p ( TCO) o f E V i s l e s s t h a n t h e i r c o n v e n t i o n a l c o u n t e r p a r t s i n mo s t c a s e s . T h e high upfront cost of Electric vehicles has b e e n a ma j o r d e t e r r e n t f o r c o n s u me r s wh e n i t c o me s t o b u y i n g e l e c t r i c v e h i c l e s . P r e s e n t l y , battery packs account for around 30 to 40 percent of the cost of electric vehicles in I n d i a . Ba t t e r y - L e a s i n g h a s t h e p o t e n t i a l o f o v e r c o mi n g t h i s b o t t l e n e c k b y r e d u c i n g t h e i n i t i a l c o s t o f E V. Re d u c i n g t h e c o s t o f b a t t e r y f r o m t h e i n i t i a l i n v e s t me n t o f a n E V wi l l l e a d t o a c q u i s i t i o n c o s t p a r i t y o f E V wi t h conventional cars.

Wi t h i n c r e a s e i n ma n u f a c t u r i n g o r b y a d v a n c e me n t i n b a t t e r y t e c h n o l o g y , b a t t e r y c o s t i s e x p e c t e d t o r e d u c e b u t i t wi l l t a k e a f e w mo r e y e a r s . Ba t t e r y - l e a s i n g wi l l r e d u c e the initial price of EV, thereby increasing their d e ma n d a n d p r o v i d i n g t h e mu c h - n e e d e d mo me n t u m f o r t h e E V s e c t o r . Al s o , c o n c e r n s a mo n g u s e r s o v e r d e p l e t i n g b a t t e r y l i f e a n d c a p a c i t y d e g r a d a t i o n wi l l b e t a k e n c a r e o f b y t h e b a t t e r y l e a s i n g c o mp a n y . As b a t t e r y technology is changing rapidly, batteryl e a s i n g wo u l d a l l o w t h e c o n s u me r s t o u s e t h e l a t e s t b a t t e r y t e c h n o l o g y . Th e p e r f o r ma n c e o f b a t t e r i e s i s a l s o i mp r o v i n g wi t h c o n t i n u o u s r e s e a r c h i n b a t t e r y t e c h n o l o g y . Ba t t e r y l e a s i n g wo u l d a l l o w t h e u s e r t o e a s i l y o p t f o r a b a t t e r y p a c k wi t h e n h a n c e d p e r f o r ma n c e .

Al t h o u g h b a t t e r y - l e a s i n g wi l l i n c r e a s e t h e TOC o f E V, i t ma k e s E V a f f o r d a b l e i n t h e i n i t i a l s t a g e . Mo s t E V ma n u f a c t u r e r s h a v e avoided battery leasing, and have gone a h e a d wi t h s e l l i n g b a t t e r i e s a l o n g wi t h E V. Ho we v e r , ma n u f a c t u r e r s l i k e Re n a u l t h a v e t r i e d b a t t e r y l e a s i n g a n d ma n a g e d t o t o p t h e E V s e l l i n g l i s t . Th u s , b a t t e r y r e n t i n g c a n b o o s t t h e s a l e s o f E V a n d p r o t e c t c u s t o me r s f r o m the rapidly changing technology of batteries.

| SEPTEMBER ISSUE 2020

Re c e n t l y , t h e Mi n i s t r y o f Ro a d Tr a n s p o r t a n d Hi g h wa y s h a s r e l e a s e d a s t a t e me n t t h a t e l e c t r i c t wo - wh e e l e r s a n d t h r e e wh e e l e r s c a n b e s o l d a n d r e g i s t e r e d wi t h o u t b a t t e r i e s b a s e d o n t h e t y p e a p p r o v a l c e r t i f i c a t e i s s u e d b y t h e Te s t Ag e n c y . F u r t h e r , s t a n d a r d s a r e b e i n g d e v e l o p e d f o r v a r i o u s c o mp o n e n t s o f t h e EV ecosystem in India by several original e q u i p me n t ma n u f a c t u r e r s ( OE Ms ) , b a t t e r y ma n u f a c t u r e r s a n d o t h e r s t a k e h o l d e r s .

Th i s i s e x p e c t e d t o p r o mo t e i n t e r o p e r a b i l i t y b e t we e n c o mp o n e n t s o f the EV sector including energy providers, v e h i c l e s , b a t t e r i e s a n d c h a r g e r s . Th i s wo u l d a l s o e n a b l e u s e r s t o a c q u i r e o r exchange batteries and other c o mp o n e n t s f r o m d i f f e r e n t s u p p l i e r s .

S t a n d a r d i z i n g a s s i s t s i n ma i n t a i n i n g q u a l i t y a n d r e d u c i n g c o s t o f c o mp o n e n t s .

Th i s i s a i me d a t c r e a t i n g a s u s t a i n a b l e e n v i r o n me n t f o r b a t t e r y - l e a s i n g a n d b a t t e r y s wa p p i n g i n I n d i a .

Ba t t e r y - l e a s i n g p r o t e c t s c u s t o me r s f r o m b a t t e r y p r i c e d e p r e c i a t i o n . Ba t t e r y o n c e p u r c h a s e d b e c o me s u n e c o n o mi c a l t o b e r e p l a c e d e s p e c i a l l y i f i t i s o u t o f wa r r a n t y .

E v e n i f a b a t t e r y f a i l s , t h e c u s t o me r d o e s n o t n e e d t o wo r r y a b o u t i t , a s i t wo u l d b e taken care of by the battery leasing c o mp a n y . S o b a t t e r y - l e a s i n g e n c o u r a g e s a n d i n c r e a s e s c o n f i d e n c e i n c u s t o me r s t o b u y E V. I t i s t i me n o w t o s e e h o w t h e f i n a n c i a l mo d e l e v o l v e s b o t h f o r t h e b a t t e r y l e a s i n g c o mp a n y a n d t h e c o n s u me r s .

As b a t t e r y t e c h n o l o g y ma t u r e s , t h e p e r f o r ma n c e o f b a t t e r i e s mi g h t n o t c h a n g e mu c h a n d c o n c e r n a b o u t b a t t e r y l i f e a n d d e g r a d a t i o n wi l l b e r e d u c e d .

Th e n , b u y i n g a b a t t e r y ma y b e a s u i t a b l e o p t i o n . Ti l l t h e n , Ba t t e r y - l e a s i n g i s i n d e e d a better option in the initial adoption p h a s e s o f E V a n d c a n b e t h e n e x t g a me c h a n g e r f o r E l e c t r i c Mo b i l i t y i n I n d i a .

PG 15

SACHIN KUMAR CEO, PANINE

Wh e n l o o k i n g f r o m a Us e r ’ s p e r s p e c t i v e a b o u t E l e c t r i c Ve h i c l e , i r r e s p e c t i v e o f wh e t h e r p e r s o n a l mo b i l i t y o r c o mme r c i a l u s a g e , t wo ma j o r c o n c e r n s t h a t c o me u p Range and Battery life, if you look deeper into it are the p r o b l e ms o f o p e r a t i n g e x p e n d i t u r e a n d c a p i t a l expenditure. To counter the problem of range anxiety, the g o v e r n me n t a n d i n d u s t r y h a s d o n e s u b s t a n t i a l wo r k a n d i s i mp r o v i n g t h e a c c e s s t o c h a r g i n g n e t wo r k s b y t h e mi n u t e . Bu t , wh a t a b o u t t h e b a t t e r y l i f e a n d c a p i t a l c o s t s a s s o c i a t e d wi t h i t ? To l o o k a t t h e p a r a l l e l s f r o m t h e p e t r o l e u m v e h i c l e s , a ma j o r wo r k o n t h e e n g i n e wo u l d n ’ t c o s t mo r e t h a n 1 0 % o f t h e v e h i c l e c o s t , t h a t t o o i n 5 - 8 y e a r s . Bu t wh a t a b o u t t h e E l e c t r i c Ve h i c l e wh e r e t h i s r e p l a c e me n t c o s t c o u l d b e b e t we e n 4 0 % t o 5 0 % o f t h e v e h i c l e a n d t h a t t o o i n h o w ma n y y e a r s ? No o n e i s 1 0 0 % c e r t a i n a b o u t t h e a n s we r s t o t h e s e q u e s t i o n s i r r e s p e c t i v e o f t h e s i z e o r s c a l e o f t h e o r g a n i z a t i o n . Th i s g a p p r i ma r i l y c o me s , b e c a u s e a s a c o u n t r y , I n d i a h a s n ’ t s e e n a 1 0 y e a r s ma s s u t i l i z a t i o n c y c l e o f E Vs a n d t h u s l a c k t h e o n - g r o u n d u s a g e d a t a . Ac r o s s t h e g l o b e , E V b a t t e r i e s h a v e s h o wn a v e r y d i f f e r e n t p e r f o r ma n c e o n t h e r o a d s wh e n c o mp a r e d to labs and controlled test facilities.

To t a c k l e t h i s p r o b l e m o f l a c k o f t r u s t i n Ba t t e r y l i f e t h e r e a r e t wo ma j o r a p p r o a c h e s – Ba t t e r y S wa p p i n g a n d F a s t Ch a r g i n g Ba t t e r y l e a s i n g .

F r o m Be t t e r P l a c e ( a $ 1 Bn d i s a s t e r ) t o Te s l a ’ s s h o r t s t i n t wi t h b a t t e r y s wa p p i n g , t i me a n d a g a i n , i t h a s s h o wn t h a t b a t t e r y s wa p p i n g i s n e i t h e r o p e r a t i o n a l l y f e a s i b l e n o r financially viable. The biggest selling point of EVs is low o p e r a t i n g c o s t b u t s wa p p i n g t a k e s t h e o p e r a t i n g c o s t s t o a n o t h e r l e v e l . S wa p p i n g i s p o o r g r a d e Te c h n o l o g y ’ s f o r a y i n t o E Vs . S wa p p i n g i s c a p e x a s we l l a s Op e x h e a v y , | SEPTEMBER ISSUE 2020

that's what makes their pricing astronomically high.

That’s the reason that organizations with 100s of Crore rupees in their Bank Account haven't been able to reach a scale to boast about.

The Alternate is Fast Charging Battery Leasing. Battery leasing is everything that puts User’s to ease and its capital and operationally efficient. It takes care of the Battery replacement cost anxiety, Users don’t have to roam around swapping stations. A true freedom from high operating costs as well as particular infrastructure requirements. In fact, most of the residential electricity connection can take care of EV charging. What Battery leasing wouldn’t do is 5 minutes turn around, but the bigger question is, does everybody need a 5 minutes turn around. With constant upgrades in fast charging, Battery leasing is the true elixir that EVs need and is the only viable solution at mass scale. Battery leasing is the only solution that is infinitely scalable at a rapid pace and can reach far and wide and can still remain economically viable. The only fundamental requirement is, high end Battery technology which can support charging time reduction upgrades with time.

Under 30 minutes of full charge is the time parity where EVs will beat petroleum Vehicles both in terms of financial and utility conform ie. Capex/Opex and Range/time.

With each passing day, the battle is turning interesting between Battery swapping and Battery leasing and battery leasing has all the advantage to win this battle and wage the war against the petroleum vehicles.

Interesting times ahead, fingers crossed.

PG 16

SIDDHARTH SREENIVASAN, COFOUNDER, CMO NUMOCITY TECHNOLOGIES

I n d i a n Go v e r n me n t , mi n i s t r y o f r o a d t r a n s p o r t a n d h i g h wa y s ma d e a n a n n o u n c e me n t t h a t a l l o ws t h e s a l e a n d r e g i s t r a t i o n o f E Vs wi t h o u t b a t t e r i e s . T h i s a n n o u n c e me n t h a s r e c e i v e d mi x e d r e s p o n s e f r o m t h e i n d u s t r y , s o me s e e t h i s a s a n o p p o r t u n i t y t o u n b u n d l e t h e c o s t s a n d o p e n n e w b u s i n e s s mo d e l s .

T h e o t h e r a l t e r n a t e v i e w c o me s f r o m t h e c h a l l e n g e s t h i s b r i n g s i n b y mo v i n g t h e r e v e n u e t o l o n g t e r m subscriptions.

We s e e t h i s a s a mi x e d b a g , a n d t o me n t i o n s o me o f t h e p o t e n t i a l b e n e f i t s ; Th i s r e d u c e s t h e u p f r o n t c o s t o f a c q u i s i t i o n f o r E V s wh i c h s h o u l d mo t i v a t e e a r l y a d o p t e r s t o mo v e t o wa r d s E l e c t r i c v e h i c l e s . T h e n e w p o l i c y p r o v i d e s f l e x i b i l i t y i n a s s e t p r i c i n g wh e n v e h i c l e o wn e r s h i p mo d e l s a r e c h a n g i n g t o wa r d s r e n t a l , o n d e ma n d , v e h i c l e p o o l i n g , s u b s c r i p t i o n s a n d f r a c t i o n a l o wn e r s h i p . S e p a r a t i o n o f t h e o wn e r s h i p o f B a t t e r y a n d Ve h i c l e e n a b l e s n e w b u s i n e s s mo d e l s a r o u n d s e c o n d l i f e a n d n o n mo b i l i t y a p p l i c a t i o n o f b a t t e r i e s . Th i s a n n o u n c e me n t i s a l s o s e e n a s a ma j o r b o o s t f o r b a t t e r y s wa p p i n g a n d b a t t e r y r e n t a l s u b s c r i p t i o n mo d e l s . Th e c o n s u me r b e n e f i t s t o o b y t h e s e p a r a t i o n o f r i s k o f b a t t e r y d e g r a d a t i o n f r o m t h e v e h i c l e wa r r a n t y . Mo r e i mp o r t a n t l y , we s e e t h i s p o l i c y wi l l a l l o w p a r t i c i p a t i o n o f p l a y e r s o t h e r t h a n Au t o mo t i v e OE MS / Ba t t e r y OE MS i n t o t h e Va l u e c h a i n o f E V b a t t e r i e s Th e r e a r e a l o t o f g r e y a r e a s a n d p o s s i b l e c h a l l e n g e s i n t h e ma r k e t ; Th e t a x a t i o n s t r u c t u r e f o r Ba t t e r i e s i s l a n d f o r t h e v e h i c l e wi l l b e d i f f e r e n t a n d n e e d s t o b e h a r mo n i s e d . Th e v e h i c l e OE Ms h a v e t i g h t l y c o u p l e d t h e B a t t e r y d e s i g n a n d Ve h i c l e d e s i g n t o g e t b e t t e r e f f i c i e n c i e s b u t t h i s wi l l a l s o c h a l l e n g e t h e p o s s i b i l i t y o f s wa p p i n g t o a l i mi t e d n u mb e r o f E V mo d e l s i n a g i v e n s e g me n t . B a t t e r y s wa p a s a mo d e l o f e n e r g y s u b s c r i p t i o n i s n o t f u l l y p r o v e n i n t h e ma r k e t , f o r i n s t a n c e t h e c a p e x o f r u n n i n g Ba t t e r y f l e e t i n v e n t o r y i s a f i n a n c i a l r i s k i n l i g h t o f u n k n o wn r e a l wo r l d a n d l o n g t e r m p e r f o r ma n c e o f b a t t e r i e s . Th e r e i s a l s o l a c k o f c l a r i t y o n t h e l i a b i l i t i e s t h a t wi l l a r i s e i n c a s e o f a c c i d e n t s o r p r o b l e ms a r i s i n g o u t o f Ba t t e r y s wa p p i n g n o t clearly established.

On e t h i n g i s f o r s u r e , t h i s a n n o u n c e me n t wh e n r o l l e d o u t wi l l h e l p i n a c c e l e r a t i n g a d o p t i o n o f e l e c t r i c v e h i c l e s i n p r i v a t e a n d f l e e t s e g me n t s b y r e d u c i n g t h e i n i t i a l c o s t o f o wn e r s h i p .

| SEPTEMBER ISSUE 2020

PG 17

PERSPECTIVE

Going Long And Strong:

WHAT ARE THE LATEST BREAKTHROUGH IN ELECTRIC CAR BATTERY TECHNOLOGY?

Battery is the fundamental part of an electric car and currently Lithium Ion batteries are in use predominantly. In the pursuit of a rechargeable battery that can power electric vehicles (EVs) for hundreds of miles on a single charge, scientists have endeavored to replace the graphite anodes currently used in EV batteries with lithium metal anodes.

But while lithium metal extends an EV’s driving range by 30–50%, it also shortens the battery’s useful life due to lithium dendrites, tiny treelike defects that form on the lithium anode over the course of many charge and discharge cycles.

What’s worse, dendrites short-circuit the cells in the battery if they make contact with the cathode. Big technology and car companies are all too aware of these limitations of lithium-ion batteries.

Hence, they are of the opinion that there’s still plenty of room for improvement in the battery technology that powers electric cars. So, do we have better alternatives? And if we do, then what are they? Find it out here as our industry specialists give us a glimpse of these alternatives

Elon Musk’s (Tesla) announcement of Battery Day in September 2020 re-kindled interest in breakthrough battery technologies being pursued globally.

RAVINDRA MOHAN, DIRECTOR - BUSINESS & STRATEGY, CHARGE+ZONE

Battery manufacturers are targeting the following aspects of EV batteries:

Lower costs – achieving a tipping point where EV can better the price of equivalent ICE.

Some Change comes slowly but they are game changers, whenever they occur. Battery price breaching $100/kWh will be one such change.

Faster charging time – make the customer

Bloomberg : Demand for lithium-ion batteries is forecast to surge after a virus-linked stumble in 2020

Higher power and energy density – leading to more

| SEPTEMBER ISSUE 2020

experience with EV akin to fuel filling of an ICE, thus mitigating wait anxiety at fuelling / charging station.

range of EVs, equalling and surpassing the ICE to mitigate range anxiety.

PG 18

Battery life – increase in number of charging cycles, thus giving a second life to batteries, and reducing TCO An 87% plunge in the past 10 years in battery prices, possible through technological innovations.

Today’s batteries cost about $147/kWh, down from about $1,000 in 2010 and $381 in 2015 and the effort of all players is to breach $100/kWh threshold.

We will peek into a few initiatives by – Tesla, IBM, Samsung, VW, CATL and others as what all is on table to give credence to talk of technological breakthroughs.

Innovations in battery chemistry will rely on usage of low-cobalt / nickel and cobalt-free battery, use of solid electrolyte, use of sea as source of raw materials etc.

Promise of a million miles from a given battery pack, could spur EV sales the same way the first 100,000-mile warranties on gas cars once did. Mitigating fears of short range and high battery replacement cost.

Most interesting cases belong to stable of Tesla. Musk has shared on Twitter, that batteries with 400 watt hours per kilogram and long lifecycles, are highly likely in the next three to four years and will be mass produced. The difference made by a single letter: R, Liion to Li-iron is at centre of Tesla’s push in China.

Tesla is planning to disrupt EV battery market, by using lithium iron, not the lithium ion, which is the main stay of NCA or NCM batteries used to date by it.

The replacement or reduction in use of expensive and controversial element cobalt from batteries will drive down the price and will be hailed as environmentally sustainable too. Further, by eliminating Nickel too, which is priced in the range of one third to as much as one half the price of cobalt, lab research shows there is a possible pathway to drive pricing down to as low as $80/kWh. Some of these technical advances made in battery chemistry trace their origin to a small research lab at Dalhousie University in Halifax, Nova Scotia.

Contemporary Amperex Technology (CATL), plans to supply Tesla in China next year with an improved longlife nickel-manganese-cobalt (NMC) battery whose cathode is 50% nickel and only 20% cobalt.

CATL also claims to have developed a simpler and less expensive way of packaging battery cells, called cellto-pack, which will eliminate the middle step of bundling cells. Tesla is expected to use this technology to help reduce battery weight and cost.

The Volkswagen AG on June 16, 2020 announced an additional investment of $200 million in QuantumScape Corp., a battery technology start-up founded by former Stanford University researchers, after committing $100 million in 2018.

Another disruptive technology announcement has been made by IBM Research lab (innovation arm of tech company IBM). This type of batteries lends themselves to rapid charging rates, by achieving an 80 percent charge within five minutes, which is similar to filling tank of ICE at fuel station. IBM claims, a power density in excess of 10,000 W/L, and energy density more than 800 Wh/L, based on lab trials. These either match / exceed standard lithium-ion batteries. The battery is made from three materials that can be extracted from seawater, a much less invasive sourcing method than mining (lithium iodide, a cobalt- and nickel-free cathode material and a new and proprietary electrolyte formulation etc.).

IBM has partnered with Mercedes-Benz Research and Development, North America battery companies Central Glass and Sidus to take next steps from exploratory research level phase to mass production phase.

Samsung is piloting solid-state batteries innovations at Samsung Advanced Institute of Technology (SAIT) and the Samsung R&D Institute Japan (SRJ). They have experimented by removing the lithium metal anodes found in solid-state batteries. In its place used a silvercarbon composite layer (five micro-meters thick). This gave the battery a larger capacity, longer life cycle, faster charging time than present Li-ion batteries and improved overall safety. These can give an EV a range of about 500 miles and have a lifecycle of more than 1,000 recharges. In other words, an EV with a battery that lasts for up to 500,000 miles.

Assuming further testing and development continue smoothly, Samsung' s discovery could be a turning point in battery and EV history.

Switzerland’s Innolith has claimed a major battery breakthrough by replacing the organic (and highly flammable) solvent containing the electrolytes with an inorganic substance that’s more stable and less flammable. This battery would be capable of powering an electric car for 1,000 KMs (621 miles) on a single charge. They are likely to bring this new battery to market via an initial pilot production in Germany, followed by licensing partnerships with major battery and automotive companies. Company representatives has cited India as one country that could be interested in Innolith’s technology.

GM is targeting to reduce cobalt content to about 4.5% of the battery, down from present 18%, with more manganese and nickel, plus some aluminium, making up the difference. It is opined that this may help GM to breach the $100/kWh threshold. | SEPTEMBER ISSUE 2020

PG 19

Na-ion vs LFP battery

JAMES QUINN CEO, FARADION LIMITED

Lithium-ion batteries have revolutionized our lives since they first entered the market in 1991. Owing to their high energy density and long driving range per charge, they are currently the go-to batteries for electric vehicles (EVs). However, lithium-ion batteries are unlikely to be a sustainable, long-term solution for our future energy needs.

The key constituents of these batteries are lithium, cobalt, manganese and nickel. Lithium is a scarce element and most of the reserves are controlled by China, whose lithium reserves are 30 times those of the USA. India continues to rely heavily on China for this purpose. The other components like cobalt are associated with humanitarian issues in the mining process such as child labor. Additionally, almost 72% of the world’s reserves of cobalt are in the Democratic Republic of Congo, and largely owned by China.

Manganese and nickel are rare minerals and difficult to mine.

In contrast to lithium-ion, lead-acid batteries offer lower performance and contain lead, a toxic material.

Although these are much cheaper and more prevalent, they are bulky, possess very poor energy density and therefore not as suitable for EVs. Sodium-ion (Na-ion) batteries offer a sustainable, safe and secure alternative to lithium-ion and lead-acid batteries. The Na-ion battery works exactly in the same way as a lithium-ion battery, just with the lithium compounds swapped with sodium compounds. The main component sodium for these batteries is easily available in the form of sea water, especially in a country like India, which has a long coastline. It is important to note that these batteries do not use problematic components such as cobalt, lead or lithium and are a much cleaner and safer alternative. Their performance is far better when compared to lead-acid and lithium-ion batteries, as shown in the images below.

In contrast to lithium-ion, lead-acid batteries offer lower performance and contain lead, a toxic material. Although these are much cheaper and more prevalent, they are bulky, possess very poor energy density and therefore not as suitable for EVs..."

| SEPTEMBER ISSUE 2020

Na-ion vs Pb-A battery

*

*On Total Cost Of Ownership The technology benefits of sodium-ion batteries are also notable. These batteries can be discharged to zero volts like a capacitor and therefore, the risk of fire hazards is low. Faradion’s prototype cells deliver energy density in excess of 150 Wh/kg, Sodium-ion cells have demonstrated performance and excellent capacity retention over the temperature range -30°C to +60°C. The (round trip) energy efficiency of sodium-ion batteries is > 95 %, in contrast with a lead-acid battery that has an energy efficiency of circa 70%. They are an excellent drop-in replacement for lead-acid batteries for low cost electric transport – in LSEVs, e-scooters or as batteries for e-rickshaws and e-bikes – offering much greater range and carrying capacity for a similar price.

At Faradion, we are in a unique position to have developed sodium-ion batteries that can be manufactured on existing lithium-ion lines. This means no additional asset investment is required from the manufacturer to produce our batteries.

Sodium-ion batteries have the potential to become an integral part of India’s future in clean transportation and could just prove to be the answer to a sustainable battery technology.

PG 20

INSIGHTS

EV Charging Infrastructure After COVID-19

With the COVID-19 pandemic, EV markets are expecting a drop in sales. For the EV charging industry, this will inevitably lead to a slower market in coming years, with IHS Markit anticipates that this will last up to 5 years.

Obviously, a reduction in EV production and adoption will be a significant contributor to the slowdown in EV charging infrastructure development. This will likely have a compounding effect, as a lack of key infrastructure is critical in purchase decisions for people seeking to switch from combustion engines to EVs, and this hesitation by the market may further delay the establishment of new EV charging infrastructure.

However, investment in EV charging startups is showing some growth, with the long-term view that growth will pick up markedly in the next 3 to 7 years. One key investment area has been fastcharging technologies, which, in combination with the cost of EVs being expected to drop below that of vehicles that run on other greener fuels such as gas, should lead to an increase in EV adoption.

It is also likely that this chain of events will see auto industries become increasingly more intertwined with the electric grid sector.

Green Recovery Plan and Investment Around the World Governments around the world are also implementing policies to encourage the sale of EVs and further development of EV charging infrastructure. The European Green Deal, which focuses on developing green industries, has set out to see nstallation of 1 million charging ipoints across the continent. Draft documents from the European Union show that countries will be further incentivizing EV manufacturers to produce cleaner | SEPTEMBER ISSUE 2020

cars and investors to put money into EV charging infrastructure.

In addition to investing over US$1.4 billion to expand EV charging infrastructure by 50% in 2020 and exempting purchase tax on new EVs, China’s government is also making efforts to stimulate the EV market and establish itself as a world leader in greener vehicles by extending subsidies on new EV purchases until 2022.

In the United States, state and local governments in New York alone have announced an investment of US$750 million dollars into the development of EV charging infrastructure by 2025.

Given that EV charging infrastructure is set to grow from US$2.5 billion in 2019 to US$27 billion by 2027, it is clear that government policy is aimed at strengthening infrastructure so that sufficient charging stations are available so as to promote the EV market and green energy use as a whole.

Key Developments in Commercial and Home EV Charging Infrastructure Regardless of whether predictions surrounding an increase or decrease of EV adoption are true, the key point remains that EV charging infrastructure must be significantly developed to support future EV adoption. The expected slowdown in EV purchases over the next few years just may well be the perfect opportunity for charging infrastructure to undergo further development so that it can provide better support any future increase in EV adoption.

Providing EV owners with a faster charge experience, lowering power demand from the grid, and establishing upgradable charging equipment are central to futureproofing EV charging infrastructure. These considerations ensure a smoother customer experience, lower operating costs for charge point operators, and the ability to upgrade equipment as new technologies emerge.

While public charging infrastructure is critical to the longterm success of the EV market as a whole, EV owners being able to charge their vehicles at home is also a consideration that will stimulate market conditions and overcome obstacles to positive purchase decisions. Although the same issues persist for home charging, the obvious limit on the number of vehicles requiring charging means that infrastructure requirements are much lower than that of public charging stations.

A faster charging experience, affordability, and the ability to upgrade equipment as new technologies develop will be critical for the success of manufacturers of EVs and EV charging equipment. In the immediate face of the COVID-19 pandemic, this approach to EV charging is a solution that also considers social distancing measures.

Akshaye Barbuddhe Business Head- Energy Infra Solutions, Delta Electronics India Pvt Ltd

PG 21

INSIGHTS

WHY RIDE-HAILING IN INDIA SHOULD GO ELECTRIC

RECENT POLICY ADVANCEMENTS IN FAVOUR OF FLEET EVS OFFERS NEW MARKET OPPORTUNITIES:

INTRODUCTION Over the past decade, among various forms of urban commute, the ridehailing industry in India has grown significantly. Ride-hailing apps have provided a convenient, hassle free and accessible option for commute, and have quickly become popular. Ride-hailing vehicles now represent a significant share of traffic in cities and their projected growth presents an even deeper complication – of rising urban air pollution.

Fortunately, electric vehicles (EVs) have emerged as a viable alternative solution in ride-hailing services, and the benefits offered by EVs; from environmental, financial and energy security perspectives; is shaping consensus among mobility stakeholders in India, for the need to transition.

Through working with India’s EV value chain, the World Business Council for Sustainable Development (WBCSD) has identified ride-hailing as a scalable use case for EV adoption. This article looks at a few reasons why ride-hailing has the potential to lead the electric mobility transition in India.

| SEPTEMBER ISSUE 2020

Policy efforts at both the national and state levels to support electrification of electric ride-hailing fleets are intensifying, specially over the past two months. Some of the long-awaited EV policy measures, relevant to ridehailing, have come to fruition.

A few of the key advancements include recognition of battery swapping as another form of charging EVs; registration and sale of electric twowheelers (2Ws) and threewheelers (3Ws) without batteries; and preferential treatment through legalization of electric twowheeler taxis in some states.

PG 22

App-based ride hailing services is a large market and can create significant impact: Ride-hailing is evolving into a preferred form of commute in Indian cities. It has been proj ected to grow at a compound annual growth rate of 19. 1% and a turnover of USD $ 52. 5 billion by 2024. As per WBCSD’ s analysis, a 100% adoption of electric ride-hailing cars in India by 2030 would avoid 51% of the CO2 emissions caused by their internal combustion engine (ICE) counterparts.

Higher utilization levels in ride-hailing makes EV adoption economically viable: The upfront cost of EVs are higher than ICE vehicles, i. e. , 30% more expensive for cars. However, due to their lower running cost, most EVs are already economically viable and achieve total cost of ownership (TCO) parity to their ICE counterpart of their daily utilization is high enough, i. e. , above 100 for both two and three wheelers; and above 200 kms for cars.

Ride-hailing EVs should be ahead in adoption priority compared to personal EVs: Electrification strategies should be focused more on increasing the proportion of kms travelled in EVs than increasing the number of EVs on road. Ride-hailing cars typically travel more than 50, 000 km a year, compared to 12, 000 km per year for personal cars. Thus, electrification of a ride-hailing car offers upwards of four times the environmental benefits compared to a private vehicle.

Recent policy advancements in favour of fleet EVs offers new market opportunities: Policy efforts at both the national and state levels to support electrification of electric ride-hailing fleets are intensifying, specially over the past two months. Some of the long-awaited EV policy measures, relevant to ride-hailing, have come to fruition. A few of the key advancements include recognition of battery swapping as another form of charging EVs; registration and sale of electric two-wheelers (2Ws) and three-wheelers (3Ws) without batteries; and preferential treatment through legalization of electric twowheeler taxis in some states. These policy advancements extend new opportunities for ride-hailing companies to capture economically viable options and take advantage of the developments, especially for 2W and 3W vehicle segments.

Ride-hailing EVs can set the ball rolling for personal EV adoption: The integration of EVs in ride-hailing operations is also a progressive way forward to both catalyze EV’ s uptake and substantially enhance public awareness of the technology, which could lead to personal adoption.

Several forward-looking ride-hailing businesses have adopted EVs already: The application and scale of EVs are not limited to government fleets or as e-rickshaws, as it was a few years ago. The technology has started to find its place across various vehicle segments and use-cases, including ride-hailing. Numerous companies such as BluSmart (4Ws), Smarte (3Ws) and Bounce (2Ws) have deployed electrified ride-hailing services and having tested the waters, corroborates the business viability argument for EVs. The ride-hailing boom and acceleration of electrification efforts are among some of the key transitions that have occurred in the Indian urban mobility space in the past decade. As we enter the next decade, it is time that the convergence of these two transitions must happen. It is highly unlikely that a single stakeholder, business model or city pilot breakthrough will bring about this transformation. Extensive collaboration with various stakeholders will be required to create impact at scale.

APPURVA APPAN ASSOCIATE, REMOBILITY, WBCSD

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INSIGHTS

AND, IF I DO MEET MR. JULES VERNE, I WILL REQUEST HIM TO REWRITE HIS FANTASY BY CHRISTENING IT “AROUND THE WORLD IN EIGHT MINUTES.”

Mobility DRIVEN BY #TECHNOLOGY, INSPIRED BY #SUSTAINABILITY. MOBILITY COULD TAKE YOU AROUND THE WORLD IN 80 DAYS.

I had read this masterpiece as a child (gifted to me by my grandfather). According to Phileas Fogg, the protagonist in Jules Verne’s epic “Around the world in 80 days” he says that the world could be toured in 80 days. He mentions rail and steamers as the main modes. I would imagine that there would have been some horsedrawn carriages for the intra city commutes, as well as some hand pulled rickshaws in Calcutta and the Far East. That brings me to the point that mobility was and always will be multi-modal.

A LOT OF CONNECTED VEHICLES OFF LATE

From Maruti to MG Motors (Hector); from Hyundai (Venue) to Kia (Seltos), we have seen a flurry of market making vehicles launch in India; which have captured the imagination of the digital generation and that is evidenced by the reported volume sales statistics. This is a great precursor to what might become the conduit for more sustainable mobility. We can unplug, refactor, repurpose any technology today and make it work for us - our Planet.

In a recent report published by Microsoft, Sanjay Ravi who is General Manager Microsoft says, “The vehicle is becoming more and more software-defined, as automakers rebuild architectures to meet tomorrow’s new connected experiences and mobility services. The industry is adopting new business models built on a comprehensive connected digital infrastructure.”

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He also adds that, “However, we must not forget that along with this innovation comes the responsibility for our industry to ensure sustainability and safety in everything we do.”.

The full report can be accessed at https://psfk.com/report/reimagining-automotive

MOBILITY NEEDS AN ECOSYSTEM TO FULFILL ITS PROMISE As I alluded to earlier, that mobility is complete only when it is multimodal. That means the commuter should be able to have a frictionless experience going from point A to B which may involve personal and shared vehicle, human powered vehicles like cycles; bus, rail, water, air.

While technology providers are providing mobility platforms, it will require a whole lot of actors to come in and connect their microservices e.g.

1. Location Intelligence that enables “green” commutes 2. Public Transit Data and Intelligent insights for commuters 3. Multimodal Transport – Car, 2-wheeler (motorized and non-motorized), Rail, Road, Air, Sea and how can technology bring it all together.

4. PAYD Insurance and technologies that enable it.

5. In Vehicle Digital Assistants – Example “Hello Hector” from MG Motors 6. The In-Vehicle-Infotainment unit has the 3rd screen that has the potential to augment human productivity on the go as well as extend her digital life. If Alexa manages the home, then a smart digital assistant should manage her boss’s commute and work. I presume if both are friendly to each other, life will be better.

SUSTAINABILITY IS THE X-FACTOR FOR MOBILITY With enhanced emission norms for vehicles, it still raises a lot of questions on the carbon trail that these vehicles generate. We know for a fact that the pathogens we perpetrate in our ecosystem is partly caused by irresponsible emissions.

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At the end, sustainability is common sense. Why do we need multiple cars per family (especially the big ones)? Why can’t we instead improve our shared mobility’s safety and health aspects?

Why should we not tax multiple cars in families? (just like you have Pay-as-you-Drive Insurance premiums, should not there be Pay-as-you-Own Tax?).

There’s lots to be done on our own sense of “affluence” and the “consumption” that goes with it.

WHAT IF WORK FROM HOME OR ANYWHERE, BECAME AN ACCEPTED NORMAL? With path breaking innovations happening in communication and collaboration technologies, we are all getting used to working smarter and better and our customers/consumers are doing so as well.

If we talk about in person meetings, then it is quite likely we will be able to holoport our digital twins to our meeting place on the other side of the planet in some time, in the not so distant future.

90% of our requirements are today coming to our doorstep.

And, if I do meet Mr. Jules Verne, I will request him to rewrite his fantasy by christening it “Around the World in Eight Minutes.”

R R DASGUPTA Is an industry professional who currently works with MICROSOFT CORPORATION The views expressed in this article are personal and does not in any way represent the views of the companies he is associated with

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PERSPECTIVE

AUTOMOBILE SUBSCRIPTIONS BUSINESS MODEL FOR EV FUTURE?

The automotive industry is responding to the subscription based model by developing its own unique, customized subscription offerings. In addition to being highly flexible, automobile subscription programs are perceived as being more cost-effective than traditional car leases, rentals, or outright purchases. They seem tailor-made for groups like new immigrants, expats, and millennials who want simple, economical, hassle-free temporary mobility solutions with easy cancellation and return policies.

They appear made-to-order for vehicle enthusiasts who are keen on trying out a new car every month, without necessarily burning a hole in their pockets. And, finally, they seem ideal for the average customer who would, one imagines, be pleased to avoid dealing with cumbersome car ownership/rental/lease processes. With leading automobile players launching subscription plans, it is time to understand if this is a sustainable model for enhancing the EV future. Let' s find out‌

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AKASH GUPTA CEO & CO-FOUNDER, ZYPP ELECTRIC MOBILITY

Subscription models have become the new normal even for the automobile industry, especially in metro cities. People are now more inclined towards renting a vehicle over buying one. The flexibility of plans and options have contributed profoundly to the growth of automobile subscriptions.

With global auto sales declining owing to the onset of the pandemic, COVID-19, 2020 is all set to see a steep rise in the adoption of vehicle rentals or subscription models, especially in the two-wheeler segment. The UK, the USA, India, and Australia continue to be the focal points in the automobile subscription landscape. India, unlike other business sectors, has been very agile and prominent in proving its might in the automobile subscription model.

RISE OF AUTO RENTAL AND SUBSCRIPTION MODELS DURING COVID-19 ERA

Owing to the drastic change in how people and businesses are working ever since the pandemic has hit geographies, a shift in mobility practices has also been noticed across the globe, and India is no exception.

Due to the negative impact of the pandemic on economies, auto sales are projected to decline by as much as 20% in the current fiscal. People who earlier had plans to buy new cars or two-wheelers have put a hold on their actions and shared mobility, on the other hand, is also facing a stern blow due to the growing fear of contamination. To top all this, restrictions on public transport have led people to look for alternatives that are easy to avail and at the same time affordable to opt for. And all these factors have created a better ground for more people leaning towards rental mobility from other forms of mobility options.

The Indian middle-class population has turned towards renting automobiles owing to flexible and affordable subscription packages, perks, and switching models seamlessly as and when he/she wants to, which aren’t available in the case of vehicle ownership. The rent-toown model has also become extremely popular owing to lower initial investment and fewer liabilities.

When scrutinizing the auto rental and subscription space, two-wheelers are seen to capture a higher ground over four-wheelers owing to safety concerns, lower subscription rates, and the ever-growing demand for on-demand last-mile and hyperlocal delivery. Auto rental businesses are increasing their two-wheeler fleet to match the overwhelming demands of the market.

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EVS AND SUBSCRIPTION-BASED BUSINESS MODEL With the burgeoning adoption and popularity of Electric Vehicles (EVs) and the current elevation in the automobile subscription model, EV subscriptions have gone up tremendously in India in the past few months.

More and more rental mobility startups are vouching for EVs. The recent push by Governments both at the center and states, like FAME-II and the most recent Delhi EV Policy financing has become easier. The fact that EVs are more sustainable and eco-friendly apart from being economical, has further contributed in favor of EV adoption.

Last-mile delivery, on-demand, and hyperlocal delivery scopes have flourished manifolds during the COVID-era starting early 2020. This has also resulted in a steep rise in demand for two-wheeler EV rentals, owing to better financing options, ease of mobility, and ecological merit. The recent EV policy announced by the Delhi government where lucrative incentives are promised on EVs, starting from scrapping benefits to easing road taxes, and more, has spurted the adoption of EVs among delivery boys, on-demand, and hyperlocal delivery start-ups, etc. Given the fact that renting an EV is way more cost-effective as compared to ICE vehicles, as refuelling with petrol or diesel isn’t a necessity, adoption rates are expected to surge further, especially among Indian middle-class and delivery executives.

With India’s aim to be an EV-led mobility nation in the imminent years, the rental or subscription-based mobility is all set to involve a larger share of EVs starting now. Rental or subscription-based mobility is sure to gain more adoption among middle-class Indians, especially now that public transportation and shared mobility is under heavy scrutiny. Flexible rental options and the provision to own a vehicle after a certain subscription period has changed the way people perceived the whole rental mobility practice in yesteryears. If the provisions declared in the blueprints of the EV policies are implemented appropriately across the nation with a fair center-state collaboration in terms of implementing the EV initiatives, an EV-led future is not far away for the Indian roads.

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SUNIL GUPTA MD & CEO, AVIS INDIA

Until recently, the electric car sector in India was one without much of a success story. The bottleneck for electric vehicles to dominate the automobile market was due to its fiscally daunting acquisition. The cost of an EV was twice that of its non-electronic counterparts.

However, of late, we have seen some green shoots in this segment with tailwinds in favor of EVs. Almost all the auto manufacturers are now eyeing an EV lineup for their global portfolio. This may not make EVs less expensive anytime soon, as they are powered by expensive lithium-ion batteries.

However, there is one business model in discussion now, which might make having an EV more feasible.

That is the availability of EVs on a subscription basis for private as well as commercial customers.

WHAT IS THE PLAN? Subscription model for EVs, however, an embryonic concept, this wind of change has started to blow everywhere including India. The automakers are now creating a new patchwork of novel subscription models and convenience for interested users of EVs to experience their myriad of benefits. For instance, Tata Motors recently launched a subscription scheme for its Nexon EV making electric SUVs more affordable for customers.

A recent report also suggests that the Indian electric car market is projected to reach $707.4 million by 2025.

On the other hand, with the market size projected to grow at a CAGR of 15-20%, subscription-based car rentals are swiftly gaining traction with a significant percentage of people opting for it. Realizing that EVs are the future, and that vehicle manufacturers are enthusiastic about the possibilities in subscription model for EVs, this may turn out to be a lucrative market for India’s automobile industry.

WHY GO FOR A SUBSCRIPTION MODEL? Car subscriptions offer a hybrid leasing and renting alternative to ownership, which is still considered a status symbol in India. These models are more flexible and short-term than a traditional lease. Its upfront cost is usually lower, thus making it more cost-effective than outright purchases.

Car subscriptions are also suitable for those who like to experiment and prefer variety rather than sticking with one car for a long time. In many cases, they swap out one model of car for another, without affecting the underlying subscription.

Besides this, subscription models are convenient for those in transferable jobs, as it eliminates the need to transport their car from one place to another as they move. Thus, you pay for access to transportation that accommodates your specific, ever-changing needs.

Furthermore, subscriptions usually offer comprehensive insurance coverage, on-call roadside assistance plus free maintenance and periodic servicing. Doorstep delivery and collection of vehicles as needed is another added benefit. Additionally, customers can have their own EV charger installed at their home or office, as convenient. The subscription models seems to take care of every practical expenditure related to owning a car.

Another key reason for subscription-based models is that brands are using new-age technologies to make the experience seamless for customers. Powered by Artificial Intelligence and Machine Learning Algorithms, car rental brands are leveraging best-in-class technology to ensure the safety and hygiene of customers. The user experience goal is to present a simple, streamlined continuity, with programs that add value, using just a mobile app.

Conclusion In times to come, the electric vehicle market will bloom.

And one area that can be explored is how used EVs can find their way into the vehicle subscription universe in the near future. For EV manufacturers, it would present an opportunity to boost the utilization rate of EVs, both in premium and mass market categories. If backed by smart EV infrastructure, and other advanced technological solutions that ensure the EVs are always charged and ready-to-go, then the result could be a match made in subscription heaven. Together the automakers as well as car rental service providers can popularize EV access and use in India providing customers experience ‘usership’ over ‘ownership’ in the rapidly growing era of shared economy.

These subscription models are tailor-made for groups like new immigrants, expats, and millennial' s who want simple, economical, hassle-free and temporary mobility solutions with easy cancellation and return policies.

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AMIT KAUSHIK EXECUTIVE DIRECTOR (GROWTH), ENERGY EFFICIENCY SERVICES LIMITED

Mobility is one of the fundamental building blocks of modern-day society. The ability to commute swiftly has enabled a metamorphosis and true to the perpetually mutable nature of our world, mobility itself is now undergoing a transition. The internal combustion engines are giving way to more efficient and ecofriendly electric powertrains. The underlying drivers for this shift is the need for increased energy security, lowering carbon emissions and a consideration for public health. Electric vehicles have emerged as a viable solution to meet these goals and have been in spotlight in the last few years.

EVs offer an array of advantages over their ICE counterparts. With zero tail pipe emissions, there is a significant reduction in GHG emissions. EVs also have considerably lower running costs of INR 0.90 per km, as compared to INR 5-6 per km for ICE vehicles. They are also remarkably cost effective to maintain because of less number of components. They also offer a much more tranquil driving experience, with less noise pollution because of the nature of electric powertrains, which doesn’t depend on combustion. Consequently, the government too has been working towards increasing the proliferation of EVs and has made significant headway with multiple favourable polices and incentives. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME)- II scheme plans to support the deployment of 10 lakh electric two wheelers, five lakh three wheelers, 55,000 four wheelers and 7,000 buses. Furthermore, several states have drafted strategies for transforming their mobility systems and a host of them have formulated or are in the process of formulating their EV policies. Targeted measures have also been taken by the government to bring down the cost of EVs. Vehicles without pre-fitted batteries are now allowed to register and EVs have been completely exempted from registration fees in many states. The GST reduction and the large scale establishment of charging infrastructure are also steps in the right direction.

The mobility transformation however, goes beyond technology and mechanical parts. Asset based ownership is slowly fading away to the annals of history, as we witness the emergence of a new subscription based model. This new innovation in mobility solutions has found synergy with the rising urban population that is conscious of factors like affordability and time. Consumers are also beginning to prefer user ship over ownership in the dynamic world of shared economy. While the subscription model has garnered great interest, it still remains in a nascent phase with tremendous untapped potential, especially for E-Mobility. | SEPTEMBER ISSUE 2020

The current model of upfront ownership of cars needs to evolve, for electric mobility to proliferate. To increase customer confidence in EVs and convince them to switch from ICE vehicles, the value proposition must be perceived as better and simpler for them personally. The subscription model, offers a myriad of benefits. First and perhaps the most important benefit is the mitigation of risk. As consumers adopt a new technology such as an EV, opting for a subscription model obviates the risk of high upfront investment. If for some reason, an electric vehicle is not a good fit, the consumer is able to opt out, which makes the subscription model highly attractive. It also means that more and more consumers can experience the benefits of EVs, without a prohibitive capital investment. This translates into increased consumer confidence and word of mouth spread of the superior value proposition of EVs. Rapid adoption of EVs is critical for enabling an alternate mobility future for India and while EVs are unlocking opportunities in product development and service delivery, it will be important to address the short-term and long-term barriers for mass adoption of EVs. Issues like range anxiety, high upfront costs and lack of charging infrastructure have to be obviated, with new and innovative solutions. There is also a need to make the consumers aware of the merits of eMobility, which will require proactive outreach and a compelling narrative. Conducive policies and new business models such as subscription, which can bring down the cost of using EVs, will be pivotal to enable a large scale and rapid adoption of eMobility.

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME)- II scheme plans to support the deployment of 10 lakh electric two wheelers, five lakh three wheelers, 55,000 four wheelers and 7,000 buses."

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PRAJYOT SATHE INDUSTRY MANAGER - MOBILITY, FROST & SULIVAN

In 2019, the global EV market experienced a modest 8.8% y-o-y growth, slowest in the decade with sales of 2,281,355 units. This was mainly due to the sales slowdown in China following the phase out of nearly 60% of incentives. The market in Europe grew by 68% y-o-y in the year, registering the highest jump ever. China remained the market leader with over 52.5% market share (or 1,195,606 units), followed by Europe (591,303 units) and the United States (320,062 units) with 26.0% and 14% shares respectively. A total of 345 models—221 BEVs and 124 PHEVs—was available for sale in 2019.

Over 320,000 public charging stations, including both AC and DC charging stations, were installed globally.

will offer warranty on battery packs up to a maximum of million miles. Currently the cost of battery varies between $100-$150/kWh which is likely to reduce by 40-50% in next 3-4 years which has given OEMs the confidence to sell such type of a warranty.

Government subsidies, growing charging infrastructure, OEM interest in introducing exciting models, emerging electric mobility business models have acted as key drivers in this market. The uptake ofelectric vehicles is highly dependent on emerging business models which is the main factor that influences the buyer’s decision.

All the key OEMs are working on developing business models as a service provider in the form of “integrated mobility service provider”. The biggest challenge for the acceptance of EVs is its limited range, charging infrastructure, high cost and resale value of the car.

ADDITIONAL SERVICE PACKAGES

Considering the major challenges, the industry is moving towards adoption of following business models which will help increase the EV penetration in the coming 3-5 years.

ALL-INCLUSIVE EV PERIODIC SUBSCRIPTION (INCLUDING SERVICE, MAINTENANCE AND REPAIR)

OEMs are likely offer periodic subscription (identical to a lease) for users to drive EV for a specific time period which will not require the user to pay any type of upfront cost at the time of acquisition.

A monthly fee would be applicable depending on the time period of usage the kilometres that are driven. The period may vary from 3-5 year which would be sufficient to cover 70-80% of the cost of the vehicle.

ASSURED BUYBACK VALUE

EV buyers are uncertain about the resale value which makes it difficult for the buyer to make a decision considering its end of life. Therefore, OEMs will offer assured buy back value at the time of purchase which is likely to be between 30-35% of the cost for a period of 4 years and 60,000 Kms for C segment mass market vehicle.'

OEMs are offering additional service packages that include services such as free charging, loaner vehicles, interoperable charging network and associated services. OEMs are working on establishing their network across different geographies predominantly to offer add-on service to its buyers by installing charging stations at every dealership. The package also offers a loaner vehicle which will enable the EV driver to travel long distances to meet long range requirements.

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME)- II scheme plans to support the deployment of 10 lakh electric two wheelers, five lakh three wheelers, 55,000 four wheelers and 7,000 buses."

MILLION MILE WARRANTY

Electric vehicle buyers are sceptical about the life of a battery which is the main component on the vehicle that decides value and usage. OEMs are therefore proposing “million mile warranty” which

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PERSPECTIVE

SALE OF ELECTRIC VEHICLES WITHOUT BATTERIES: WHAT ARE THE MISSING PIECES THAT PUZZLED THE MANUFACTURERS? Batteries account for almost half the cost of an EV, making them vastly more expensive than a combustion engine vehicle of similar performance. If the cost of batteries is delinked from that of the vehicle, electric twoand three-wheelers could cost less than fossil-fuel-powered vehicles. The price of an EV with a battery deters it from becoming a mass product.

Recently, The road transport and highways ministry allowed the sale of electric two- and three-wheelers without a pre-fitted battery to bring down the upfront cost of the cleaner vehicles making them more affordable. However, EV makers were left puzzled by this announcement as this brings forth the question that if EVs were sold without batteries how the subsidies under the Centre' s EV adoption policy would be determined. Under its Faster Adoption and Manufacture of Electric Vehicles (FAME) Policy, the government incentivises the purchase of EVs by giving direct purchase subsidies linked to the capacity of the battery on the vehicle. Read on to find what our experts have to say

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ASHISH MODANI VICE PRESIDENT CORPORATE RATINGS, ICRA LIMITED

I n d i a n ma r k e t i s a p r i c e s e n s i t i v e ma r k e t a n d “ e c o n o mi e s o f s c a l e ” i s c r u c i a l f o r a n a u t o mo t i v e OE M t o p r i c e i t s mo d e l c o mp e t i t i v e l y . At p r e s e n t , p r i c e s o f e l e c t r i c v e h i c l e ( E V) r e ma i n s s i g n i f i c a n t l y h i g h e r t h a n t h e i r I CE c o u n t e r p a r t s wh i c h a l o n g wi t h l i mi t e d r a n g e a n d l a c k o f p u b l i c c h a r g i n g i n f r a s t r u c t u r e r e s u l t e d i n mi n i ma l E V p e n e t r a t i o n i n t h e c o u n t r y . Go v e r n me n t s u p p o r t i n t h e f o r m o f d i r e c t / i n d i r e c t f i n a n c i a l i n c e n t i v e a s we l l a s r e g u l a t i o n wi l l b e c r u c i a l f o r E Vs t o g a i n t r a c t i o n i n t h e I n d i a n ma r k e t . I CRA e x p e c t s c e r t a i n a u t o mo t i v e s u b s e g me n t s l i k e t h r e e - wh e e l e r s ( 3 W) , t wo - wh e e l e r s ( 2 W, e s p e c i a l l y s c o o t e r s ) , i n t r a c i t y b u s e s a n d s ma l l c o mme r c i a l v e h i c l e s ( S CVs ) wi l l e me r g e a s e a r l y a d o p t e r s d u e t o c o mp a r a b l e t o t a l c o s t o f o wn e r s h i p wi t h I CE c o u n t e r p a r t s . Ho we v e r , E V p e n e t r a t i o n i s l i k e l y t o r e ma i n l o w i n t h e p a s s e n g e r v e h i c l e ( P V) a n d h e a v y t r u c k s s e g me n t . Ov e r t h e n e x t f i v e y e a r s , E V s wi l l account for 8-10% of new vehicle sales in 2W and intrac i t y b u s e s , wh e r e a s i t s s h a r e wi l l r e ma i n a b o u t 3 - 5 % i n t h e P V s e g me n t .

E a r l i e r , we h a d a n t i c i p a t e d t h a t h y b r i d v e h i c l e t o g a i n s t r o n g e r t r a c t i o n i n t h e d o me s t i c ma r k e t , t h a n k s t o l o we r t a x e s a n d a d d i t i o n a l F AME s u b s i d y . Ho we v e r , wi t h r e v i s e d t a x a t i o n s t r u c t u r e u n d e r GS T wh e r e E V a t t r a c t s 5 % d u t y a s c o mp a r e d t o 4 3 % f o r h y b r i d c o u n t e r p a r t s , a l o n g wi t h s u b s t a n t i a l r e d u c t i o n i n s u b s i d y u n d e r F AME II for hybrids - hybrid vehicles have lost their attractiveness.

I n t h e n o t i f i c a t i o n d a t e d Au g u s t 1 2 , 2 0 2 0 – Mi n i s t r y o f Ro a d Tr a n s p o r t & Hi g h wa y s ( Mo RTH) h a s a l l o we d r e g i s t r a t i o n o f e l e c t r i c v e h i c l e s wi t h o u t b a t t e r y . T h e i d e a wa s t o a d d r e s s o n e o f t h e k e y b a r r i e r s f o r E V a d o p t i o n i . e . h i g h u p f r o n t c o s t b y s e g r e g a t i n g b a t t e r y c o s t ( wh i c h accounts for about 40% of vehicle cost) thereby l o we r i n g p r i c e o f E Vs b e l o w I CE c o u n t e r p a r t s i n f e w c a s e s . Ba t t e r y s wa p p i n g a l s o s o l v e s t h e p r o b l e m o f r a n g e a n x i e t y , i f t h e r e a r e a d e q u a t e b a t t e r y s wa p p i n g s t a t i o n s i n a r e g i o n . B a t t e r y s wa p p i n g i s p r i ma r i l y t a r g e t e d a t t h e c o mme r c i a l s e g me n t , e s p e c i a l l y i n t h e 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 a n d d e l i v e r y b i k e s ( 2 w) . Th i s d i r e c t i v e h a s p a v e d t h e wa y f o r a d o p t i o n o f t h e b a t t e r y s wa p p i n g mo d e l , wh e r e b a t t e r i e s c a n b e p r o v i d e d o n r e n t / l e a s e a n d c a n b e s wa p p e d a t a u t h o r i z e d o u t l e t s . Wh i l e t h e i n t e n t i s a p p r e c i a b l e , i t a l s o r a i s e s c o n c e r n s r e g a r d i n g v i a b i l i t y o f b a t t e r y s wa p p i n g mo d e l b e c a u s e o f c h a l l e n g e s r e g a r d i n g s t a n d a r d i z a t i o n o f b a t t e r y s p e c i f i c a t i o n s , t e c h n o l o g y s h a r i n g b e t we e n OE Ms , f i n a n c i n g a v a i l a b i l i t y , s u b s i d y s h a r i n g me c h a n i s m and tax structure.

E c o n o mi e s o f s c a l e i s a k e y d e t e r mi n a n t t o p r i c e a p r o d u c t c o mp e t i t i v e l y , a n d i n c o n t e x t o f b a t t e r y s wa p p i n g , i t c a n o n l y b e a c h i e v e d b y c o l l a b o r a t i o n | SEPTEMBER ISSUE 2020

b e t we e n OE Ms f o r s t a n d a r d i z i n g b a t t e r y s p e c i f i c a t i o n s .

S t a n d a r d i z a t i o n o f b a t t e r y s p e c i f i c a t i o n s f o r s wa p p i n g i s akin to the standardization of EV charger specifications.

Un l e s s t h e r e i s s t a n d a r d i z a t i o n o f b a t t e r y s p e c i f i c a t i o n a c r o s s OE Ms , me a n i n g f u l s u c c e s s i n t h e b a t t e r y s wa p p i n g a d o p t i o n i s u n l i k e l y . F o r e x a mp l e , i n J a p a n , f o u r p r o mi n e n t t wo - wh e e l e r OE Ms h a v e c o l l a b o r a t e d t o d e v e l o p a s t a n d a r d s wa p p a b l e b a t t e r y p l a t f o r m f o r t wo - wh e e l e r s .

I CR A b e l i e v e s t h a t b a t t e r y d e s i g n a l o n g wi t h b a t t e r y ma n a g e me n t s y s t e m ( BMS ) i s c o r e t e c h n o l o g y o f a n y OE M/ p l a t f o r m a n d h e n c e i t ma y b e d i f f i c u l t f o r OE Ms t o s h a r e t h e m wi t h c o mp e t i t o r s , wh i c h ma y l i mi t t h e s u c c e s s o f b a t t e r y s wa p p i n g i n I n d i a . Mo r e o v e r , i n t h e b a t t e r y s wa p p i n g mo d e l , a s i z a b l e s h a r e o f o v e r a l l v a l u e a d d i t i o n ( d u e t o b a t t e r y ) wi l l b e o u t s i d e s c o p e o f OE Ms wh i c h wi l l i mp a c t t h e i r p r i c i n g f l e x i b i l i t y a n d h e n c e p r o f i t a b i l i t y i n t h e l o n g r u n . Gi v e n t h e i mp o r t a n c e o f b a t t e r y h a r d wa r e a n d s o f t wa r e i n o v e r a l l p e r f o r ma n c e o f a n E V, b a t t e r y s wa p p i n g wi l l f a c e s t r o n g r e s i s t a n c e i n t e c h n o l o g i c a l c o mp l e x p r o d u c t s l i k e c a r s o r p e r f o r ma n c e t wo - wh e e l e r s .

Go g o r o , a Ta i wa n b a s e d 2 W OE M a n d o n e o f t h e mo s t s u c c e s s f u l b a t t e r y s wa p p i n g s o l u t i o n p r o v i d e r s a l s o h a s p r o p r i e t a r y b a t t e r y s p e c i f i c a t i o n s wh i c h c a n ’ t b e d i r e c t l y u s e d i n c o mp e t i t o r mo d e l s . I n t h e 3 W s e g me n t , d u e t o r e l a t i v e l y l e s s c o mp l e x i t y o f v e h i c l e d e s i g n , b a t t e r y s wa p p i n g ma y g a i n a c c e p t a n c e b u t i t s s u c c e s s i n o t h e r a u t o mo t i v e s e g me n t s i s d o u b t f u l .

F i n a n c i n g i s o n e o f t h e k e y d r i v e r s o f a u t o mo b i l e s a l e s , and residual value of a vehicle after 3-4 years is a key d r i v e r o f f i n a n c i n g p e n e t r a t i o n . E Vs a r e g e n e r a l l y p r i c e d a t p r e mi u m, a n d t h e i r r e s a l e v a l u e t a k e s c o n s i d e r a b l e h i t a f t e r g e t t i n g o u t o f t h e s h o wr o o m a s c o mp a r e d t o I CE c o u n t e r p a r t s . Mo d a l i t y o f v e h i c l e f i n a n c i n g i n a b a t t e r y s wa p p a b l e mo d e l , wh e r e c o r e b a t t e r y i s o wn e d / l e a s e d b y third parties and financiers only have control over residual vehicles is another challenge for the industry. In France, Re n a u l t h a d e a r l i e r wo r k e d o n a b u s i n e s s mo d e l wh e r e i n t h e i r E V mo d e l ‘ Z o e ’ c a n b e s o l d wi t h o u t b a t t e r y wh e r e a s b a t t e r y wa s g i v e n o n a mo n t h l y l e a s e . Ho we v e r , R e n a u l t also subsequently shifted to outright sales of vehicles by d i t c h i n g t h e mo n t h l y l e a s i n g mo d e l . E v e n Ch i n e s e OE Ms l i k e Xp e n g a n d Ni o h a v e s t a r t e d o f f e r i n g b a t t e r i e s o n l e a s e , b u t s u c c e s s o f t h a t r e ma i n s t o b e s e e n . I n I n d i a , I CE vehicle financing is currently available at sub 9% and g e t t i n g s i mi l a r f i n e r a t e s f o r E V c o u n t e r p a r t s r e ma i n s a c h a l l e n g e i n t h e me d i u m t e r m. Gi v e n l i q u i d i t y c r u n c h a n d r i s k a v e r s i o n i n NBF C s e c t o r , I CRA b e l i e v e s t h a t r e t a i l f u n d i n g wi l l b e c o me a n o t h e r b i g r o a d b l o c k f o r b a t t e r y s wa p p i n g t o g a i n a n y me a n i n g f u l t r a c t i o n i n t h e n o n c o mme r c i a l s e g me n t o f t h e I n d i a n ma r k e t .

Th e r e a r e o t h e r c o n c e r n s l i k e t h e me c h a n i s m o f s u b s i d y s h a r i n g a n d i n v e r t e d d u t y s t r u c t u r e , wh e n b a t t e r i e s a r e s o l d s e p a r a t e l y . At p r e s e n t t h e r e i s n o c l a r i t y r e g a r d i n g b i f u r c a t i o n o f F AME I I s u b s i d y b e t we e n a v e h i c l e ma n u f a c t u r e r a n d b a t t e r y p r o v i d e r . Al s o , GS T o f E V v e h i c l e s i s 5 % a s c o mp a r e d t o 1 8 % f o r E V b a t t e r i e s a n d t h i s c o u l d r e s u l t i n c o s t e s c a l a t i o n . Mo r e o v e r , i n c a s e o f f i r e mi s h a p d u e t o s h o r t - c i r c u i t i n b a t t e r y , p r o d u c t l i a b i l i t y a n d i n s u r a n c e c o u l d b e c o me a n o t h e r a r e a o f c o n f l i c t .

I CR A b e l i e v e s t h a t wh i l e s o me o f t h e s e i s s u e s c a n b e r e s o l v e d b y c l a r i f i c a t i o n f r o m t h e g o v e r n me n t ; b u t , financing and battery standardization are big roadblocks f o r i n d u s t r y wh i c h s h o u l d b e a d d r e s s e d a p p r o p r i a t e l y f o r b a t t e r y s wa p p i n g t o g a i n a n y me a n i n g f u l t r a c t i o n i n t h e me d i u m t e r m.

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N.MOHAN, DEPUTY GENERAL MANAGER - (HEADEV CHARGING INFRASTRUCTURE), ENERGY EFFICIENCY SERVICES LIMITED

I n Au g u s t , Th e Mi n i s t r y o f Ro a d Tr a n s p o r t a n d Hi g h wa y s ( Mo RTH) c l a r i f i e d t h a t a u t o mo b i l e f i r ms c o u l d a t t h e i r d i s c r e t i o n s e l l e l e c t r i c v e h i c l e s wi t h o u t t h e b a t t e r i e s , and that such vehicles can be registered by the buyer.

Th i s c l a r i f i c a t i o n wa s a i me d a t “ t h e p r o mo t i o n o f e l e c t r i c t wo a n d t h r e e - wh e e l e r s t o d e l i n k t h e b a t t e r y c o s t f r o m t h e v e h i c l e c o s t ” . I t i s a we l l - k n o wn f a c t t h a t t h e h i g h u p f r o n t c o s t o f E Vs i s d u e t o t h e h i g h p r i c e o f t h e b a t t e r y p a c k , wh i c h c o n s t i t u t e s 4 0 - 6 0 p e r c e n t o f t h e v a l u e o f a n E V. Th i s wi l l i n t u r n g i v e a b o o s t t o b a t t e r y s wa p p i n g a n d t h e ma r k e t wi d e i n t e r o p e r a b i l i t y o f b a t t e r i e s .

Th i s n o t i f i c a t i o n c o me s 2 mo n t h s a f t e r t h e a me n d me n t d a t e d 0 8 t h J u n e 2 0 2 0 i s s u e d b y t h e Mi n i s t r y o f P o we r t o the guidelines and standards for charging electric v e h i c l e s r e c o g n i z e s “ Ba t t e r y Ch a r g i n g S t a t i o n s ” a n d “ Ba t t e r y S wa p p i n g S t a t i o n s ” . Th e s e a r e d e f i n e d a s a s t a t i o n wh e r e a n y e l e c t r i c v e h i c l e c a n g e t i t s d i s c h a r g e d battery or partially charged battery replaced by a charged battery.

I t i s a we l c o me mo v e t o b r i n g i n b a t t e r y s wa p p i n g , wh i c h wi l l a l l o w E Vs t o c o s t c o mp e t e wi t h I CE v e h i c l e s . Mo s t o f t h e d e ma n d f o r E Vs wi t h o u t b a t t e r i e s c o u l d c o me f r o m 2 a n d 3 Wh e e l e r s f o l l o we d b y u r b a n f r e i g h t s d e l i v e r y v e h i c l e s , wh e r e a s h o r t e r t u r n a r o u n d t i me p r e s e n t e d b y b a t t e r y s wa p p i n g c a n p r o v e t o b e a s i g n i f i c a n t advantage.

3 Mo s t c i t i e s i n I n d i a h a v e t h e a d v a n t a g e o f c o mp a c t urban designs that have helped reduce travel distances.

Ho we v e r , c o n g e s t e d s t r e e t s a n d f i n d i n g p a r k i n g a t t h e i r d e s t i n a t i o n s c o u l d r e ma i n a ma j o r c h a l l e n g e f o r E V c h a r g i n g . Wi t h s wa p p a b l e b a t t e r i e s , E V u s e r s ma y p a r k t h e i r v e h i c l e ( 2 W a n d 3 W) a wa y f r o m t h e s wa p p i n g s t a t i o n a n d t h u s r e c h a r g e o r s wa p t h e i r b a t t e r i e s a s p e r t h e i r c o n v e n i e n c e . Th e y ma y e v e n c a r r y t h e b a t t e r i e s t o wo r k / h o me t o r e c h a r g e t h e m. Al s o , i n c a s e o f s wa p p a b l e b a t t e r i e s , c h a r g i n g a t a s wa p p i n g s t a t i o n c a n b e d o n e i n a c o n t r o l l e d e n v i r o n me n t t h u s a v o i d i n g a d v e r s e i mp a c t of charging on battery life.

Wh i l e mo s t o f t h e b a t t e r y t e c h n o l o g i e s a r e c o mme r c i a l i z e d c u r r e n t l y , ma n y o f t h e c h e mi s t r i e s a r e s t i l l u n d e r R&D s t a g e . F o r i n s t a n c e , l e a d a c i d , L i t h i u m | SEPTEMBER ISSUE 2020

i o n b a t t e r i e s , Ni c k e l c a d mi u m b a t t e r i e s , e t c . h a v e b e e n u s e d f o r q u i t e s o me t i me n o w a n d h a v e ma t u r e d .

Te c h n o l o g i e s l i k e NMC, NCA, L MO, L TO, e t c . b e l o n g i n g t o t h e L i t h i u m i o n f a mi l y , a l t h o u g h c o mme r c i a l i z e d , a r e s t i l l u n d e r R&D f o r i mp r o v i n g t h e i r p e r f o r ma n c e , e n e r g y d e n s i t i e s a n d o t h e r s p e c i f i c a t i o n s . Wh i l e t h e e x a c t p a t h wa y t o p r i c e r e d u c t i o n c a n n o t b e a s c e r t a i n e d wi t h c e r t a i n t y , h o we v e r , r e s e a r c h a n d i n t e r a c t i o n wi t h i n d u s t r y e x p e r t ’ s p o i n t s t o t h e f a c t t h a t b a t t e r y p r i c e s wo u l d r e d u c e c o n s i d e r a b l y a n d mo s t o f t h e L i t h i u m i o n c h e mi s t r i e s wo u l d r e a c h t o ~ $ 8 0 - 9 0 / k Wh a t a CAGR o f ~ 8 - 1 0 % b y 2 0 3 0 f u e l e d b y t e c h n o l o g i c a l i mp r o v e me n t s . T h i s wo u l d a l s o c a u s e t h e p r i c e s o f E Vs t o p o s s i b l y d r o p f u r t h e r . S o , p r e s u ma b l y OE Ms c o u l d d r i v e t h i s t r a n s i t i o n i n b a t t e r y t e c h n o l o g i e s t o d e v e l o p h i g h s p e e d a n d h i g h p e r f o r ma n c e E Vs t o me e t t h e u s e r r e q u i r e me n t s . S o , s wa p p a b l e b a t t e r i e s mo d e l o f r e c h a r g i n g wo u l d h a v e t o r e ma i n h i g h l y c o s t c o mp e t i t i v e , a s b a t t e r y s t a t i o n o p e r a t o r s t h a t i n v e s t i n b a t t e r i e s t o d a y , wo u l d b e c o mp e t i n g wi t h l e s s c o s t l y b a t t e r i e s i n t h e l o n g t e r m, ma k i n g t h e i r b a t t e r i e s mo r e e x p e n s i v e t h a n t h e ma r k e t .

To ma k e c o s t e c o n o mi c s v i a b l e t h e r e n e e d s t o b e a f l e e t d r i v e n a p p r o a c h t o b a t t e r y s wa p p i n g , wi t h p r e d i c t a b l e r u n t i me s a n d a r e d u c t i o n o f b a t t e r y c o s t o n c u s t o me r s .

An o t h e r b u s i n e s s mo d e l t h a t c a n b e e x p l o r e d wi t h d e linking the battery is providing the battery on deferred p a y me n t s t h r o u g h OE Ms a n d E n e r g y Op e r a t o r s t o c o n s u me r s wi t h a n a s s u r e d a v e r a g e r e s i d u a l v a l u e f o r s wa p p a b l e b a t t e r i e s .

P r e s e n t l y , t h e mo v e t o d e - l i n k t h e b a t t e r y f r o m t h e e l e c t r i c v e h i c l e h a s r a i s e d ma n y q u e s t i o n s f r o m t h e i n d u s t r y . T h e ma j o r c o n c e r n i s t h e v e h i c l e ’ s e l i g i b i l i t y u n d e r F AME I I a s the subsidy is directly linked to the battery size. The other

concern is warranty and safety of the products that are difficult for the OEMs to provide without the battery.

These concerns are valid as per this new notification, and clarifications will be required to overcome these challenges.

Battery swapping could be scaled up by having modular batteries that can be compatible with both 2W and 3W segments and can make battery swapping feasible and convenient in India. Looking at the stage in which EV and battery technology is in India, standardization of batteries may turn out to be counterproductive, as it may stifle developments in battery design. Standardization for any technology generally happens after a technology or design has matured and received market wide PG 33

acceptance. That is not the case with electric vehicle batteries yet. The energy density, shape, size, mounting of the battery and its communication with the battery management system are still evolving. Moreover, different manufacturers approach the battery design differently. Their vehicle platforms, powertrains, and target markets are important factors in deciding battery performance expectations. However, endorsements by OEMs for batteries that are compatible with their EVs can bring in confidence in consumers to adopt battery swapping. Additionally, even ARAI certification can assure consumers that the batteries are meeting basic safety requirements. It must be made clear that battery swapping as a model has its advantages, however, till the battery technology matures, it makes sense for the government to promote it in a manner where individual OEMs drive it.

BHARATH DEVANATHAN SVP EV & GROWTH, BOUNCE

Th e r e c e n t n o t i f i c a t i o n b y t h e Mi n i s t r y o f R o a d T r a n s p o r t a n d Hi g h wa y s ( Mo RT H) t o a l l o w t h e s e l l i n g o f E l e c t r i c 2 W & 3 - W c a n f u r t h e r c a t a l y z e t h e t r a n s i t i o n t o wa r d s e mo b i l i t y , a n d s u p p o r t I n d i a t o b e c o me t r u l y s e l f - r e l i a n t i n t h e e n t i r e v a l u e c h a i n o f E V ma n u f a c t u r i n g i n c l u d i n g c h a r g i n g a n d s wa p p i n g s e r v i c e s . Th i s wi l l e l i mi n a t e t h e c o s t o f b a t t e r i e s wh i c h c o n s t i t u t e a b o u t 3 0 %- 4 0 % o f t h e electric vehicle cost.

LOOKING AT THE STAGE IN WHICH EV AND BATTERY TECHNOLOGY IS IN INDIA, STANDARDIZATION OF BATTERIES MAY TURN OUT TO BE COUNTERPRODUCTIVE, AS IT MAY STIFLE DEVELOPMENTS IN BATTERY DESIGN.."

On t h e o t h e r h a n d , t o p r o v i d e e f f i c i e n t s wa p p i n g s e r v i c e s e n e r g y s e r v i c e p r o v i d e r s / s wa p p i n g s t a t i o n s n e e d t o ma i n t a i n a s t o c k o f b a t t e r i e s , a n d b a t t e r i e s a t t r a c t 1 8 % o f GS T wh i l e E l e c t r i c Ve h i c l e s , c h a r g e r s a n d c h a r g i n g s t a t i o n s a t t r a c t o n l y 5 %. Al t h o u g h b a t t e r i e s a r e s e p a r a t e d f r o m v e h i c l e s , a h i g h GS T r a t e o f 1 8 % o n c h a r g i n g a n d s wa p p i n g s e r v i c e s wi l l i n c r e a s e t h e o p e r a t i o n a l c o s t o f E Vs f o r t h e e n d - u s e r s .

Th e r e f o r e , s t a n d a r d i z a t i o n o f b a s i c a t t r i b u t e s , r e d u c t i o n o f t h e r a t e o f GS T o n E V c h a r g i n g a n d b a t t e r y s wa p p i n g s e r v i c e t o 5 % f r o m t h e c u r r e n t r a t e o f 1 8 %, a n d r e d u c t i o n o f GS T t o 5 % o n L i - I o n b a t t e r i e s u s e d f o r s wa p p i n g c a n i mp r o v e b a t t e r y s wa p p i n g s e r v i c e s a n d a c c e l e r a t e E V adoption.

Th o u g h t h e n o t i f i c a t i o n i n p r i n c i p l e b e n e f i t s t h e e n e r g y service providers and fleet operators, it has troubled ma n u f a c t u r e r s wi t h a c e r t a i n l e v e l o f u n c e r t a i n t y . Wi t h 7 2 e - 2 W mo d e l s a n d 2 3 e - 3 W L i - I o n mo d e l s i n t h e I n d i a n ma r k e t c u r r e n t l y , t h e l a c k o f a n y f o r m o f r e g u l a t i o n s o n t h e s t a n d a r d i z a t i o n o f b a t t e r y a n d mo d e o f c h a r g i n g h a s c r e a t e d c o n f u s i o n a mo n g s t ma n u f a c t u r e r s , e n e r g y s e r v i c e p r o v i d e r s a n d c o n s u me r s . Ho we v e r , t e c h n o l o g y s t a n d a r d i z a t i o n mi g h t a c t a s a r o a d b l o c k o n i n n o v a t i o n and standardization on basic attributes like size and we i g h t c a n s o l v e a f e w a s p e c t s o f t h e p r o b l e m. | SEPTEMBER ISSUE 2020

PG 34 PG 23

RAHUL GOYAL FOUNDER, REPUBLIC MOTORS

Th e g o v e r n me n t i s e f f o r t l e s s l y t r y i n g i t s mo v e i n a b i d t o p u s h f o r wa r d t h e e l e c t r i c v e h i c l e e c o s y s t e m. B y p o l i c y c h a n g e s , r e d u c i n g GS T r a t e s a n d s u b s i d i e s .

On Au g u s t 1 2 , 2 0 2 0 , Th e Mi n i s t r y o f Ro a d T r a n s p o r t a n d Hi g h wa y s ( Mo RTH) a l l o we d r e g i s t r a t i o n o f e l e c t r i c v e h i c l e s wi t h o u t p r e - f i t t e d b a t t e r i e s . I n a l e t t e r t o Tr a n s p o r t S e c r e t a r i e s o f a l l t h e S t a t e s a n d UT s , t h e mi n i s t r y h a s c l a r i f i e d t h a t v e h i c l e s wi t h o u t b a t t e r i e s c a n be sold and registered based on the type approval c e r t i f i c a t e i s s u e d b y t h e Te s t Ag e n c y .

F o l l o wi n g t h i s mo v e o f t h e g o v e r n me n t , o u r i n d u s t r y c o l l e a g u e s g a v e a mi x e d r e a c t i o n a s ma n y o f t h e m we l c o me d i t a s a s a l e s b o o s t e r wh i l e s o me d i d n o t f i n d i t c o n v i n c i n g . Th e No t i f i c a t i o n h a s t wo ma j o r s t a t e me n t s .

Th e p r o t o t y p e o f t h e e l e c t r i c a l v e h i c l e a n d t h e b a t t e r y ( r e g u l a r b a t t e r y o r t h e s wa p p a b l e b a t t e r y ) i s r e q u i r e d t o b e t y p e a p p r o v e d b y t h e t e s t Ag e n c i e s s p e c i f i e d u n d e r Ru l e 1 2 6 o f t h e Ce n t r a l Mo t o r Ve h i c l e s Ru l e s , 1 9 8 9 .

Note : Which is the same as earlier Ve h i c l e s wi t h o u t b a t t e r i e s c a n b e s o l d , t h a t t h e r e i s n o n e e d t o s p e c i f y t h e Ma k e / Ty p e o r a n y o t h e r d e t a i l s o f t h e Ba t t e r y f o r t h e p u r p o s e o f Re g i s t r a t i o n .

Note : Which is not even required now.

To u n d e r s t a n d i t wi t h c l a r i t y f o l l o wi n g a r e t h e d o c u me n t s r e q u i r e d t o r e g i s t e r e l e c t r i c t h r e e - wh e e l e r s o r g e n e r a l any other vehicle.

Co p y o f I n v o i c e o f v e h i c l e .

Co p y o f I n s u r a n c e Aa d h a r Ca r d Form 20 Form 21 Form 22 Ba n k Ac c o u n t De t a i l s ( S t a t e s wh e r e S u b s i d i e s a r e g i v e n e x a mp l e De l h i ) No n e o f t h e s e f o r ms r e q u i r e s p e c i f i c a t i o n a b o u t t h e t y p e of battery.

S o wh a t d o e s t h i s l e t t e r t o s t a t e RTO me a n s f o r i n d u s t r y b e s i d e s p r o v i d i n g a l e g a l d o c u me n t t o d e l i n k b a t t e r i e s f r o m E l e c t r i c Ve h i c l e s , We s e e i t a s a n I n i t i a l p o l i c y c h a n g e wh i c h wi l l a l s o p a v e t h e wa y f o r p l a y e r s c o mi n g u p i n n e w i n n o v a t i v e b u s i n e s s mo d e l s , s u c h a s b a t t e r y l e a s i n g a n d b a t t e r y s wa p p i n g . I t wi l l e n c o u r a g e a n a r r a y o f e n e r g y s e r v i c e p r o v i d e r s t o b e p a r t o f t h e ma i n s t r e a m E V e c o s y s t e m.

Th i s n o t i f i c a t i o n s h o u l d h a v e b e e n a c c o mp a n i e d wi t h c l a r i t y o n t h e f o l l o wi n g p o i n t s . | SEPTEMBER ISSUE 2020

WHAT HAPPENS TO FAME I I SUBSI DY?

A c u s t o me r g e t s a s u b s i d y o f Rs 1 0 0 0 0 / K Wh f o r a l l E V s ( p o we r e d b y l i t h i u m- i o n b a t t e r i e s ) a n d Rs 2 0 0 0 0 / K Wh f o r b u s e s . Th e c u s t o me r g e t s t h e s u b s i d y i n t h e f o r m o f a reduced upfront cost of the vehicle, including the b a t t e r y . Bu t i f t h e b a t t e r y i s b o u g h t s e p a r a t e l y t h e n wh a t h a p p e n s t o F AME I I S u b s i d y .

S u g g e s t i o n s : F AME I I c a n b e d i s t r i b u t e d b e t we e n E V ma k e r a n d b a t t e r y p r o v i d e r e v e n i n c a s e o f b a t t e r y s wa p p i n g a s i t wi l l h e l p s e r v i c e p r o v i d e r s t o c h a r g e t h e c u s t o me r l e s s o n p e r s wa p .

WHAT HAPPENS TO GST RATES? An e l e c t r i c v e h i c l e a t t r a c t s a GS T o f 5 p e r c e n t , a n d a n e l e c t r i c b a t t e r y b o u g h t s e p a r a t e l y wo u l d a t t r a c t a GS T o f 1 8 p e r c e n t f o r l i t h i u m- i o n a n d 2 8 p e r c e n t f o r L e a d - Ac i d b a t t e r y . S o i t d o e s n ’ t ma k e s e n s e f o r a c u s t o me r t o b u y a battery separately.

F o r E x a mp l e i f E 3 w c o s t a r o u n d Rs 1 3 5 0 0 0 ( Wi t h L e a d Ac i d Ba t t e r y ) o n r o a d p r i c e wi t h b a t t e r y a n d wi t h o u t b a t t e r y i t s c o s t wo u l d b e a r o u n d Rs 1 0 7 7 0 0 a n d b a t t e r y wo u l d c o s t Rs 3 3 5 0 0 i f b o u g h t s e p a r a t e l y f r o m v e h i c l e ma k i n g a s u m o f Rs 1 4 0 9 8 0 .

Suggestions : The GST rates for batteries must be reduced to 5 percent. Similarly, GST for chargers is at 5 percent and GST for charging and battery swapping services is at 18 percent—this needs to be reduced to 5 percent as well. Such changes can significantly benefit the end customer and increase adoption.

Th i s s t e p i s r i g h t t h o u g h t t o ma k e e l e c t r i c v e h i c l e s mo r e a f f o r d a b l e a s t h e b a t t e r y c o s t a mo u n t s t o 3 0 - 4 0 p e r c e n t o f t h e t o t a l c o s t o f t h e v e h i c l e a n d t h i s wi l l ma k e t h e upfront cost of the electric vehicle lesser than an i n t e r n a t i o n a l c o mb u s t i o n e n g i n e v e h i c l e a n d wi l l a l s o a l i g n t o p r e s e n t c o n s u me r b e h a v i o r o f b u y i n g e n e r g y e v e r y d a y f o r mo b i l i t y . Th i s wi l l d e f i n i t e l y e n c o u r a g e b a t t e r y s wa p p i n g a n d r e n t a l b u s i n e s s mo d e l s a n d wi l l ma k e TCO ( To t a l Co s t o f Own e r s h i p ) c a l c u l a t i o n s s i mp l e r f o r a v e r a g e c u s t o me r s t o u n d e r s t a n d a n d a p p r e c i a t e t h e b e n e f i t s o f E Vs . I t wi l l a l s o a d d r e s s v a r i o u s c u s t o me r p a i n p o i n t s i n t h e a d o p t i o n o f E V s a n d address range anxiety issues but these things can only h a p p e n wi t h a n e x t e n s i v e i n f r a s t r u c t u r e n e t wo r k o f s wa p p i n g a n d r e n t a l f a c i l i t i e s . To e n c o u r a g e i t a n d ma k e i t a s u c c e s s f u l mo v e a b o v e t wo p o i n t s n e e d s d e e p consideration.

Re g a r d l e s s o f t h i s , we wo u l d l i k e t o d i s c a r d p o i n t s ma d e by our fellow colleagues in the industry regarding wa r r a n t y i s s u e s a r i s i n g d u e t o i t , e t c . As t h i s n o t i f i c a t i o n o n l y p r o v i d e s y o u l e v e r a g e i t i s a l wa y s t h e E V ma k e r ’ s d e c i s i o n t o a d o p t t h e b u s i n e s s mo d e l . Th i s n o t i f i c a t i o n d o e s n ’ t c o mp e l a n y c o mp a n y t o o f f e r a v e h i c l e wi t h o u t a battery but encourages it to join hands to offer better s e r v i c e s t o c u s t o me r s .

PG 35

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