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Smart Task Submission Format
Intern’s Details
Name
Tarang Shandilya
Email-ID
[email protected]
Smart Task No.
03
Project Topic
Electric Vehicle - Techno-Commercial Analysis
Smart Task (Solution)
Task Q1: Make a list of challenges that the EV industry is facing in India.
Challenges faced by manufacturers, Govt and Consumers.
Task Q1 Solution:
Challenges For The EV Industry In India● Inadequate charging infrastructure
● Reliance on battery imports
● Reliance on imported components and parts
● Incentives linked to local manufacturing
● Range anxiety among consumers
● High price of EVs currently
● Lack of options for high-performance EVs
● Inadequate electricity supply in parts of India
● Lack of quality maintenance and repair options
● No dedicated parking spots
● Lack of Standardisation
● Power infra upgrades
Task Q2: Explain the success story of e-rickshaw in India. Can we
completely replace diesel auto by e-rickshaw (To-To) all over India?
Justify your thoughts.
Task Q2 Solution:
India has a population of around 1.33 billion and it is rising every day leading to high
demand on travel for work, education, health and better quality of life. With this the
pollution level is also increasing and public transport plays a major role in this. Thus
introducing electric rickshaws for local connectivity was much required and initially
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launched until the Delhi-NCR, UP, West Bengal during the year 2010 with an
objective of affordable and clean.
The e-rickshaw industry has now established itself as the undisputed outlier of India's
auto sector. Amid the worst slowdown in vehicle sales, e-rickshaw sales have grown
unabated.
E-rickshaws are low maintenance, have a lower cost to operate than their petrol and
CNG counterparts. But more importantly, across North India, where deteriorating air
quality levels have made urban areas inhospitable, the emissionless e-rickshaw is
being hailed as the humble, homegrown agent of change to a cleaner, less fossil fuel
dependent India.
While sales of other vehicles have all but stalled, India's fleet of battery operated
three wheelers has grown from 4000 in 2010 to more than 1.5 Mn in less than a
decade. According to consulting firm AT Kearney, 11,000 new electric rickshaws are
produced each month, followed by massive support from central and state politicians.
Just this month, heir to the British throne, Prince Charles, rode the car on a state
visit, and German Chancellor Angela Merkel met rickshaw drivers at a metro station
in Delhi. A closer look at the data reveals that its impact on combating global
warming may be limited due to factors beyond the industry's control. According to a
2015 Dipanjan Majumdar and Tushar Jash study of the pros and cons of the
rickshaw, the average specific energy consumption of an rickshaw is 53.76
kJ/pass-km, making it the most efficient of all other motorised vehicles. A regular
automatic rickshaw uses 7 times more.
However, most rickshaws are billed from household outlets. Therefore, rickshaws
cannot be considered as zero-emission vehicles as they relate to the CO2 emissions
of power plants. Here too, the pro-electric narrative overlooks some uncomfortable
facts. First, India, the world's third-largest power producer, produces most of its
electricity from coal and natural gas-fired power plants.
According to the Department of Energy, the central regulator of domestic electricity
production, India generates about 70% of its electricity from coal and the remaining
10% from other fossil fuel derivatives such as natural gas and oil. In terms of CO2
emissions, the energy sector generated 888 Mt CO2 in 2016-17. get through a
coal-fired power plant"Meeting the country's demand for 24×7 reliable electricity
supply will require doubling the installed power generation capacity with at least
50,000 megawatts (MW) to 60,000 MW of thermal power capacity," a top power
sector official had reportedly said earlier in May.
The nosebleed pace of electricity generation meant that coal mining, a prime polluter
in its own right, has also been stepped up.
Raw coal production in the country has increased from 567.77 Mn tonnes (MT) in
2013-14 to 730.35 MT in 201819, Union Coal and Parliamentary Affairs Minister
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Pralhad Joshi said in Lok Sabha this month. He also said that India had to import an
additional 234 MT coal last year.
Moreover, a majority of India's thermal power plants don't comply with emission
norms set by the government, according to a Reuters report.
While there has been a sustained push to promote renewable and nonpolluting forms
of producing electricity, India's installed green energy capacity stands at about 65
GW today. It was expected to cross 100 GW by December 2022, definitely short of
the government's 175 GW target and far behind the 450 GW target that Prime
Minister Narendra Modi committed to while speaking at the United Nations Climate
Action Summit in New York in September.
So the power needed to run India's growing fleet of e-rickshaws also emits
substantial amounts of CO2, the only difference being that the exhaust is
conveniently tucked away into remote industrial zones where a city dweller would
rarely venture.
Also, e-rickshaws in India are limited to a top speed of 25 km/hr. This causes more
pollution as they slow down other vehicles in traffic. This increases emissions as
petroleum based vehicles pollute more when running at lower speeds, a study
showed.
"The unorganised sector has been peddling e-rickshaws of poor quality, with lead
acid batteries that need to be changed every 68 months with no proper warranty,"
said Sulajja Firodia Motwani, CEO of Kinetic Green Energy & Power Solutions.
While currently e-rickshaws cannot be branded as 100% emission free, the fact
remains that world over auto experts have pointed out that electric vehicles (EVs) are
the future as petrol and diesel engines are hugely inefficient. About 70% of the
energy produced in an Internal Combustion Engine (ICE) is wasted.
Considering the total number of e-rickshaws in India to be 1.5 Mn, the annual
emission reduction is of 3.801 x 10^6 tonnes of CO2 Shakti Foundation (a clean
energy think tank). Another thing to consider when comparing tailpipe emissions to
emissions by coal based power plants is that making petroleum and diesel also
requires coal to create it.
Rosemary PierceMessick, cofounder of Three Wheels United, a social enterprise that
offers financing solutions to auto drivers to buy electric autos said: “When looking at
emissions being shifted from tailpipe to powerplant in the case of EVs, you should
also remember that not only do ICE vehicles have tailpipe emissions but they also
contribute emissions during the process of extraction and refinement before the fuel
even gets into the vehicle to be burned.”
Task Q3: List the initiatives done by other countries in terms of EV. How
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can we replicate that in India?
Task Q3 Solution:
Many countries around the world are currently developing electric vehicle initiatives
to make electric vehicles more accessible and available to the general public.
1) German Electric Vehicle Initiative- In 2010, the German government began a
major effort to increase electric mobility. The German Chancellor met with several
officials from the government, academia, energy and automotive sectors to find a
way to streamline the country's current mobility efforts. As Germany was the first
country to make cars in the 20th century, I think it's important to be a leader in
electric vehicle initiatives. The government is funding $700 million into electric
mobility test initiatives, including plans for the development of a charging station
infrastructure. Daimler, one of the top automotive companies in Germany is not only
creating hybrid cars, but also hydrogen fuel cells.
2) Washington D.C. Sponsored Electric Vehicle Initiative- At the 2010 Clean Energy
Ministerial held in Washington D.C., the ministers continued to affirm their previously
made commitment to deploying the Electric Vehicles Initiative, a forum for
international cooperation on the development and the deployment of electric vehicles
and increasing their commercial uptake. Countries participating agree to create pilot
city programs for the promotion of electric vehicle demonstrations and dissemination
of information regarding vehicle technology development and electric vehicle
deployment targets.
3) United States China Electric Vehicles Initiative- In 2009, the Chinese and
American governments agreed at the Electric Vehicles Forum to increase and work
upon the shared interest in amplifying the use of electric vehicles to eventually
eliminate oil dependence as well as an overall reduction in greenhouse gas
emissions while, at the same time, promoting feasible economic growth. The joint
Electric Vehicle Initiative includes within a joint development standard, a number of
demonstration projects in a variety of cities in both the United States and China,
technical road mapping, and projects to disseminate information to the general
public.
4) Taiwan Electric Car Initiative- 2009 saw the Taiwanese Ministry of Economic
Affairs make an announcement about the beginning of an electric car industry
research consortium. The state currently offers subsidies to those who buy electric
motorcycles, but the government plans to develop new policies to encourage the
purchase of electric vehicles in the near future.Because of Taiwan’s large electronics
and information technology sectors, when mixed with the automobile industry, Taiwan
could prove to be a leader in the electric car market.
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5) United Kingdom Electric Car Initiative- Not to be outdone, the United Kingdom has
come up with its own Electric Car Initiative. The United Kingdombased initiative
seeks to make electric cars not only more attractive but more affordable to drivers by
providing incentives up to GBP 5000 toward the purchase of plug-in or electric hybrid
vehicles. The government also included another GBP 20 million to go towards the
creation of a network of charging stations and the establishment of “electric car cities'
' around the country. The cities selected will serve as a focal point for low carbon and
electric car demonstration projects. Transport Secretary Geoff Hoon said “The scale
of incentives we’re announcing today will mean that an electric car is a real option for
motorists as well as helping to make the UK a world leader in low carbon transport.”
6) Israeli Electric Car initiative- In Israel, Californiabased Better Place, has made one
of their homes, supplying lithium ion batteries for RenaultNissan cars. Better Place
will also be providing the necessary infrastructure for electric cars, including 500,000
charging stations and 200 battery exchange centres. For its part, the Israeli
government has decreased taxes on the purchase of electric cars in an effort to
encourage citizens to make the switch. Because of Israel’s small size, with major
urban centres a maximum of 150 kilometres apart, Israel is the perfect location for
electric vehicles than countries with longer commutes.
7) Belfast Electric Vehicles Initiative- Belfast, Ireland, has come up with their own
Electric Vehicles Initiative. The objectives of this plan are to look at a number of pilot
studies of other electric car initiatives and see how they were carried out and the
funding required. Then the initiative would organise the data to see what works and
what doesn’t work and how to overcome obstructions for the use of electric vehicles
in Belfast.
8 ) Australian Green Driving Initiative- Clean Driving is a local initiative in Canberra to
help those looking for a zero-emission transportation solution, those looking to buy
an electric vehicle and, of course, those who want to help create a sustainable future.
Clean driving promotes the benefits of using electric vehicles, both for your wallet
and for the environment. The goal is to promote education on sustainable transport
options.
9) London becomes the international capital of electric vehicles. London is quickly
becoming the international capital of electric vehicles. Because of its large carbon
footprint, London is introducing 100,000 electric vehicles and 25,000 charging
stations to reduce its carbon footprint. There are similar initiatives around the world,
but this is by far the largest. There are many incentives for those who switch to
electric vehicles to further increase city awareness. If implemented properly, it will
address growing concerns about poor air quality in London, considered the worst on
the whole of continental Europe.
10) Canadian Electric Vehicle Initiative- Canada admits that they are slowly entering
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the electric vehicle initiative scene. The Canadian government is not only slow, but a
bit hesitant to promote the use of electric vehicles. British Columbia was the first to
introduce electric vehicles, especially in the city of Vancouver. The Vancouver
Electric Vehicle Association has played an important role in increasing the use of
electric vehicles to reduce their carbon footprint. Now the rest of the country is
following, and Congress is starting to pass new laws, including amending ordinances
to allow low-speed electric vehicles to drive trouble-free on city streets.
Here we look at what governments, industries, car buyers, and other stakeholders
need to accelerate the adoption of electric vehicles. Only such positive measures can
ensure that India is at the forefront of the EV revolution.
1) FAME Phase 2 Changes and Rationalisation- The FAME Phase 2 framework
seems to be moving in the right direction, but the government can improve it by
adding incentives to the region. Reducing EV GST to 5% is a major move that needs
to be complemented by other tax incentives.
A good example is reducing the GST of battery charging services from the current
18% to 5%. Promotions can be achieved through incentives and the creation of an
appropriate ecosystem to support the disposal of gasoline and diesel vehicles.
Establishing a comprehensive EV policy is a time consuming process.
2) Introducing Spearhead EV Charging Facilities- Despite government directives,
guidelines and deadlines, installing sufficient EV charging facilities throughout India is
a time-consuming task. To do so, the government must take the lead in deploying
and managing pilot units throughout India.
Even if the bid for the development of a charging station is running the course, this
should proceed in parallel. Such government moves will convince even the most
reluctant car buyers to go down the EV route.
In December 2018, the Department of Energy published guidelines and standards for
electric vehicle charging stations in India. Strict measures must be taken to ensure
compliance, and measures must be taken against what is wrong.
3) Consumer Education to Clarify FUD (Fear, Uncertainty and Doubt)- The
government and all other stakeholders (especially manufacturers) are all conceivable
to highlight the benefits of electric vehicles. You need to use an advertising and
advertising platform. Coverage in a variety of media (especially television, online,
printed matter), the spread of EV technology, and information campaigns can have a
significant impact. Outdoor advertising and educational workshops are practical
options.
In addition to the obvious benefits such as antipollution and cost efficiency, these
promotions mitigate myths such as battery longevity that surround EV usage. Return
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on Investment (RoI) and cost of ownership benefits of EVs vis a vis conventional
Internal Combustion Engines (ICE) can be demonstrated during such interactions.
Customers must also be educated about sops offered by the Government, such as
the proposal that exempts EVs from road tax during vehicle registration.
4) Incentives for importing of EV components- To encourage local assembling of
EVs, the Government must minimise import duties on relevant EV components such
as electric compressors, brake systems and motor controllers, which are usually
imported as pre assembled setsSimilar examples include products such as chargers,
power controllers, and disassembled battery packs. Currently, import taxes for such
components range from 10% to 15%.
5) Special Benefits for Auxiliary Product Manufacturers- India's EV ecosystem is still
in its infancy. By-product manufacturers (and even fewer) are in the process of
establishing themselves. This key player in the EV ecosystem needs the support of
all possible governments.
Reduced import fees and tariffs, and the ease of setting up production units with
ancillary players can greatly help in this regard. Government-sponsored special
production zones are an ideal route for various EV support companies to install units.
The state government can be directly involved in the manufacturing process of
electric vehicles. The Kerala government is a trendsetter and has recently partnered
with a Swiss electric bus manufacturer to assemble electric vehicles locally.
6) Pilot EV Corridor via National Highway- The Delhi Jaipur Route and Delhi Agra
Route, India's first EV highway corridors, are already in the planning stage. It will be
operational at 18 charging stations by March 2020.
To promote these EV infrastructure initiatives, similar corridors should be installed
near major cities across national highways. The cost of these pilot projects can be
minimised by bulk purchase and central procurement of the required equipment.
7) Reduction of EV acquisition cost- Currently, the high price of EV is directly related
to the supply and demand factors and the substantial lack of domestic manufacturing
bases. As a price-sensitive market, the majority of Indian buyers are happy with the
attractive prices. If the above proposals are properly implemented, customers will be
the biggest beneficiaries of attractive EV pricing models.
Our government's vision is to transform India into a global centre for electric vehicle
manufacturing. With the support of a determined government, we are already off to a
good start. The Indian automotive market also requires customised policy initiatives,
rapid implementation and industry-friendly regulation to gain pole position in EV
racing.
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