India’s electric vehicle drive: Challenges and opportunities

TARGET

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#81
This is coming from Micromax founders and they are repeating the same they did with mobile phones. It's just rebranded Chinese product nothing else.
Seems to be a good segment, if this succeeds Bajaj and TVS will lunch their own product, Support for battery replacement is definitely a good idea. even though it's a Chinese idea they are assembled in India then it's fine anyway, people of India will decide.
 

Gautam

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#82
Electric two-wheeler penetration to touch 40% by 2030

It may well have a transformational impact on domestic auto companies like Hero Motors and TVS Motors.
By Fortune India, Jun 17, 2019
Hero electric’s electric scooter on display at Auto Expo 2018. Image: Sanjay Rawat

A research report by investment firm Morgan Stanley, published in June, expects a wide transformation in India’s two-wheeler business with the advent of electric bikes. For two simple reasons: India is the largest gasoline-powered two-wheeler market and more than half the miles traveled in India are on two-wheelers.

The report estimates that by 2025, electric two-wheeler penetration will be at 10%, rising to 40% by 2030. The increased penetration is expected even as new two wheeler sales are expected to rise from 21 million in 2018 to 47 million by 2030, at a 6.8% CAGR.

Three key factors will play a role in the shift towards electric two-wheelers in India. Firstly, cost economics and value proposition are turning favourable. Though electric bikes cost more than conventional ones, which are expected to see a price increase post implementation of the BS VI emission norms. This coupled with lower running costs for electric bikes is expected to even out the cost of ownership over a 10-year ownership period. This is only expected to improve in favour of electric bikes as battery prices head south in the coming years.

Read : Mahindra & Mahindra’s EV bet: All charged up and not sure where to go
and : Government’s renewed EV push bothers auto industry

Secondly, electric two wheelers don’t require special charging infrastructure and their batteries can be charged once-a-day at home. Fast home chargers cost ₹10,000, while normal ones cost ₹5,000-6,000, making them affordable. Further, two-wheeler batteries are detachable and discharged batteries can be swapped for charged ones at kiosks. According to the report, Taiwan-based Kymco and 22 Motors India are planning to offer battery swapping stations key metros by 2020.

And finally, the segment is expected to have a supportive government policy to kickstart growth. Already, under FAME II (Faster Adoption and Manufacturing of Electric Vehicles), the government has set aside $285 million and is offering ₹10,000 incentive per kWh. In addition, few states are also waiving the road tax enabling the customer to get almost 25% off the retail selling price. The government is targeting sales of 1 million electric two wheelers by April 2022.

The firm admits that currently it gets no questions on the future of electric two-wheelers in India but it believes that this debate will start soon and 2020 will be year of electric two-wheelers. To start off, it anticipates that biennial auto show in 2020 to unveil several electric two wheeler models with at least 10 lithium battery-based models on sale by the end of 2020. It also expects the battery-powered vehicles to hit a market share of 1% in any single major metro of India by the end of 2020. It also says that the BS VI rollout (April 2020) will lead to 10-12% price hike for gasoline vehicles, bring forward the debate on electric vehicles for customers.

The report, in the work for several months, built three scenarios to estimate the size of the market. In an extreme bull case, where all the costs for the electric two-wheelers fall into place, it predicts a 65% penetration by 2030, but in a bear case if battery prices don’t come down or there are regulatory glitches, then that number is only 20%. It’s standard, base case assumption of 40% penetration hinges on higher prices of gasoline engine vehicles and favourable government policy.


Electric two-wheeler penetration to touch 40% by 2030
 

Gautam

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#83
Scooter, bike makers given two weeks to frame electric vehicle plan

During Friday’s meeting, government officials argued that switching to EVs is of national importance so India does not miss out on the global drive towards environmentally cleaner vehicles.
By : Reuters | Published: June 23, 2019 1:52 PM


Representational Image

Niti Ayog, India's central think-tank, has given scooter and bike manufacturers 2 weeks to come up with a plan to switch to electric vehicles, sources have told Reuters. This ultimatum comes days after Niti Ayog has publicly opposed the Government's proposals saying that the same is going to cause disruption to the sector. Niti Aayog officials met with executives from companies including Bajaj Auto, Hero MotoCorp and TVS late on Friday, giving them two weeks to come up with the plan, according to one of the executives.

Headed by Prime Minister Narendra Modi, Niti Ayog plays an important role in policymaking. Sources have told Reuters that the think-tank had recommended that from 2025, only electric models of scooters and motorcycles, under 150cc must be sold in India. Opposing this proposal, automobile manufacturers had warned that a sudden transition like this, at a time when auto sales are witnessing a two-decade low, is going to cause disruption and will also result in job losses. India is one of the world’s largest two-wheeler markets with sales of more than 20 million scooters and motorbikes last year.

During Friday’s meeting government officials argued that switching to EVs is of national importance so India does not miss out on the global drive towards environmentally cleaner vehicles, one of the sources said. But industry executives responded that a premature switch with no established supply chain, charging infrastructure or skilled labour in India, could result in India losing its leadership position in scooters and motorbikes, the second source said. “There were clearly drawn out positions,” said the source, adding there were “strong opinions” at the meeting. Bajaj, Hero and Niti Aayog did not respond to a request for comment, while TVS declined to comment.


Scooter, bike makers given two weeks to frame electric vehicle plan
 
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#85
also believes that by 2020 battery costs will substantially come down making e-cars cheaper
Hyundai cars with a battery having arrange of 400 kilometres between two recharge cost RS lakh which makes it too costly unaffordable. Tilted decent electric car is available below RS 10 lakh, electric vehicles can never be online stream mean of transport. It is therefore very much necessary that an electronic cars is available in the same amount in which the current petrol or diesel car is available.
 

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India wants to beat Tesla's Gigafactory at 20% less cost
India plans to set up at least four Tesla-type ‘Gigafactories’ in the country but for $1 billion less than it took Elon Musk, the billionaire CEO of Tesla.

Musk’s Gigafactory in Nevada, expected to launch next year, has a theoretical capacity of producing 35 gigawatt hours (GWh) of batteries per year and took an investment of $5 billion to setup.

Panasonic, who's partnered with Tesla to build the Nevada facility, has stated actual output is actually at around 24 GWh.

India’s battery manufacturing plants, on the other hand, plan on producing 10 GWh per factory every year — that’s a total of 40Gwh — with an investment of $4 billion, according to a LiveMint report citing sources.

Plans to go big

Producing batteries goes hand-in-hand with India’s plans to push for electric vehicles in order to reduce pollution and cut down its dependence on oil imports — which currently sits at over 80%, making India the world’s third-largest oil consumer.

NITI Aayog estimates that India is going to need at least six such battery storage manufacturing plans by 2025 and six more by 2030.

So, accounting of an ever increasing demand for energy, it has recommended setting up 11 factories by 2025 and another 13 by 2023 — bringing the grand total to 24 factories producing 240 GWh every year.

One GWh of battery power is enough to provide electricity to nearly 1 million households for a complete hour and power 30,000 electric cars.

Government involvement

In order to get manufacturers on board, India may offer incentives like concessional financing options or a minimum alternative tax (MAT), the report said.

While the government will be setting up these factories, it has no plans to interfere with the technology. Which technology should be manufactured will determined depending on demand and prices in the market.

India is now a world leader in renewable energy with its ambitious plans to set up clean energy installments and pump up investment, according to BloombergNEF’s Climatescope report. As of now, the country has around 80 gigawatts (GW) of renewable energy capacity with plans to reach 175 GW by 2022 and 500 GW by 2030 as part of its climate change commitments.
India wants to beat Tesla's Gigafactory at 20% less cost
 

RISING SUN

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#98
India to add 5,000+ electric buses in 65 cities in ongoing massive EV push
An Indian government committee has sanctioned 5,645 electric buses for 65 cities in one of the largest electric bus initiatives the world has seen outside of China.

The announcement came on Twitter from Amitabh Kant, the CEO of the government’s Niti Aayog commission. Kant tweeted about approval for the buses, which will be made in India by eight State Transport Undertakings:

This was Kant’s only tweet thus far on the subject, but the Niti Aayog CEO recently gave an interview to the Economic Times about the country’s EV plan. India looks to push the manufacturing of electric car batteries domestically, and there are still plans for major electrification of the country’s two- and three-wheelers.
The country is also particularly focused on using clean energy to charge its expected boom in electric vehicles. Kant said,
“Our objective is to clean up cities, reduce imports, and utilize the sun and its energy for driving electric vehicles.”​
The announcement about electric buses follows another announcement this weekend that India will be cutting taxes on electric vehicles — it’s reducing the electric car tax from 12% to 5%, and cutting taxes on EV chargers from 18% to 5%.

While no timeframe has been given yet for when India seeks to have these thousands of electric buses in place, the initiative stands out, both for its number of cities and its sheer size.

It doesn’t stack up to what China’s done so far — the city of Shenzhen alone electrified its entire 16,000+ bus fleet by the end of 2017 — but India’s goals certainly compare favorably to any other country when it comes to future electric bus plans.

It’s another indication that India is focused on accelerating EV adoption in all facets as it looks to reduce pollution in its cities and seize the economic opportunity in EVs.
India to add 5,000+ electric buses in 65 cities in ongoing massive EV push - Electrek
 

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Mahindra confirms launch plans of electric two-wheelers in India

Despite being one of the earliest to launch electric vehicles in India the Mumbai-based SUV-specialist has kept away from entering the electric two-wheeler segment so far.

By Swaraj Baggonkar
Last Updated : Aug 08, 2019 02:43 PM IST
1565289700276.png


Mahindra & Mahindra is considering launching electric two-wheelers in India that may be developed specifically for this market.

Despite being one of the earliest to launch electric vehicles in India, the Mumbai-based SUV-specialist has kept away from entering the electric two-wheeler segment so far.

Responding to a query from a shareholder at the 73rd annual general meeting on August 7, Anand Mahindra – Chairman, Mahindra & Mahindra, said, “We are watching this space. We have some plans up our sleeve. We will have a locally manufactured two-wheeler.”

Mahindra has an electric scooter on sale in the US called GenZe 2.0 having a range of 56 kms priced at $3,699 (Rs 2.62 lakh). This two-wheeler was developed by Mahindra in the US specifically for that market.

“The only reason we have not launched the US scooter in India is because of its high price”, added Mahindra.

The GenZe 2.0 is priced more than two and half times than the Ather 340, one of India’s best known lithium-ion battery-powered scooter, which has a better drive range and a better top speed.

Mahindra is in the process of developing at least four new passenger four-wheelers and a couple of mini trucks powered by electric motors, all of which will be launched in the next three years.

The company has minimal presence in the petrol-powered two-wheeler segment, and its best recent bet has been the Jawa bikes. Its older generation two-wheelers such as Gusto, Mojo and Centuro have been nearly phased out from the market following poor consumer demand.

Meanwhile, M&M’s rivals including Bajaj Auto, TVS Motor Company and Hero MotoCorp, in addition to more than a dozen start-ups, are readying electric bike launches – many of which will debut this financial year.

In 2018, 1.26 lakh electric two-wheelers were sold in India, compared to 54,800 units sold in 2017, according to data shared by the Society of Manufacturers of Electric Vehicles (SMEV). The Government of India provides direct subsidy ranging between Rs 7,000-22,000 on such two-wheelers.

Mahindra confirms launch plans of electric two-wheelers in India