Electric vehicle white paper

Automotive industry globally is at the cusp of a major transformation. Growing concerns for environment and energy security clubbed with rapid advancements in technologies for powertrain electrification, increasing digitalization, evolution of future technologies and innovative newer business models and ever-increasing consumer expectations are transforming the automotive business. One of the key facets of such a change is the rapid development in the field of electric mobility which might transform the automotive industry like
never before. With an ambition to be among the top 3 in automobile
manufacturing by 2026 (as per the Automotive Mission Plan 2016-
2026), Indian auto industry needs to consider an innovative and
pragmatic approach to ride this transformation wave. E-mobility by far
is the greatest opportunity for the Indian industry to participate and
emerge amongst the top in the globalized automotive world.
Countries across the globe have adopted policies of long-term which
were aligned with each nation’s ecological goals towards
decarbonization of the industrial activities. Each country’s approach
has been based on their market environments, per capita income,
purchasing power and strategic needs & goals.
Logically, electrification policies for the auto-sector have been largely
around bridging the viability gap of electric vehicle technologies visà-vis conventional vehicles, enabling charging infrastructure, creating
public awareness and acceptance of electric vehicle technology. This
has been done keeping in mind the evolutionary nature of the electric
vehicle technology and the significant and sustained investments
required both from the industries and the governments. Today, with
continued efforts of more than a decade, many major economies
such as US, China, The Netherlands, Norway etc. have promoted
electrification of vehicles through various fiscal and non-fiscal
incentives and have now gathered momentum in terms of demand,
charging infrastructure and manufacturing eco-system. Such countries
are perhaps more ready with pure electric vehicles to achieve their
regulatory and strategic targets.
India has started late on the electrification path and needs a strong
policy to catch-up and move rapidly towards the stated goal of
hundred percent pure electric technology regime. Pure electric
vehicle penetration currently remains quite low in India, ~0.1% in PVs,
~0.2% in 2Ws and practically nil for commercial vehicles due to several
reasons including significant affordability gap and low level of
consumers’ acceptance (i.e. lack of demand), low level of electric
vehicle manufacturing activities (i.e. lack of supply), lack of
comparable products (especially in the 2W category), non-existent
public charging infrastructure etc. All these issues typically are like a
“hen or egg” situation. However, it may be expected that with a
concerted policy and a sufficient time for such a policy to bear fruits,
all these aspects could be well taken care of.
India is World’s 2nd largest 2W market, 5th largest PV market and 7th
largest CV market Global experience shows the need for having known
the country’s
market dynamics
and create
suitably a
conducive
environment
through strong
and stable policie India has started late on the electrification path and needs a strong policy to catch-up and move rapidly towards the
stated goal.
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In 2013, Government of India launched a National Electric Mobility
Mission Plan 2020. Under the mission plan, the FAME India Scheme (a
scheme for faster adoption and manufacturing of hybrid & electric
vehicles), was launched in FY-2015 for 2 years as Phase-1 (now
extended until 31st March 2018). A phase-in approach will be needed
to bring policy changes in the FAME Scheme to promote electric
vehicle technology. Therefore, the FAME scheme should be extended
until 31st March 2020 as per the original plan to keep the momentum
going and the proposed new measures should be phased-in over the
next 2-3 years for a smooth transition to the next level.
Taking cognizance of the advancements in the electric vehicle
technology, markets development globally and a dire need to reduce
energy demand and decarbonization of the auto sector in India, NITI
Aayog’s transformative mobility report of 2017 has set out a desirable
and ambitious roadmap for pure electric vehicles, wherein, it is said
that if India adopts a transformative solution of shared-connectedelectric mobility, 100% public transport vehicles and 40% of private
vehicles can become all electric by 2030. This vision needs to be
expanded to have a future of all electric vehicles.
In this regard, the Indian auto industry commits itself to fully support the
Government for an ambitious goal of electric mobility by expanding it
further to seek a goal of a fully electric vehicle regime in a phased
manner with the following vision to align with the objective of the India
Energy Security Scenario 2047:
“The Society of Indian Automobile Manufacturers (SIAM), along with its
automobile manufacturers, aims to achieve new vehicle sales in the
country to be hundred percent pure electric vehicles (battery electric
and fuel cell vehicles) on the hundredth anniversary of India’s
independence (2047), with a following roadmap:
• All new vehicle sales for intra-city public transport fleets to be pure
electric vehicles by 2030;
• Forty percent of new vehicle sales in the country to be pure electric
vehicles by 2030;
• Sixty percent of new vehicle sales in the country to employ greener
technologies like hybrids & other alternate fuels by 2030; To ensure
smooth phasing in of pure electric vehicles and to sustain the
transition to cleaner fossil fuel vehicles, the IC engine upgradation
must continue over the next decade or so. Progressively cleaner
fossil fuel vehicles would be an essential stepping stone in this
journey towards hundred percent pure electric;
• Finally, all new vehicle sales to be pure electric vehicles by 2047.
In the process, the Indian automobile industry also aims to become a
leading global hub for design, manufacture and export of pure electric
vehicles supporting the ‘Make in India’ initiative.”
India’s Vision
All new vehicles
to be 100% pure
electric by the
100th year of
India’s
independence
Government of
India has set out a
desirable and
ambitious
roadmap for pure
electric vehicles
with a
transformative
solution of shared connected electric mobility,
wherein, 100%
public transport
vehicles and 40%
of private vehicles
can become all
electric by 2030.
This vision needs
to be expanded to
have a future of all
electric vehicles.
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To make sure that this vision is realized, the industry, government and
various stakeholders will need to collaborate and invest. Most
importantly, the long-term plan for the country for such an endeavor
will have to be implemented with full conviction, hundred percent
commitment and total perseverance. As the electric vehicle
technology is evolving rapidly, it could be possible that transition to
hundred percent electric vehicle regime might evolve earlier than
envisaged in the stated vision. Therefore, the policy will need to be
necessarily adaptive while at the same time must not bring sudden
changes so as to allow outcomes in a planned manner and to ensure
that the necessary transformation takes place with the minimum of
disruption which may have socio-economic impact in terms of
industrial growth, employment and livelihood of people in the auto
industry.
Auto industry will invest with a proper business case even with a certain
degree of risk around market readiness of electric vehicles. In not so
distant future, such investments are likely to turnaround the electric
vehicle scenario in an opportunity. Such investments will run into
thousands of crores for the auto industry towards creating a
sustainable market place and a robust manufacturing eco-system for
electric vehicles. Already, many automobile manufacturers and auto
component manufacturers in India have launched or announced
their plans to develop electric vehicles and related components.
Businesses, including the public-sector companies, will be looking at
setting-up the entire supply chain including cell manufacturing in the
country.
Towards this, the white paper suggests appropriate policy interventions
needed for creating a sustainable manufacturing ecosystem of
electric vehicles to achieve the stated vision. For its sheer size, complex
market profile and different vehicle segments, a technology agnostic
roadmap driven by market forces is always a preferred route for the
automotive industry, however, this paper focuses on aspects related
to pure electric vehicle technology vehicles putting the nation’s
interest in the forefront for meeting the social and ecological needs of
the country.
As the electric vehicle technology is evolving rapidly, the white paper
has refrained from any future projections on technology development,
costs and demand. However, we have analyzed that mass adoption
of electric vehicle will ultimately depend upon two major attributes –
Buyer’s Preference (determined by affordability, performance and
durability) and User Friendliness (ease of charging and ease of
upkeep). In the following section, the paper would briefly highlight
some of the key challenges that are present today with respect to the
adoption of electric vehicles for the various vehicles segments. As
such, the vision towards hundred percent pure electric regime is the
raison d’etre for seeking an e-mobility policy for the country.
Challenges
notwithstanding,
the vision towards
hundred percent
pure electric
regime is the
raison d’etre for
seeking a policy
for the country.
Partnership of
trust between
Industry and
Govt. is the
essence. The
road ahead will
need full
conviction,
hundred percent
commitment and
total
perseverance.
The paper focuses
on aspects
related to pure
electric vehicle
technology
putting the
nation’s interest in
the forefront for
me