types of electric vehicles

The world is quickly adapting to electric vehicles and in the next couple of decades, EVs are going to be more mainstream than internal combustion vehicles. More automotive manufacturers are now devoting a rather large chunk of their resources towards the research and development of electric vehicles. This begs a question though! Where does India fit in the overall scheme of electric vehicles globally? The government of India had a plan of converting the entire fleet of vehicles to fully electric by 2030, which is barely 12 years away. But in January 2018, it was sort of scrapped. If this actually happens, then India will be one of the largest markets for electric vehicles in the world, possibly only behind China.
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 Electric Vehicles

(India needs to develop a good charging infrastructure before EVs become mainstream)But a recent report prepared by Bloom berg New Energy Finance has some doubts on India being a big player in the EV market. One of the biggest reasons for this is the very low average vehicle prices in India. For example, if we talk globally, people in the US, EU would not mind spending around $35,000 on a new car. That figure is about $15,000 for people who buy a new car in China. But India, the average price of a car is less than $10,000. And therefore, people will be looking to buy an electric vehicle only when the prices of EVs will fall in that range.
And therefore, the report by Bloomberg New Energy Finance (BNEF) says that India will have better progress on electric two-wheelers, rickshaws and electric buses over the next 10 years. The report believes that by 2040, EVs will constitute only 40 percent of the total passenger vehicle fleet in India. At the end of 2017, there were just 6,000 highway-capable electric cars plying on Indian roads, which is a minuscule number when compared to the overall numbers of total cars on Indian roads. The BNEF study says that the annual sales of EVs will reach 30,000 units in 2022 as opposed to 2,000 units in 2017. And if the sale of EVs grows as the study has predicted, they will constitute about 6.6 percent of annual vehicle sales by 2030 and go up to 27 percent by 2040. Also, by 2040, about 13 percent of the passenger vehicles plying on Indian roads will be electric by 2040.

What the government needs to do

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The government needs to implement significant subsidy schemes and put up mandates which will encourage car buyers to look at electric vehicles
The next most important thing is to develop a good network charging infrastructure across the country. A good idea will be to involve private players in this as well although that is easier said than done because factors such as unreliable electricity supply, lack of coordination between different government levels and lack of demand for EVs keep private players away from investing in charging infrastructure. Also, the state-owned utilities will need to invest in charging infrastructure as well although their financial health is not at par with state-owned electric utilities in other parts of the world
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Business in electric vehicles (EV)

Goenka remarked, “Today, EV is one of the biggest opportunities that we have in India.” This holds true as the business in this sector seems to be on the rise. Last year, EESL (Energy Efficiency Services), an energy service company of the government floated tenders to procure at least 10,000 electric cars to phase out government vehicles in New Delhi. The tender was awarded to leading automobile players Tata Motors and Mahindra & Mahindra. This year, the company will again float a tender for 10,000 more electric vehicles in India.
Taking advantage of the market scenario, the Mahindra Group, one of the leading Indian multinational car manufacturing corporations and the first EV manufacturer in India is actively involved in the development of electric vehicles. The firm has recently announced that it has plans to invest 140 million dollars in EVs over the next four years. Mahindra has already invested 92 million dollars in EVs over the past five-six years.

Lithium-ion batteries

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lithium ion battery in the vehicle
EVs function on lithium-ion batteries which are costly as it has to be imported. Experts explain that about 80 % of the core components including the battery and the battery management system in an EV are imported by domestic players. In the long run, India seems to have a solution to the problem, AS Kiran Kumar, Former Chairman of Indian Space Research Organisation (ISRO) in another business event mentioned, “As EVs are expected to enter the market in the near future, we at  (Indian Space Research Organisation) have developed the lithium-ion battery technology which involves more than 26 processes. Today, we are making use of these batteries for launch vehicles as well as for satellites. However, a large amount of work still needs to be done to make it available for the automotive industry.” Once the batteries are made locally it will further reduce the price of these vehicles. Charging stations are also being planned and set up across the country.
India is changing and with the advent of numerous new technologies and innovations in the EV space, numerous opportunities are on the rise!
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