Our goal is to achieve 100% EV adoption by 2035, a milestone that will significantly contribute to our battle against climate change. The auto industry, with its continued innovation, regulatory support, consumer awareness, and cost reduction of EVs, plays a pivotal role in this endeavor.
One of the significant advantages of electric vehicles is their low running cost, which could be a potential economic boon for Indian customers who are very value-conscious. The slow adoption of EVs can be attributed to the high initial cost, primarily due to high battery costs. However, the per km saving on EVs is substantial, with potential savings of up to 75%, which could outweigh the initial high cost. For customers with high daily driving, the adoption is happening rapidly, especially in commercial taxis and three-wheelers in cities where charging is readily available.
Solar cells are being integrated into vehicles to provide supplemental energy, potentially extending the range of EVs or even powering some hydrogen-based vehicles. While full solar-powered cars are still in the experimental stage, solar panels on vehicles can help charge batteries or assist in powering auxiliary systems.
Companies like Sono Motors, Lightyear, and Aptera are developing solar-electric vehicles that incorporate solar panels into the car’s body, allowing it to capture solar energy while driving or parking. Aptera claims to be the world's first solar-electric vehicle, which requires no charging for most daily use.
Green hydrogen
As the automotive industry moves toward a greener future, integrating hydrogen fuel cells and solar power represents a significant step forward. Together, they could be crucial in reducing carbon footprint and moving toward a sustainable energy future. The Government of India has significantly promoted green hydrogen as part of its broader clean energy initiatives. And many initiatives have been taken to enable India to achieve its climate change targets.
India is planning to produce 5 million metric tonnes of green hydrogen annually by 2030, adding 125 GW of renewable energy capacity specifically for green hydrogen production. India aspires to capture a significant global green hydrogen market share, positioning itself as a major exporter to regions like Europe and Japan. This and various other initiatives will help achieve net-zero carbon emissions by 2070, as India committed to in the Paris Agreement. India's potential to lead in this area is a source of pride and hope for a sustainable future.
Battery subscription cost
With high EV sales will come the problem of dealing with the pile of batteries at the end of their lifecycle. The design of batteries should be such that they can be 98-100% recycled. Battery constitutes 50%+ of the total cost of vehicles. High Battery cost is the primary reason EVs are more expensive than fossil fuel vehicles. Fossil fuel vehicles have recurring fuel costs, but EVs only have a fraction of that cost in the form of energy charges for charging. The suggestion is for the government to encourage companies to get into battery subscription costs. Battery subscriptions will reduce the cost of EVs compared to fossil fuel vehicles by at least 30%.
EV quadricycles
The government of India must introduce EV Quadricycles as a separate category under L-category vehicles, similar to European rules, for faster adoption of EVs. Also, in addition to scrapping the vehicle policy, the government of India should make regulations and quickly approve the retrofitment of existing fossil fuels to Hydrogen and EVs for faster climate change and easy changeover certificate from fossil fuel to electric for existing vehicles at Regional transport authorities. With the reduced cost of batteries and EVs, we can see a complete switch to EVs and hydrogen-fuelled vehicles in a decade. Most, if not all, of us will be on EVs by or before 2035.
Global targets
To set the perspective right, Norway strives for new passenger cars to be completely emissions-free by 2025—just a few months away! Norway is showing the way to 100% electric cars by 2025. As Per the latest data of March 2024, the share of EVs in Norway has increased to 91.5%, and Tesla has a 20%+ market share in Norway So, Norway will be 100% electric by 2025. The Netherlands and the UK have committed to 100% electric ( including Hybrid) by 2030. France has committed by 2040. The rest of the world is also considering similar timelines. The auto industry will completely switch to alternate fuels between 2025 and 2040. However, the government of India needs to make many changes at the policy level to make this successful. Government agencies can study the Norway model, and some suitable learning can be implemented in India.
The auto industry, mainly with ICE engines, adversely impacts climate change. Some of these are emissions from the combustion of fossil fuel vehicles: Carbon dioxide ( CO2), Methane(CH4), and Nitrogen Oxide (N2O). CH$ and N2O emissions are lower than CO2 but have a much higher potential for global warming than CO2. At the same time, the manufacturing of all vehicles, including electric vehicles, involves processes and procedures that produce CO2. Electric vehicles have no emissions and thus are very useful for reducing CO2 emissions. However, the government should gradually eliminate electricity generated from coal and progressively use renewable energy for the same.
New technologies with lighter, aerodynamic designs and efficient engines with higher fuel efficiency can help reduce emissions. Much research is required on newer battery technologies, like solid-state batteries, which should substantially reduce the environmental impact of EVs. Innovations in intelligent transportation systems and smaller cars can lead to lower emissions. The Indian government has taken various initiatives to increase the use of electric vehicles in transportation. However, challenges still need to be addressed, such as the high upfront cost of EVs, limited charging infrastructure, the need for better battery technologies, and lower customer cost of ownership.
In the future, continuous investment in technology, infrastructure, and policy support will be crucial for achieving India's climate goals and promoting sustainable transportation. The Indian government has undertaken various initiatives to combat climate change through the auto industry, including policies to support customers switching to greener vehicles. However, adopting EVs requires resolving range, cost, and convenience issues.
Some of the key initiatives by the government of India are:
1. FAME schemes provide subsidies and incentives to purchase electric vehicles, set up charging infrastructure, and offer incentives for electric two-wheelers, three-wheelers, and four-wheelers
2. Skipping Bharat Stage V emission norms and switching directly to BS-VI Emission Norms from BSIV to reduce vehicle emissions by making engines cleaner and more efficient.
3. Introducing a Production-Linked Incentive (PLI) scheme, which will provide financial incentives to companies manufacturing EVs and EV components.
4. GST (Goods and Services Tax) on electric vehicles will be reduced from 12% to 5%.
5. Focusing on Green Hydrogen to promote hydrogen as a clean fuel. This initiative focuses on research and development, production, and utilization of green hydrogen.
6. Scrappage Policy was announced to phase out old, polluting vehicles and encourage the purchase of newer, more efficient ones or even EVs
7. Blending Biofuels: The government also encourages blending biofuels like ethanol with fossil fuels to reduce emissions. The government is working on setting up widespread EV charging infrastructure across the country to support the adoption of electric vehicles. The initiatives include public charging stations and charging points in residential and commercial areas. These initiatives collectively aim to reduce the auto industry's carbon footprint and improve climate change.
On a lighter note, initiative number 2, stated above by the Government of India, led to the closure of a small car company. I was CEO and full-time Director, and we used diesel engines that couldn’t meet Bharat stage VI. To support climate change, we must prepare to switch entirely to EVs in the next decade, enhance the use of solar cells, and prepare for green Hydrogen, too.
(Pankaj Dubey, Founder & CEO, DSPIN Consulting Pvt. Ltd. Auto Industry Veteran and Former Business Head Yamaha, CEO & MD Polaris India & CEO Eicher Polaris)
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