What seemed like a distant dream until the recent past has become the reality of new age transportation. With the government’s stronger and concerted thrust on going green & clean, the emphasis on the deployment of electric vehicles in transportation has witnessed a renaissance of sorts. Right from the Central Government to respective state governments, everyone is rolling out red carpet for EV manufacturers and are subsidizing user companies who are fast embracing the change. Fast transforming the EV landscape are the e-commerce companies who have already started walking the talk and have made envious partnerships with EV manufacturers for the fast and successful roll-out of EVs for last mile delivery. The indicative developments look impressive with FMCG and other sectors fast joining the race.
Sustainability is the need of the hour and is a pressing priority for businesses, customers, investors, and policymakers in India. The growing shift from brick-and-mortar retail towards e-commerce with its massive delivery vehicle deployment calls for cleaner mobility pathways. These pathways should provide economical, efficient, and convenient mobility services that are safe, reduce the dependence on fuel and cause least environmental impressions and adverse impacts on human health. The good news is that e-commerce companies are already leading the electric vehicle (EV) transition in India. These businesses now recognize EVs as a cost improvement measure, in addition to helping run their operations sustainably, improve customer satisfaction and meet regulatory compliance.
Today, on a total cost of ownership (TCO) basis, light EVs (two-wheelers and three-wheelers) are already economically viable if the daily utilization of the vehicles is high. E-commerce fleets often have high daily vehicle utilization, making them ideal candidates for early EV adoption. Moreover, the economics of the EV model for commercial fleets is also improving quickly.
There is a strong consensus within various Indian ministries to prioritize e-commerce electrification in the EV adoption sequence. Many state governments are increasingly instituting policies to prioritize the electrification of e-commerce fleets and related charging infrastructure. This includes recently announced schemes by the Delhi and Maharashtra governments mandating e-commerce companies to transition to EV fleets. A similar approach by other state governments and the central government can help set out a clear direction for e-commerce businesses to accelerate EV investments.
A joint report by the World Business Council for Sustainable Development (WBCSD) and Flipkart, ‘Advancing electrification of e-commerce deliveries in India', reveals that 100% electrification of e-commerce delivery fleets is possible with a conducive policy environment and greater collaboration by ecosystem partners. The e-commerce last mile is uniquely positioned to lead the electric mobility transition in India, and relevant for other global economies. This is due to the high daily utilization, fixed pick-up points, consistency of daily kilometres travelled and the predictability of routes and energy demand of the last mile.
While these all might sound like gyan, the ground reality is far more exciting than one can even imagine. Recently, Piaggio Group inaugurated its EV experience centre, Mobility Motors in Bengaluru. The experience centre will give customers a platform to access Piaggio’s newly launched FX range (fixed battery) of electric vehicles in both cargo and passenger segment.
Similarly, Greaves Electric Mobility inaugurated its largest EV production facility in Ranipet, Tamil Nadu. Capturing the e-commerce side of story, Amazon India recently announced that it is working with Sun Mobility to expand the deployment of EVs integrated with battery swapping technology for its transportation and logistics services. These vehicles will be part of Amazon India’s commitment of adding 10,000 electric vehicles in its India delivery fleet by 2025, announced in 2020. The deployment of EVs will help its efforts to implement more sustainable practices in its operations, as well as contribute to its Climate Pledge goals – a commitment to achieve net-zero carbon by 2040, almost 10 years ahead of the Paris Agreement.
While these are just some of the developments, the entire ecosystem has been quick enough to support and drive this future-forward growth story in unison. But what has led to this remarkable transition? Let’s hear it from the expert…
According to Lars Mårtensson, Environment and Innovation Director, Volvo Trucks, there are numerous advantages of going electric. Some of them are as mentioned by him in one of the official releases:
The cost of owning an electric vehicle is going down: Although an electric truck has a higher sticker price than a conventional vehicle today, the low number of moving parts in an electric engine means they often have longer lifecycles and need less maintenance. Meanwhile, the price of batteries is decreasing at a rate that’s outpacing most analysts’ expectations. Ongoing investment in the renewable energy sector is bringing down costs of generating electricity to the point where running a truck on electricity will be a fraction of the cost of diesel.
Batteries keep getting better: As demand for electric vehicles has shot up, battery innovation is also accelerating. Lighter, lithium-ion batteries are about a third of the weight and half of the volume when compared to lead-acid. And they are becoming even lighter and more powerful as the tech improves. Even more, gains could be made with the next generation of batteries, known as solid state batteries. These charge faster, are safer and deliver up to twice the battery density of today’s lithium-ion batteries, which could potentially double the range.
Infrastructure challenges are being addressed: Today, charging an electric truck for shorter-range tasks can be easily done overnight. While the infrastructure for fast-charging trucks is still small, it is expanding as cities, logistics centers, automakers, and gas stations look to cater to an emerging demand. And new technologies including smart chargers and smart batteries are making ultra-fast charging possible under a broader range of conditions. New discoveries are also demonstrating that charging speeds will be increased drastically by improvements of lithium-ion batteries.
Electric trucks are becoming the better choice: As the price of electric vehicles goes down, choosing electric could become more than a question of sustainability and cost. Electric trucks are also proving popular with drivers because they generate fewer vibrations than traditional diesel vehicles. They are easier to manoeuvre and park, making them well-suited to urban driving and deliveries. As a low-carbon option with no tailpipe emissions, electric trucks are proving popular with companies that want to operate more sustainably.
On this note, let’s get on to the users’ side of the EV story before we bring to you the users’ experience and expectations to complete the quorum…
What are your USPs? How is it different from other players in the market?
Uday Narang, Founder & Chairman, Omega Seiki Mobility: Omega Seiki Mobility has been growing its product line up and manufacturing footprint rapidly in India. Omega Seiki Mobility currently has portfolio of 8 electric vehicles – three-wheeler EV: Rage+, Rage+ Rapid, Rage+ Frost, Rage+ Swap, Rage+ Garbage Tipper, Stream and in two-wheeler EV: Fiare and Zoro. Omega Seiki Mobility is a market leader with its Rage+ brand of electric cargo 3 wheelers (as per data from Vahaan Portal in L5N category). OSM is the only company to provide Fast, Fixed and Swap battery option with its range of three-wheeler electric vehicles. Omega Seiki Mobility is a fully integrated company where we are focusing significantly on controlling our supply chain in terms of power trains, motors, and batteries etc.
OSM has always been about technology, providing efficiency, range, costing, safety, safety first what is extremely important is that we want all our products safe, ‘One life lost is way too many’. We are the only manufacturing who will be presently introducing long range of trucks in one and a half tonnes, three and a half tonnes, six and a half tonnes and bigger.
Satish Kumar Jain, Founder & Chairman, PMI Electro Mobility Solutions Pvt. Ltd. & Manvi Jain, Director, PMI Group: PMI identifies itself as the country’s leading commercial EV manufacturer with particular focus on technology leadership to actively contribute to the country’s clean mobility.
The company maintains immense focus on building state-of-the-art product to offer trouble-free operations in the diverse climatic conditions across the country. This customer-oriented focus has helped PMI emerge as the country’s largest commercial-EV manufacturer, year on year. On the intrinsic side, the focus on employees has been at the core of the company’s ethos that has helped it overcome the great migration and great resignation phenomena observed by other companies in this space.
Hansveer Chandok, Promoter, Syndicate Motors: Syndicate Motors has a product portfolio of three platforms - electric rickshaw, electric loader and electric dumper, with multiple variants in each product line. The goal of Syndicate Motors has been to provide efficient and reliable three wheelers that are made and well suited to Indian working conditions - machines that the user can rely upon as their daily workhorse. All our platforms are designed and manufactured keeping in mind user requirements.
A major part of total cost of ownership for users is the after sales services and upkeep- and this is where Syndicate Motors is focusing on to stand apart from the competition, by having fully equipped service centers that can repair and replace parts when needed, with a quick turnaround time.
Kindly elaborate on Euler Motors unique Go-to-Market approach – customer pilots and full stack ecosystem.
Vani Rikhy Mehra, AVP, Sales & Mobility, Euler Motors: Euler Motors has built effective solutions for mass adoption of electric vehicles in the commercial segment. We operate with a full stack ecosystem, which comprises India’s most powerful vehicles in 3- wheeler category, robust charging infrastructure and service support, to make customers comfortable and open to EVs. A combination of all these factors have created a unique value proposition, which has inspired immense customer confidence in the industry. In addition to substantial retail customers, institutional players like BigBasket, Flipkart and many more have deployed HiLoad.
Our EVs are designed for specific Indian conditions and customer needs, for India, from India. Our product, HiLoad, India’s most powerful EV in terms of range, payload, and battery capacity, has created new benchmarks in the last mile space and improved ecological footprint for our customers. We already have a network of 500+ charging infra points to support electric vehicles on ground, with multiple charging variants and charge on wheels options.
We conducted numerous pilots with institutional customers for three years that helped to bring best-in-class vehicles and solutions to enable seamless operation of our vehicles and enable swift transition to EVs. We now have an order book of 9000+ vehicles, with retail deliveries ongoing pan India to serve this vehicle demand.
How has the pandemic been the lesson in disguise for EV manufactures and the users alike? What were the challenges faced during this period?
Uday Narang: In the financial year 2021, the size of the Indian logistics market was around US$250 billion. It was estimated that this market would grow to US$380 billion in 2025, at a CAGR between 10 – 12%. The rising importance of last-mile deliveries for e-commerce—has been underway for years, but COVID-19 has intensified it. The pandemic has been more of an opportunity for us, since the pandemic started, consumers around the world, and certainly in India, have been shopping online in much larger numbers which has increased the demand for eco-friendly and pollution free last-mile delivery solutions. Also, Ukraine Russia war, Fuel prices are around 100 rupees a litre which has made electrification an important part of our logistics system in the middle and last mile logistics. Omega Seiki Mobility, being born electric, has been big proponents towards electrification and sustainability.
SK Jain & Manvi Jain: The COVID induced lockdowns have been instrumental to showcase the benefits of a clean environment with least emissions and pollution. These played a part in driving the interest levels for the consumers towards the clean mobility ecosystem. The challenges faced during the pandemic ranged from constrained access to credible supply-chain for raw materials as well as markets for finished products, quality workforce, leading to delay in all expansion plans. These two years will be testament to the importance on domestic and future-ready supply chains for all stakeholders of the EV ecosystem and the industry.
Vani Rikhy Mehra: The pandemic was a learning curve for industries across segments. With surge in the demand from ecommerce and via retail, our vehicles were running continuously carrying optimum weight to fulfil customer’s requirements. The pandemic also made us more resilient, and we focussed on strengthening our localized supply chains and supplier network, along with creating an indigenous auto value chain, which also includes a developing retail network for smoother purchases.
Hansveer Chandok: The pandemic has brought about quite a few changes in our life and also in the market. It has rapidly increased the rate of adoption of ecommerce and digitization of all aspects of life, thereby putting a renewed emphasis on first mile and last mile transportation which can be met by our three-wheeler platforms. Syndicate Motors has always been stringent about quality standards in manufacturing, and the pandemic has only helped us develop a routine for running a world class manufacturing facility with focus on hygiene too.
Coming to the challenges, I would say that the pandemic led to disruptions in the supply chain which led to us focusing on strengthening our localized supply chain, and leading to lowering to costs - the benefit of which we turned over to the end users.
How EVs fare against ICE vehicles in terms of performance and costs? What are the solutions to address this perception amongst customers?
Uday Narang: Electric vehicles’ total cost of running is 60 to 70% less than the IC engines, the electric vehicles require less maintenance and battery recharging cost. The cost of battery over the next few years will further go down. In the short term, the prices are high, but you will see battery cost to go below $100 a kilowatt hour which is $200 right now, that will make electric vehicle even more competitive. The current trends are in favour of growth which was seen in sales numbers of May 2022. The electric three-wheeler sales in May 2022 for the first time have surpassed that of their ICE counterparts. At Present electrification is the way to go.
SK Jain & Manvi Jain: The market for electric vehicles in India has witnessed a spike during the recent years, with growth in the monthly sales witnessing a near 10x growth over the last one year. However, the ecosystem is at a nascent stage with higher cost of ownership of an EV makes it an important entry-level barrier. While the long-term benefits on account of cost and environmental impact place EVs at a higher pedestal than conventional ICE vehicles, their uptake and immediate cost-parity will take some more time to realize.
Vani Rikhy Mehra: EVs have become the preferred choice in the two and three-wheeler segments, especially in the commercial and last mile segments, providing customers with a better value proposition. EVs fare better in terms of lower TCOs, easier maintenance and better ROI as compared to ICEs. Apart from fuel, this includes reductions in service and maintenance expenses, as well as other incentives offered by OEMs, as well as the government on EV purchases. For instance, if we take the petrol price in Delhi-NCR for June 2021 at Rs.89 per litre, a commercial three-wheeler EV was breaking even with the ICE in two years. If we continue to map the petrol price hike, at the price of petrol in May 2026, which may be around Rs.108 per litre, an electric three-wheeler will be breaking even with an ICE in 14 months. In a span of five years, the price hikes on fuel translates into total savings from Rs.1.9Lakh (at Rs.89 per litre) to Rs.2.6 lakhs (at Rs.108 per litre) by the fifth year of purchase. This shrinking timeline of the TCO is lucrative enough for businesses and customers to transition to EVs. Further, for every extra kilometre driven, the TCO per km for an EV will provide a greater reduction, implying greater savings, and returns on investment for EV users.
Dr. Arunachalam, MD & CEO, IBOB SCS, India sub-brand of SF International: The commercial benefits aren’t noteworthy, but it is an evolving industry, and the technology and the products are still in the introduction phase. However, EVs are more efficient and with cheaper maintenance costs compared to ICE due to fewer moving parts and other benefits from the government like road tax/ Financial Incentives where the amount is reimbursed later. It allows a lucrative cost-benefit assessment. Additionally, it also embarks on an ambitious formalization of the scrappage Industry under the policy, where scrap value is fixed at 4%-6% of the ex-showroom price of the new purchase. In terms of performance, our EV segment is doing a fantastic job, the demand is high. Every day we are receiving requests from our customers to either introduce or increase the fleet size. It’s an interesting paradigm shift, our customers are more inclined than we expected them to be, they are making changes in their policies, their KPI matrix, and their Cost-benefit assessments to align with the Country's goal of going full Electric by 2030.
Hansveer Chandok: Electric vehicles’ running cost is up to 70% less than the IC engines, and they also incur much lower maintenance costs due to fewer running parts. The cost of the battery is also expected to decrease over the next few years as adoption of electric vehicles increases. Also, the upfront costs for electric three wheelers are lower when compared to their four-wheeler counterparts. Coming to the perception of electric vehicles, especially electric three wheelers to be specific - this is an area that needs working. When one mentions the word ‘electric vehicles’ people tend to think of the Tesla and similar brands, not realizing that electric three wheelers are already ferrying people daily across the country. There needs to be more awareness regarding the made in India three wheelers segment.
What are the technology interventions in this space?
Uday Narang: Technology plays a major role in the electric mobility segment. We have built war rooms across locations to track all the vehicles Omega Seiki Mobility has produced to look at the health of the vehicles, the batteries,the updates on the powertrain, in terms of charging stations and making the ride of electric vehicles more comfortable. The War Room set up helps Omega Seiki Mobility managing fleets for our logistics partners.
SK Jain & Manvi Jain: Unlike the ICE engines, technology has shaped the EV industry since its inception. While the battery cells are imported, the BMS to suit the requirements suiting Indian conditions for optimum usage of an EV play a very important part. Further, the technology for fast charging needs toevolve to help allay the range-anxiety aswell as provide contiguous and state-ofthe-art electric mobility infrastructure.
Vani Rikhy Mehra: We have focused on building on tech leadership and designing superior products suited for Indian customers and road conditions. HiLoad is India’s most powerful cargo vehicle in the three-wheeler category, boasting the highest payload capacity at 688 kg. It has a powerful combination of the highest battery power (12.4 kWh) and certified range (151 KM) on a single charge. HiLoad, has been designed uniquely for India, from India, with powerful attributes and features that make an EV experience extraordinary. Euler Motors has taken a lead in segment innovation and is the first player in India to provide liquid cooling technology in our battery packs which allows the vehicle to withstand ambient temperatures and offer a long-lasting battery life, and optimum performance.
Dr. Arunachalam: The battery capacity and the charging infrastructure are a concern. However, the industry has been forthcoming with various private players investing in Charging Technology, the PMP policy of the government, is also supporting these Investments. At present, the commercial vehicles have a range of 40-50 km on a single charge, and we are certain, in a short period, we shall have the technology of easily replacing batteries, Quick Charge technology, and battery replacement centers across the length and breadth of the Country. IBOB is also working with some App developers to align our TMS (Transport management system) with the Charging Station grids, this shall allow them the knowledge and exact routes to the charging stations, saving unwanted stoppages and battery out scenarios.
Can you share with us some of the ecosystem issues – financing support, charging stations and how are you working towards circumventing them?
Uday Narang: The number one thing that will accelerate the EV sector is financing. The PSU banks, State Banks should start financing electric vehicles. We are making a big push towards it by launching an electric vehicle finance subsidiary christened – Anglian Finvest for Omega Seiki Mobility customers to avail financing options. The company has already dispersed more than Rs.10 crore worth of loans. Credit facility is the primary concern for the EV market to grow. Secondly, the government should support in setting up more charging infrastructure so that the electric vehicles can run smoothly and efficiently. The last and final pick to accelerate the pace of the EV market growth in India would be, there is a huge requirement for EV’s Tier-II, Tier- III cities. And there is a need for more policies towards providing EV solution in these cities for agriculture, farming, mobility etc.
SK Jain & Manvi Jain: Financing of course has been a challenge in the EV space, EV technology being new to the market and gradually gaining traction. We think every market takes at least 3 years to mature and create bankability and now EV business has reaches that stage where PSU Banks are coming forward with products to support EV financing. Recently World Bank has also come forward to offer solution to support OEM so that they can pick big orders and bring volumes to the market. With this initiative of Central and state governments to develop charging infrastructure within cities and on all national highways, this challenge is gradually being taken care of. We, at PMI, have developed an ecosystem where we manufacture the vehicle, develop charging infrastructure and maintain it for 10 years to bring sustainability.
Vani Rikhy Mehra: A full stack ecosystem approach is our unique proposition to tackle challenges with charging and service support. It covers high-performance products, charging infrastructure, and service support that has made customers comfortable and open to EVs. Euler Motors’ extensive full stack ecosystem approach combines our high-powered vehicle, HiLoad, along with a presence of 500+ charging infra points with four different types of charging solutions, including fast charging and charge on wheels with overall service support. We are committed towards enhancing the EV ecosystem in India and are working with over 10 financiers and banking institutions to facilitate access to easy financing for our customers. We have also begun our retail operations, and successfully expanded our network in new markets and cities, to serve customers better.
Dr. Arunachalam: I shall re-iterate again, that EVs are in a nascent stage at this time, however, the growth direction and indicators are very positive. At the production level, we still have a high technology cost that shall come down as demand grows, and production rises. This has happened with all industries and the curve for EVs shall be no different.
An example is the LED segment, we have seen the transition since the policy changes post 2014. On the Financial side, it still has a low loan-to-value ratio and limited specialized financing options. The resale value is still an unexplored paradigm as currently there is no secondary market for EVs. In terms of funding, it is still around 80% with a rate of Interest of 150-200 bps more than ICE vehicles. However, with promotion from the private sector, many NBFCs and Fintech are moving into the space, and we are sure, within a short period this shall have the right financing options. Infrastructure currently seems to hold the real bottleneck but again, the Investments, Industry tie-ups, and Policies are driving quick change in this segment. There is usually a high initial investment, thus, making Charging time a factor for faster returns. Thus, fast charging becomes a critical component that must be linked with the technology enablers within the product. Superchargers and DC Charging is countering this bottleneck. At IBOB, we are currently aligned with selective charging stations to offer us specific time slots thus reducing our wait time and allowing our vehicles to do what they are supposed to, delivering customer delight.
Hansveer Chandok: The single largest issue facing this industry is the lack of financing for the user of our vehicles. Our customers mainly include rickshaw drivers who come from extremely meager backgrounds and often lack the resources to pay for the rickshaws completely out of pocket. To make matters worse, a lot of these people also lack the facilities needed to be financed by major banks. To further compound the issue, a lot of flyby- night operators have been selling sub standard vehicles, financed by banks, and then shutting shop soon after. In this instance, when the customer needs any kind of support to maintain their vehicle, they are left high and dry, thus leading to lack of income and hence the ability to pay back the loans. This has resulted in a high percentage of NPAs and further reluctance on the part of the banks to fund the purchases.
What have been the crucial learnings from working with over 50 ecommerce and 3PL institutional customers. Some of these include BigBasket, Flipkart, Udaan, Zomato, HUL, BlueDart?
Vani Rikhy Mehra: The customer pilots helped us gain an insight on their basic requisites of a cargo vehicle, and their reception towards EVs. Our technology and vehicles, as well as full stack proposition made them comfortable with having electric three wheelers as part of their delivery fleet. Some of these insights were improving loading capabilities, capacity to climb high inclination, driver behaviour patterns and overall segment requirements. With customer engagements and learnings, we have worked on a product to deliver highest payload capacity and optimum range, coupled with advanced technology that competes with all vehicles in the segment. HiLoad provides superior performance and customer experience at par with ICEs in the segment, at much lesser TCOs and operating costs.
What are the growth opportunities and industry trends for EVs in ecommerce and delivery market?
Uday Narang: Right from the year 2012, the Indian Government has been taking continuous steps to develop and promote EV ecosystem in the country, witnessed from National Electric Mobility Mission Plan (‘NEMP’) to introduction of Faster Adoption and Manufacturing of EVs scheme (‘FAME’) on the consumer side and Production-linked Incentive Scheme (‘PLI’) for Advanced Chemistry Cell (‘ACC’) as well as for Auto and Automotive Components manufacturers on the supplier side. The EV market is continuously evolving in terms of new participants. But the key part is that new and significant players are being part of EV space with new technologies especially in the last mile and EV components segments. What is most important is that the traditional players have now realized that EVs are the future, so the market is on track, and it’s not only just on track, The EV market is on an acceleration mode. The future of EVs is great. We are seeing exceedingly good demand in the electric three-wheeler segment; we have order book of up to 50,000 vehicles already. Over the next five years 75 to 80% of three wheelers will be electric and we strive to be a big part of it. Building the products that will give efficiency, range, and safety as well as lower cost of ownership is suited best for the e-commerce and delivery Market. The logistics players are now looking for end to end solutions and we are OSM are delivering exactly that through our electric three-wheeler fleet and technology.
SK Jain & Manvi Jain: While the consumers are witnessing the increase in retail, the key driver for the initial sales in EVs will be driven by commercial EV ecosystem, including food, e-commerce, goods-delivery fleets. As brands are moving towards decreasing their carbon footprint, the opportunity for growth in large-scale electric-fleets is immense. This will be given additional boost with the electric-commercial vehicles that bring in incremental range and capacities. It would not be prudent to state that largescale commercial EVs will play a pivot role in the country’s CDG goals.
Vani Rikhy Mehra: The surge in demand for ecommerce and intra-city logistics which is expected to grow four times from $84 billion in 2021 to $350 billion by 2030 has enabled the logistics industry to shift towards EVs. The market is buoyant with massive EV demand in this space, as some of the largest e-commerce businesses, such as Amazon, Flipkart, Zomato and BigBasket, amongst others are now actively electrifying their delivery fleets. Another key market driver for EVs is the booming demand from the retail segment; EV retail sales in 2021-22 reached 429K units, a threefold increase from 134K units in 2020-21, according to data gathered by automotive dealers' group FADA. Euler Motors has registered vehicle orders of over 9000 EVs from retail and ecommerce. As India moves towards sustainable mobility, EVs are taking centre stage, led by a thriving
EV ecosystem led by start-ups as well as government support and incentivization in the sector. Several legacy players and VCs are investing heavily on powerful vehicles, for EVs. Further a growing surge in fossil fuel prices, is skewing consumer interest towards EVs and the market is buoyant with demand. EVs will be mainstream, in the coming years, given their lower TCO and maintenance benefits over ICEs.
Dr. Arunachalam: The e-commerce segment is certainly the leader in driving the change from gasoline to Electric vehicles. They already have been deploying 2W, 3W, small, and medium commercial vehicles in their last-mile delivery segment and with their volumes expected to grow four times by 2030, the sector is expected to add over 2,00,000 new EVs within this segment. India is already one of the largest markets for EVs with the largest EV fleet corporate commitment. Most e-commerce companies have already committed to a 100% EV transition by 2030. This helps in creating a consistent demand and manufacturers can focus on Product Quality and viability.
What is your take on current government policies towards the EV segment? What more could be done?
Uday Narang: Automotive consumer behaviour is highly responsive to governmental policy incentives and regulation. Smart policies could speed up EV adoption. The result could lead to a transition to green manufacturing, competitive strength and long-term reduced costs of transportation ownership for the average consumer. The government, not just only at the central level with its PLI Scheme, FAME II policy, but also at the state level has been very supportive towards the EV segment. The government can help more in infrastructure government for EVs by providing subsidies to help not only the Electric Vehicle OEMs but also providing sops to EV Component makers such as battery, transmission, motor technology, etc. Lastly, I would like to add, the government should set an example by completely changing its ICE engine fleets to EVs across segments from Garbage trucks to its fleet of government official vehicles.
SK Jain & Manvi Jain: The Government of India and most of the state governments have been proactively providing impetus to the uptake of EVs and commercial-EVs with focus towards clean public transport. The Central Government has lined up multiple incentives towards encouraging the ecosystem to manufacture EVs, build domestic capabilities for the EV batteries and subsidies to counter the high-cost entry-barrier for the retail customers.
On the other hand, state governments have rolled out lucrative schemes for manufacturing and registration of vehicles to encourage citizens to contribute towards clean mobility. Such multi-level benefits to the manufacturers as well as customers will go a long-way in shaping the industry to leapfrog the sector from its nascent days to an ideal EV ecosystem.
Vani Rikhy Mehra: There has been a constant push from the central and state governments on EVs, which is encouraging to see. Policies and incentives continue to expand, which were evident in our Union Budget announcements as well. We certainly need this momentum to continue to drive mass EV adoption, and manufacturing in the country. The industry needs support from the government to help create an indigenous battery manufacturing ecosystem and be self-reliant in the coming years. The PLI scheme for advanced chemistry cells will be crucial to make batteries localized.
Dr. Arunachalam: NEMMP (National Electric Mobility Mission Plan) certainly offered some objectives, but the real push did come via the FAME-I & FAMEII policy, which has been certainly supporting the development of the right products, making certain the benefits for short and long terms are available to both the manufacturers and the consumers.
Post the Central Government’s plan, state governments have devised their plans and policies to accelerate adoption. PMP (Phased Manufacturing Plan) is certainly guiding the industry in setting up the right infrastructure across the length and breadth of the country. Besides the big-ticket announcements, the minor benefits offered in terms of waiving off Road tax and permission to ply across the clock irrespective of restrictive hours have been a major USP. The target of achieving 100% e-mobility by 2030 will certainly need further investment in Product development, Charging Infrastructure, and more innovative business models. We do feel a further push in terms of Investment via the PPP model shall do wonders for this objective.