“A STUDY ON CHALLENGES FACED BY ELECTRONIC VEHICLE

MANUFACTURERS IN INDIA”
 TABLE OF CONTENTS

Chapter
CONTENTS Page No
No

1 INTRODUCTION 1

1.1 Introduction to the topic of study 1

1.2 meaning of Electronic Vehicle 2

1.3 Definition of EV 2

1.4 History and Evolution of EV 2

2 REVIEW OF LITERATURE 7

3 RESEARCH METHODOLOGY 9

3.1 Research Methodology 9

3.2 Research Design 9

3.3Method of Data collection 10

3.4 Limitations of the Study 10

3.5 Objectives 10

4 DATA ANALYSIS AND INTERPRETATION 11

4.1 EV and Indian Vehicle Market 11

4.2 Major EV Manufacturers and EV Models in India 14

4.3 Technical Factors of EV 19

 4.4 Advantages of EV 23

4.5 Proposition Between Newly Launching EV and Petrol

24
Car

4.6 Customer Preference between EV and Petrol Car 25

4.7 Major Challenges faced by EV Manufacturers 30

5 FINDINGS AND SUGGESTIONS 42

 CHAPTER 1

INTRODUCTION
 Introduction

During the last few decades, environmental impact of the petroleum-based transportation
infrastructure, along with the fear of peak oil, has led to renewed interest in an electric

1.1 INTRODUCTION TO THE TOPIC OF THE STUDY

The global automotive industry is on the verge of disruption. Four technology-driven trends
GHJLelectrification, shared mobility, connectivity, and autonomous driving—are leading
the automotive industry to this disruption. These trends will shift markets and revenue pools,
change mobility behaviour and build new avenues for competition and cooperation.

The Indian automotive industry has started to experience these effects of the global
disruption. Out of the four emerging trends, Electrification is of importance and might
significantly impact auto OEMs and auto component manufacturers. India has big plans for
the emerging Electric Vehicles and its technologies in the country. It has announced (and
later modified some) ultimatums for the next decade.

India has great expectations of achieving a high level of penetration in e-mobility by 2030.
The reason is not very surprising; the alarming levels of pollution indices which keep on
rising and the colossal dollars the country must pay for annual crude oil imports. In
December 2017, New Delhi was in a state of red alert and came close to Beijing in terms of
pollution toxicity, such are the pollution indices in India. If India successfully manages to
achieve this target by 2030, it could save about 1 Giga Tonne of emissions.

E-mobility has arrived in India. In the Indian context, any discourse around Electric Vehicles
cannot be disjointed from pollution and its impact, dependence on oil imports, dire need to
have more renewable sources of energy. The automotive industry could benefit by viewing
it not as a threat, but an opportunity. The good news is that policymakers are trying to
seriously consider it and the social circle across the nation is making EV a buzzword.

However, till date, there has been very little penetration as EV today are undergoing a typical
vicious cycle of high cost, low demand, low supply. This must translate into a virtuous cycle
of low cost, high demand, high supply.

There is a need to create an integrated policy to nurture this technology. An eco-system

approach is what will help achieve India’s progress on electric mobility. The policy on

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‘Faster Adoption and Manufacturing of Hybrid and Electric vehicles’ FAME I in 2015 and
FAME-II in 2019 have in some ways been instrumental in successfully creating an initial
but nascent market. However, there is an apparent shift in the focus of Government towards
supply-side measures that include manufacturing of critical components of EV technology.

1.2 MEANING OF EV VEHICLE

An electric vehicle (EV) is a vehicle that uses one or more electric motors or traction
motors for propulsion. An electric vehicle may be powered through a collector system by
electricity from off-vehicle sources, or may be self-contained with a battery, solar panels,
fuel cells or an electric generator to convert fuel to electricity. EVs include, but are not
limited to, road and rail vehicles, surface and underwater vessels, electric aircraft and
electric spacecraft.

1.3 DEFINITION OF EV VEHICLE

An electric vehicle is a vehicle that is driven by an electric motor which draws its current
either from storage batteries or from overhead cables

1.4 HISTORY AND EVOLUTION ELECTRONIC VEHICLE

Electric motive power started in 1827, when Hungarian priest Ányos Jedlik built the first
crude but viable electric motor, provided with stator, rotor and commutator, and the year
after he used it to power a tiny car. A few years later, in 1835, professor Sibrandus Stratingh
of the University of Groningen, the Netherlands, built a small-scale electric car, and between
1832 and 1839 (the exact year is uncertain), Robert Anderson of Scotland invented the first
crude electric carriage, powered by non-rechargeable primary cells. Around the same period,
early experimental electrical cars were moving on rails, too. American blacksmith and
inventor Thomas Davenport built a toy electric locomotive, powered by a primitive electric
motor, in 1835. In 1838, a Scotsman named Robert Davidson built an electric locomotive
that attained a speed of four miles per hour (6+ km/h). In England a patent was granted in
1840 for the use of rails as conductors of electric current, and similar American patents were
issued to Lilley and Colten in 1847.

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The first mass-produced electric vehicles appeared in America in the early 1900s. In 1902,
"Studebaker Automobile Company" entered the automotive business with electric vehicles,
though it also entered the gasoline vehicles market in 1904. However, with the advent of
cheap assembly line cars by Ford, electric cars fell to the wayside

Due to the limitations of storage batteries at that time, electric cars did not gain much
popularity, however electric trains gained immense popularity due to their economies and
fast speeds achievable. By the 20th century, electric rail transport became commonplace due
to advances in the development of electric locomotives. Over time their general-purpose
commercial use reduced to specialist roles, as platform trucks, forklift trucks, ambulances,
tow tractors and urban delivery vehicles, such as the iconic British milk float; for most of
the 20th century, the UK was the world's largest user of electric road vehicles. Electrified
trains were used for coal transport, as the motors did not use precious oxygen in the mines.
Switzerland's lack of natural fossil resources forced the rapid electrification of their rail
network. One of the earliest rechargeable batteries – the nickel-iron battery – was favoured
by Edison for use in electric cars.

EVs were among the earliest automobiles, and before the pre-eminence of light, powerful
internal combustion engines, electric automobiles held many vehicles land speed and
distance records in the early 1900s. They were produced by Baker Electric, Columbia
Electric, Detroit Electric, and others, and at one point in history out-sold gasoline-powered
vehicles. In fact, in 1900, 28 percent of the cars on the road in the USA were electric. EVs
were so popular that even President Woodrow Wilson and his secret service agents toured
Washington, DC, in their Milburn Electrics, which covered 60–70 mi (100–110 km) per
charge.

A number of developments contributed to decline of electric cars. Improved road

infrastructure required a greater range than that offered by electric cars, and the discovery of
large reserves of petroleum in Texas, Oklahoma, and California led to the wide availability
of affordable gasoline/petrol, making internal combustion powered cars cheaper to operate
over long distances. Also, internal combustion powered cars became ever easier to operate
thanks to the invention of the electric starter by Charles Kettering in 1912, which eliminated
the need of a hand crank for starting a gasoline engine, and the noise emitted by ICE cars
became more bearable thanks to the use of the muffler, which Hiram Percy Maxim had

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invented in 1897. As roads were improved outside urban areas electric vehicle range could
not compete with the ICE. Finally, the initiation of mass production of gasoline-powered
vehicles by Henry Ford in 1913 reduced significantly the cost of gasoline cars as compared
to electric cars.

In the 1930s, National City Lines, which was a partnership of General Motors, Firestone,
and Standard Oil of California purchased many electric tram networks across the country to
dismantle them and replace them with GM buses. The partnership was convicted
of conspiring to monopolize the sale of equipment and supplies to their subsidiary
companies, but were acquitted of conspiring to monopolize the provision of transportation
services.

Experimentation

This 1973 photo of a charging station in Seattle shows an AMC Gremlin modified to take
electric power; it had a range of about 50 miles on one charge.

The emergence of metal–oxide–semiconductor (MOS) technology led to the development of

modern electric road vehicles. The MOSFET (MOS field-effect transistor, or MOS
transistor), invented by Mohamed M. Atalla and Dawon Kahng at Bell Labs in 1959, led to
the development of the power MOSFET by Hitachi in 1969, and the single-
chip microprocessor by Federico Faggin, Marcian Hoff, Masatoshi Shima and Stanley
Mazor at Intel in 1971. The power MOSFET and the microcontroller, a type of single-chip
microprocessor, led to significant advances in electric vehicle technology. MOSFET power
converters allowed operation at much higher switching frequencies, made it easier to drive,
reduced power losses, and significantly reduced prices, while single-chip microcontrollers
could manage all aspects of the drive control and had the capacity for battery management.
Insulated-gate bipolar transistor (IGBT) technology made possible the use of the
synchronous AC three phase motor, by creating a synthetic three phase alternating current
from, for example, a DC traction battery pack. This technique was developed by Hughes and
GM and used in their US Electricar in 1995, but still used the heavy (26 count 12 Volt) lead
acid, series connected batteries. GM later developed an electric pickup truck and then the
EV1. This motor and controller were kept alive and used in converted cars by AC
Propulsion, where they introduced the lithium battery and later Elon Musk saw and

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embraced. Another important technology that enabled modern highway-capable electric cars
is the lithium-ion battery, invented by John Goodenough, Rachid Yazami and Akira
Yoshino in the 1980s, which was responsible for the development of electric vehicles
capable of long-distance travel. IN January 1990, General Motors' President introduced its
EV concept two-seater, the "Impact", at the Los Angeles Auto Show. That September, the
California Air Resources Board mandated major-automaker sales of EVs, in phases starting
in 1998. From 1996 to 1998 GM produced 1117 EV1s, 800 of which were made available
through three-year leases

Reintro transportation infrastructure. EVs differ from fossil fuel-powered vehicles in that
the electricity they consume can be generated from a wide range of sources, including fossil
fuels, nuclear power, and renewable sources such as tidal power, solar power, hydropower,
and wind power or any combination of those. The carbon footprint and other emissions of
electric vehicles varies depending on the fuel and technology used for electricity generation.
The electricity may then be stored on board the vehicle using a battery, flywheel, or
supercapacitors. Vehicles making use of engines working on the principle of combustion can
usually only derive their energy from a single or a few sources, usually non-renewable fossil
fuels. A key advantage of hybrid or plug-in electric vehicles is regenerative braking, which
recovers kinetic energy, typically lost during friction braking as heat, as electricity restored
to the on-board battery.

As of January 2018, the world's two best selling all-electric cars in history were the Nissan
Leaf (left), with 300,000 in global sales and the Tesla Model S (right), with over 200,000 in
global sales.

As of March 2018, there are some 45 series production highway-capable all-electric cars
available in various countries. As of early December 2015, the Leaf, with 200,000 units sold
worldwide, was the world's top-selling highway-capable all-electric car of all time, followed
by the Tesla Model S with global deliveries of about 100,000 units. Leaf global sales
achieved the 300,000 unit milestone in January 2018.

As of May 2015, more than 500,000 highway-capable all-electric passenger cars and light
utility vehicles had been sold worldwide since 2008, out of total global sales of about
850,000 light-duty plug-in electric vehicles. As of May 2015, the United States had the

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largest fleet of highway-capable plug-in electric vehicles in the world, with about 335,000
highway legal plug-in electric cars sold in the country since 2008, and representing about
40% of the global stock. California is the largest plug-in car regional market in the country,
with almost 143,000 units sold between December 2010 and March 2015, representing over
46% of all plug-in cars sold in the U.S. Cumulative global sales of all-electric cars and vans
passed the 1 million unit milestone in September 2016.

Norway is the country with the highest market penetration per capita in the world, with four
plug-in electric vehicles per 1000 inhabitants in 2013. In March 2014, Norway became the
first country where over 1 in every 100 passenger cars on the roads is a plug-in electric. In
2016, 29% of all new car sales in the country were battery-powered or plug-in hybrids.
Norway also had the world's largest plug-in electric segment market share of total new car
sales, 13.8% in 2014, up from 5.6% in 2013. In June 2016, Andorra became the second
country in this list, with a 6% of market share combining electric vehicles and plug-in
hybrids due to a strong public policy providing multiple advantages. By the end of 2016,
Norway's 100,000th battery-powered car was sold.

In April 2019, the Chinese company BYD Auto launched the first electric bi-articulated bus,
the BYD K12A. The bus will operate as a test in TransMilenio, the BRT system of Bogotá,
Colombia in August 2019. By some estimates electric vehicles sales may constitute almost
a third of new-car sales by the end of 2030

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 CHAPTER 2

REVIEW OF LITERATURE
2.1 REVIEW OF LITERATURE

2.1.1 According to A Synthesis of the Current Literature with a Focus on Economic

and Environmental iability: Marcello Contestabile, Dr Gregory Offer, Dr Robin North,
A research concludes that the longer term uptake of EVs will depend heavily on progress in
battery technology, to bring down costs and increase energy density, and on the provision of
a suitable recharging infrastructure. (Marcello Contestabile, 2012)

Potential Need for Electric Vehicles, Charging Station Infrastructure and its Challenges for
the Indian Market: by Praveen Kumar and Kalyan Dash, India should invest in small scale
reinforcements to manage the load issues locally rather than going for an enormous change.
Home charging should be encouraged. Proper planning of place, population, traffic density
and safety should be considered before implementing the massive scale charging
infrastructure. The integration of activities within the energy and transport fields is
important. Development goals through different innovative policies and programs, for
instance, drivers of electrical cars are offered a financial consumer incentive, like tax credits,
purchase subsidies, discounted tolls, free parking, and access to restricted highway lanes will
help the market to grow. (Dash P. K., 2013)

2.1.2 According to Conventional, Hybrid, or Electric Vehicles: Which Technology for

an Urban Distribution Centre?: by Philippe Lebeau, Cedric De Cauwer, Joeri Van
Mierlo, Cathy Macharis, Freight transport has a major impact on urban movement.
Researcher explored the possible integration of electric vehicles in urban logistics
operations. A fleet with different technologies has the opportunity of reducing the costs of
the last mile. Researcher presented a fleet size and mix vehicle routing problem with time
windows for EVs. The main contribution of the authors was considering the variability of
the range of EVs. In the segments of small vans, EVs are often the most competitive
technology. In the segment of large vans, diesel has seen the most interesting solution from
a financial point of view as electric vehicles would need to cover a longer distance to be
cost-competitive. Hybrid vehicles are chosen in the segment of trucks as its running costs
and fixed costs are lower than the diesel truck. (Philippe Lebeau, 2015)

2.1.3 According to Consumer preferences for electric vehicles: by Fanchao Liao, Eric
Molin & Bert van Wee, Widespread adoption of EVs may contribute to lessening of
problems like environmental pollution, global warming and oil dependency. However, this

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penetration of EV is comparatively low in spite of governments implementing strong
promotion policies. They presented a comprehensive review of studies on consumer
preferences for EV aiming to convey policy-makers and give direction to further research.
They compared the economic and psychological approach towards consumer preference for
Electric vehicle. The impact of financial and technical attributes of EV on its utility is
generally found to be significant, including its purchase and operating cost, driving range,
charging duration, vehicle performance and brand diversity on the market. The density of
charging stations also positively affects the utility and promotion of EV. The impact of
incentive policies, tax reduction is quite effective. (Fanchao Liao, 2017)

According to International Council on Clean Transportation: Lingzhi Jin, Peter Slowik,

The early market growth for electric vehicles continues, but a number of barriers prevent
their widespread uptake. These barriers include the additional cost of the new technology,
relative inconvenience of technology considering range and charge times, and consumer
understanding about the availability and viability of the technology. This last point, typically
referred to as “consumer awareness,” is crucial. (Lingzhi Jin, 2017)

According to Study on Electric Vehicles in India Opportunities and Challenges: by

Mohamed M, G Tamil Arasan, and G Sivakumar, The replacement of ICE with electric
engines will reduce pollution to a great extent and be profitable to consumers. Many
countries have implemented this technology and are contributing to the improvement of the
environment. The researcher saw the opportunities and challenges faced in India over
implementing EVs. Opportunities like Government Initiatives, Batteries, Industries, and
Environment have been considered. With these challenges like cost of EVs, efficiency of
EVs in India and demand for EVs were taken into consideration. The implementation of EVs
in India aims primarily to scale back greenhouse emissions and cut oil expenses. The govt.
should make the foremost out of the opportunities available and find suitable ways to tackle
the challenges. (Mohamed M, 2018)

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 CHAPTER 3

REASERCH METHODOLOGY
3.1. REASERCH METHODOLOGY

Methodology is the systematic, theoretical analysis of the methods applied to a field of study.
It comprises the theoretical analysis of the body of methods and principles associated with a
branch of knowledge. Research methodology is the process used to collect information and
data for the purpose of making business decision. The methodology may include publication
research, interviews, surveys and other search techniques, and could include both present
and historical information.

“Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation. The advanced learners Dictionary of
CurrentEnglish lays down the meaning of research as a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.”

Research is defined as movement from the known to the unknown ,It is an effort to discover
something. According to Clifford Woody Research comprise defining and redefining
problems formulating hypothesis or suggested solutions, collecting organizing and
evaluating data making deduction& research conclusions and at last carefully testing the
conclusion to determine whether they fit the formulation hypothesis

3.2 RESEARCH DESIGN

Research design is the basic framework which provides guidelines for whole research
methodology. The choice of research design on the depth and expert of the required the costs
and benefits of the research the urgency of the work and time available for completing it.
The research problem having been formulated in clear cut terms, the researcher will be
required to prepare a research design, i.e., he will have to state the conceptual structure within
which research would be conducted. The preparation of such a design facilities research to
be as efficient as possible yielding maximal information. In other words, the function of
research design is to be provide for the collection of relevant evidence with minimal
expenditure of effort, time and money. But how all these can be achieved depends mainly
on the research purpose.

Case study method is used in this study

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3.3 METHOD OF DATA COLLECTION

The required data is collected using secondary sources. Secondary data is collected through
available published materials in the library and internet.

Secondary data

Data obtained from the published or unpublished source are known as secondary data and
that is, collected from: - Internet

3.4 LIMITATIONS OF THE STUDY

➢ Lack of previous research studies on the topic

➢ Large samples
➢ Only secondary data are available
➢ Based on specific time period

3.5 OBJECTIVES

The study has been undertaken with the following main objectives:

➢ To study the major challenges faced by EV Manufacturers in India from different

business Environment
➢ To study about the EV vehicle market in India

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 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

4.1 EV AND INDIAN VEHICLE MARKET

Market Overview

The India EV market is anticipated to register a CAGR of about 20% during the forecast
period (2020 – 2025).

• The electric vehicle (EV) market is still in its nascent stage in India. It is expected to
grow at a much faster rate, as the government has undertaken various initiatives to
promote electric vehicles in the country.

• The country has an ambitious target of becoming an all-EV nation by 2030. In the
process of mass adoption of electric vehicles in the country, the government has
announced its plan to introduce 10,000 electric buses and 50,000 electric rickshaws
within the next few years.

• In 2019, the Union cabinet approved the proposal for the implementation of a scheme
titled ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II
(FAME India Phase II)’ for the promotion of Electric Mobility in the country. The
total fund requirement for this scheme is INR 10,000 crore over three years from
2019 to 2022

Scope of the Research

The India electric vehicle market covers the latest trends and technological development
and provide analysis on the market demand on various market segments like vehicle type,
power source, and market share of significant EV manufacturers in India.

Key Market Trends

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 Electric Buses Contributing the India EV Market Growth

India is the second most populated country in the world after China, and just like China,
which has the largest electric bus fleet in the world, India is also pushing hard for the
electrification of buses. Many state governments have already started the procurement of
electric buses from Chinese and local electric bus manufacturers

In 2018, The Ministry of Urban Development launched the Green Urban Transport Scheme
(GUTS) for reducing emissions from public transport vehicles in the country. The ministry
has also proposed an INR 250 billion grant for turning the public transport electric.

In another instance in February 2020, Union transport minister inaugurated India’s first inter-
city electric bus service, these buses are manufactured by Mitra Mobility Solution which has
the range of 300 km on a full charge.

Many local bus manufacturers are in collaboration with some Chinese manufacturers are
trying to catch the rising demand of the electric buses in India. For Instance,

• In 2019, Foton PMI announced that it was planning to invest around INR 500 crore
on a joint venture with Beiqi Foton Motor Co. of China to manufacture electric buses
in India. The company has already given five electric buses to one of the airlines for
internal operations

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Three-wheeler is Expected to lead the India EV Market

The government’s focus is to introduce the electric vehicles in public transportation due
to which in 2016, the policy Ministry of Road Transport and Highways (MoRTH), The
Government of India introduced a policy for e-rickshaws. It provides provisions for e-
rickshaws, to promote the low cost and zero-pollution urban mobility. In addition to that,
various state governments have their laws for three-wheelers.

To support the green revolution in India, Amazon plans to deploy 10,000 electric
rickshaws for delivery across the country. The e-rickshaws would be procured from
electric vehicle startup Rivian and are supposed to be operational across 20 cities by
2025. Similarly, in 2018 Ola announced that it would add 10,000 electric rickshaws to
its fleet in India over the next one year. It is their plan, called Mission: Electric is part of
its ambitious project to put one million electric vehicles on the road by 2021.

India has around 1.5 million e-rickshaws, and about 11,000 new e-rickshaws rolls into
the road every month. These e-rickshaws are more prevalent in states like Delhi, Punjab,
UP, Uttarakhand, West Bengal, Bihar, and Haryana.

Competitive Landscape

The India EV market is highly fragmented and has countless local players active in the
market owing to high market growth and cheap and readily available manpower.

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 Although established player in the market is introducing their new model’s new startups,
have taken the lead in this market. The startups are expanding their presence by raising
funds from investors, tapping in new and unexplored cities. Companies are investing a
tremendous amount on R&D and launching new models to mark their presence in the
market. For instance

Major Players

1. Tata Motors Limited

2. Mahindra & Mahindra Limited

3. MG Motor India

4. Olectra Greentech Ltd

5. JBM Auto Limited

4.2 Major EV Manufacturers and

EV models in India
Electric vehicle (EV) ecosystem in India continues to be at a very nascent stage. However,
the central government has already announced the second phase of its ambitious FAME
(Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles) policy and aims to
step up EV adoption in the country across segments.

According to Niti Aayog, the Indian EV industry can add around $300 bn by 2030
cumulatively while accelerating the adoption of electric cars, electric scooters and electric
motorcycles as well as electric buses in the country. Here is a list of top 10 EV manufacturers
in the country:

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1. Hero Electric

Hero Electric, a part of Hero Group, has already rolled out more than a dozen electric
vehicles in the country. The company has been among the front runners in the electric vehicle
segment and has electric two wheelers as well as electric three wheelers. Across its ER series,
E2 series and E5 series, Hero electric rolls out a range of Optima, Nyx, Flash and Photon
electric scooters.

2. Tata Motors

Tata Motors has lately unveiled the Nexon in electric version as well that has been introduced
with ZIPTRON technology. The company will launch the Nexon EV in a price bracket of
Rs 15-17 lakhs and will target range of 300 km to address range anxiety issues often related
to Evs in the country. It has also supplied Tata Tigor in electric version to Energy Efficiency
Services Limited (EESL).

3. Ather Energy

Ather Energy launched its Ather 450 & Ather 340 electric scooter Models in India last year
that have been primarily designed for city usage. The company claims that both the electric
scooters have been designed to address various problems in EV two-wheeler segment such
as slow charging, low powered motors as well as shorter battery life. Ather Energy is also
offering Ather One plan that includes free access to public and home charging, breakdown
assistance as well as unlimited data service among others.

4. Mahindra Electric

Mahindra spearheaded the electric vehicle revolution in the country with its very first and
much famous Reva electric car. Over the years the company has diversified into various
segments and offers a range of electric vans, electric autos and e-three wheelers like
Mahindra E2o, Mahindra eAlfa Mini, Mahindra eSupro, Mahindra Treo and Mahindra
eVerito.

2. Lohia Auto
Lohia Auto offers a range of electric scooters, electric three wheelers as well as e-autos in
the country. Comfort E-Auto HS by Lohia Auto was launched at Delhi Auto Expo in 2018
that offers a load capacity of 40 kg and offers a seating for five people including the driver.

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 2. TwentyTwo Motors
Rolling out electric scooters in India, Twenty Two Motors tied up with Taiwanese electric
two-wheeler manufacturer Kwang Yang Motor Company (KYMCO) to expand its horizons
in the country. Both companies will be developing various charging solutions across fast
charging, standard charging as well as battery swapping.

2. BYD Olectra
Among the leaders in electric buses segment, Olectra BYD claims to sell over 100 electric
vehicles in the country across various state transport undertakings. Nearly 40 e-buses
spanning 12m in length have been deployed by Telegana Stated Road Transport Corporation
have been supplied by Olectra BYD.

8. Hyundai Kona electric

Charging up the Indian electric vehicle ecosystem, Hyundai launched its Kona EV in India
with ARAI-certified range of 452 km. The Kona is equipped with lithium-ion polymer
battery, against the conventional nickel-metal hybrid batteries for excellent charging and
discharging efficiency. The company claims the EV has been designed to make it more
suitable for Indian operating conditions.

9. Ashok Leyland

Ashok Leyland, the fourth largest bus maker in the world, unveiled its first electric bus
Circuit in 2016 and Circuit S at the 2018 Delhi Auto Expo. The company claims its electric
buses are designed for Indian conditions and has tied up with Sun Mobility to enhance its
expertise in electric vehicle domain and introduce battery swapping in electric buses to
address e-mobility needs in the country.

10. MG Motor

MG Motor has created a lot of buzz with its Hector SUV and has also lately introduced its
MG ZS electric car. Strategically placed against Hyundai Kona electric, The MG ZS offers
ARAI certified range of 340 kms and can be charged via two options- using normal 15 A
AC charger in about 6-8 hours and 50 Kw DC charger that can charge the vehicle up to 80
% in less than an hour.

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Here are the startups fuelling India’s electric vehicle dream

The Indian electric vehicles market has seen many startups coming into the space. With the
country forecasted to become the fourth-largest EV market over the next 20 years, startups
are taking on the opportunity.

➢ Ratan Tata-backed Tork Motors

Tork Motors founded by Kapil Shelke showcased its first product in September 2016, which
claimed to be India’s first electric motorcycle. The company has gone on to raise funds from
major players of Indian auto industry such as Bhavish Aggarwal of Ola, Ankit Bhati, Co-
Founder Ola and recently from former Chairman of Tata Sons, Ratan Tata.

➢ Indian electric two-wheeler company, Okinawa

The Gurugram-based Indian electric two-wheeler company Okinawa was founded in 2015
by Jeetender Sharma and Rupali Sharma. The company claims to be a 100% Indian electric
two-wheeler company and has its manufacturing unit set up in Bhiwadi, Rajasthan.

➢ Revolt Intellicorp founded by Micromax’s co-founder Rahul Sharma

Revolt Intellicorp, an electric motorcycle manufacturing company, was founded by

Micromax’s co-founder Rahul Sharma in April 2019. The company has a
manufacturing facility in Manesar with an annual production capacity of 1.2 lakh
units.

➢ BattRE electric mobility startup

Battery Electric – the mobility startup has electric cycles as well as electric scooters like Lo:
EV and IOT in its line-up. The company began its operations in Maharashtra, and Gujarat in
June 2019 and currently has more than 50 dealers in six states.

➢ Sachin Bansal-backed Ather Energy

The Bengaluru-based start up was founded in 2013 by Tarun Mehta and Swapnil Jain. The
IIT Madras graduates launched two electric scooters – the 340 and 450 – along with the
AtherGrid, an electric vehicle charging infrastructure.

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The startup has raised funds from notable companies like Hero MotoCorp, Flipkart Co-
founder Sachin Bansal, two-wheeler manufacturer, Singapore-based InnoVen Capital, and
American hedge fund and venture capital investor Tiger Global.

BEST SELLING EV MODELS

- Tata Nexon sold 2,529 units in 2020

- MG ZS EV and the Hyundai Kona EV take the second place and third place with 1,142 and
223 units respectively

Tata Nexon EV has emerged as the bestselling electric vehicle in 2020. Backed by the
Nexon brand name, safety, and modern styling, the Nexon EV has emerged as a popular
choice in the Indian market. Interestingly, the Nexon EV is also the most affordable electric
SUV in the Indian market.

In terms of cumulative sales, 4,003 electric vehicle units were sold in the calendar year 2020.
Introduced in January 2020, the Tata Motors sold 2,529 units of the Nexon EV in India,
thereby claiming a market share of 63.2 per cent.

MG ZS EV takes the second place with 1,142-unit sales, thereby holding a market share of
28.5 per cent. The ZS EV was introduced at the same time as the Nexon EV in January 2020.
In an effort to strengthen its foothold in the segment, the company offered the eShield for
the ZS EV, which provided free-of-charge five-year manufacturer warranty for unlimited
kilometre on the car and eight years/150km warranty on the battery.

The Hyundai Kona, the first electric SUV in the country takes the third place with 223 unit
sales in 2020, thereby holding a market share of 5.6 per cent.

The second electric vehicle from Tata Motors, the Tigor EV has witnessed a sale of 100
units, followed by the Mahindra e-Veretto electric with just nine unit sales in 2020.

Electric Vehicle Industry in India: Growth targets

The Indian automotive industry is the fifth largest in the world and is slated to be the third
largest by 2030. Catering to a vast domestic market, reliance on the conventional modes of
fuel intensive mobility will not be sustainable. In an effort to address this, federal

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policymakers are developing a mobility option that is “Shared, Connected, and Electric” and
have projected an ambitious target of achieving 100 percent electrification by 2030.

4.3 TECHNICAL FACTORS OF EV

Vehicle types

➢ Hybrid Evs

A hybrid electric vehicle combines a conventional powertrain (usually an internal

combustion engine) with an electric engine. As of April 2016, over 11 million hybrid electric
vehicles have been sold worldwide since their inception in 1997. Japan is the market leader
with more than 5 million hybrids sold, followed by the United States with cumulative sales
of over 4 million units since 1999, and Europe with about 1.5 million hybrids delivered since
2000. Japan has the world’s highest hybrid market penetration.

➢ Plug-in electric vehicle

A plug-in electric vehicle (PEV) is any motor vehicle that can be recharged from any external
source of electricity, such as wall sockets, and the electricity stored in the
Rechargeable battery packs drives or contributes to drive the wheels.

➢ Range-extended electric vehicle

A range-extended electric vehicle (REV) is a vehicle powered by an electric motor and a

plug-in battery. An auxiliary combustion engine is used only to supplement battery charging
and not as the primary source of power.

➢ On- and off-road Evs

Evs are on the road in many functions, including electric cars, electric trolleybuses, electric
buses, battery electric buses, electric trucks, electric bicycles, electric motorcycles and
scooters, personal transporters, neighbourhood electric vehicles, golf carts, milk floats, and
forklifts. Off-road vehicles include electrified all-terrain vehicles and tractors.

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 ➢ Rail borne Evs

The fixed nature of a rail line makes it relatively easy to power Evs through permanent
overhead lines or electrified third rails, eliminating the need for heavy onboard batteries.

➢ Space rover vehicles

Manned and unmanned vehicles have been used to explore the Moon and other planets in
the solar system. On the last three missions of the Apollo program in 1971 and 1972,
astronauts drove silver-oxide battery-powered Lunar Roving Vehicles distances up to 35.7
kilo meters (22.2 mi) on the lunar surface

Energy and motors

Most large electric transport systems are powered by stationary sources of electricity that are
directly connected to the vehicles through wires. Electric traction allows the use of
regenerative braking, in which the motors are used as brakes and become generators that
transform the motion of, usually, a train into electrical power that is then fed back into the
lines. This system is particularly advantageous in mountainous operations, as descending
vehicles can produce a large portion of the power required for those ascending. This
regenerative system is only viable if the system is large enough to utilise the power generated
by descending vehicles.

In the systems above, motion is provided by a rotary electric motor. However, it is possible
to “unroll” the motor to drive directly against a special matched track. These linear
motors are used in maglev trains which float above the rails supported by magnetic levitation.
This allows for almost no rolling resistance of the vehicle and no mechanical wear and tear of
the train or track. In addition to the high-performance control systems needed, switching
and curving of the tracks becomes difficult with linear motors, which to date has restricted
their operations to high-speed point to point services.

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Components

The type of battery, the type of traction motor and the motor controller design vary according
to the size, power and proposed application, which can be as small as a motorized shopping
cart or wheelchair, through peddles, electric motorcycles and scooters, neighbourhood
electric vehicles, industrial fork-lift trucks and including many hybrid vehicles.

Energy sources

Evs are much more efficient than fossil fuel vehicles and have few direct emissions. At the
same time, they do rely on electrical energy that is generally provided by a combination of
non-fossil fuel plants and fossil fuel plants. Consequently, Evs can be made less polluting
overall by modifying the source of electricity. In some areas, consumers can ask utilities to
provide their electricity from renewable energy.

Batteries

An electric-vehicle battery (EVB) in addition to the traction battery speciality systems used
for industrial (or recreational) vehicles, are batteries used to power the propulsion system of
a battery electric vehicle (BEVs). These batteries are usually a secondary (rechargeable)
battery, and are typically lithium-ion batteries. Traction batteries, specifically designed with
a high ampere-hour capacity, are used in forklifts, electric golf carts, riding floor scrubbers,
electric motorcycles, electric cars, trucks, vans, and other electric vehicles.

Efficiency

Evs convert over 59-62% of grid energy to the wheels. Conventional gasoline vehicles
convert only some 17%–21%.

Electromagnetic radiation

Electromagnetic radiation from high performance electrical motors has been claimed to be
associated with some human ailments, but such claims are largely unsubstantiated except for

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extremely high exposures. Electric motors can be shielded within a metallic Faraday cage,
but this reduces efficiency by adding weight to the vehicle, while it is not conclusive that all
electromagnetic radiation can be contained.

CHARGING

Grid capacity

If a large proportion of private vehicles were to convert to grid electricity it would increase
the demand for generation and transmission, and consequent emissions. However, overall
energy consumption and emissions would diminish because of the higher efficiency of Evs
over the entire cycle. In the USA it has been estimated there is already nearly sufficient
existing power plant and transmission infrastructure, assuming that most charging would
occur overnight, using the most efficient off-peak base load sources.

Charging stations

Evs typically charge from conventional power outlets or dedicated charging stations, a
process that typically takes hours, but can be done overnight and often gives a charge that is
sufficient for normal everyday usage.

However, with the widespread implementation of electric vehicle networks within large
cities in the UK and Europe, EV users can plug in their cars whilst at work and leave them
to charge throughout the day, extending the possible range of commutes and eliminating
range anxiety.

A recharging system that avoids the need for a cable is Curb Connect, patented in 2012 by
Dr Gordon Dower. In this system, electrical contacts are fitted into curbs, such as angle
parking spaces on city streets. When a suitably authorized vehicle is parked so that its front
end overhangs the curb, the curb contacts become energized and charging occurs.

Another proposed solution for daily recharging is a standardized inductive charging system
such as Evatran’s Plugless Power. Benefits are the convenience of parking over the charge
station and minimized cabling and connection infrastructure. Qualcomm is trialling such a
system in London in early 2012.

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Yet another proposed solution for the typically less frequent, long-distance travel is “rapid
charging”, such as the Aerovironment PosiCharge line (up to 250 Kw) and
the Norvik MinitCharge line (up to 300 Kw). Ecotality is a manufacturer of Charging
Stations and has partnered with Nissan on several installations. Battery replacement is also
proposed as an alternative, although no OEMs including Nissan/Renault have any production
vehicle plans. Swapping requires standardization across platforms, models and
manufacturers. Swapping also requires many times more battery packs to be in the system.

Battery swapping

Instead of recharging Evs from electric socket, batteries could be mechanically replaced at
special stations in a couple of minutes (battery swapping).Batteries with greatest energy
density such as metal-air fuel cells usually cannot be recharged in purely electric way.
Instead, some kind of metallurgical process is needed, such as aluminum smelting and
similar.

Chassis swapping

Instead of replacing batteries, it is possible to replace the entire chassis (including the
batteries, electric motor and wheels) of an electric Modular vehicle.

Dynamic charging

Dynamic charging allows electric vehicles to charge while driving on roads or highways.
Sweden is testing four different dynamic charging technologies.

4.4 ADVANTAGES OF EV

Environmental

Evs release no tailpipe air pollutants at the place where they are operated. However, Evs are
charged with electricity that is generated by means that have health and environmental
impacts, and the air emissions associated with manufacturing an electric vehicle can be
greater than those of manufacturing a conventional vehicle. Overall, the air emissions from
producing and operating an EV can be less than or greater than those of producing and
operating a conventional vehicle, depending on the regional electricity grid mix, timing of

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EV charging, driving patterns, climate, the set of air emissions under consideration, and the
specific electric and conventional vehicle designs being compared.

Socio-Economic

Since its first commercial release in 1991, Lithium Ion Batteries have become an important
technology for achieving low-carbon transportation systems. Electric-powered engines have
been claimed to be more sustainable than traditionally used internal combustion engines.
The sustainability of production process of batteries has not been fully assessed in either
economic, social or environmental terms.

Mechanical

Electric motors are mechanically very simple and often achieve 90% energy conversion
efficiency over the full range of speeds and power output and can be precisely controlled.

Energy resilience

Electricity can be produced from a variety of sources, therefore it gives the greatest degree
of energy resilience.

Energy efficiency

EV ‘tank-to-wheels’ efficiency is about a factor of 3 higher than internal combustion

engine vehicles. Energy is not consumed while the vehicle is stationary, unlike internal
combustion engines which consume fuel while idling.

4.5 PROPOSITION BETWEEN NEWLY LAUNCHING EV AND

PETROL CAR

The light mobility segments of 2/3-wheelers and commercial cars will be leading electric
vehicle penetration in India by 2030. The reach of electric cars in the personal mobility
segment will be only 10%-15%. However, electric cars for ride-sharing and taxis may see
traction of 20%-30%, according to a KPMG and CII report

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By the end of this decade, the three-wheeler adoption is expected to be around 65%-70%.
Electric two-wheelers, with a plethora of startups offering different ranges of products at an
attractive price and ownership models, are expected to have only 25%-35% penetration.
Their price and fuel economy make them commercially more viable.

This development is similar to that in China, where electric bikes and scooters laid the
foundation for growth. Intra-city transport buses are also ripe for EV adoption. These
segments are likely to be followed by fleet cabs, and then others.

India is the largest two-wheeler market, with more than 80% of ICE sales coming from the
segment. The penetration of Evs in the four-wheelers segment has remained extremely low
at ~0.1%.

Several gaps in the four-wheeler EV market such as a limited number of products, high
prices, insufficient battery promise, low performance and an underdeveloped charging
ecosystem are yet to be filled. Given these impediments, the growth of EV four-wheelers is
expected to lag behind other segments. Sales are expected to pick up once these gaps are
plugged.

4.6 CUSTOMER PREFERENCE BETWEEN EV AND PETROL CARS

India is a country with the third-largest road network in the world. Road travel seemed to be
a preferred choice in India with over 60 % of the population used personal or shared vehicles
to commute. ( Statista , 2020) Conventional vehicles are a major cause of global warming

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and environmental air pollution. All types of vehicles produce dust from brakes, tires, and
road wear. The average diesel vehicle has worse effect on air quality than the average
gasoline vehicle. But both gasoline and diesel vehicle pollutes more than the electric vehicle.
(EEA , 2018) Governments started using fiscal policies, such as road tax, to discourage the
purchase and use of more polluting cars. Green tax is imposed while re-registering the
vehicle after 15 years of use to make people discontinue the use of polluting vehicles and
encourage them for fuel-efficient and less polluting vehicles. Fuel taxes may act as an
incentive for the production of more efficient, less polluting, vehicle and the development of
alternative fuels. High fuel taxes or cultural change may provide a powerful incentive for
consumers to buy lighter, smaller, fuel-efficient cars, or to not drive. (transportpolicy) The
FAME India Scheme is an incentive scheme for promotion of electric and hybrid vehicles.
It aims to promote electric mobility and gives financial incentives for enhancing EV
production and the creation of electric transportation infrastructure. In 2015 the Ministry of
Heavy Industries and Public Enterprises launched FAME to incentivize the production and
promotion of eco-friendly vehicles including EV and hybrid vehicles. The scheme is
proposed for establishing charging infrastructure (Jose, 2018) The National Electric Mobility
Mission Plan (NEMMP) 2020, a National Mission document providing the vision and
therefore the roadmap for the faster adoption of Evs and its manufacturing. This plan has
been designed to boost national fuel security, to supply affordable and environmentally
friendly transportation, and to enable the Indian automotive industry to attain global
manufacturing leadership. (Gulati, 2013)

Widespread adoption of Evs may contribute to lessening of problems like environmental

pollution, global warming and oil dependency. However, this penetration of EV is
comparatively low in spite of governments implementing strong promotion policies. They
presented a comprehensive review of studies on consumer preferences for EV aiming to
convey policy-makers and give direction to further research. They compared the economic
and psychological approach towards consumer preference for Electric vehicle. The impact
of financial and technical attributes of EV on its utility is generally found to be significant,
including its purchase and operating cost, driving range, charging duration, vehicle
performance and brand diversity on the market. The density of charging stations also
positively affects the utility and promotion of EV. The impact of incentive policies, tax
reduction is quite effective.

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The early market growth for electric vehicles continues, but a number of barriers prevent
their widespread uptake. These barriers include the additional cost of the new technology,
relative inconvenience of technology considering range and charge times, and consumer
understanding about the availability and viability of the technology. This last point, typically
referred to as “consumer awareness,” is crucial.

Indian Scenario is different because the current market share of EV/PHEV is around 0.1%.
Presently almost all vehicles consider fossil fuel-based transportation. These pollute the
atmosphere by the emission of greenhouse gases & causes global warming. The gap between
domestic petroleum production and consumption is widening. India imports around 70% of
oil required per annum. Hence there’s an urgent need to investigate factors and challenges
for sustainable and cleaner alternatives.

Vehicles over the past year

Evs operate at a fundamentally lower cost, and in the last few years, the trends suggest that
there has been a steady in Understanding Consumer Behaviour

Buying a vehicle is a time-consuming process with various internal and external factors
influencing the decision. Particularly in India, the decision-making process is particularly
complicated as the buyers often face an information overload. Market research indicates that
female automobile buyers consider features such as safety, affordability, and efficiency,
whereas male buyers focus on performance, features, and aesthetics such as interiors and
style. Also, male audiences express more interest in electric vehicles.

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MAJOR REASONS OF EV SALES INCREASAE

Viability

In a consumer-based market, the viability of the E.V. industry is affected by factors like
incentives on scrapping used vehicles, favorable government policies, and reducing GST.
Consumers also believe that E.V. manufacturers need a more proactive marketing approach
rather than playing safe.

Fuel Efficiency

Because petrol and diesel prices are always on the rise, consumers are keenly interested in
how much would they save by switching to an electric vehicle from an ICE vehicle.
Marketing an estimated long-term fuel savings are the key to a consumer’s heart.

Technology

Most electric vehicle buyers are early adopters of innovation, green technology, and take
pride in being an environmental ambassador. Consumers applaud Evs as an environment-
friendly technology and are enthusiastic about switching to vehicles that will have zero
emissions.You may also like: Evs can and should wait: Govt must focus on automotive
sector revival and alternative fuels

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Driving Demand

To understand the factors that drive demand, we first need to know how consumers make
decisions. Even though industry leaders consider Evs to be a promising option for Indian
audiences, just price incentives alone are not enough to drive the demand.We need to
consider the massive impact of charging infrastructure that will be felt in metropolitan cities,
particularly since the pollution levels have reached disastrously high. Close cooperation
among manufacturers, dealers, government, and marketers will also lead to a more
progressive adoption of electric vehicles, mainly if Evs are pushed in the commercial and
public transport segments.The modern generation runs on innovation, sustainability, and
environmental conservation – and electric vehicles fit the bill perfectly. The indigenous
availability of vehicles, batteries, and spare parts will also impact the consumer mindset.

Evs are definitely the future!

We are at a critical crossroads where electric vehicles and the decisions taken by key players
will shape the future of transportation either for better or for worse. Now is the time, auto
experts will look back to as a stepping stone to a brighter future for not just electric vehicles,
but for the auto industry as a whole. This phase is the beginning of a steady climb to a more
extensive electric-vehicle adoption.

The market and consumer sentiments toward electric vehicles are principally positive. The
consumer mindset is evolving, which will ultimately lead to healthy growth for the electric
vehicles. It is being said that Evs will become mainstream in less than a decade and can be
taken as a sign of markets being aggressively ready for a product launch and marketing by
automobile companies rest among the Indian masses for electric cars as well as two-wheeler

Electric vehicles will incite crucial changes in the Indian automobile market, and their
growing adoption will lead to more futuristic business models. The global environment
seems to favour electric vehicles, and with time the world seems to be getting serious about
them. A large number of Evs are selling across the globe, and even though China, the US,
and Europe are contributing to a significant chunk of the sales, industry leaders consider
India to be a promising player with a receptive market.

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Evs operate at a fundamentally lower cost, and in the last few years, the trends suggest that
there has been a steady interest among the Indian masses for electric cars as well as two-
Wheelersburg.

4.7 MAJOR CHALLENGES FACED BY EV MANUFACTURERS

As Indian economy is caught up in a slowdown, the future of the automobile industry is

pinned on electric vehicles. And EV technology in India is, in turn, highly dependent on
innovation and government incentives. At the same time, the government has to tackle the
slowdown and invest in future-ready technology at the same time. This has led to a deep
dichotomy in the Indian electric vehicles market which has put the future of EV technology
in India in a bit of a muddle.

To understand where the next phase of development will happen, one has to look at the
current problems for electric vehicle adoption in India. These range from systemic issues to
consumer mindset, but all of them have a cumulative effect on the future of Evs in India.

➢ TECHNICAL CHALLENGES

Technological advancements in the vehicle industry can play a crucial role in emission reduction
and the energy efficiency of vehicles. A lack of standardization, limited availability, lack of model
choices, and performance issues are important challenges of EV. EVs are relatively new compared
to CVs, and their quality can be compromised by financial constraints at the manufacturing stage.

1. Electric Vehicle Driving Range

Although the range of most electric vehicle models has improved significantly in just a few
short years, a limited driving range does present a challenge to many drivers.The range on
the 2020 Nissan Leaf is 150 miles, and the Tesla Model 3 (extended range) is up to 370
miles. Although this is conducive to in-town driving, it can present challenges on longer
drives or in colder weather. A cross-country trip in an electric vehicle would require some
careful planning and likely some inconvenient stops. A study by AAA found that vehicle
range went down by 41% when the temperature dipped to 20 degrees Fahrenheit and the heat
was on.

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Thankfully, automakers have responded by adding bigger batteries with greater driving
ranges. As lithium-ion battery technology improves, this will become less of an issue for
electric vehicle owners soon. In the meantime, electric vehicles aren’t convenient for all
drivers. Consider if you can work around the limitations of a limited driving range before
purchasing one.

2. Battery Technology

Lack of proper battery technology is one of the major concerns for the EV industry.
According to a Livemint report, almost all electric vehicles in India have been produced after
importing the lithium-ion batteries, especially from China. Imports of the battery is thus in
turn increasing the cost of the vehicle. However, the silver lining is that the National
Democratic Alliance (NDA) government is reportedly exploring new technologies such as
polymer-based solid state batteries in order to reduce dependency on lithium-ion batteries.

3. Lack of Evidence on Reliability and Performance

EVs are a relatively new technology compared with CVs, and potential users tend to be
concerned about their technological performance, which increases their unwillingness to use
EVs. Lack of performance is known to affect user perceptions of BEVs, whereas system
stability is an important detrimental factor against the increased deployment of EVs. Thus,
a lack of evidence regarding reliability and performance can be considered as another
technical barrier.

4. Limited Battery Life

EVs run on the power provided by charged batteries. However, the typical warranty for an
EV battery, improved more recently, lasts between eight and ten years. After this battery life
period, battery replacement should be borne by the user. The batteries are also sensitive to
overcharging, which poses a problem for EV users. Limited battery life requires frequent
replacements, which isa major burden on EV users.

5. Fewer EV Models

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EV uptake is affected by the limited number of design models. A wider range of car models
can appeal to a broader consumer segment. Thus, limited EV model availability poses
another challenge in that it narrows down choices for users. The EV manufacturing industry
is responsible for the research, development, and production of EVs. However, the
production of different EV models is typically limited.

6. Charging time
Charging time is a big drawback in electric vehicles as most of the Indian consumers are
impatient and would not like to wait for long to charge their vehicles. Although there is fast
charging available on most of them, it usually takes an hour to charge about 80% of the
vehicle, which is indeed a long wait.

➢ SOCIAL CHALLENGES

Social factors, particularly consumer understanding of the attributes of EVs, are being
recognized as significant influencing variables for users choosing EVs over CVs. The
communication of related information is crucial in this regard. Egbue and coworkers
reported that social barriers may pose obstacles equivalent to technical factors with regard
to the adoption of EVs. Consumer knowledge, experience, environmental considerations,
and perceived quality of EVs affect a consumer’s decision to purchase EVs.

1. Lack of Knowledge on EVs

Market failures can occur when users have incomplete information about a product. Thus,
correct information provision is crucial to aid the transition towards products such as EVs.
Potential users’ awareness of the benefits of an EV, financial incentives, infrastructure
availability, and potential fuel-related savings are likely to be essential factors affecting the
uptake of EV. Notably, this barrier is limited to the provision of general information about
EVs for potential users. It does not consider the users’ understanding of the product quality
of EVs.

2. Lack of Environmental Awareness Regarding EVs

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Emission reduction is one of the key advantages of using EVs. In total, 98% of electricity is
generated from hydropower in Nepal, which is emission-free. However, consumers are often
uncertain about possible emission reductions due to EVs and, at times, they are
environmentally unaware about the harm caused by greenhouse gas emissions due to the use
of CVs. Environmental awareness regarding EVs enhances the adaptation rate of EVs.

3. Consumers’ Limited Understanding of the Product Quality of EVs

Consumers’ perceptions of the quality of EVs as a product may influence their decision to
purchase EVs. Uninformed or wrongly informed consumers are likely to be unwilling to
purchase EVs. Actual versus perceived product quality limitations, such as those related to
performance and reliability, range capacity, and other technical issues, may create a
perception gap among potential EV users. Thus, it appears that consumers must be informed
about the quality of EVs, as this particular social factor serves as a prerequisite for their
acceptance. Notably, this barrier is limited to product quality concerns about EVs, as this
technology is relatively new in the Nepalese market.

4. Lack of Trained Personnel

While issues with charging infrastructure and lack of battery technology have been majorly
highlighted, lack of trained personnel in the electric vehicle space is also seemingly
becoming a setback in the EV industry. According to a report by The Economic Times, there
is a shortage of experts on design, product, infrastructure, storage for the EV industry. Due
to this, search firms are increasingly looking for personnel from other countries such as
France, Germany, Japan and China. Speaking with ET, CV Raman, Senior Executive
Director of Engineering, Maruti Suzuki India, said that the electric vehicle space is at a
nascent stage and thus firms will face challenges in talent acquisition.

5. The skills required

With the process of manufacturing Evs, there will be a major shift in the components front
as the key mechanical components will be replaced by electronics components. So, do we
have the skills required to handle such a major shift?

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“Not for now,” responds Lohia and informs, “That’s because, in today’s scenario, we find a
higher percentage of skills from the mechanical side, compared to those from the electrical
side, which are the keys in EV.”
Furthermore, Kamath opines that any new technology will always bring uncertainty and
then, people realise it slowly. The switch from IC engines to Evs will take lots of time and
this time zone will create new opportunities to make the components for Evs. By then, the
component industry will slowly embrace new technologies. The industrial change will move
into full production and then the necessary skilling will definitely need to be
updated.Securing lithium supply could help to manufacture batteries at a globally
competitive price with the potential of reducing the price of Evs. Moreover, the ‘Make in
India’ initiative would get a lift as Indian automakers could contend with global leaders in
the domestic as well as foreign market.

6. Range Anxiety

Range anxiety is what consumers suffer from knowing that the electric vehicle might not
have sufficient range to take them to their destination. This is deeply linked to the lack of
charging infrastructure in the country, and while conventional vehicles can be refueled at
petrol stations, such regularised infrastructure is not yet available for Evs.

Rudratej Singh, president and CEO of BMW Group India, also earlier said that the
infrastructure for electric vehicles is still ambiguous and uncertain, which would affect the
price and acceptability of the vehicle among Indian consumers. Toyota too has recently
halted the manufacturing of electric and hybrid cars for the Indian market, citing inadequate
charging infrastructure.

➢ ECONOMICAL CHALLENGES

CVs enjoy an economic advantage, which increases consumer resistance to purchasing EVs,
which are typically priced higher. This relative advantage (i.e., the lower purchase price of
internal combustion vehicles) is recognized as a major barrier against the uptake of EVs.
Other economic factors, such as battery replacement cost, fuel cost, and access to credit, can
be considered as disadvantageous to the diffusion of EVs. Many countries now provide
different kinds of financial incentives to create a competitive market for EVs. These

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experiences have proved that economic barriers can be addressed, to a certain extent,
through such incentives.

1. High Price Of Electric Vehicles

Further, the average cost of electric cars in India is around INR 13 Lakh, much higher than
the average INR 5 Lakh for economical cars run on traditional fuel. Also, the price of electric
scooters and motorcycles in India is between the price range of INR 70K – INR 1.25 Lakh,
as compared to INR 30K – INR 40K cost range of ICE bikes and even lower for scooters.

2. Battery Replacement Cost

As mentioned previously, the battery life of an EV is limited to eight to ten years [48], and
the consumer must bear the cost burden of its replacement. This aspect serves as a key barrier
against EV uptake. Previous research has also pointed out that the cost of the battery accounts
for a significant proportion of an EV’s total purchase price.

3. Higher Electricity Price for Charging

EVs utilize electrical energy to run compared to CVs, which use petrol or diesel. Consumers
are sensitive to the cost of fuel and, thus, a higher electricity price reduces the demand for
EVs. The daily operation cost of an EV is mainly dependent on the electricity price for
charging the EV and, thus, lower electricity prices could persuade potential EV users to
purchase an EV.

4. Lack of Credit Access for EVs

Consumers are hesitant to invest in new technologies as they typically pose some measure
of risk and, therefore, policy makers can play a vital role by facilitating the purchase of EVs
by providing users with subsidized interest rate credit mechanisms. Difficulty in obtaining
credit access due to a weak or absent credit mechanism serves as another barrier against the
diffusion of EVs.

5. Charging leading to a surge in electricity demand

Another related risk is that of EV charging leading to a surge in electricity demand which in
turn may put at risk India’s already stretched electricity distribution networks.

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 6. Higher Upfront Cost

Many of us associate high price tags with electric vehicles — and that can be an issue for the
budget-minded. Although a high-end Tesla costs a pretty penny, many other models are
pretty cost-competitive. The Nissan Leaf and Hyundai Ioniq start at around $30,000, but they
both have ranges under 200 miles.

The good news is that electric vehicles are coming down in cost when compared to their gas-
powered counterparts. Also, tax credits and state incentives can take a chunk out of the total
cost.

7. Limited Vehicle Choices

Looking back, 2019 was a crucial year for the electric vehicle market. Many new models
were released, and car shoppers have more models to choose from than ever before. Ford is
working on introducing the all-electric F-150 pickup and the Mustang Mach-E, a crossover
SUV. General Motors is planning to launch an electric pickup in 2021 as well. Despite
significant progress, there are still way fewer electrified models to choose from and even
fewer larger vehicles.

8. whether to go for AC (alternating current) or DC (direct current)

chargers.

An AC charger takes around six hours to charge an EV, DC chargers are faster and take
around 40 minutes to one hour to fully charge a vehicle.Also as per the regulations for
electricity sales in the country, under The Electricity Act, 2003, a distribution licence is
required to distribute power from respective state electricity regulatory commissions
(SERCs). Given the number of regulators involved, it makes sense for a pan-India license
but that would require a lot of heavy lifting including a comprehensive review of existing
laws and regulations.“There are certain regulatory pieces which needs to be fine tuned and
the biggest one according to me is the fact that today as per the CERC (Central Electricity
Regulatory Commission) regulations it is only a distribution licensee that can sell power,”
said EESL’s Kumar.“So, right now you have distribution networks which are owned by the

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discoms (distribution companies) primarily. In some cities, it is privately owned and you
would need some sort of a protocol to establish how a private player can come in and be
involved in that,” Engie’s Wrigley said.

➢ Infrastructure Barriers

In the transportation sector, the lock-in possibility is relatively high for new technologies
such as EVs, which are dependent on the available infrastructure for charging. Thus, the
absence of sufficient infrastructure creates a negative network externality for the deployment
of EVs. Private vehicle manufacturers are of the view that the construction of the relevant
infrastructure, such as charging stations and repair maintenance workshops, should be
undertaken solely by the government, and vice versa.

1. Inadequate charging infrastructure

India was reported to have 650 charging stations in 2018, whereas China had over 456K
charging points in the same year. In addition to charging points, the lack of private parking
spaces is also noted as a hindrance for electric vehicles adoption, and the lack of affordable
renewable energy means charging Evs is putting a toll on the already stressed coal-powered
electricity grid. According to auto giant Maruti Suzuki’s research, 60% of Indian customers
don’t have their own parking space. “There is no way they can charge the vehicle, therefore
they won’t adopt it,” said C V Raman, senior executive director (engineering) of Maruti
Suzuki India. The market’s changing demands are complicating things for EV charging
station companies and other network suppliers — with the two-wheeler, three-wheeler and
four-wheeler vehicles dividing the EV industry. This does even include bigger vehicles such
as electric trucks and electric buses. The charging infrastructure needed for electric two-
wheeler and three-wheeler vehicles is quite different from that of four-wheeled vehicles.

2. Difficulty Finding a Mechanic

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Although electric cars require less maintenance and fewer repairs, it is still important to find
a qualified mechanic in your area. Unfortunately, 97% of mechanics are not qualified to
work on electric vehicles. Of the 3% that is, many of them work for dealerships.

Although there are a lot of hybrid vehicles on the road, they require maintenance regimes
similar to typical gas-powered vehicles. This means that people who are experienced
working on hybrid cars are not necessarily knowledgeable about all-electric models.

Unfortunately, electric vehicle owners have fewer options for qualified mechanics.
Thankfully, electric vehicle owners typically visit their mechanics less because their cars
require fewer fluids (like transmission fluid and oil) and have fewer moving parts.

3. No Domestic Industry
Sierzchula et al. showed that EV adaptation is correlated to local vehicle production
facilities, and that consumers’ confidence in a product can increase, provided the industry is
well-established in the country or region and they are assured that their complaints will be
resolved should a problem occur with the product. Notably, Nepal does not have a domestic
EV production industry at this time and, therefore, the lack of industry can be viewed as an
infrastructural barrier.

4. Supply Chain Challenges

Apart from the well-known challenges of high battery costs and the charging infrastructure,
there are other issues that need to be ironed out while promoting a lease-purchase business
model. For example, issues related to the liability of damaged battery and the role of
insurance companies need to be carefully spelled out.

The lack of standardization of battery pack requires company-specific replacement stations,

which may prove costly if they cannot be scaled up. Businesses also need to ensure the
maintenance and adherence to quality and safety standards of the battery pack. This requires
a coordinated effort across the EV supply chain.

The EV supply chain can be broadly broken down into three segments-firstly the Digital and
Electronics value chain which includes the battery management system, vehicle control unit,
dashboard, cloud services and other electronic components. This segment can benefit by

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leveraging existing capabilities in the building hardware and software systems in allied
sectors such as electronics, mobile, IT and computing.

In battery manufacturing, though possible alternate technologies such as sodium-ion or

aluminum-ion cells are being researched in India and around the world, long-term
investments in research and development are required to bear fruit. The focus of the Indian
manufacturers should hence be on manufacturing the battery pack where there is huge
potential for customization.Secondly, in the vehicle manufacturing segment of the supply
chain, the focus will be on maintenance of Evs as much as manufacturing and this will
require, upscaling the small and medium scale traditional auto-ancillary companies with the
focus on electrical skills. Finally, the “energy as a service” segment comprising of charging
stations and energy providers will require massive investments in infrastructure and this is
where impetus from the government will be most crucial.

➢ Policy Barriers

In India, EVs are regarded as a relatively new technology compared to CVs. However, a
complete policy framework for EVs in India is still under discussion among various
stakeholders (policy makers, users, manufacturers, and other relevant experts). The
government can implement different policies to encourage the uptake of EVs, including
awareness raising, tax exemption, and long-term goal-based planning. A recent study
conducted by Harrison and Thiei pointed out that purchase subsidies may not be able to
increase EV adoption in the absence of an effective policy package and political willingness.
Some policies (such as subsidies and tax exemption) might be related to economic barriers,
but given that EVs are new to India, the absence of a comprehensive policy framework
cannot be overlooked.

1. Lack of Long-Term Planning and Goals on the Government’s Part

Governments should connect the increase in EV usage at the national level to their respective
sustainable development vision. Long-term planning and goal development by the
government could foster faster EV diffusion. Appropriate legislation, geared toward the
provision of a sufficient number of charging networks, government procurement strategies,
environmental awareness, subsidized purchasing, among other policies, should be included

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in long-term plans and goals for accelerated EV uptake. Given that EV diffusion is still in
its nascent stage in India, the lack of long-term planning and goal setting by the government
is an important policy barrier.

2. Absence of an Annual Tax Exemption Policy

Vehicle owners pay mandatory annual vehicle, road, and route permit taxes. Providing tax
benefits to EV users could help the diffusion of EVs over their conventional counterparts.

3. No assured government policy

For years in many European countries, governments have welcomed electric vehicles to their
country by reducing their tax rates and also providing subsidies in certain ways. They have
clear rules and policies made especially for Electric vehicles to encourage buyers. With some
even planning to allow only Evs to be sold eventually. In India though it is a different story,
as the government has never been clear from the start about their policies on EV vehicles.
This has left automakers confused about their plans for electric vehicles. How this translates
to the consumers is that you usually end up paying more for electric vehicles.

It is a good thing that car manufacturers are putting out cars such as the Hyundai Kona, the
Tata Nexon EV, and the MG ZS EV and devoted to being future-ready and also prioritizing
them. Hopefully, the government sees that and could solve all the problems relating to Evs.

4. FAME Policy Flip-Flops

While no one doubts that the Indian government is doing all it can to push Evs, the Faster
Adoption and Manufacture Of (Hybrid) And Electric Vehicles (FAME) policy has been
criticised by the industry in the past. The government had initially focussed on vehicle
standardisation with FAME, which was side lined for an emphasis on manufacturing. At the
moment, the government is busy drafting an EV charging infrastructure framework.

5. Absence of Awareness Raising about EVs

According to Rogers, the diffusion of any new technology can be accelerated by providing
potential users with the necessary information about the technology. Educational programs,
advertisements, and media communications can play a crucial role in the diffusion of EVs.

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Thus, designing and implementing awareness-raising campaigns is crucial to foster the
diffusion of EVs in India. Such campaigns are likely to reduce consumers’ hesitation about
purchasing EVs. As EVs are new to India this study considered the absence of awareness
raising as a policy barrier against the diffusion of EVs in the country.

6. Luxury automakers to maintain trend-setting status

Luxury automakers like Jaguar and Bently have a smaller fleet than mass-producing car
companies like either’s parent company, or GM — which recently pledged to go all-electric
by 2040. Since luxury vehicles are by definition of limited supply, luxury automakers need
fewer alternative designs to make the move to all-electric. However, there’s a deeper
imperative for high-end vehicle producers to move to the front of the all-electric line.As
high-end vehicle manufacturers, luxury vehicles are seen as cutting-edge flagships of the
auto industry as a whole — which is why they market to those with deeper pockets. But to
maintain this image of leading the automotive industry, companies like Jaguar and Bently
need to incorporate sustainable technology before other companies so they can continue to
claim that leadership status.No one wants to buy a brand-new luxury vehicle that’s “behind
the times.

7. Mass-produced all-electric should take longer

Meanwhile, it might take longer for mass-producing manufacturers to pivot to electric since
such a colossal revolution will require a shift in production to conceive new model designs
and meet dynamic consumer demands. Additionally, the viability of building entirely new
fleets of all-electric vehicles on a mass scale depends on the rollout of entirely new
infrastructures in the U.S., Canada, Europe, and elsewhere.GM has drafted plans with the
Environmental Defence Fund to diversify its future all-electric suite of vehicles, but this
substantial shift will move the automaker closer to organizations and stakeholders invested
in charging networks expansions — in addition to helping consumers achieve a better
understanding of the value and changes associated with sustainable vehicles.

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 CHAPTER 5

FINDINGS AND SUGGESTIONS

5.1 FINDINGS AND SUGGESTIONS

This paper reviewed the challenges s and opportunities of electric vehicles (EVs) in Indian
market.

With the depletion of fossil fuels and constant hike in fuel prices, there is a need for energy
transition in vehicles in India. Govt has taken initiative to fight pollution levels by promoting
EVs and giving subsidies on purchase. To boost its production, Govt has eased the FDI
norms. Various emerging brands are launching EVs in India. The Government and
manufacturers should join their hands to build the infrastructure and create positive
environment for EVs.

The respondents are aware of global climate conditions and are ready to change their
preference from conventional to eco-friendly vehicles. Cost is an important factor while
considering the purchase of EV.

Respondents are willing to consider EVs as their future purchase option, if proper
infrastructure is available. Initial cost of purchase, less number of charging stations and the
time required to recharge the battery is creating limitation in boosting consumer confidence.

Despite lack of specific pointers towards electrification, the EV Industry in India will still
take another few years to evolve. This does not owe to the Indian Government’s ambitions
targets and their resultant steps but simply because the automobile industry believes that
India too will follow the low-carbon footsteps that are being taken by global big car markets
like China, US and Japan.

Every major car-maker existing and planning to enter our market is getting into the act. So,
while some domestic players already have EV in their portfolio (though in very small
numbers), other MNC OEM’s are all testing and planning to launch their own EVs within
the next few years. While each of these manufacturers understands the significance of the
mass market prospects for EVs, they are hopeful that the policy push from the Government
will translate into concrete steps that will eventually make EVs attractive even for buyers in
the lower price segments.

As per the findings there are so many challenges. The primary concerns have been around
range anxiety (kms on a single charge) and the lack of charging infrastructure and several

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other factors like Lack of performance, cost of the battery, lack awareness and the FAME
policy flops etc.

CONLUSION

In the new future, e-mobility in India would not be something of luxury but it would be
something necessary for the survival because the pollution level is alarming, and the only
solution is the green sources and transmission of energy. Hence, EVs are inevitable when it
comes down to it, so it is better to plan and organize about how the developments are going
to occur rather than dodging the change.

Undoubtedly, an integrated policy on future of mobility with a focus on zero-emission

mobility is the call of the hour. However, such a policy should also consider financial health
of the industry, revenue to the government and employment opportunities to millions and
millions. The future of electric mobility is here and is here to stay, evolve and widen its
reach.

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 BIBLIOGRAPHY

• https://en.wikipedia.org/wiki/Electric_vehicle#History
• https://www.mordorintelligence.com/industry-reports/india-electric-z-market
• https://autotechreview.com/siemens-automotive-engineering
• https://www.tandfonline.com/
• https://www.sciencedirect.com/

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