This week, the Indian government has reportedly decided to steer the automobile makes into producing electric vehicles (EV) by updating the corporate average fuel economy (CAFE) norm. CAFE norms are a set of rules and regulations automakers have to follow for producing vehicles in India to be at par with the rest of the world.
According to media reports, the Indian government wants automobile makers to convert at least 2% to 3% of the total cars they manufacture into EV every year. Manufacturers, who have reached their average fuel consumption target will have to invest in EV ecosystem in some other way.
With the changes in the norms, the government hopes that the automobile makers will reduce the production of internal combustion engines (ICE) and switch to electric mobility faster. With this proposal, the government has reduced the previous target of transforming 40% of unit produced into electric vehicles by 2026.
Chart of the week: Customers’ Concerns
EV News From India
Delhi Govt Plans To Provide Subsidies, Relaxations On EV
Delhi government is looking to push EV even further with INR 22K subsidies on electric two-wheelers and imposing lower or no congestion charges or parking fees under the new parking policy, which is currently being drafted. In addition, the government is also planning to introduce green number plates to easily identify electric vehicles.
Ather Energy’s Plans Expansion To New Cities
Electric scooter manufacturer Ather Energy is planning to set up new operations in over 30 to 35 cities by 2022. The company will be targeting Mumbai, Delhi, Pune, Ahmedabad and Kolkata for 2020. It has also decided to scale up its production to 5 Lakh units a year and roll out new products, including motorcycles in the upcoming years.
BMW Plans To Launch Electric Mini Cooper In India
Germany-based automobile manufacturer BMW is planning to launch its luxury electric cars, Mini Cooper in India by 2022. BMW Group already has a manufacturing plant in Chennai to support such production. According to Francois Roca, head of Mini in Asia-Pacific, that it will help the company to produce more “approachable” vehicle, in terms of the price tag.
Industry Needs To Create Demand For EVs, Says Bajaj Chief
Bajaj Auto’s MD Rajiv Bajaj, in an interview to Mint, that the automobile industry should be the ones creating the demand for EV and its adoption. He added that the industry should not get caught in the vicious cycle of chicken-and-egg, where the industry says whether EVs should come first or whether EV charging stations should come first. He added that both need to go hand in hand.
Yulu Bags $8 Mn Investment From Bajaj Auto
Bengaluru-based micromobility platform Yulu has raised $8 Mn from two-wheeler manufacturer Bajaj Auto Limited (BAL). Along with this, Bajaj and Yulu will also tie up to codesign and manufacture shared micromobility. In addition, Bajaj will also consider financing Yulu for a large scale deployment of its micromobility EVs.
Hero Electric To Invest INR 700 Cr Into EV Despite Auto Slowdown
Looking past the current economic slowdown, which is hampering the automobile sector adversely, Hero Electric has decided to stay put by investing $700 Cr in the manufacturing and sales of electric two-wheelers in India. The company wants to focus on setting up manufacturing units, building a distribution network and increasing the production capacity.
Startup Of The Week: Yulu
Founded in 2017 by Amit Gupta, RK Misra, Naveen Dachuri and Hemant Gupta, Yulu is a Bengaluru-based micromobility startup that focuses on electric two-wheelers. The company plans to increase its fleet size to 100K by December 2020, from its current size of 3,000 EVs and 8500 scooters.
The company plans to completely transform its fleet to consist of electric vehicles in the coming years. It currently operates in Bengaluru and launched its services in Delhi in September. In addition, the company is also working on charging boxes to tackle the issue of the lack of charging infrastructure in India.
The charging boxes can easily charge upto 15 batteries at one time. Yulu uses the boxes to charge 45 to 50 batteries in a day, on average, create its own micro-network of charging stations. Interestingly, 50% of the charging boxes has been created in partnership with mom and pop stores.
EV News From Around The World
Audi To Lay Off 9.5K Workers For EV Transition
Germany-based car manufacturer Audi has decided to lay off 9,500 German employees by 2025, which makes up for 15% of its workforce, to make up for 2K new positions for electric mobility and digitisation specialists, according to the company’s official statement. The company is planning to restructure and transition to electric car production with a target of earning $6.6 Bn (EUR 6 Bn).
Pakistan Plans To Introduce First Fleet Of Electric Buses
After passing its EV policy this month, Pakistan has now decided to roll out the first electric buses fleet. Pakistan’s ministry of science and technology has signed a memorandum of understanding (MoU) with a ride-hailing startup Airlift. Moreover, the government is also planning to produce 30 per cent cheaper electricity from renewable energy sources.