Electric Vehicles This Week
Inc42 brings the weekly briefing on India's budding electric vehicle industry. Get a rundown of the latest news, innovations, new launches, research & insights on the electric vehicles industry and the global learnings.
In a bid to make more space for electric vehicles, the Indian government earlier this week issued new amendments in the Central Motor Vehicle Rules. Accordingly, cars don’t need to have an extra spare tyre. In other words, the freeing up space can now be used to accommodate a larger battery, which otherwise is occupied by the spare tyre. The new amendment can lead to electric vehicles that will have longer range, thereby eliminating the range anxiety from the equation, which is one of the concerns among the majority of Indian consumers.
Taking the lead in India’s recent free trade agreements (FTAs), the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed entering into FTAs and mining agreement with Latin America and Africa, which are resource-rich countries, particularly lithium and cobalt, which are used for making batteries that constitute close to 40% of electric vehicle cost. With these strategic trade agreements, the cost of the vehicles in the near future is expected to come down, thereby giving a push to the adoption of electric vehicles in the country.
With this, the country looks to explore FTAs with countries that support India’s ‘Aatmanirbhar Bharat’ mission, thereby providing necessary raw materials, critical components and equipment required to support local manufacturing.
According to the latest report by a global management firm Kearney ‘Electric Mobility 2.0: Tracking the Next Wave in India,’ white paper, the vehicle segment such as buses and passenger cars in commercial applications is expected to see a faster pace of electrification, driven by the improving total cost of ownership, environmental awareness, and a policy push. Further, the report suggested that with adequate infrastructure and appropriate business models, electric vehicle (EV) adoption can reach 25 to 30% of new sales across segments by 2030.
In another report by Avendus ‘Electric Vehicles: Charging Towards A Bright Future,’ EVs in India could represent an INR 500 Bn opportunity by 2025. The report stated that the growth of the electric vehicle penetration in India over the next decade will be driven by supply chain localisation, policy, charging infrastructure and battery cost.
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Electric Vehicles News:
Okinawa Is In A Mood To Expand Its Dealership Network
Gurugram based electric two-wheeler manufacturer Okinawa recently announced its decision to increase dealership network to 500 across the country from the present strength of 350 dealer networks. Also, the company is looking at increasing its sub-dealer network as well as improving sales in the post-pandemic world. It is planning to expand into states like Bihar, Maharashtra, Assam and eastern region.
Jeetender Sharma, founder and MD at Okinawa, in a press statement, said that as the Covid-19 curve flattens, there will be a demand for private vehicles. When that happens, the founder said that it will spread its wings to provide its customers across the cities with easy availability of the products and services.
TVS iQube Ahead Of Bajaj Chetak, June 2020 2W Sales
After the relaxation on lockdowns across the country, the electric two-wheeler category seems to be picking up pace. According to media reports, the sales number for the month of June 2020 has shown that electric vehicle sales have neared to normalcy. Last month, TVS iQube recorded a sales of 30 units getting sold. However, Bajaj Chetak had zero sales in the same month.
Though Bajaj Chetak has a cost advantage over TVS iQube, June 2020 seems to have worked for TVS iQube. The nightmare of Bajaj Chetak electric scooter may be linked to multiple factors, including Bajaj Auto suspending bookings of its electric scooter, halt of its production facility and others. However, the company said that it will restart the production of the electric scooter in the coming days, followed by bookings.
EESL, NDMC Launches India’s First Public Charging Station
The Energy Efficiency Services Limited (EESL) in partnership with New Delhi Municipal Council (NDMC) recently launched India’s first public electric vehicle charging plaza at Chelmsford Club, which was inaugurated by the Union Power Minister R K Singh. This new public charging station comes with five charging points, each with different specifications. The plaza hopes to support the electric vehicle infrastructure as a measure to push the adoption of electric vehicles in the country.
EV Headlines From Around The World
Toyota Looks To Localise Its Electric And Hybrid Vehicles In India
Japanese automotive giant Toyota recently announced that it is looking to localise its electric and hybrid technologies in India. Toyota Kirloskar Motor’s SVP, sales and service, Naveen Soni, in a media report, said that if these technologies are localised, the company could offer electric, mild-hybrid, plug-in hybrid (PHEV) or fuel cell vehicles at competitive prices. Further, he said that in the next two years time, Indian roads could see more hybrid vehicles.
Currently, Toyota has two hybrid vehicles, Camry and Vellfire, and both these vehicles are priced high. To reduce the cost of the vehicle, the company is planning to set up a battery plant in Gujarat, in partnership with Suzuki and Denso.
After Cybertruck, Tesla Looks To Launch Two New Electric Cars
After unveiling the Cybertruck last year, Tesla’s CEO Elon Musk said that it is planning to launch two new electric cars, including a compact electric car. According to media reports, Tesla has hinted that they are planning some other electric vehicles in the coming years. This development comes at a time where Musk had said that Tesla will design an electric car in China for the global market. At the time, it released a design drawing that revealed a compact car. Also, Tesla has been working on a 12-passenger electric van for the Boring Company.
At the release of Tesla’s Q2 2020 financial results, Musk had said that it would be reasonable to assume that we would make a compact vehicle of some kind and probably a higher capacity vehicle of some kind. “There are likely things at some point. But I think there’s a long way to go with Model 3 and Model Y, and with Cybertruck and Semi. So, long way to go with those. I think we’ll do the obvious things,” he added.