EV Adoption: Still a Work in Progress!

Given the target of 30 percent EVs by 2030, India needs to set up millions of charging stations. A status check

In 2013, the Indian government had initiated the National Electric Mobility Mission Plan with an objective to achieve 6-7 million sales of hybrid and electric vehicles (EVs) year on year from 2020 onwards and to achieve 30 percent e-mobility in the country by 2030. To give a further push, the government earmarked Rs 10,000 crore in 2019 to encourage development, manufacturing and usage of EVs though the Faster Adoptions and Manufacturing of Electric Vehicles (FAME) scheme. Currently, India is estimated to have around 300 public EV chargers and to meet the country’s ambitious e-mobility targets, millions of charging stations are required to be set up without delay. Here we take a closer look on the preparedness of the industry as well as the government in this front.

The automobile industry plays a key role in driving economic growth. At the same time, it is one of the principal contributors to pollution and making India dependent on overseas oil. However, the Indian auto market has been on a decline for some time and has a lot of challenges ahead. In this context, Vishwas Vijayan, Director, Ultra Electric Co India Pvt Ltd observed, “EVs vehicles have to make their place despite their share of challenges in terms of manufacturing infrastructure.

He said, “Manufacturers are working on next-generation battery technology, fuel cell technologies, EV power trains and EV electronics. There is a strong focus on the production side in both the EV value chain and the infrastructure value chain. A cautious, clear and realistic road map towards the adoption of EVs with more positive step should be taken by government that will benefit the overall EV industry and consumer.”

He also suggests that the government should build a world-class training and skill centres for EV professionals with niche skills for the global EV industry along with promoting innovation through grants and venture funds to research organisations.

Better implementation of RPO (Renewable Purchase Obligation) regulations compliance by discoms will increase green power within their purview. 

Government should create robust infrastructure for EVs, expedite innovation in EV for automotive and shared mobility by providing the ecosystem and infrastructure, and incentivising local manufacturing, Vijayan recommends.

“The government has started giving benefits to a lot of public transportation to covert city fleets into complete electric. A lot of subsidies through FAME 1 and 2 have been allocated for such projects. I see a huge rise in cab aggregators’ adoption towards EV fleets. Initial numbers for growth of EV vehicles will be achieved through this sector particularly. Private owners are reluctant due to the initial investment for EV vehicle i.e. 30-40 percent higher than the IEC engine car prices,” said Anurag Patil, Director Operations, MASSTECH Controls. 

Work in progress!
The government has given an in-principle approval to organisations like NTPC, REIL and EESL for 2,600 EV charging stations across 62 cities and is expected to sanction the contracts after the PSUs bag MoUs for the land for the charging stations. However, industry experts point out that the overall implementation is moving at a snail’s pace.

Vijayan observed: “Out of the 300 such charging stations in India there are some which have not come online due to supply-side disruptions caused by COVID-19 outbreak. With the unlocking of economy in process, the supply side challenges should be fixed.”

“The tenders are out in the market, but are yet to be closed. Due to COVID-19, most of these tenders have been delayed by 4-5 months. We expect to see realisation of these charging stations 2021 onwards,” adds Patil. 

“Looking at the previous tenders floated for setting up charging station on a large scale, the confusion over the standards and errors in the tender specifications resulted in delay in overall process of building large scale EV charging networks,” Vijayan points out.

He also alleged that the decision between CHAdeMO and Combined Charging System (CCS) or Bharat EV Charger AC-001 and DC-001 are influenced by automakers who are lobbying for their preferred charging standards. This further delays the overall execution of the process, he comments.

For setting up charging infrastructure, availability of ‘land’ plays a very important role, which as of now is provided free of cost by most municipal bodies or firms for public chargers to companies. In return, the companies pay a certain proportion as a land rental to the entity for every kilowatt-hour (kW/h) the company utilises. Vijayan believes that proper coordination between various government bodies will fasten this process.

The tenders are out in the market, but are yet to be closed. Due to COVID-19, most of these tenders have been delayed by 4-5 months.
Anurag Patil, Director Operations, MASSTECH Controls

Out of the 300 such charging stations in India there are some which have not come online due to supply-side disruptions caused by COVID-19 outbreak.
Vishwas Vijayan, Director, Ultra Electric Co India Pvt Ltd