India’s EV adoption rate increases with a reliable power supply

On discussing the current market trends, VenkatRajaraman, CEO, Cygni, states that “producing batteries for energy storage systems and electric cars (EVs) are the two market potentials.” “Each of them is a sizable amount by itself.” The main demand-side factor for EVs is the Central FAME-II programme, which offers subsidies to EV manufacturers. In addition to the national programmes, different state-level initiatives also provide extra incentives.
The government is also looking for scale through its numerous CESL and EESL programmes and its mandatory emissions reduction targets. Low market entry hurdles, which make it simple for numerous OEMs to get into EV and battery manufacturing and a sizable domestic market, are driving the supply side.
Government initiatives
Maxson Lewis, Founder and MD of Magenta Mobility, states, “Due in large part to the FAME incentives and rising fuel prices, EV sales in India have multiplied. “The quantity of EVs currently on the road, or the total number of EVs, becomes the most important statistic to monitor when projecting the need for EV charging and preparedness.” In India, there was 12.9 lakh registered EVs as of May 2022, of which more than 56 thousand were E4Ws, according to the Vahan dashboard.
Lewis adds, “By NitiAayog’s Handbook on EV Charging, there should be one fast charger per 10 EVs for E4Ws and E-Buses and 1 SC per 3 E4Ws. It is advised to use 1 SC for every 2 EVs for E2Ws and E3Ws. According to this reasoning, we require 18,000 slow chargers and 5,600 fast chargers to satisfy the EV charging requirements of all E4Ws on the road. In reality, the infrastructure for charging is expanding steadily. According to recent statistics, India already has over 1,000 DC fast-charging CCS2 chargers. There is a concentration impact rather than an equal distribution, which is understandable. AC charging, now widespread throughout large cities, is the biggest growth in EV charging that is not recorded.
Rajaraman discusses Additional inducements for production exist. “The Auto PLI scheme and the Advanced Cell Chemistry PLI (ACC-PLI) programme are two initiatives advancing the battery industry in India.” The ACC-PLI initiative envisions the 50 gigawatt-hours of local cell manufacturing. “Higher incentives are therefore given to cells with higher energy densities and cycle lengths.”
While elaborating on government actions, Shwetank Jain, Founder and CEO of Belectriq Mobility, states, “Any effort to address the climate emergency that the world is currently experiencing should be commended and encouraged. In this context, India has also committed to achieving net zero by 2070, including a pledge to obtain 50 percent of its energy from renewable sources by 2030 and to cut overall estimated carbon emissions by one billion metric tonnes by the same year. Never before have the conditions been better for India to adopt the EV industry.
Jain adds, “On the regulatory front, most states have released their EV policies, including incentives for production and sales, and on the global front, we have seen strong commitments from our government towards Net Zero. Additionally, the oil price has been consistently high for quite some time, strengthening the case for EVs, especially in commercial segments. Several other governmental entities, PSUs, and corporations have also stated electrification targets. “Supply-side issues are being overcome.”
Jain states, “We are confident that the EV revolution will continue to spread to all vehicle types and regions.” All the major EV OEMs have sizable order backlogs and are ramping up production to meet the rising demand.” As one of the EV charger OEMs, we are promoting EV charging infrastructure and the indigenisation of technology and production to ensure our contribution to this noble cause.
Challenges
While discussing the ongoing challenges Jain highlights that “the majority of EVs are sold in Tier-1 cities, according to data provided by EV manufacturers, because users have range anxiety when visiting Tier-2 and Tier-2 cities.” We can get around this with a vast network of EV charging stations. Obtaining an input power supply is more challenging in these cities, as was already mentioned. “India’s EV adoption rate will dramatically rise if the uninterrupted power supply is made simple in these cities.” In Tier-1 and Tier-2 cities, challenges include a lack of load, disruptions in the electric supply, a language barrier while using unmanned EV charging stations, and vandalism.
Jain adds, “One of the main issues is the inability to secure funding for the construction of public charging stations.” There are few players in the EV financing space, but they are primarily committed to financing electric vehicles. Lack of standardisation about high-speed chargers “We have a variety of connector types, particularly for fast charging (CCS2, GB/T, and Chademo), which not only lowers the utilisation rates of these pricey chargers but also leaves stakeholders unclear about which technology to invest in.”
“Batteries are one of the main parts of every EV, regardless of the category,” says Lewis. More than half of the overall expense goes toward the battery. To meet its needs, Indi presently uses imported cells. Low localisation of battery manufacturing results from lack of access to essential raw materials like lithium. The Indian government has set a goal to build a cell manufacturing capacity of 50 GWh by 2030 in response to the shortcomings in locally produced EV batteries. This is why the new PLI programme, which encourages capital investments in the production of batteries, is a positive step in the right direction.
Localising EV chargers:
While discussing the importance of localising EV chargers, Jain states, “Localisation is a must to ensure electrification is not done at the cost of jobs and trade in the existing auto and auto component industries.” “Indigenously grown technology and production shall result in better end-product availability, faster service, and more trust.” Also, when the majority of the population is using EVs, and we rely on other countries for the supply of critical components, it can hamper us if there is tension between them. As a result, we should prioritise maximum localisation for batteries, EVs, and EV charging stations to achieve long-term electrification of the EV industry.
Rajaraman says, “Ultimately, localisation is going to be crucial. It will take time for lithium-ion batteries to reach 100 percent Aatma-Nirbhar, and the evolution will be gradual. Assembling the cathodes, anodes, separators, casing, and terminals into a lithium-ion cell will be the first step in the primary assembly of lithium-ion cells.” Additionally, the anode element itself would be manufactured or chemically processed. Due to the abundance of graphite in India, the processing of battery-grade graphite will also take place. Aluminium is similarly widely accessible. So, to move up the value chain, we could proceed to a graphite or aluminium anode next.
Quotes:
VenkatRajaraman, CEO, Cygni, “The evolution of Lithiumn-ion batteries to 100 percent AatmaNirbhar is gradual yet necessary”
Shwetank Jain, Founder and CEO of Belectriq Mobility”One of the main issues is the inability to secure funding for the construction of public charging stations.”
Maxson Lewis, Founder and MD of Magenta Mobility “Due in large part to the FAME incentives and rising fuel prices, EV sales in India have multiplied. “