THE RISE OF EV LIFESTYLE
January 7, 2021 10:48 am
January 7, 2021 10:48 am
The Indian electric vehicle (EV) market is now gaining momentum. With the improving EV infrastructure and consumers’ making a conscious, environment-friendly choice, there has been a surge in EV sales lately. Indian automakers are betting big on the segment. Industry leaders discuss the current scenario of EV with EPR magazine.
Power of EV infrastructure rising in India
The government is inviting these applications under the FAME-II scheme. Along with PSUs and government agencies, we believe the government this time will encourage private participation. This subsidy will pull in investments in this EV infrastructure play directly. To confirm this, Mason Lewis, MD, Magenta power says, “This can be understood, if we start to see the EV and EV charging from an ecosystem system view. There is associated software, land use, amenities etc which need to be build along with the core infra and that will kick in a larger play of investments, involvement and utilisation.”
The government is taking various initiatives to push electric vehicle penetration in India with benefits such as GST cut, tax free registration, and more. As per the report it is expected that the EV Charging industry will witness an annual CAGR of 40Percent in the next five to six years. Further, the government’s decision to invite proposals of setting and operating EV charging infrastructure across 18 highways can promote such installations. Dheeraj Chawla, Business Head, EV Charging Solutions, Delta Electronics India says, “These initiatives and measures will help build a strong network of EV Charging Infrastructure that will act as a catalyst for the development of the sector. It will successfully address the apprehensions of the electric vehicle manufacturers, sellers, and customers and address the fundamental challenge, which is the range anxiety.”
In coming decades we could see the electric vehicle industry reaching $206 billionif FY 2030 EV goals are met. Large investments to the tune of $180 billion will be required for reaching these goals. Vishwas Vijayan, Director, Ultra Electric Company (India) pvt.ltd., supports, “Policies made by Centre and State lower capital expenditure and investment to a considerable extent. Experts suggest that, Green finance institutions play a vital role in for EV infrastructure investment with the help of public funds.”
This will support the customer in investing their trust for electric vehicles as their primary choice and exploring opportunities and benefits it offers. He continues, “For EV charging station operators, future-proofing their investment rests largely in building up the right infrastructure. That secures operators and investors of today the compatibility with tomorrow’s requirements and minimize the total cost of ownership over the years to come. Combined with a minimum installation effort compared to other available systems, a versatility in station design, and user-friendliness, the Ultra-Fast Charger from Delta sets the mark for the future of EV Charging Stations.” Adding to it Alekhya Datta, Fellow and Area Convenor, Electricity and Fuels Division, TERI says, “DHI’s EOI for deployment of EV charging infrastructure on the key national highways and busiest expressways corridors essentially focused on fast charging stations. However, as per the current EOI it talks about only one 100 kW long-range or, heavy-duty EV chargers which could have been on higher specifications (say 250-350 kW which are commercially available off-the-shelf) so as to cater inter-city bus charging, and hence making more business sense and thereby attract more investments.”
Challenges to set-up EV charging station
For Charging infrastructure, the aspect of energy sourcing is a critical element. A key challenge is collaborating with energy providers to establish technology that is for high voltage use. To which Lewis said, “The only challenge in setting up EV charging stations in Tier II and Tier III cities is the EV adoption and dependent utilisation. Infact Tier II and Tier III cities have a huge advantage which is availability of land to setup EV charging infrastructure. Infact my personal belief is once the adoption of EV is understood on the back of TCO, Tier II and Tier III cities will see a bigger surge of EVs than in the metropolitan cities.” “Some of the other challenges are the supply of uninterrupted and sufficient electricity from the discoms through adequateconnection to the transmission lines. Smart and stable Grid infrastructure will play an important rolein expediting the growth of robust charging system across India.” Says Vijayan.
This somewhere increases the payback period and requires technology and solutions that support the owners and operators for an extended period, resulting in future-proofing the investment. Chawla added, “Delta EV Charging Solutionsis supporting the industry in addressing these challenges for the faster adoption of electric vehicles with our vision of #DeltaPoweringGreenMobility.” EV chargers. All of these factors help minimize maintenance time, ensuring that chargers are up and running as quickly as possible. Datta elaborates, “Challenges even at the smaller cities are remain same what are at present in the million-plus cities. Having said that, in-case of non-commercial vehicles such as passenger cars will be mostly charged at home since there are mostly individual houses (without space constraints) rather than apartments in the tier-II and tier-III cities.” However, there will be demand for commercial segments (mainly taxis) and public transport (electric buses) and there is need for adequate charging infrastructure within the city which may pose challenges in the electricity distribution network.
Limitation in growth
This is a very limited view of how charging work. 60 percent of EV charging naturally happens at homes, offices which are amenable to slow charging. It is the availability and ease of use of these charging infrastructure which will drive the market. Lewis adds, “Also as the economies of scale kick in the cost o0f Dc chargers is also expected to reduce. The only factor which works against setting up large charging infrastructure is the land availability or in other words, the high cost of it.”The coming years are significant for EV charging industry. Rising demand for eco-friendly vehicles will require a resilient EV charging infrastructure that will encourage technology innovations combined with heavy investment in building the infrastructure, thus driving growth in the global market. By adding to it Chawla said, “We understand the shifting paradigm towards increasing the role of clean mobility. Delta, being an enabler and catalyst in India’s EV evolution, is priming to strengthen the EV Charging Infrastructure. #DeltaEVChargingSolutions has been collaborating with leading OEMs and Automobiles giants to provide EV Charging Solutions and has supplied over 2200 chargers in the country. We are already supporting the Make in India initiative with our R&D Lab and manufacturing facilities in India.” “For wide acceptance of EVs, easy and cost effective availability of Fast charging options for electric vehicles are necessary. Range and stability always play in the consumer`s mind.Fast charging which recharges swiftly and efficiently could be a solution for that,” adds Vijayan. There is more to it which Datta explains, “Enabling provisions such as mandatory provisions under the CSR towards EV charging infrastructure (since green transport will have larger impact at societal-level) until the market gets established, accelerated depreciation benefit what was there in-case of solar few years back, changes in road permit rules (for commercial and public transport) etc. will boost more investments to this sector.”
Lewis speaking about magenta power said, “EV is the future and huge opportunities exist in this space given that this transition is starting from almost zero. EV charging is just one aspect of the business opportunities. Other opportunities like Battery swapping, Charging Software, Installation & maintenance, EV sales, EV services (different from the ICE vehicles), Charger maintenance and operations…and the list goes on.”
Maxon Lewis, MD, Magenta power
This subsidy will pull in investments in this EV infrastructure play directly.
Dheeraj Chawla, Business Head, EV Charging Solutions, Delta Electronics India
The aim is to constantly focus on developing technology and solutions to strengthen industry demand.
Alekhya Datta, Fellow and Area Convenor, Electricity and Fuels Division, TERI
These initiatives and measures will help build a strong network of EV Charging Infrastructure that will act as a catalyst for the development of the sector.
Vishwas Vijayan, Director, Ultra Electric Company (India) pvt.ltd.
Large investments to the tune of $180 billion will be required for reaching these goals.