Re: Kotak: Merely 5% of Indian cars will be electric by 2030 Thanks Rushabh for starting the discussions. Yes, we are for reducing the burgeoning oil import bills, the pollution and the medical, especially lung related problems faced by the population due to overuse of fossil fuel powered motor vehicles. The growth in the fossil fuel powered cars and other classes of motor vehicles have been rampant and meteroic, eversince the opening of the market floodgates with the then government's liberalisation and globalisation policies of 1991.
The draft National automobile policy of March 2018 by the Ministry of Heavy Industry for the first time speaks about alternate energy powered motor vehicles. The previous automobile policy of 2002, the immediate one before the 2018 policy, spoke more about low emission, rather than touching upon fuel efficiency or alternate energy sources to power the engines :-
2002 Automobile Policy excerpt Quote:
Encouragement of use of low emission fuel technology and formulation of an auto fuel policy to plan a roadmap for auto fuel quality as per emission norm requirement and ensure availability of appropriate auto fuels / fuel mixes at minimum social costs, across the country.
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2018 Automobile Policy excerpt Quote:
Green mobility
7.2.8 Lack of clarity on Government strategy for green mobility
Policies and announcements by different government ministries and supporting bodies in the recent past will need to be aligned on the green technologies that will be the focus of government incentives and infrastructure investments. Investments and products decisions to ramp-up the green mobility manufacturing base will require a long-term roadmap and vision.
7.2.9 Low demand for green vehicles
Large-scale adoption of green mobility options is limited by consumer concerns regarding technical performance of vehicles, reliability and dependability, limitation on range and refueling options, higher upfront costs etc. Consumer awareness of the benefits of green vehicles along with incentives for
purchase in the initial years will be essential to boost adoption.
7.2.10 Limited supply of green mobility vehicles and components
Manufacturing capacity in India for green mobility components and vehicles has significant growth potential currently, compared to countries such as China and United States. This presents an opportunity to address higher prices and limited options of green mobility vehicles to consumers which in-turn restricts experience and awareness. India can reduce dependence on imports for green vehicles and components by nurturing and developing the domestic supply eco-system.
7.2.11 Limited infrastructure established for green mobility
Most green mobility options require exclusive infrastructure for refueling and charging. Current public infrastructure for green mobility technologies such as CNG, LNG and Electric Vehicles is limited to cities and selected clusters. Nationwide network expansion needs to go hand-in-hand with other demand and supply side measures, to pro-actively address consumer anxieties regarding adoption and usage. |
The sudden rush and emergency now enumerated by the policy makers in the 2018 draft policy is quite intriguing. What was the reason for the long rest between 2002 and 2018 ? Could there not have been any interim automobile policy after 2002 and before 2018 ? In fact, there should have been at least two or more such policies in keeping with the winds of change sweeping our automobile industry. During the first decade of the new millenium, it was apparent that we are spending upwards of Rs 100,000 crores on our oil import bills annually. Had the planners though about such a visionary changeover to electrics a decade back, we would have been much better equipped with all proper infrastructure and raw material to usher in such a massive revolution on wheels.
And how can we ignore the two top CEO's Mr Rajiv Bajaj and Mr Venu Srinivasan of our automobile industry ,who were a few days back extremely vocal and critical in their discussions at the Niti Aayog about the speeding up of the dealine to introduce 100 % sub 150 cc "electric" two wheelers ? They had in simple words said that we export 3 million two wheelers per annum worth US $ 3 billion and that the government wants to kill the goose that is laying golden eggs. Quote:
(some excerpts of the Niti Aayog discussions )
Srinivasan made the presentation on behalf of Society of Indian Automobile Manufacturers (SIAM), the industry lobby group. Bajaj and Srinivasan subsequently laid out their case and responded to queries.
Niti Aayog officials had argued that the issue was not new and had been deliberated upon at the Global Mobility Conference last year, which many industry chieftains had skipped. Srinivasan said the conference had not been meant for policy-making.
Niti Aayog got support from fledgling two-wheeler EV startups, represented by Tarun Mehta, founder of Ather Energy, which makes electric two-wheelers, and Sulajja Motwani of the Firodia group.
Other EV startups backed their views but Srinivasan pointed out that their volumes were low. “People who want to do it tomorrow are making 1,000-odd vehicles annually,” he said.
A startup entrepreneurs cited the example of China, which produces 20 million electrically powered motorcycles annually. Since EVs are more expensive, they will require state assistance in this price-sensitive sector, Bajaj said. “I’m in awe of the apparent willingness to subsidise EVs — an approximate ? 1 lakh per vehicle — to help achieve reasonable price parity with ICE two- and three- wheelers for an estimated minimum industry size of 25 million by 2025,” Bajaj said.
Srinivasan and Bajaj said they are in favour of monetary and other incentives for transitioning to EVs.
Niti Aayog officials said the courts could impose a ban if the industry did not act voluntarily. They pointed to high levels of pollution and the fact that fast action would help put India on the cutting edge of EV technology, unlike in some other high-tech areas.
Bajaj felt this view was unrealistic. A ban on ICE vehicles would mean importing lithium ion batteries, the costliest component in EVs, from China, offseting any drop in oil imports. Further, India’s electric grid won’t be able to support the charging of 25 million EVs at night, Bajaj and Srinivasan said. “This is a complex issue… it needs adequate thought,” Srinivasan said, adding that it will have a significant bearing on an industry that employs a million. “Every manufacturer is working on EVs.”
Bajaj disputed the contention that EVs are superior in terms of environment and experience.
“In spite of all the fiscal sops in place, the great electric revolution apparently can't get off the ground unless it stands on the crutches of banning internal combustion engine two and three wheelers,” Bajaj said. “Indian two and three wheelers that are the global benchmark for low emission and high fuel efficiency must be banned within the next few years with scant deliberation on where the employed are to go or from where the electricity for charging is to come.”
China’s ban on ICE vehicles meant it lost out on the global marketplace, which was filled by Indian manufacturers such as Bajaj Auto and TVS Mo .. |
Above quotes from :-
//economictimes.indiatimes.com/articleshow/69920504.cms?utm_source=contentofinterest&utm_medi um=text&utm_campaign=cppst
Last edited by anjan_c2007 : 25th June 2019 at 18:33.
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