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Old 12th August 2020, 23:50   #1
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Govt allows sale & registration of electric 2 & 3 wheeler vehicles without pre-fitted batteries

According to a statement by the Ministry of Road Transport and Highways, vehicles without batteries can be sold and registered based on the type approval certificate issued by the Test Agency. Further, there is no need to specify the Make/Type or any other details of the battery for the purpose of registration.

However, the prototype of the electrical vehicle, and the battery (regular battery or the swappable battery) is required to be type approved by the test Agencies specified under Rule 126 of the Central Motor Vehicles Rules, 1989.

For the promotion of electrical two wheelers and three wheeler vehicles, there are recommendations brought to the notice of the Ministry to delink the cost of battery (which accounts for 30-40% of the total cost) from the vehicle cost.

Vehicles could then also be sold in the market without the battery. This will make the upfront cost of the electrical 2 wheeler (2W) and 3 wheelers (3W) to be lower than ICE 2 and 3W. The battery could be provided separately by the OEM or the energy service provider.

Source

Last edited by coolkurt : 12th August 2020 at 23:52.
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Old 13th August 2020, 09:34   #2
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Re: Govt allows sale & registration of electric 2 & 3 wheeler vehicles without pre-fitted batteries

Its a good move. De coupling the battery from the vehicle manufacturers scope is a good start. Presently , products like Bajaj Chetak and Aether come with inbuilt non swap able batteries which are bought outs from other sources ( read Chinese).

I am all for standardization of EV's in terms of mounting , charging connectors, swap facility which would greatly enhance the viability of EV. This would also give potential buyers choice of power packs according to their need for range, charging time and of course price. I foresee a three tier set up for EV's in future. The primary body builder, the battery provider and the integrator. This would lead to a level of customization like nothing seen before.

So bring it on.
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Old 13th August 2020, 10:02   #3
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Re: Govt allows sale & registration of electric 2 & 3 wheeler vehicles without pre-fitted batteries

Quote:
Originally Posted by coolkurt View Post
According to a statement by the Ministry of Road Transport and Highways, vehicles without batteries can be sold and registered based on the type approval certificate issued by the Test Agency. Further, there is no need to specify the Make/Type or any other details of the battery for the purpose of registration.
The good part about this: small entrepreneurs can now make battery packs using imported components and thus lower the cost of replacement.

The bad part: Batteries are a very big fire hazard. Not sure how someone can certify a battery after it has been made without testing it for a few hundred hours. Hope this factor is taken care of. You wouldn't want a electric 2 wheeler parked in the basement full of petrol 2 wheelers to catch fire because of a bad battery.
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Old 13th August 2020, 15:03   #4
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Government to allow sale of electric 2 & 3 wheelers without batteries

It seems that the electric two and three wheelers are allowed to be sold without the batteries, as per the Government's new notification:
Quote:
The Ministry of Road Transport and Highways has issued a notification to all state and union territories transport authorities that the sale and registration of electric two-wheelers and electric three-wheelers to be allowed without batteries. Given that the cost of the battery itself constitutes up to 30-40 per cent of the total cost of an electric two-wheeler or a three-wheeler, this move could lead to a significant push in the adoption of electric vehicles. The cost of an electric vehicle could be reduced to a large extent, making them more affordable.
With this approach, the expectation is that the cost of the electric vehicle will come down. As far as the battery goes, it can be sold separately or can be leased.

MD of Hero Electric says:
Quote:
The policy is a welcome move. I am excited about the possibilities that exist in making EVs accessible to every individual in the country. All we need is a combination of such pioneering policies for it to work for us as per plan in the long-run will work in the long term. For this to take off and be able to efficiently pass on the benefit to the consumer, we ought to work towards a strong infrastructure that allows EV owners to charge and swapping batteries wherever they require. I look forward to more such positive interventions.
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Old 13th August 2020, 15:29   #5
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re: Government to allow sale of electric 2 & 3 wheelers without batteries

Why not allow sale of just chassis + engine + wheels + 1 chair + rain cover + steering for ICE cars as well? That will bring the price lower too. Truck makers already do this. Will reduce the expenses on homologation also.

This will also mean lot more business for 3rd party body-builders who are struggling off late due to pre-built bus & truck supply from Tata/Ashok Leyland.
(#Sarcasm!)
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Old 13th August 2020, 17:03   #6
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re: Government to allow sale of electric 2 & 3 wheelers without batteries

Quote:
Originally Posted by pkulkarni.2106 View Post
to be sold without the batteries
Haha another hilarious announcement from our government related to automobile.

Since a year or so we are hearing a lot of pointless orders being passed by the government related to automobiles. They badly need someone with deep knowledge in the department.
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Old 13th August 2020, 17:40   #7
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re: Government to allow sale of electric 2 & 3 wheelers without batteries

I think battery swapping that is being thought of, is an interesting idea. Positives that I see are-
a) It would allow batteries to become the exact alternative of petrol/diesel as you can simply walk into a battery station, swap discharged battery with a charged one and drive away in a fraction of the time spent on charging a battery

b) No need for separate charging stations. Convert the existing petrol stations into battery swapping stations

Key areas/issues to be worked upon-

a) Who foots the bill for the first battery? How will you drive out of the showroom if the car isn't sold with a battery? You will have to lease it on the spot. Even if the battery is leased, one is still paying for it. No different from an EMI.

b) Battery has to become a commodity. This requires massive standardisation so that one car battery can be fitted into another. Probably there would have to be a battery pack where multiple smaller units (for lack of a better word I will call it battery cells) can be joined together depending on how much power is needed by the vehicle. These cells can be swapped as and when they discharge.

c) What impact does it have on vehicle components if one combines a well maintained battery cell with an abused one?

d) There can be instances where a person swaps a battery cell but because of age or poor maintenance, the cell discharges pretty quickly. How will such situations be regulated?

Last edited by interest : 13th August 2020 at 17:41.
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Old 13th August 2020, 17:58   #8
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re: Government to allow sale of electric 2 & 3 wheelers without batteries

Mod Note: There are several spelling & grammatical errors in your posts. This negatively affects the forum experience for other readers. Kindly ensure that you proof-read your posts prior to submission. Also, it would be a good idea to use a spell-checker.

Last edited by GTO : 14th August 2020 at 06:51.
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Old 13th August 2020, 20:06   #9
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re: Government to allow sale of electric 2 & 3 wheelers without batteries

It is well known that vehicle manufacturers will price a component higher than the price at what the market can provide you with. Can it be the case here?

The battery will also attract lesser GST ( I am not sure) than say coming as a part of the vehicle.

It may also open space for R&D into making batteries for vehicles. We may have options from Exide or Amaron soon, who knows! Battery pack size**may** also vary so that customers can choose as per their daily running
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Old 13th August 2020, 21:55   #10
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re: Government to allow sale of electric 2 & 3 wheelers without batteries

I believe this could be a good step for following reasons -

a.) Reduced initial acquisition cost - Batteries are almost 50% of the price of EV. With this policy price of car is almost half. Hence, affordable for masses.

b.) Possible reduction in ownership cost - There is a very high chance that this policy will promote battery-as-a-service subscription model. A lease on battery can be a boon for quick adoption of EVs. Moreover, if someone has to drive only in a city, use a low KW battery and when travel on highways, swap with high range batteries. Win-win situation!

c.) Workaround for infrastructure woes - If this policy promotes battery swapping as a user friendly mechanism, this can be a great step towards solving the biggest challenge of Electric Vehicles - Charging infrastructure. Battery lease companies can stock charged batteries at petrol pumps where they can be swapped in a short time. Hence, range fears and charging wait time issues can be addressed.

Possible Risks -

a.) Quality of batteries - Expect a surge in batteries in market for all costs, types and qualities. Substandard and cheap quality of swaps could flood the market.

b.) Warranty Issues - With batteries from diverse companies, drivers might face OEM warranty issues and claims.

c.) Risk of accidents - If battery swapping becomes a norm, expect battery accidents due to carelessness in usage by previous drivers.

Finally, I can sense with strong recent push by central and state govts on EVs, chances of tighter regulatory frameworks around conventional ICs is very much possible in near future.
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Old 13th August 2020, 22:49   #11
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re: Government to allow sale of electric 2 & 3 wheelers without batteries

No secret that GoI has been insisting on swappable batteries. However I have 2 major concerns:
1. How well can the battery compartment be sealed for protection against water and dust? Any short circuit increases the risk of electrocution for the occupants and big $$$ repair bills.
2. How will they ensure that the market is not filled with low quality batteries and counterfeits?
Quote:
Originally Posted by interest View Post
I think battery swapping that is being thought of, is an interesting idea...

Key areas/issues to be worked upon-

a) Who foots the bill for the first battery?
....
d) There can be instances where a person swaps a battery cell but because of age or poor maintenance, the cell discharges pretty quickly. How will such situations be regulated?
It can be a subscription model and repairs will be taken care of the company providing the service.
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Old 14th August 2020, 05:42   #12
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re: Government to allow sale of electric 2 & 3 wheelers without batteries

I think this is a great initiative. There are many states in India who has not waived of road tax for EV. With this approach, the road tax and insurance component will also decrease. This will really help to boost the sales of EV at pan India level

Example of Kona on road price ( source carwale ), price difference is around 5.4 lakhs between Mumbai and Kochi

On Road Price in Mumbai ₹ 25,14,592
Ex-Showroom Price ₹ 23,90,608
RTO ₹ 10,000
Insurance ₹ 84,978
Tax Collected at Source (TCS) ₹ 23,906
Handling/Logistic Charges ₹ 3,000
Hypothecation Charges ₹ 1,500
Fast Tag ₹ 600

On Road Price in Kochi ₹ 30,55,821
Ex-Showroom Price ₹ 24,16,688
RTO ₹ 4,95,338
Insurance ₹ 1,19,628
Tax Collected at Source (TCS) ₹ 24,167

Once the ex showroom price is brought down to 15 lakh range by removing the cost of the batteries,the onroad price delta between different states should narrow down and there will be huge savings in the road tax component. I'm sure there will be many who wants an electric car in his garage.
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Old 14th August 2020, 06:57   #13
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Re: Government to allow sale of electric 2 & 3 wheelers without batteries

Am truly unable to understand the logic behind this announcement. I understand that the govt wants to support swappable batteries & reduce the cost of EVs, but:

- Even with swappable batteries, the EV has to start off with one, right? Or does the government want customers to walk into showrooms with batteries in hand (at the time of delivery)?

- I trust OEMs to give the best quality batteries. Am concerned with the quality & safety of brand-less cheap batteries that might flood the market.

Quote:
Originally Posted by rahulskumar View Post
There are many states in India who has not waived of road tax for EV. With this approach, the road tax and insurance component will also decrease.
Interesting points, thanks for a great post!
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Old 14th August 2020, 08:13   #14
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Re: Government to allow sale of electric 2 & 3 wheelers without batteries

I remember some years back the CEO of Niti Ayog was heavily promoting bicycle use in India. I think he was wowed after seeing the dutch PM ride one to Parliament.
That time I deduced the CEO did not do well in geography while in school.

This current hilarity also seems to have stemmed from the superior brains of someone who seems to have thought; if toys are sold without batteries, why not vehicles? Wonder if the Govt will mandate a prescribed font, color and size for the label which says "Batteries not included" and the position where it needs to be placed on the vehicle. In English, regional language and Hindi of course.

Sigh.

PS. Perhaps we should start a signature campaign. Petition the Govt. to start a Ministry of Frivolity.

Last edited by RedTerrano : 14th August 2020 at 08:15.
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Old 14th August 2020, 10:02   #15
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Re: Government to allow sale of electric 2 & 3 wheelers without batteries

Quote:
Originally Posted by jasjotbains View Post

The battery will also attract lesser GST ( I am not sure) than say coming as a part of the vehicle.
We all know how the govt. Loves tax. And I do smell a less than innocent motive in the long term and short term.

Short term: Decouple the battery from any Tax benefits. Lets say, if govt. Promises x% or full tax concession, now since the battery is sold "Separately" they save a lot on that front. Esp. since battery is one of the main cost drivers in an electric vehicle.

Long term: Set up tax slabs and/or Raise the Taxes/duties on batteries based on factors like Capacity in the future just like they are now doing with petrol and diesel.
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