The adoption of electric vehicles in India may be at a nascent stage, but the growth seems to outpace the numbers from previous months or years. A total of 157,311 electric vehicles were sold in May 2023, compared to 110,999 units in April 2023. Additionally, an article by the Economic Times states that 2,337,761 units of Electric Vehicles (EVs) have been sold as of FY 2023, compared to 455,773 units in FY 2022, resulting in a year-on-year growth rate of 174%. These trends are not only encouraging but also indicate progress towards achieving the Indian government’s target of having electric vehicles account for 30% of private car sales, 70% of commercial vehicles, and 80% of 2W and 3W by 2030, thereby reducing carbon emissions and promoting a greener future.
While EV Manufacturers drive the visibility of EVs, there are many other stakeholders who play a vital role in surpassing other countries in EV adoption and achieving sustainable transportation in India. In this blog, let’s explore the key stakeholders and their roles in achieving sustainable transportation in India. It’s important to note that the order in which they are listed does not imply a prioritization of their roles. Each stakeholder contributes uniquely to the collective effort of building a greener future for transportation in India.
Indian Government:
The government takes initiatives to develop infrastructure by installing charging stations without worrying about revenue. They also provide financial subsidies to different stakeholders in the industry. Additionally, the government invests in research and development to find the best technology for the EV ecosystem. They also frame regulations like emissions standards and zero-emission vehicle mandates.
In India, the government has launched the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme to promote EV use. This scheme provides incentives for charging infrastructure, financial support for EV research and development, and encourages adoption among government departments and public sector undertakings. FAME has two phases: FAME I and FAME II. FAME I, launched in April 2015, aimed to support electric and hybrid vehicle adoption through subsidies. It was later extended until March 2019. FAME II, launched on April 1, 2019, focuses on developing the EV ecosystem, including charging infrastructure, R&D, and component manufacturing. Additionally, the Indian government has implemented policies like battery swapping, duty reduction on electric vehicles, the Production Linked Incentive (PLI) Scheme, and Special E-Mobility Zones. The recent Union Budget for 2023 highlights the importance of the car scrapping policy, providing funds to replace vehicles older than 15 years. State governments in India have also introduced schemes to boost EV adoption in their respective regions.
Manufacturers Of Electric Vehicles:
EV OEMs, also known as Electric Vehicle Original Equipment Manufacturers, play a significant role in the electric vehicle industry. Their impact is more noticeable compared to other players on the field. Being customer-facing stakeholders, they are responsible for designing, engineering, and manufacturing EVs. This means they bear the responsibility of delivering high-quality electric vehicles that are affordable for the general public. Moreover, they must continuously innovate and introduce the latest technology to meet customer expectations.
To achieve this, EV OEMs invest heavily in research and development to enhance battery efficiency, increase the driving range, reduce charging times, and improve safety standards. These efforts are crucial in gaining the trust of traditional internal combustion engine (ICE) vehicle owners who may be hesitant to switch to EVs. The penetration of EVs has been encouraging to see not only in the passenger vehicle segment but across segments like buses, autos, and Cargo Rickshaws, accounting for 5.59% of the overall sale of vehicles in the last FY21–22.
Currently, one of the major obstacles is the cost of electric vehicles. To make EVs more accessible to the masses, players like Tata Motors, Mahindra, Hero Electric, Bajaj Auto, Ampere Vehicles, Piaggio Vehicles, and Kinetic Green Energy, should focus on developing cost-effective technologies. Additionally, EV OEMs such as Tata Motors, Ather Energy, and Ola Electric go beyond manufacturing EVs by offering charging infrastructure to provide convenience for their customers. They also play a vital role in creating awareness among potential EV adopters and encouraging widespread adoption.
Charging and Battery Swapping Station Operators and Manufacturers
When you own a traditional vehicle, you start searching for petrol pumps to refuel. Similarly, when you own an electric vehicle (EV), you begin looking for places to charge it. This is where charging infrastructure comes into play, including EV charging stations and battery swapping stations. At an EV charging station, you can charge your EV, while at a battery swapping station, you can exchange your depleted battery for a fully charged one. These charging facilities play a vital role in building confidence among fence-sitters who are considering purchasing an EV.
Charging Station Original Equipment Manufacturers (OEMs) are responsible for manufacturing the charging stations. Charging Point Operators, on the other hand, operate the network of charging stations. Their role involves installing the stations and managing them efficiently. These charging stations can be privately owned or government-owned, but both work closely with EV OEMs to identify high-demand locations for setting up the stations. They collaborate with highway eateries, resorts, hotels, malls, shops, and residential societies to install charging stations. Companies like Magenta ChargeGrid, Statiq, Zeon Charging, Charge Zone, Relux Electric, JIO-BP, ABB, Charzer, and Fortum India are involved in either manufacturing or operating these charging stations. Unfortunately, there is no centralized repository to provide an exact count of these stations. Additionally, players like Tata Motors, Ather Energy, and Ola Stations also set up their own charging stations for their customers.
In India, battery swapping technology is more commonly used for two-wheeler EVs and electric cargo rickshaws, so you may see them in limited numbers. However, once passenger auto-rickshaw owners switch to EVs, you can expect to see a significant increase in the presence of these battery swapping stations.
EV Battery Manufacturers:
If regular cars have engines as their main part, then electric cars have batteries as their main part. That’s why lithium-ion batteries are super important for electric cars, but they also make them expensive. These batteries make up around 40-50% of the total cost of the car. But the Indian government recently made a good move in the budget. They decided not to tax the equipment and machinery needed to make lithium-ion batteries in India. This is great because it encourages Indian companies to make the batteries themselves, which will bring down the cost of electric cars. Right now, we import the lithium-ion cells from countries like China and Taiwan. Then we put them together in India or import ready-made battery packs. But things might change in the future. Recently, a new place in Rajasthan was found where lithium can be found. Before that, in February, a place in Jammu and Kashmir was found too. This means we might have our own lithium supply, which will make the batteries cheaper. But it won’t be easy. The battery companies have to step up and use the latest technology from around the world or invest a lot in research and development. We already have some big players in the market, like Amara Raja Batteries Ltd., Exide, Okaya, and HBL Power Systems Ltd. There are also new ones like Log9 Materials, Loom Solar, and OLA. The future looks good for electric cars in India, and we hope these companies will lead the way with their cool technology. It will benefit not only India but the whole world.
Charging Management System Providers:
Now we have charging stations, but we need software to run them. This software is called the EV Charging Management System. It connects the charging station hardware with the mobile app using a global protocol called OCPP. These systems are often overlooked, but they play a crucial role in the adoption of electric vehicles.
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From the perspective of the charging station owner, the management system helps them keep track of charging sessions and efficiently manage station usage. They can analyze data such as the most frequently visited vehicles, used connectors, time of visit, and average power consumption. This data helps them plan the setup of future charging stations. For EV owners, the management system allows them to find charging stations, book them in advance to avoid waiting in queues, initiate charging sessions, and make payments. It simplifies the whole charging process. In India, there are several companies dedicated to providing such services to charging station manufacturers and owners. Their software solutions are designed to be compatible with various charging stations, thanks to the OCPP protocol. Companies like YoCharge, TelioEV, EVC Finder, EV Connect, Clenergy EV, and ChargeLab offer excellent software solutions for managing the EV charging ecosystem.
These companies typically offer a white-label EV charging management system that can be customized by charging station owners to suit their needs and brand identity. Larger charging point operators usually opt for this approach. However, smaller charging station owners with fewer stations may not be able to afford the cost of buying such software. Instead, they host their stations on the app provided by software service providers, which helps create visibility for their stations. Some big charging point operators develop their own charging management systems using their in-house capabilities. Additionally, EV fleet operators also choose these services to efficiently manage and track their fleet’s energy consumption.
Charging Station Aggregators
Since we are used to frequenting fuel bunks, most of us know their locations. Even if we don’t, we can google and spot the bunks and reach there to fill up and checkout in 10 minutes, even if 3 traditional vehicles are ahead of us. And on highways, you will see boards saying fuel bunks are 2 Km away or something similar to guide us to reach them. But in the case of EV Charging Stations, first we don’t know where they are located, and if we manage to find them using Google, we have to call them to check if they have the compatible connectors for your EV and their availability, as unlike filling fuel, EVs take 45-50 mins to charge up to 80%, like Tata Nexon. Then EV owners have to install the apps of that particular charging station’s app or their own app to initiate charging; hence, the EV charging experience using public charging stations has been a pain for EV owners, which leads to low turnout at the EV charging stations.
To address this, there are startups like Ionage, evnnovator, and evjoints, and the Indian government is working towards building a unified app that will onboard charging stations of various networks and will not only help you locate the nearest charging station but also whether they are currently available or not and whether the charging points are compatible with your EVs or not. These apps will also help you book ahead of time so that you don’t have to wait in the queue to charge your EV. Simply put, they are the aggregators of charging stations, and soon they will become the face of the EV industry and drive sustainability in transportation.
Power Generation and Distribution Companies
No matter how smart your mobile phone is, without power, it’s merely a paperweight. In the EV industry, electricity functions as oxygen, making power generation and transmission companies crucial for EV adoption. According to investindia.gov.in, the electricity generation target (including RE) for 23-24 has been set at 1750 billion units (BU), reflecting a growth of around 7.2% compared to the actual generation of 1624.158 BU in the previous year (22-23). Renewable energy sources (solar, wind, hydro, and biopower) have witnessed a significant increase in electricity generation, from 193.5 billion units in 2013-14 to 306.3 billion units in 2020-21, showcasing a CAGR of 6.8%. In India’s power industry, the private sector generates 50.5% of the country’s power, while the states and the central government contribute 24% and 25.4%, respectively. Non-fossil fuel sources accounted for 43% of India’s power generation in May-23, with a target to surpass 65% by 2030.
NTPC, a public sector company, solely focuses on power generation and contributes nearly 25% to the country’s total power generation. NHPC Limited, established in 1975, is dedicated to hydroelectric power generation. Tata Power, one of the largest private players, not only generates power but also ensures its transmission to the last mile. Adani Power is the latest addition to the private sector, making significant strides in power generation.
Power distribution is as critical as power generation. Effective distribution ensures maximum energy transmission with minimal power loss. This is where power distribution companies play a vital role. They are responsible for establishing infrastructure nationwide to deliver power to even the most remote areas. While they have been successful in this endeavor, power distribution companies must embrace smart distribution network planning. This includes demand forecasting for the medium to long term, considering the dynamic power requirements of EV charging stations. Investments should be made to strengthen power distribution infrastructure, such as power grid transformers and cables, to handle the increased electricity demand from charging stations, especially during peak times. Collaborating with charging station operators enables effective power grid capacity planning. Constant vigilance is required to identify and invest in research for the most efficient power distribution methods. Power companies can explore technologies like Vehicle-to-Grid (V2G) to facilitate bidirectional energy flow between EVs and the grid. Power Grid Corporation of India Ltd., responsible for power transmission since 1989, is primarily owned by the Indian Government (51.34% stake). However, private players like Adani Transmission, which entered the segment in 2013, are rapidly expanding and enhancing their network.
EV Cab Operators:
There are several startups that have embarked on the venture of providing cab-hailing services exclusively with electric cars. These startups play a vital role in bolstering the adoption of electric vehicles. As their electric cabs roam the streets, they create free visibility for the EV industry, proudly displaying green boards and ads on their cars. Not only that, passengers who avail themselves of their services get to revel in a smooth and serene ride in these electric vehicles. Furthermore, the economics of hiring electric cars nudge them to seriously contemplate purchasing one in the near future. And the cherry on top? Most of these startups do not impose surge charges like Uber or Ola.
Some fleet operators, such as BluSmart, take it a step further by establishing their own charging infrastructure to power their electric cars while also making it accessible to others. The presence of charging stations instills confidence in the minds of prospective buyers. Each player in this arena has their own unique offering. For example, Evera proudly claims on their website that their drivers are full-time employees, while BluSmart leases their electric cars to drivers with flexible work schedules. It’s worth noting that BluSmart, Evera, and Cab-e operate exclusively in specific locations in Delhi. On the other hand, eee-Taxi caters to corporate and government pickups and drops, but they do not appear to have apps or cater to retail customers.
In conclusion:
Just as every part of an EV plays a vital role in powering the vehicle, each stakeholder plays their part in electrifying India sooner than the ambitious target set by the Indian Government. These stakeholders come together regularly to discuss challenges and find solutions, working in tandem to reach the common goal of reducing carbon footprints. As the EV industry continues to evolve and innovate, we can look forward to a brighter and cleaner transportation landscape in India.
