At a time when the entire world is focussed on the usage of green energy in a bid to reduce its carbon footprint, India, too, isn’t far behind. The country is seemingly doing everything in its power to meet its net zero emission goals. 

The endeavour is visible in the fact that the electric vehicle (EV) adoption in the country has grown about 50% this year. According to Vahan data as of December 29, the registrations of EVs in the country rose to 15.13 Lakh units in 2023 from 10.25 Lakh units in the previous year.

Within the EV segment, two-wheelers continue to lead the space. The registrations of two-wheeler EVs in the country grew 34% year-on-year (YoY) to 8.49 Lakh units in 2023.

This increase happened despite over a dozen companies in the category getting involved in FAME-II controversies and the government slapping crores of fines on original equipment manufacturers (OEMs). As such, the increase in sales could have been even higher if the FAME-II fiasco had not taken place.

Meanwhile, the year 2023 also saw a major consolidation in the segment.

A Trend Shift?

Though electric two-wheeler sales increased, only a handful of players – either legacy automotive manufacturers or deep-pocketed startups – ruled the space this year.

For instance, Bhavish Aggarwal-led IPO-bound Ola Electric witnessed around a 140% surge in its vehicle registrations in 2023 to 2.62 Lakh units from 1.1 Lakh units last year. 

Similarly, Ather Energy, which raised around INR 1,000 Cr this year in fresh funding, witnessed an over twofold rise in its vehicle registrations to 1.04 Lakh units.

On the other hand, legacy two-wheeler player TVS Motors emerged as one of the key names in the EV segment this year, with its vehicle registrations increasing 250% YoY to 1.65 Lakh units in 2023. Hero MotoCorp and Bajaj Auto also saw a big increase in their EV registrations. 

While some of these top players of 2023 were also embroiled in FAME-II controversies and saw a muted start to the year, they managed to regain momentum by August.

BGauss, iVOOMi Energy, Kinetic Green, Lectrix EV, and Okaya were among the other names that saw a rise in sales on a YoY basis. 

However, the most prominent players of 2022, including Okinawa Autotech, PureEV, Hero Electric, Ampere, and electric motorcycle manufacturer Revolt, lost much of their charm this year.

Let’s take a look at the performance of some of the most prominent electric two-wheeler players in 2023 and their month-on-month performance over the last three months:

However, despite the electric two-wheeler segment selling a record number of vehicles this year, the pace of growth clearly slowed down. Last year, the electric two-wheeler registrations had jumped over 300% YoY to 6.31 Lakh units. In 2021, the jump was over 400% YoY.

Some experts Inc42 spoke to are also of the opinion that the FAME-II subsidy issue was a major setback for India’s EV growth story this year. 

For instance, Vinkesh Gulati, chairman research & academy, Federation of Automobile Dealers Associations (FADA), had told us earlier this year that in a country like India, which is largely dependent on imports of batteries and cells for EVs due to scarcity of resources, raw materials, and infrastructure, adhering to localisation norms is very difficult.

“FAME-II scheme was the best catalyst to increase sales, but as of now, it is a deterrent for some of the manufacturers,” Gulati had said.

However, some industry players also said then that the industry cannot grow by depending on subsidy alone and there was a need to crackdown on the EV players that functioned more as assemblers of imported parts rather than manufacturing them as per India’s road and climatic conditions.

The FAME-II Controversy & The Path Ahead 

The root of the problem was a series of EV fire incidents that grabbed the headlines in the summer of 2022. Ola Electric, Okinawa Autotech, Jitendra, and multiple other players found themselves surrounded by controversies due to the fire incidents – a few of which also claimed lives.

With the rise in such incidents, the government initiated a probe into the matter. The investigation revealed problems associated with the batteries used in these vehicles – either their battery management system (BMS) lacked certain basic safety features or the batteries were of inferior quality. 

In any case, it was evident that many electric two-wheeler players were using batteries manufactured in other countries that were not built for India’s climatic conditions. Besides batteries and cells, some players allegedly imported most other parts used in their EVs. 

Soon after, the Centre started doubling down on domestic value addition by EV OEMs. It also tightened the battery testing norms. 

Following these measures, a dozen two-wheeler EV manufacturers, including Okinawa Autotech, Revolt, Hero Electric, and Ampere, came under the government’s scanner for allegedly claiming subsidies under FAME-II without adhering to the minimum localisation norms prescribed under it.

Starting with holding back the release of some FAME-II subsidies, the ministry of heavy industries (MHI) took multiple steps which slowed the sales growth of these players. The ministry put an embargo on some of the manufacturers from listing their sales on the official National Automotive Board (NAB) portal, slapped heavy penalties, and issued notices to the OEMs to return the subsidy amounts, among others.

Meanwhile, another problem was brewing, which involved Ola Electric, Ather Energy, TVS Motor, and Hero MotoCorp. A whistleblower alleged that these players were selling their chargers and proprietary software separately at an extra price to keep the vehicle prices under the INR 1.5 Lakh cap to avail subsidies under the FAME-II scheme. They were also penalised by the MHI but the adverse impact did not last long.

Many of these players increased their vehicle prices as FAME-II incentives were slashed. 

These controversies also resulted in significant volatility in two-wheeler registrations throughout 2023. Starting with 64,693 units of registrations in January, the volume peaked at over 1 Lakh in May but slumped again and remained volatile. After rising more than 22% month-on-month (MoM) to 91,718 units in November, two-wheeler EV registrations fell over 23% to 70,206 units in the last month of 2023.

Meanwhile, the FAME-II scheme is expected to end in March 2024. While there have been demands for the extension of FAME-II and reports around the launch of a new FAME-III, the government hasn’t confirmed either of the developments, officially. Recently, a media report also claimed that the government is considering an extension of the existing scheme till FY25.

 However, an industry source told Inc42 that it is highly unlikely that the government would further invest in it right now, particularly with FAME-II being a major “mess”. 

“Also, the most important thing is the matter is now in the court. The MHI has erred in many ways, it has been withholding money that it had promised to give the OEMs… and just squeezed out some OEMs for no reason. I doubt the government would add money to the coffers of any ministries’ activity unless it’s clear which way the court decides,” said the person. 

“If the court decides that the MHI was completely wrong, then the INR 1,200 Cr that has been held back has to be paid to the OEMs along with the INR 500 Cr claimed from some of these OEMs,” the person added.

It is pertinent to note that the MHI disbursed INR 5,228 Cr in subsidies till December 1, 2023, supporting 11.5 Lakh EVs sold. 

At the time of its announcement, the scheme had an outlay of INR 10,000 Cr with an aim to support  7,090 ebuses, 5 Lakh electric three-wheelers, 55,000 electric four-wheeler passenger cars, and 10 Lakh electric two-wheelers. 

Will 2024 Accelerate The EV Growth Story?

Rising awareness about the need to combat pollution, improvement in technology, and the government’s promotion of EVs are expected to lead to further increase in EV sales growth in 2024.

Amid these, deep-pocketed players who can survive without government subsidies, are expected to emerge as winners. Besides, the private funding for EV OEMs could also witness a decline with the sentiment now shifting towards supporting the other sub-segments.

According to industry experts Inc42 interacted with throughout the year, the electric two-wheeler market, which is currently cluttered with around 200 players, will witness consolidation going forward as the technology matures and people opt for superior quality products. 

Meanwhile, there is an increasing number of electric motorcycle players that have started entering the electric two-wheeler market now, which is also likely to push up two-wheeler EV sales in the coming years. 

While established names like Royal Enfield are working on EV launches, many startups are also trying to disrupt the Indian motorcycle market.

Ultraviolette, Orxa Energies, Matter, Oben Electric are among the several VC-backed startups that are expected to start the deliveries of their EV motorcycles in 2024 or scale up deliveries further. Ola Electric also aims to launch its electric bikes next year.

Speaking to Inc42, Mohal Lalbhai, founder and CEO of Matter, said that there is a rising demand among motorbike riders to go electric but there is a supply crunch of affordable and decent mass-market products. 

“The motorcycle market is where consumers have been desperately waiting for the supply of a product which is affordable, has a decent range and performance… without these aspects, you will not see enough growth in the electric motorcycle segment. It’s honestly because of the lack of options that consumers are sticking either to ICE or other options,” he said, adding that it is the largest untapped market as far as the two-wheeler EV space is concerned.

As such, the Indian two-wheeler EV market seems well poised for rapid growth over the next few years. However, it remains to be seen how the regulations for the sector evolve and how OEMs deal with them.

[Edited By Vinaykumar Rai]

The post Who Won The EV Two-Wheeler Game In 2023? appeared first on Inc42 Media.

SAR Group’s energy solutions brand Livguard said it has acquired Delhi NCR-based battery swapping and IoT solutions startup Emuron Technologies to venture into the EV battery swapping space.

However, the company did not disclose the financial terms of the deal.

Founded in 2018 by Kunal Garg, Vedant Khanna and Vibhor Bharti, Emuron Technologies is a bootstrapped startup which helps EV businesses deploy battery-swapping stations across India. 

Its offering include a battery tracking system to monitor battery health, location, and utilisation; customisable and modular smart electrical cabinet that allows swapping of discharged Li-ion batteries with charged batteries; and a battery intelligence platform which provides utilisation report and ageging predictions. The startup also claims to be working on a battery management system.

Commenting on the acquisition, SAR Group’s cofounder Rakesh Malhotra said Livguard will leverage Emuron’s battery-swapping technology alongside its own battery expertise. “Our comprehensive solutions, combined with our EV subsystems portfolio, position us as a one-stop shop for all 2 and 3-wheeler EV OEMs,” he added. 

SAR Group, which owns companies including Livfast and Mooving, launched Livguard in 2014. It offers energy-related solutions including automotive batteries, inverters, and residential solar panels. 

Recently, the group ventured into the EV business with the launch of Lectrix EV.

“We have a strong commitment towards research and development, innovation and Make in India,” Livguard’s chief executive Gurpreet Bhatia told Inc42. 

He added that Livguard is currently working on a unique energy services ecosystem for the two- and three-wheeler EV industry. Following the acquisition, it plans to rapidly deploy swapping stations in key markets to solve the range anxiety of electric vehicles.

The development comes at a time when the India EV space is buzzing with activities. From talks about Tesla’s entry into India to the potential IPO of Ola Electric, a lot has been happening in the EV segment lately. 

Recently, EV charging startup Exponent Energy secured INR 220 Cr ($26.4 Mn) in its Series B funding round to strengthen its manufacturing and business operations.

Also, Macquarie Capital invested an undisclosed amount in EV charging startup ChargeZone to help it further develop its cloud technology-enabled charging network.

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Pawan Munjal-led Hero MotoCorp will buy an additional 3% stake in Bengaluru-based EV startup Ather Energy for up to INR 140 Cr ($16.8 Mn). With this deal, Hero’s stake in Ather will increase to 39.7% from the current 36.6%, the former said in a regulatory filing on Thursday (December 14).

“Currently, HMCL’s shareholding in Ather is 36.7% (on a fully diluted basis) of the paidup share capital of Ather. Post the purchase of additional shares, HMCL’s shareholding in Ather would increase to 39.7% (on a fully diluted basis) of the paid-up share capital of Ather,” the filing said.

In September this year, Ather raised INR 900 Cr (around $108 Mn) from its existing shareholders Hero MotoCorp and Singapore’s GIC through a rights issue.

Earlier this month, Hero MotoCorp and Ather Energy also entered into a partnership for an interoperable fast-charging network in India. Through this pact, EV users will be able to seamlessly use both VIDA and Ather Grids across the country. The combined network will cover 100 cities with over 1900 fastcharging points.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather is a major player in the Indian two-wheeler EV market. It currently offers two escooters – Ather 450X and Ather 450S. Before this investment, Ather has raised $400 Mn in funding since inception.

Ather also claims to have the largest fast-charging network in the country. It has over 1,400+ charging points in over 99 cities, including Delhi, Chennai, Bengaluru, Mumbai, Hyderabad, Jaipur.

It competes with players such as Ola Electric, Ampere, Okinawa, Revolt, TVS, among others.

Ather Energy reported a net loss of INR 864.5 Cr in FY23. This is more than 150% YoY increase as against a loss of INR 344.1 Cr in FY22. The EV startup’s operating revenue ballooned 4.3X to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in the previous fiscal year, while its total expenses more than tripled to INR 2,670.6 Cr from INR 757.9 Cr in FY22.

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Pune-based KPIT Technologies, a software integration firm focused on the automotive and mobility ecosystem, has rolled out its sodium-ion battery technology, which aims to reduce import dependency on core battery materials.

This new technology is set to lower the cost of electric vehicle batteries, with an anticipated reduction of 25-30% compared to existing lithium-ion batteries, said Ravi Pandit, cofounder and chairman of KPIT. 

Li-ion cells drive the global shift to electric vehicles, and so countries, including India, are vying for advantages by localising the supply chain. Presently, 70% of India’s cell imports come from neighbouring countries, posing risks amid geopolitical tensions. 

The Indian Li-ion battery market is expected to surge from 4 GWh in 2022 to 120 GWh by 2030, necessitating rapid innovation and scaling by cell manufacturers to meet a 53% CAGR in demand. 

KPIT claims that it would reduce India’s import dependency on core battery materials.

KPIT  firm joins a small group of sustainability-focused organisations worldwide that have developed sodium-ion batteries. This battery technology has several use cases for automotive and mobility, especially for electric two and three-wheelers and commercial vehicles. It has applications in stationary deployments, such as UPS backups and grid storage, as well as in the marine and defence sectors.

According to KPIT, sodium-ion battery technology provides a prolonged lifespan with 80% capacity retention over 3000-6000 cycles and quicker charging capabilities in comparison to lithium-ion batteries.

Even as KPIT continues further development work on the sodium-ion battery, it is looking to partner with battery manufacturers to make the battery using its proprietary technology. 

“As the electric mobility ecosystem matured, we were cognizant of having alternate battery technologies and localising the storage value chain. Our sodium-ion battery technology, completely reliant on earth’s abundant raw materials, is another testament to KPIT’s commitment towards the sustainable mobility ecosystem,” Pandit said.

“Globally, the availability of lithium is a concern. What’s the case of oil where the availability is concentrated only in a few countries can be very much the case with lithium—with supplies being concentrated in China, Bolivia, etc. The concern was that EV shouldn’t face the same situation,” he added.

Lithium-ion batteries have dominated vehicle electrification in the past decade, but the recent surge in electric vehicle demand has strained the battery supply chain. So, diversifying into newer battery technologies, like sodium-ion, is crucial. 

As per an EY report, India aims to electrify 30% of its vehicle fleet by 2030, with the domestic EV market projected to grow at a 49% compound annual growth rate between 2022 and 2030, reaching annual sales of 10 million by 2030. Achieving this goal requires addressing challenges such as high EV battery costs, import dependence on key battery raw materials, and the absence of India-made cell technology.

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Macquarie Capital, the principal investment arm of Australia’s Macquarie Group, has invested in EV charging startup ChargeZone to help the Indian startup further develop its cloud technology-enabled EV charging network. 

Without disclosing the investment amount, Macquarie Capital, in a statement, said it has acquired a minority stake in ChargeZone.

Speaking about the investment, Ivan Varughese, senior MD and head of infrastructure and energy capital, Asia Pacific at Macquarie Capital, said, “The energy transition continues to be a key area of focus, as we leverage our deep sector expertise to help clients develop sustainable and critical infrastructure assets that connect local communities and drive decarbonisation efforts in India.”

Macquarie Capital’s investment in ChargeZone comes at a time when the EV space in India is booming due to rising adoption of such vehicles and increasing investments across sub-sectors. 

Macquarie Capital said that India is now the world’s most populous country, with rising consumer demand and a growing manufacturing sector. This creates extra demand for energy and transportation, which will drive a significant rise in the country’s energy imports. The investment firm expects this to lead to more electrification of vehicles in the country.

Founded in 2018 by Kartikey Hariyani, ChargeZone is a tech-driven EV charging network startup that provides a high-speed charging network for ebuses, etrucks, and ecars. It specialises in B2B and B2C charging services on both dedicated and opportunity-based charging, using smart-grid networks.

As of March 2023, ChargeZone claimed to have had over 3,500 charging points across more than 1,500 EV charging stations in operations or construction across 37 Indian cities. 

The startup aims to reach 1 Mn charging points by 2030. It also aims to increasingly integrate solar and wind power generation for the charging stations.

In the statement, ChargeZone founder and CEO Hariyani said that the partnership with Macquarie Capital will accelerate the startup’s efforts to create a greener and more efficient future for urban transportation.

“Our ultimate goal has been to accelerate the adoption of electric vehicles and the deployment of EV charging infrastructure throughout India. This collaboration with Macquarie Capital marks a significant milestone in our relentless pursuit of that goal… supporting the nation’s objectives of reducing carbon emissions and promoting clean mobility,” he said.

In March this year, ChargeZone raised $54 Mn in its Series A1 funding round in a mix of equity and debt, led by global impact investment manager BlueOrchard Finance, to immediately roll out over 250 charging stations.

The startup was also looking to raise $75 Mn-$100 Mn in equity as part of its Series A2 funding round between 2023 and 2024. However, it is not clear yet if Macquarie Capital’s investment is a part of this round.

ChargeZone competes with the likes of BOLT, Statiq, and Tata Power. 

The post Macquarie Capital Invests In EV Charging Startup ChargeZone appeared first on Inc42 Media.

Electric two-wheeler registrations continued the momentum in the month of November, rising 14% month-on-month (MoM) to cross the 85,000 units mark on the back of high demand for top electric vehicle (EV) manufacturers during the festive season.

As per Vahan data as on November 30, two-wheeler EV registrations stood at around 75K in October.

Ola Electric continued to lead the show, with its escooter registrations jumping over 14% MoM to 27,331 units. 

The Bhavish Aggarwal-led emobility startup has been witnessing high demand as it continues to expand its product offerings. 

Ola Electric launched its latest model S1X in three variants – S1 X+, S1 X, and S1 X – in August this year. The deliveries of the vehicles were expected to begin from mid-September. The EV startup’s total vehicle registrations stood at 23,821 units in October.

It must be noted that Ola Electric also relaunched its bike taxi services in Bengaluru recently using its escooters, which is also expected to have played a role in the surge in its registrations during the month under review.

Moving on, TVS Motor retained the second position in terms of electric two-wheeler registrations. Its registrations rose 9% to 17,962 units in November from 16,460 units in the previous month.

It was followed by Bajaj Auto, whose escooter sales jumped over 23% MoM to 11,190 units in November. The Indian automotive giant has been seeing a rise in demand for its EVs over the last three-four months, which resulted in it crossing the registration numbers of Ather Energy in October as well as November. 

In October, Bajaj Auto’s EV registrations zoomed over 27% MoM to above 9,000 units, while emobility startup major Ather’s vehicle registrations stood at 8,408 units.

This month, Ather’s escooter registrations grew 5.6% MoM to 8,886 units. Ather is also aggressively trying to increase its sales by diversifying product offerings. Last week, the startup announced plans to launch a ‘family escooter’ in 2024.

On the other hand, another automotive giant Hero MotoCorp is also moving up in the rankings for two-wheeler EV registrations. In November, its vehicle registrations surged over 52% MoM to 2,946 units.

In the previous month, the company saw a sharper jump of over 200% to 1,935 units in registrations. 

It is pertinent to note that TVS Motor, Bajaj Auto, and Hero Motocorp witnessed strong growth across internal combustion engine (ICE) and EV categories during the October-November festive season. 

With legacy players slowly establishing a strong presence in the two-wheeler EV segment, along with VC-backed big names like Ola Electric and Ather, most other original equipment manufacturers (OEMs) are seeing a decline in their registration numbers.

However, the festive season helped players like Okinawa Autotech, Hero Electric, PureEV, and a few others, who have been seeing a fall in their registrations, post an uptick in numbers.

Okinawa, whose vehicle registrations have been on a downward trend since the beginning of this year, saw a growth of over 3% MoM to 1,525 units in November registrations. 

Similarly, Hero Electric’s vehicle registrations increased 18.6% to 790 units from 666 units in October.

PureEV saw an over 67% jump in vehicle registrations to 809 units.

Overall, EV registrations in India, across vehicle categories, stood at 1,43,325 units in November, a year-on-year jump of over 36%. 

The post Ola Continues To Rule 2-Wheeler EV Space; Total Registrations Cross 85K Mark In Nov On Festive Boost appeared first on Inc42 Media.

After penalising several electric vehicle (EV) original equipment manufacturers (OEMs) for misappropriation of FAME-II subsidy, the Ministry of Heavy Industries (MHI) has started scrutinising the government officials responsible for the irregularity.

As per media reports, MHI secretary Kamran Rizvi informed journalists recently about the same.

“The ministry has started the investigation in the cases of subsidy violation. Procedural lapses and role of officers that led to the funds wrongly being disbursed will be probed,” Rizvi was quoted as saying by multiple publications.

The probe is also looking into the role of organisations like the International Centre for Automotive Technology (ICAT) and the Automotive Research Association of India (ARAI) in the same.

The development comes months after EV OEM majors were fined crores of rupees for violation of the norms while claiming FAME-II subsidies. The government had discovered two different kinds of violations by the companies. 

More than a dozen EV OEMs, including Hero Electric, Okinawa Autotech, Ampere, and Revolt, were fined INR 469 Cr in total for flouting localisation norms under FAME-II.

Besides, four OEMs – Ola Electric, Ather Energy, TVS, and Hero MotoCorp’s Vida – were ordered to pay INR 288 Cr cumulatively to customers for artificially keeping the vehicle prices lower to claim the subsidy benefits while billing the customers separately for chargers. 

As per reports, a majority of the OEMs have repaid the amounts to the customers. The MHI is pursuing the rest to repay the wrongly claimed subsidies by the end of this year.

As a result of this entire investigation, which began towards the end of last year, and the after effects, the sales of electric two-wheelers in the country were also negatively affected.

Following this, several OEMs, particularly in the premium category, also raised the prices of their vehicles. 

However, following the FAME-II fiasco, premium category escooter players such as Ola Electric, Ather Energy, and TVS Motors, among a few others, have continued to witness an upsurge in the demand for their vehicles, while low-speed, budget escooter OEMs like Hero Electric and Okinawa have seen a sharp decline in their sales. 

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Ather Energy, one of India’s top two-wheeler electric vehicle (EV) manufacturers, plans to launch a ‘family scooter’ in 2024 to further strengthen its EV offerings.

Ather CEO and cofounder Tarun Mehta took to X on Wednesday (November 22) to announce the development.

“After spending a decade perfecting the Ather 450, we now believe that there’s demand for something more. So many folks love @atherenergy as a brand but want a bigger, family-oriented scooter from us. That’s why we’re gearing up to launch a family scooter in 2024,” his post read.

“It’s designed with your entire family in mind, offering comfort, ample size, and a whole lot more—all wrapped up in one fantastic package,” Mehta said.

As per his post, the new escooter will be an evolution of Ather’s 450 series of escooters. 

The latest product launch announcement comes within three months after the startup raised INR 900 Cr from Hero MotoCorp and GIC through a rights issue. Mehta had then said that the fresh funds would be used to expand the startup’s product portfolio and footprint.

Founded in 2013 by Mehta and Swapnil Jain, Ather is among the top four players in the Indian two-wheeler EV market. It currently offers two escooters – Ather 450X and Ather 450S. Over the years, Ather has also built a robust charging network across the country.

The startup currently claims to have installed over 1,400 chargers across more than 99 cities,  including Delhi, Bengaluru, Mumbai, Chennai, Hyderabad, and Jaipur.

Ather competes with the likes of Ola Electric, which is currently leading the electric two-wheeler market in India, TVS Motor, Bajaj Auto, Hero Electric, and Hero MotoCorp. 

Ather’s total vehicle registrations in 2023 stand at 94,624 units so far as against 51,184 units in the entire 2022, as per Vahan data.

With the rising adoption of EVs in the country, most EV players are strengthening their offerings. Several new players have also entered the market in the recent past, with River being the most recent to do so.

IPO-bound Ola Electric plans to launch multiple two-wheelers across scooter and motorcycle segments in the coming months and years. Meanwhile, TVS launched an INR 2.5 Lakh EV, TVS X, in August, which is currently the most expensive escooter in the Indian market.

Most recently, Bengaluru-based Orxa Energies launched its electric motorcycle, Mantis, this week and will begin its deliveries in 2024.

The post Ather Energy To Bolster EV Offerings By Launching A ‘Family Escooter’ appeared first on Inc42 Media.

Elon Musk-led electric vehicle (EV) maker Tesla, which is likely to begin imports of its cars to India next year, will mark its foray in the country with Model Y.

Tesla’s Model Y is based on the Model 3 sedan platform and is a mid-size crossover SUV which is being built by the company in 2020. With the features being offered, this model is smaller and less expensive than the mid-sized Model X. 

However, Moneycontrol reported that as it is a crossover, it will offer optional third-row seats for a seven-passenger seating capacity, like Model X. 

The development comes a day after Bloomberg reported that the Indian government is on the verge of closing a deal with Tesla and allowing it to both ship and manufacture cars in the country. 

According to the report, Tesla is looking at states like Tamil Nadu, Gujarat and Maharashtra to set up a manufacturing plant in India. An official announcement is likely to be made at the upcoming Vibrant Gujarat Global Summit in January 2024.

Last month, the Prime Minister’s Office held a meeting with top officials to take stock of the next phase of electric vehicle manufacturing in India, including Tesla’s investment proposal, as per ET report. The officials present in the meeting further discussed speeding up the process of granting all necessary approvals to the company by January 2024. 

Also, the automaker is planning to double the import of car making components from India. Following his visit to one of the facilities of Tesla, union commerce minister Piyush Goyal posted on social media, “Proud to see the growing importance of Auto component suppliers from India in the Tesla EV supply chain. It is on its way to double its components imports from India.”

The post Model Y Will Be The First Tesla Car To Be Available In India appeared first on Inc42 Media.

From marquee startup investors like Peak XV Partners (formerly Sequoia Capital) and Lightspeed to sector-focussed VCs such as AdvantEdge and Speciale Invest, there is hardly any VC or angel investor who does not want to bet on the country’s burgeoning EV story.

In fact, as against a total of 35 funding deals last year, the Indian EV ecosystem has already lapped up 32 deals so far this year, amid the ongoing funding winter. Further, according to data compiled by Inc42, the Indian EV sector has raised over $780 Mn so far this year as against $758 Mn in 2022.  

The aforementioned funding numbers and deal counts may look quite promising, along with the fact that Indian EV startups have raised a total of $2.6 Bn since 2015, with OEMs leading the show so far.

However, a closer look at the current funding activities in the sector reveals that EV OEMs, once the lure of the Indian funding carnival, no longer look lucrative to investors. According to Inc42, over 41% of deals in the industry have been lapped up by non-OEMs so far this year.

Speaking with Inc42, a few investors revealed that the longer gestation period associated with OEM investments, increasing competition, and heavy capital requirements are some of the reasons why many investors want to stay away from funding EV manufacturers. However, amid this, investor focus is shifting towards industry sub-segments like EV financing, charging and infra, and battery technology.

“Both two-wheelers and three-wheelers have seen a proliferation of newer OEMs while in four-wheelers the incumbents have taken a large lead. Given the long timeframe to hit the market, extended working capital cycles and heavy competition, we are not bullish on entering an OEM as a venture investor at this point,” Romit Mehta, an investor at Lightspeed India said. 

Echoing similar sentiments, the managing partner of Speciale Invest, Vishesh Rajaram, told Inc42 that if OEMs have to start businesses today, they either need headstarts that Ather Energy or Ultraviolette had (given the founders’ years of experience in the mobility sector) or a huge capital investment like Ola. 

“If none is in place, it will be a tough battle for OEMs to catch up with the market. Hence, vehicle manufacturers that are starting afresh may not get much investor attention,” Rajaram said. 

Notably, Speciale Invest has investments in electric motorcycle manufacturer Ultraviolette, Li-ion battery recyclers Metastable Materials, electric flying taxi startup ePlane Company, and battery tech startup e-TRNL Energy.

Rajaram added that Speciale Invest will continue to remain laser-focussed on the entire electric mobility value chain.

Is The EV Funding Pattern Shifting?

According to industry experts, EV manufacturing is a long journey and investors understand this, and as a result, they now want to focus on allied sectors like batteries, EV infrastructure development, and other segments.

In addition, the country has already received the initial push in terms of EV adoption, and in a bid to keep this momentum going, the allied sectors will now require a significant backing from investors.  

Lightspeed’s Mehta looks at EV opportunities from two angles – the first is the initial adoption and the second is the proliferation. 

“Today, the pace of EV adoption is picking up, and we believe it is a great time for founders to make charging more accessible, innovate components and data stack for lifecycle management, and build a brand for financing,” he said.

Sharing his thoughts on emerging EV sub-segments and investors’ growing inclination towards them, Sandiip Bhammer, the founder and co-managing partner at Green Frontier Capital said that the same stems from the high potential for innovation and scalability in these allied areas.

“These emerging areas hold the key to solving the fundamental challenges in the ecosystem… Going forward, investments in electric mobility are likely to be aggressive, especially in the emerging technologies that will enhance range, reduce costs, and improve overall user experience,” Bhammer said.

According to Bhammer, investments in the development of efficient battery technology and businesses that support the EV ecosystem, like lending, SaaS-based business, and others, are well poised for growth.

Meanwhile, Mehta of Lightspeed believes that in terms of second-generation opportunities, which is proliferation, there is an emerging play in full-stack battery solutions, systems-level charging optimisation across the network, second-hand marketplaces, and distributed storage, among others.  

Notably, the charging and battery technology segment has recently seen startups like Exponent Energy and EMO Energy come up with quicker solutions to EV charging. 

Similarly, Bengaluru-based Vidyut was founded in 2021 to help commercial EVs with financing and vehicle lifecycle management solutions. 

This year, the former India CEO of CARS24, Kunal Mundra, launched a full-stack EV asset management and leasing startup, Electrifi Mobility. 

A Sneak Peek In 2023 So Far

It is pertinent to note that even after multiple safety issues and major policy changes in the EV ecosystem over the last one year, the funding in this space has only increased.

As per Inc42, the total amount of funding in EV startups since 2015 stood over $1.8 Bn in 2022 and more than $2.6 Bn so far in 2023. 

Even after safety challenges and other issues that shrouded the Indian EV industry last year, several investors had told Inc42 that the initial problems would only be short-lived and that long-term opportunities in the sector set the stage for doubling investments.

Meanwhile, Green Frontier Capital’s Bhammer said that despite the funding winter, climate investments have grown, and currently, there are a lot of investors who are looking at the EV sector in India and its growth, which has been well-documented in terms of the growing number of EVs, and charging and swapping stations.

“We are finding a lot of foreign investors in the VC space. All have, in some form, taken an exposure to the industry… The fact is that the EV exposure is very much part of everyone’s portfolio whether it’s in financing, whether it’s a platform, whether it’s an OEM, and I feel that there is a lot more to come,” Bhammer added.

The founder of Green Frontier Capital has a point here, given that a lot is happening in this burgeoning space. Recently, Paytm founder and CEO Vijay Shekhar Sharma launched his maiden fund, VSS Investment Fund, with EV as one of the sectors in focus.

It is pertinent to note that while OEM giants like Ola Electric and Ather Energy raised more than $490 Mn until mid-November 2023, there were multiple other fundings across EV sub-segments.

For instance, EV financing startup Revfin bagged a debt funding of $5 Mn. Similarly, EV cab service provider Evera bagged $7 Mn as part of its Pre-Series A funding round, and lithium-ion (Li-ion) battery recycling startup Metastable Materials raised an undisclosed Seed round from Sequoia Capital’s Surge, Speciale Invest, and others.

Besides, some big investments in the non-OEM segments included EV battery startup Log9 Material’s $40 Mn Series B funding, EV charging startup CHARGE+ZONE’s $54 Mn Series A1 funding, and Magenta Mobility’s $22 Mn Series A1 round.

So far this year, India’s total EV registrations stand at 13.29 Lakh units compared to 10.24 Lakh in 2022, as per Vahan data.

As of now, the sheer rise in the number of EVs and investors’ willingness to give a much-needed investment boost to EV sub-sectors are some of the many tailwinds that the Indian EV industry is well-positioned to leverage going ahead.

The post India’s EV Startup Funding Landscape — Decoding The Shift From OEMs To Newer Sub-Segment appeared first on Inc42 Media.

From horse wagons to iconic black and yellow Fiat Padmini cruising through the bustling streets of Indian metropolises, the evolution of taxis in India is rich and quite elaborate. It’s a journey that has also seen transformative changes, from the emergence of Ola and Uber to the current era of hassle-free electric vehicle cabs. 

The history of taxis in India also tells us that the highly unorganised sector underwent a major transition 10 years ago when Uber entered the country in August 2013 and Android smartphones were baptising Indian telecom users at a break-neck speed.

Up until the entry of Uber in India, autorickshaws (three-wheelers), too, remained the dominating force for passenger intracity transit. However, by the time 2013 ended, a majority of Indians were seen ditching traditional taxis, only to shift to the new ones – Ola and Uber. This is because Indians could now book cabs with a single tap on their smartphone and get discounts and free rides while using these services. 

On the other hand, a wave of new drivers entered this segment and joined Ola and Uber, lapping up handsome monthly earnings. Finally, the market was disrupted, dominated and captured by these new players, outpacing traditional taxis.

A decade later, history seems to be repeating itself, as a new race of taxi service providers has now started disrupting the ride-hailing market, freeing customers from inconveniences such as ride cancellations, surges, and subpar quality of services in many cases.

At the forefront of this seismic shift are Mayank Bindal and Jaydip Mukherjee, who want to address the existing pain points in urban transportation with their electric cab service, Snap-E Cabs.

Incorporated in 2022, the Kolkata-based startup offers several unique value propositions — from no-cancellation policies to no-surge fees — to passengers, who rely on the duopoly of Ola and Uber to move from point A to point B in the city.

Since its inception, the e-cabs provider has expanded its business significantly in Kolkata, with hardly any commitment to pipeline emissions. 

With a push from the government to increase passenger and commercial EVs in the country, the sector is expected to witness unprecedented growth soon. 

As per Vahan data, of the total 1.77 Lakh motor cabs registered till November 1 this year, more than 8K vehicles are electric. In 2022, the number stood at 1.14 Lakh versus 4.9K+ units.

Humble Beginnings Of The Bootstrapped Snap-E

When Snap-E initiated its operations in August 2022, the startup did not have an app and instead partnered with Uber to deploy its e-taxis on the streets of Kolkata.

Acquiring customers is one of the most challenging parts of app-based B2C businesses, cofounder and CEO Bindal told Inc42, reminiscing how the startup began its humble journey.

This very dilemma led Snap-E to opt for collaborating with Uber’s platform but with Snap-E’s branding on vehicles. This strategic decision helped the startup curtail the initial expenses associated with managing an app, customer relationships, and onboarding.

Much to everyone’s surprise, the startup witnessed a demand surge within two months of its operations. This also proved to be a huge learning curve for Bindal, who told Inc42 that they were able to disrupt the market and establish themselves just by streamlining the supply side of the sector. 

“After seeing an unexpected demand surge, we realised that the real problem was in supply and not demand, following which we launched our app in October 2022, which received 30K downloads within weeks, giving us the window to emerge as a separate brand,” Bindal said.

The Snap-E app today has 4-5 Lakh downloads, and the startup receives close to 12K-15K ride requests daily in and around Kolkata.

“Unfortunately, with supply being a challenge, we are only able to do anywhere between 2,500-3,000 rides a day,” he added.

To resolve the demand side of the issue, the cofounder wants to take his current fleet of around 600 EVs to 1,000 by March next year.

An Uber challenger, Snap-E has procured about 160-170 cars from leasing firms like Mahindra and Muffin Green. For the remaining cars in its current fleet, the startup has taken bank loans. 

According to Bindal, with about INR 20-22 Cr internal investment, Snap-E is bootstrapped so far. 

Snap-E’s Always On Roads 

 In addition to its B2C taxi service model, Snap-E also operates a B2B business segment. The company has established partnerships with corporations such as TCS, Wipro, Cognizant, and several others to offer pick-and-drop services to their employees.

“Compared to cities like Delhi, Mumbai, and Bengaluru, Kolkata is still more of a day city and there is little traffic post 11 PM. That is predominantly the reason that we thought B2B was going to give us a steady stream of revenue with the maximum utilisation for our cars. And since the IT companies need cars for employee transportation, we decided to tie up with them,” Bindal said.

Snap-E effectively deploys all its vehicles during the day, with approximately 30-35% of them dedicated to providing employee pick-and-drop services during the nighttime hours.

Currently, around 75% of the company’s total revenue is derived from its B2C operations, while the remaining 25% originates from its B2B engagements.

In terms of its overall business performance, Snap-E achieved a gross merchandise value (GMV) of INR 2.45 Cr in September alone. Over the past six months, the total GMV has amounted to INR 11 Cr.

Snap-E follows a pricing structure that entails a flat fee of INR 150 for journeys up to 5 Km. Beyond this initial distance, the charge increases by INR 22.5 per km.

Building The Ecosystem

We cannot ignore the fact that building a robust charging infrastructure is the most important aspect when it comes to increasing the number of EVs and boosting the overall EV ecosystem. 

Staying one step ahead in ensuring that its business runs seamlessly, Bindal said that Snap-E has established partnerships with various charge point operators (CPOs) such as Jio-bp, Tata Power, Chargezone, Evre, and others.

However, in the long run, the startup wants to do more than just depend on these CPOs. It wants to operate its own charging stations. 

Snap-E has already signed an MoU with Kolkata Port Trust for building the charging stations, and the authority is ready to give them parcels of land on lease for 20-25 years.

Furthermore, the startup has commenced the process of entering into contracts with various potential parking aggregators to facilitate the operation of its vehicles in key locations, including airports and railway stations.

Meanwhile, Snap-E aims to deploy 2,000-3,000 more cars in Kolkata in the next 18-24 months. Moving forward, the startup aims to expand to other cities that have less access to ride-hailing platforms.

Raipur in Chhattisgarh and Bhuvaneshwar in Odisha are the two Indian cities Snap-E is currently planning to foray into, all while expanding its footprint in Kolkata.

Meanwhile, the startup is in talks with some VC firms and angel investors to raise funds. If the talks move through, Snap-E may announce the news in the next few months. The cofounder, however, has not disclosed the amount that he wishes to pick.

It’s worth noting Snap-E competes with players like BluSmart, Uber, Ola, and others, making significant strides in the EV ride-hailing space. 

BluSmart, for instance, promotes customer-friendly features such as no surge fees and a no-cancellation policy, although its operations are currently limited to Bengaluru and Delhi-NCR.

Notable, Snap-E, too, is part of this rapidly evolving landscape and seems to be carving a niche for itself as one of the pioneering e-cab service providers.

However, going ahead, it will be fascinating to observe how the startup positions itself in the market in the years to come, especially when it comes to operating alongside established ride-hailing giants.

The post How The Uber Challenger Snap-E Cabs Is Disrupting Kolkata’s Ride-Hailing Market appeared first on Inc42 Media.

India is planning to cut import duties on electric vehicles to a range of 15-30%, specifically for vehicles priced between $25,000 and $35,000. This decision is part of ongoing discussions that gained momentum after Tesla engaged with the Indian government.

People aware of the development told Mint that at a 15% import duty, all completely built-up (CBU) vehicles will be on par with the import duty for completely knocked down (CKD) cars.

For the uninitiated, CKD and CBU are two terms commonly used to refer to types of assembled and imported cars. While CKD cars are assembled domestically with imported parts, CBU vehicles are imported as a whole unit.

Currently, CBU vehicles priced below $40,000 face an import duty of 70% while vehicles above this price face an import tax is 100%.

Though the Centre is expected to relax the import duty, it would also come with a few caveats, the publication reported. The EV players would have to begin local manufacturing in the next two to three years and there could also be a clause to claw back the import duty sop if the OEMs fail to do so.

The development comes months after Tesla boss Elon Musk made a second attempt to tap the Indian market and held talks with Prime Minister Narendra Modi on the matter.

“I am confident that Tesla will be in India and will do so as soon as humanly possible,” Musk had told the media during the meet in June this year.

The US-based automotive giant is targeting customers at the top end of India’s growing mass-premium EV segment and is not looking to be a luxury player, the Mint report added.

We must note that in 2021, Tesla was all geared up to launch its cars in India. However, due to high import duties and the government’s decision to not compromise on that front as a step to boost domestic manufacturing, made the company stall those plans.

In August this year, Reuters had also reported about India working on a new electric vehicle policy to slash import taxes to as low as 15%. However, Union Finance Minister Nirmala Sitharaman said soon after at an event that there is no such proposal before the ministry.

It goes without saying that reducing import duties for overseas EV companies will benefit those firms, while also intensifying the competitive landscape for Indian electric vehicle original equipment manufacturers such as Tata Motors and Mahindra.

Meanwhile, India’s EV adoption is now growing slowly and steadily. Of the total of 28.8 Lakh motor cars registered in India so far in 2023, more than 58K vehicles were electric, as per Vahan data.

The post India To Slash Import Duty On EVs To 15%, But There’s A Catch appeared first on Inc42 Media.

Electric two-wheeler registrations in India surpassed the 70,000 mark after four months in October, as vehicle demand for a handful of manufacturers continued to witness a sharp rise.

On a month-on-month (MoM) basis, two-wheeler EV registrations rose 9.8% to 70,248 units in October, as per Vahan data on October 31.

However, the market continues to be dominated by only a handful of players like Ola Electric, TVS Motor, Ather Energy, and Bajaj Auto, while the likes of Hero MotoCorp and Lectrix EV have also started gaining traction. 

Despite the company being involved in various controversies, Ola Electric’s escooter registrations continued their uptrend. The IPO-bound company’s registrations jumped 18.6% MoM to 22,169 units in October.

Ola Electric’s founder Bhavish Aggarwal said on X (formerly Twitter) that its escooter sales grew almost 30% in October compared to September.

“Very strong start to the festive season by the Ola Electric team! Our sales grew almost 30% Oct over Sep! The Futurefactory is running at full speed and everyone working more than 70 hours to fulfil all the demand!” Aggarwal’s post read.

In September, Ola Electric’s vehicle registrations, as per Vahan data, stood at 18,691 units.

Meanwhile, the startup is also expanding its product line. It announced the launch of a new escooter model Ola S1X in August this year, days after it started the delivery of its Ola S1 Air model to the customers.

Ola Electric continues to lead the show for electric two-wheeler sales in the country despite numerous complaints about its products and after-sales service quality on social media platforms. Last week, an Ola Electric escooter caught fire in Pune but the company blamed it on ‘aftermarket parts’.

Meanwhile, TVS Motor retained its second position for yet another month. However, its escooter registrations declined marginally to 15,507 units in October from 15,584 units in September.

TVS Motor is also bolstering its EV product line up. Recently, it launched an INR 2.5 Lakh escooter, TVS X, which is currently the most expensive escooter in the Indian market.

During its recent earnings announcement, the domestic automotive giant said it would launch multiple new products to build a complete EV product portfolio over the next eight quarters. TVS also plans to ramp up its iQube escooter production to 25,000 units per month in the coming days.

Is A New Trend Emerging?

Bajaj Auto’s EV registrations surpassed those of Ather Energy in October, allowing the former to grab the third position from the latter. 

Bajaj Auto saw almost an 18% jump in its electric two-wheeler registrations to 8,373 units in October from 7,097 units the month before. On the other hand, Ather Energy’s escooter sales rose over 11% MoM to 7,957 units this month.

Ather Energy said in a statement that it has delivered 10,056 scooters to its customers in the month, registering about 30% MoM growth. With Diwali just around the corner, the e-mobility startup expects this positive momentum to continue.

It is pertinent to note that some of the EV leaders of last year, including Hero Electric and Okinawa Autotech, continue to see a decline in their registrations this year.

In October, Hero Electric’s EV registrations fell 24.5% to 636 units from 843 units in September. In October last year, the company’s vehicle sales stood at 8,869 units.

Okinawa Autotech saw its vehicle registrations decline over 22% MoM to 1,392 in October this year, which is also in sharp contrast with its 14,953 units of escooter registrations during the same month last year. 

Interestingly, a few new players in the market are seeing a rise in their registrations. While Hero MotoCorp saw an over 200% jump in its vehicle registrations in October to 1,833 units, Lectrix EV’s vehicle registrations stood at 1,021 units, up 39% MoM.

Overall, total EV registrations across categories grew to 1.32 Lakh units in October from 1.28 Lakh units in September.

As of today, a total of 12,27,195 EVs have been registered in India in 2023.

The post Two-Wheeler EV Registrations Cross 70K Mark In October; Ola Electric Retains Top Spot appeared first on Inc42 Media.

The EV financing industry has finally ventured into the AI phase of the digital marathon – a journey that started with the advent of the internet and has later taken organisations through a revolutionary digital transition. 

No doubt that AI-enabled solutions have the potential to empower enterprises to achieve greater operational efficiency, measure Key Performance Indicators (KPIs), gain crucial insights into customer beliefs and leverage the ability of data analytics. 

When we look at where AI is making its mark in the market, the EV industry is no exception. AI-powered tools can accelerate EV adoption, taking it on an exponential growth journey through its implementation in boosting EV financial service providers. 

The emergence of AI is making disruptions in the physics of the EV financing industry by transforming the quality of the products and services offered by the EV financial lending market. 

Not only has it helped in delivering exceptional customer experience, but it has also simplified and redefined traditional lending processes making them more efficient, leading AI to become an invaluable asset for the EV financial service organisation. 

End-To-End Digital Lending 

Advanced B2B SaaS technology has enabled the creation of holistic platforms that seamlessly connect lenders and borrowers providing access to financing services within minutes. This paperless approach backed by AI technology automates loan consent procedures allowing customers to access multiple banking services and making EV lending a seamless process for everyone. 

The in-depth AI-driven products help in end-end control of loans starting with credit inspection and customer onboarding to easy disbursal and long repayment periods, paving the way to mitigate financial bottlenecks in the country’s EV sector and enhancing EV adoption. 

Credit Risk Assessment  

One of the primary challenges to EV lending is the lack of credit history, particularly among the underprivileged which makes EV adoption an inaccessible option for the majority of the population. 

The strong credit examination procedures built with AI and ML algorithms allow access to unit data and third-party transaction data permitting accurate evaluation of creditworthiness, thereby assisting lenders to overlook the lending risk.

This innovation enables lenders to offer loans to the underserved, paving the way for boosting EV adoption and creating a financially inclusive society. 

Fraud Prevention 

With the rise of digital transactions, there is a significant surge in fraudulent activities and until recently, EV lenders were using traditional monitoring and screening systems which generated a high number of false positives. 

By embedding enhanced AI components within the existing systems, EV financing organisations can swiftly analyse vast data to detect anomalies and behaviour patterns associated with such activities. 

This proactive approach permits AI to prevent fraud as opposed to the reactive approach of detection, ensuring that both lenders and customers are protected from the vulnerabilities of fraud. 

Data Protection 

Leveraging AI-based technology, the lending process ensures the highest possible level of security, safety, and privacy for both the lender and the borrower. 

The proprietary lending platform enables inexpensive and consistent management of the entire lending life cycle, being powered by the latest blockchain technology and protocols assures transparency and accuracy of data and creates a safe environment among all EV financial service lenders and stakeholders, strengthening EV financing services and optimising EV fleet management. 

Unlocking EV Lending Accessibility 

AI-driven chatbots and virtual assistants are becoming the new face of customer service in the EV lending marketplace. Capable of providing round-the-clock assistance, answering real-time queries and guiding customers through the transaction process, this technology empowers individuals residing in remote regions to have equal access to EV financial services without any geographical limitations. 

Predictive Analytics aids lenders in knowing about the financial needs of potential EV buyers, providing timely delivery of financial services and offering tailored financing options based on the selection of EVs and the credit history of the buyer.

Final Thoughts 

In this journey towards EV acceleration through enhanced EV financing, AI possesses the capability to tear down traditional financial barriers and create a financially inclusive nation by boosting employment opportunities with increased EV adoption. 

As the nation continues to move forward, it is essential that EV financial service enterprises tap into AI technological advancements making strides in EV acceleration.  

The post Data Protection And Transparency: The AI Advantage In EV Financing appeared first on Inc42 Media.

Karnataka has attracted investments worth INR 25,000 Cr across the entire value chain of the electric vehicle (EV) sector, the state’s large and medium industries minister M B Patil, said.

As per a PTI report, the minister said these investments encompass battery pack and cell manufacturing, component production, original equipment manufacturing (OEMs), charging, and testing infrastructure.

Patil added that an additional investment of INR 15,000 Cr is expected to flow towards research and development in the EV sector. The minister was speaking at the launch of the EV mobility centre of excellence and innovation at JSS Academy of Technical Education, Bengaluru (JSSATE-B).

He said that the development of the overall auto and EV ecosystem in Karnataka will create significant employment opportunities. 

“To ensure a skilled workforce, we have proactively partnered with leading companies such as Tata Technologies and Siemens,” Patil was quoted as saying.

Talking about the EV mobility centre, the minister said it would serve as a hub for training, research, and innovation in the EV domain, preparing graduates for entrepreneurship, enhancing workforce skills, promoting globally relevant technology, fostering collaborative partnerships, and offering incubation and skill development.

Meanwhile, he also informed that Karnataka has registered around 2 Lakh EVs, the third highest in the country. As per Patil, Karnataka is home to over seven auto OEMs, more than 50 auto component manufacturers, and over 45 EV startups.

It must be noted that two of the largest two-wheeler manufacturers – Ola Electric and Ather Energy – are housed in the state, along with several others like Ultraviolette Automotive, River, and Altigreen. 

Besides, the number of battery and charging players is also increasing, with the likes of Exponent Energy, EMO Energy, Electric Pe, and Bolt.Earth also operating from Bengaluru.

In 2017, Karnataka became the first Indian state to roll out an EV policy.

The development comes at a time when a number of global companies are also looking to set up manufacturing plants in India to get a share of the fast-growing EV market of the country. The likes of Tesla, Vin Fast and Acer plan to set up plants in the country to produce EVs.

The post EV Investments In K’taka Pegged At INR 25K Cr, An Additional 15K Cr To Fuel R&D: Minister appeared first on Inc42 Media.

Tesla’s now-on, now-off India entry is uncertain as usual, with the latest media report suggesting it may not happen until the end of 2023. However, India has seen a remarkable surge in electric vehicle (EV) sales this year, with more than 100K EVs sold per month. It is worth noting that these sales figures don’t include the low-speed electric vehicles that do not need registration.

According to the Ministry of Road Transport and Highways, more than 1.1 Mn have been registered as EVs in the current calender year 2023. Out of these, 500K+ are two-wheelers (2Ws) and 350K+ are three-wheelers (3Ws).

As EV sales continue to rise despite a global semiconductor shortage and a general scarcity of raw materials, ‘green mobility’ enthusiasts remain only too vocal about the simplified mechanics of these vehicles and their ultimate advantage. An EV has around 200 moving parts, as opposed to more than 1,000+ moving parts found in conventional petrol or diesel cars with internal combustion engines (ICE).

Therefore, electric vehicles might require fewer repairs than their ICE counterparts, and repairing/servicing could be less expensive for EV users.

Setting up charging stations at showrooms and service centres will enable dealers to transform their service areas and cater to EV requirements. Plus, it will earn them incentives as EV manufacturers and all related service providers get subsidies under FAME II (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India, Phase II) and various state policies.

Also, the widespread adoption of electric models may reduce India’s overdependence on imported crude and its derivatives, currently catering to more than 85% of the country’s total energy consumption. This has raised severe economic concerns as India’s trade deficit continues to widen due to pricier oil, influenced by international market dynamics and policies of oil-exporting nations.

Consider this. The country spent a staggering $145 Bn+ on crude imports in FY22, equivalent to 4% of its GDP for that year. And the export-import gap reached $24.16 Bn in August 2023, the biggest ever since a $26.9 Bn deficit in October last year.

In contrast, power tariffs in India are relatively stable, unlike the drastic fluctuations in petrol and diesel prices. Hence, the additional power usage tends to impact EV users less instead of compounding the financial burden on average citizens. However, there are challenges associated with equitable power distribution across the country, which may increase the overall costs of EV ownership.

Moreover, ICE vehicles are notorious for their low power efficiency. Their energy usage is around 20%, while the rest is wasted as heat. On the other hand, EVs have high energy efficiency levels, ranging from 87% to 95%, meaning they convert a high percentage of the energy into useful propulsion. This explains why EVs are the ubiquitous choice as a green and affordable mobility option, even though they own just a tiny slice of the global auto market (15% of total sales, according to Statista).

But here lies the catch.

The Indian government has already announced its EV 2030 goals, intending to replace 30% of private cars, 70% of commercial vehicles and 80% of two- and three-wheelers with EV options. But how many Indians will be able to own one even when tax incentives and fuel savings are factored in?

Even in a high-income and credit-powered society like the US, Musk has recently drawn flak for slashing the prices of two Tesla models. Those who protested were aggrieved customers who had to pay in full before price drops came to boost Tesla sales.

No doubt, a price-conscious Indian market requires a thorough analysis to understand if buying an EV is more affordable now – whether loan rates and insurance costs are competitive or remain out of bounds for most people keen to make an EV purchase. In this article, we will do a detailed cost analysis to answer the following:

• Is EV ownership still costlier compared to ICE vehicles?
• Are interest rates on EV financing higher than what is charged for conventional vehicle loans?
• Is the insurance cost for EVs higher?

Electric Or ICE Vehicle: What’s Going To Cost Users More?

To assess the cost of owning an EV versus an ICE vehicle, we have compared the ex-showroom and on-road prices of Tata Nexon and Tata Nexon EVs at a Bengaluru dealership. A direct comparison of the similar models reveals a relatively modest price disparity ranging from (-) INR 50K to (+) INR 56K.

But when we compared a long-range variant with a larger battery, the price gap stretched to INR 2.6 Lakh.

It is worth noting that people often compare EVs with manual/standard-transmission ICE vehicles. MTs, where drivers manually do gear changes with the help of a gear stick, are cheaper than their automatic counterparts.

On the other hand, EVs are linear and thus automatic systems, as these do not require gearboxes or clutches for movement. EVs are quiet, ensure quick and smooth response and provide superior driving comfort, thus justifying their premium pricing, according to analysts.

For context, automatic transmission in ICE vehicles is available in different tech combinations, popularly known as AMT (automated manual transmission), CVT (continuously variable transmission), DCT (dual-clutch transmission) and TC (torque converter). However, they cannot provide a completely jerk-free experience as EVs do.

Price differentials are relatively small, especially for high-speed two-wheelers, when we include FAME incentives. As for 3Ws, the price difference amounts to INR 30K or so, which is less than 10% of the overall cost, pointed out Deb Mukherji, managing director of Anglian Omega Group, the parent company of Omega Seiki Mobility. The Delhi-based group currently operates in six countries and specialises in 3W commercial vehicles.

“As for 3Ws, all of which are commercial vehicles, we have considered 10.8 kWh batteries in the L5 category. Again, the price difference in comparison to their ICE counterparts is around INR 30K, less than 10% of the total cost. Thus, the price difference for EVs have dropped significantly from 30% to around 10% in the last one year, added Mukherji.

Are EV Loans More Expensive Than Conventional Automobile Loans?

Oil prices may have gone through the roof, but do Indian lenders feel as excited about EV financing as their potential customers? EV four-wheelers are still considered a luxury worldwide, and consumer incentives are often regarded as luxury-subsidising.

This is not the case in India, where 2Ws and 3Ws rule the landscape and are primarily valued as utility vehicles. But banks and other FIs feel that the segment is still nascent, and the resale/residual value of an EV may not pass muster when a loan goes bad or a non-functional vehicle turns up at their doorstep.

To gauge the cost of EV financing compared to ICE vehicle loans, we have analysed the interest rates charged by leading Indian banks.

The data presented above clearly shows that interest rates on EV loans are lower than ICE rates or on a par.

However, Sumit Chhazed, founder and CEO of Bengaluru-based bike-lending platform OTO Capital, has differentiated lending models. “There are top-selling EV 2W models from companies like Ola, Ather, TVS and Vida. You can get interest rates similar to ICE vehicles when you buy those. However, loans for not-so-popular EV 2Ws are either unavailable or incur higher interest rates,” he said.

Interestingly, most of the top e-bike buyers have better CIBIL scores than ICE customers, Chhazed added.

Seconding Chhazed, Sumeru Shah, business head, EV(2W), Ecofy said that the availability of electric vehicle (EV) financing solutions has now become more comparable to traditional internal combustion engine (ICE) vehicle financing. Many financiers from the ICE category have transitioned to provide financing options for EVs.

However, a significant challenge facing these financiers is the lack of a complete loan cycle history for EVs in their current state. This makes it difficult to assess the residual value and determine the vehicle’s worth at the end of the loan term, which in turn affects collection and repositioning strategies in case of customer defaults.

In terms of availability, financing options for EVs are now widespread, with many financiers offering solutions for both EVs and ICE vehicles. Some parameters, such as Loan-to-Value (LTV) ratios, maybe slightly lower for EVs, typically around 5% less than for ICE vehicles, Shah added.

The loan dynamics are different for commercial 3Ws and commercial 2Ws, primarily used for goods delivery. In these cases, EV interest rates tend to be 4-5% higher than the ICE segment due to asset and business risks.

Asset risk stems from concerns over loan defaults as banks and other lenders often worry about the resale value of repossessed EVs. To deal with this challenge, companies like Omega Seiki offer buyback guarantees to banks, promising to repurchase a vehicle if the borrower defaults, said Mukherji.

Business risks are closely linked with the use of commercial vehicles within distribution networks. For instance, many individuals invest in commercial two-wheelers to cater to on-demand food delivery services. But the underlying risk is rooted in possible service discontinuation in a specific area. This will leave the vehicle owner with a significantly depleted income and heighten the risk of a default.

However, media reports indicate that the regular recovery mechanisms are rarely pressed into service in such cases for fear of ‘bad’ publicity. Moreover, Chhazed observes that international funds, especially those supported by the World Bank, Asian Development Bank, the International Finance Corporation (IFC) and other international financial institutions, actively promote clean technology alternatives.

This gives lending companies access to capital at favourable rates when investing in the electric vehicle market. Understandably, nothing should go wrong in this segment, least of all lenders’ high-handedness leading to conflicts.

Given these ground realities, assessing the cost of EV financing cannot be binary – a straightforward ‘high’ or ‘low’. It varies depending on the vehicle segment. Also, more changes are anticipated when the Reserve Bank of India (RBI) puts EV financing under priority lending, potentially increasing the proportion of loans available for this sector.

How Affordable Is EV Insurance

The insurance costs observed at the Tata showroom reveal a near-parity between EVs and ICE vehicles. In fact, the insurance premium for Tata Nexon EVs is slightly lower at 5.4% compared to 5.55% for ICE Nexon models. But one should also keep in mind that insurance rates at showrooms tend to be somewhat inflated.

The cost dynamics are entirely different when buyers purchase insurance from independent providers. Generally speaking, insurance premiums for EVs tend to be 25-60% higher compared to their ICE counterparts, according to an official working for Digit Insurance. The company charges approximately INR 28K for insuring a Tata Nexon ICE vehicle, but the premium escalates to INR 44K for a Tata Nexon EV.

Other insurers like Acko also have similar variable rates, further emphasising that EV insurance is disbursed at a premium in the current market.

Disparities in insurance costs also underscore the complex interplay of various factors. These include the availability of spare parts, the relative novelty of EV technology and the perceived risks associated with EV insurance. But as the ecosystem matures and more components are produced locally, the cost dynamics will gradually align with traditional ICE vehicles.

Our Finding: EVs Will Be Way Cheaper!

In India, the cumulative running and maintenance costs typically amount to INR 17/km for diesel-powered vehicles. Of course, the country is not ready to go off diesel yet, especially when it comes to medium and heavy commercial vehicles. But small and light commercial vehicles may find viable alternatives among EV 3Ws. Despite a marginally higher interest rate of 4-5% on EV loans, it will not pose a significant impediment due to substantially reduced operational costs.

To understand this better, let us consider an individual who drives an ICE auto-rickshaw and typically earns INR 700-800 per day. However, Mukherji of Anglian Omega said the person could easily make at least INR 1,200 a day by shifting to an e-rickshaw. This would translate to an additional daily income of INR 500 (a 50% rise) after accounting for the daily expenses. This extra earning is bound to boost the driver’s financial well-being.

The pivotal role of technology is evident in this context. Operating an EV costs roughly one-tenth of a conventional vehicle’s per-km expense, approximately INR 12 for ICEs.

On the flip side, EVs will require battery replacements within three to five years, a substantial operational cost one cannot ignore.

Currently, most 2W batteries in India can last up to 1,000 charge cycles, while 3W and 4W batteries work for up to 2,000-2,400 cycles. This is an assumption based on the changing technology around batteries. For instance, while the new Nexon EV battery life cycle is not public yet, the older Nexon EV claims to have only 1200 life cycles. It is worth noting that these estimates correspond to a lower driving range compared to international standards.

For example, Chinese EV major BYD offers an impressive battery range of 4,000-22,000 life cycles and a driving distance of 500 km to 1,000 km. Tesla which offers a life cycle of 1500 also offers a range of around 640 Km.

In other words, a Nexon EV could run up to 3,60,000 km (300×1200) against Tesla’s 9,60,000 Km (640 km x 1500). Though Nexon still suffices the most Indian individual’s personal needs, this underscores the room for improvement within the Indian EV landscape, believe experts.

Further, while focusing the game of lifecycle vs range, India needs to focus on improving lifecycle as this will also keep the weight of EVs in check.

Battery prices in India saw a 30% dip in the past year, from $220 to $160. But it still exceeds the international baseline of $100, said Mukherji. Fortunately, a promising trajectory lies ahead, with industry behemoths like Tata Motors, Ola Electric, Reliance and Vedanta announcing their plans to make battery cells in India. This strategic shift is expected to yield a twofold benefit. Cost-efficient technologies will narrow the price gaps between homegrown and imported batteries and provide local manufacturers with a cutting edge.

In light of these developments, even the prospect of replacing a battery in three to five years should not pose a significant financial obstacle. The improvements expected in battery technology and affordability, coupled with the economic benefits of EV operations, will position electric vehicles as a compelling ‘green mobility’ choice.

Improvements in charging infrastructure are also important to address range anxiety. With growing investments in charging stations and a more efficient, widespread distribution, EV owners will likely have easier access to powering up. To meet its 2030 goals, India will reportedly require 46K public charging stations compared to 5.2K facilities currently operational in the country.

As most industry experts believe, electric vehicles are the future and are fast becoming a reality. But the teething problems continue to plague ‘adopting’ economies like India. By 2030, vehicles powered by fossil fuels are expected to lose momentum as big automakers gradually turn to cost-effective, environment-friendly options.

But it will require sleeker and better battery tech (EVs must be 50% lighter to reach sustainability goals, says carmaker Stellantis) and lakhs (or crores) of public fast-chargers to build a countrywide ecosystem. Once the scale is reached, prices will drop and one can break free of the ICE mould without much ado.

[Edited by Sanghamitra Mandal]

The post EVs Vs ICE Vehicles In India — What Costs More? appeared first on Inc42 Media.

Taiwanese tech giant Acer has entered the Indian EV market by licensing its brand name to mobility startup eBikeGo. This will allow the startup to use the Acer trademark to sell its escooters in India. 

As part of the partnership, eBikeGo will manufacture and design scooter model Acer MUVI 125 4G and sell it for INR 99,999.

In addition to the two-wheelers, eBikego will also manufacture three wheelers for Acer. 

The electric scooters will come with swappable batteries and can be customised for B2B use cases such as food and grocery deliveries, the company said in a statement.  The new model will offer a top speed of 75 km/h and a range of 80 km and qualifies for central and state government subsidies. 

The company said that the Acer MUVI 125 4G model will be available for pre-booking soon. Additionally, the company stated that it will roll out dealership opportunities.

Commenting on the scooter model, Acer’s global strategic alliances VP Jade Zhou said, “Sustainability and innovation are two important principles that the Acer brand is known for. The Acer MUVI 125 4G represents both and we are excited to see it coming to market in the near future.”

To this, Irfan Khan, CEO of Think eBikeGo added, “The Acer MUVI 125 4G represents our vision for a greener future. We believe it is set to become the preferred choice for urban commuters.”

With the growing demand for EVs across India, the market has seen many global and domestic tech giants venturing into the space, with new startups coming up as well. 

Tesla and VinFast are two major global automakers that have committed to setting up EV units in India. From renting an office space in Pune to meeting the top government officials and ministers, Tesla has already advanced in its plans. 

Meanwhile, VinFast announced that it would invest $150 Mn – $200 Mn in India to set up a completely knocked down (CKD) assembly unit.

Currently, Tata and Mahindra are the two major Indian automakers, who are selling EV four-wheelers in India. meanwhile, the two-wheeler EV space is being dominated by players like Ola Electric, Ather Energy, TVS Motor, and Hero Motocorp. 

Companies and startups started pouring into the space after the country saw a 300% surge in EV sales in 2022, as reported by Road Transport and Highway Minister Nitin Gadkari. Furthermore, he anticipated that the Indian EV market would reach $266 Bn by 2030. With 3 Mn registered EVs, the country saw EV sales skyrocketing 131%, surging from 25,100 units to 58,076 units.

Update: The copy has been edited to highlight that the partnership is a licensing agreement and the escooters will be manufactured and designed by eBikeGo.

The post After Tesla & VinFast, Global Tech Giant Acer To Sell EVs In India appeared first on Inc42 Media.

Electric vehicles (EVs) are driving a remarkable transformation in the way we approach transportation, ushering in a mobility revolution that carries significant implications for various industry stakeholders. 

Let’s dive into some compelling statistics and dissect the business aspects that underscore the pivotal role of EVs in shaping the future of mobility. 

Electrification And The Environmental Imperative

Growing environmental consciousness has spurred the adoption of EVs as a cleaner alternative to conventional gasoline-powered cars.

Ride-sharing platforms like Uber, Blusmart, and Lyft have transformed personal transportation. EVs are gaining traction among ride-sharing drivers due to their cost-efficiency and reduced emissions. 

According to a study by the Union of Concerned Scientists (UCS), the lifetime emissions of EVs are 50% lower than conventional vehicles, making them an ideal choice for ride-sharing services aiming to reduce their carbon footprint.

Autonomy And The EV Connection

Autonomous Vehicles (AVs) represent the vanguard of the mobility future, and their destiny is intricately linked with EVs. The transition to AV fleets promises to revolutionise public transportation and alleviate traffic congestion, as evidenced by the growing affinity for EVs among AV developers and operators. 

Importantly, our behavioral analysis indicates South Indian states, particularly Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, and Kerala, are at the forefront of consumer and research trends in AVs, presenting substantial business market opportunities.

MaaS: Revolutionising Urban Mobility

Mobility as a Service (MaaS) has emerged as a transformative phenomenon in the transportation industry. MaaS integrates various transportation modes into a single platform, including public transit, ride-sharing, car-sharing, and bike-sharing. 

One significant advantage of MaaS is its ability to provide personalized travel options tailored to individual needs. EVs play a pivotal role in MaaS due to their eco-friendliness and cost-effectiveness. Statistically, MaaS has the potential to reduce private car ownership in urban centers by 31.63% by 2030

Logistics & Last Mile Delivery

The logistics industry is leveraging advanced data analysis to optimize supply chains, analyzing delivery data, traffic patterns, and weather conditions for efficiency gains, enhanced customer satisfaction, and reduced costs. 

The industry aspires to reduce delivery costs to less than INR 70 for short-distance deliveries, a goal that electric two-wheeler companies have adeptly addressed. 

These companies enable non-licensed drivers to participate in the logistics ecosystem, leading to more cost-effective onboarding processes and the inclusion of a workforce segment previously excluded.

Charging Infrastructure

As per data from the Bureau of Energy Efficiency (BEE), as of July 31, 2023, 9,113 public EV charging stations were operational in the country, equipped with 15,493 EV chargers. However, significant gaps in EV charging infrastructure persist, primarily concentrated in major urban centers. 

The Indian government addresses this with subsidies, private partnerships, streamlined processes, and compatibility standards to boost EV accessibility and affordability. Governments worldwide are also making home-charging options more accessible through incentives.

Electricity Infrastructure In India: Meeting The Demand

As of August 2023, India faced a 4% electricity shortage, equivalent to 9.11 GW, per data from the Grid Controller of India. The electricity sector, divided into generation, transmission, and distribution, is overseen by governmental and private entities. 

India is exploring nuclear power to address generation challenges but faces capacity limitations in its aging distribution network.

Creating energy-efficient smart cities is crucial to redirect electricity for high-demand logistics systems, requiring substantial grid upgrades and repair investments. This transition demands significant commitments of time and finances, especially considering the heavy reliance on fossil fuels in the current electricity economy.

What Lies Ahead?

In summation, electric vehicles are catalyzing a transformative revolution in mobility. From mitigating carbon emissions to reshaping the future of ride-sharing, autonomous driving, and MaaS, EVs occupy a central position in the evolving transportation landscape. 

As technology advances and public awareness deepens, the symbiosis between EVs and the future of mobility stands poised to reshape our cities and redefine our journeys from point A to point B.

The post EVs And The Future Of Mobility: Tracing The Electric Arc Of Modern Mobility appeared first on Inc42 Media.

India, a country with a rich agricultural heritage, is witnessing a significant shift towards sustainable and eco-friendly practices in recent years. One of the key players in this green revolution is the biomass industry, which utilises organic materials to generate energy. 

Biomass, comprising organic materials such as crop residues, wood, and animal waste, is an abundant and renewable source of energy. With increasing environmental concerns and a growing demand for sustainable energy sources, the biomass industry is poised to play a pivotal role in India’s energy landscape. 

This sector is experiencing unprecedented growth, and its potential is far from fully realised. In this context, the integration of electric tractors is poised to play a pivotal role in propelling the biomass industry forward. 

This article delves into how electric tractors can catalyze the growth of the biomass industry in India.

The Booming Biomass Industry

India is an agricultural powerhouse, with a vast expanse of arable land and a predominantly agrarian economy. The agricultural sector generates a substantial amount of crop residues and organic waste. 

Historically, these residues were often burned in the open, leading to air pollution and the release of greenhouse gases. However, as environmental awareness grows, there has been a shift towards utilising biomass for energy generation.

The biomass industry in India has witnessed remarkable growth over the past decade. It encompasses a wide range of activities, from the generation of bio-fuels and biogas to the production of organic fertilisers, biomass power plants and other valuable byproducts.

This industry is not only creating new economic opportunities in rural areas but also contributing significantly to the country’s efforts in achieving renewable energy targets and reducing its carbon footprint. However, to fully harness the potential of biomass, mechanisation is crucial and this is where electric tractors come into play.

Challenges Faced By Traditional Tractors

While the biomass industry holds immense promise, it is not without its challenges. 

Conventional diesel-powered tractors, which are the backbone of Indian agriculture, contribute significantly to air pollution and greenhouse gas emissions. 

Moreover, the rising costs of diesel and its impact on the environment have led to a growing demand for sustainable alternatives.

The Electric Tractor Revolution

Electric tractors are emerging as a game-changer in the agricultural sector, particularly in the context of the biomass industry. 

These vehicles are powered by electricity, making them a cleaner and more sustainable alternative to diesel-powered tractors. 

By eliminating tailpipe emissions, electric tractors significantly reduce air pollution and contribute to a healthier environment for both farmers and the surrounding communities.

Here are some key advantages of electric tractors in the biomass industry

• Zero Emissions: Electric tractors produce zero tailpipe emissions, which is crucial for maintaining air quality in agricultural areas. This is particularly important in biomass farming, where organic materials are grown for energy production.
• Cost-Effectiveness: Electric tractors have lower operating costs compared to their diesel counterparts. The cost of electricity is generally more stable than diesel prices, which can fluctuate significantly. Additionally, electric tractors have fewer maintenance requirements, leading to long-term cost savings for farmers.
• Reduced Noise Pollution: Electric tractors are considerably quieter than diesel-powered ones, reducing noise pollution in agricultural areas. This not only benefits farmers’ health but also improves the overall quality of life for communities near farming operations.
• Enhanced Efficiency: Electric tractors offer instant torque and smooth acceleration, making them well-suited for the demands of agricultural work. They can efficiently power implements used for biomass collection, shredding and transportation. This can result in higher productivity and cost savings for farmers.
• Sustainable Energy Integration: Biomass residues can be converted into biogas or biofuels for electricity generation or use in electric tractors. This closed-loop system maximises resource utilisation and minimizes waste. The synergy between the biomass and electric tractor industries promotes a circular economy and reduces dependence on fossil fuels.
• Energy Independence: The adoption of electric tractors can drive rural electrification, especially in regions with unreliable or limited access to grid power. Farmers can use their tractors to generate electricity for their homes and communities, fostering economic development in rural areas. By utilizing electricity, which can be generated from renewable sources, electric tractors contribute to reducing dependence on fossil fuels and promote energy self-sufficiency.
• Government Incentives: Many governments, including India, are offering incentives and subsidies for the adoption of electric vehicles, including tractors. These incentives can significantly offset the initial investment required for transitioning to electric farming equipment.

Challenges And Considerations

While electric tractors hold great promise, their widespread adoption in the biomass industry does face some challenges:

• Initial Investment: Electric tractors are generally more expensive upfront than conventional tractors. However, government subsidies and incentives can help mitigate this cost barrier. Banks and NBFCs will play a crucial role in overcoming the challenge of higher upfront cost and allow funds access to a new tractor owner to access a more productive machine.
• Infrastructure: Rural areas may lack the necessary charging infrastructure for electric tractors. Developing a network of charging stations in agricultural regions is essential for their widespread adoption. Simplifying the charging of an electric tractor with an on board charger can be a great way to get around the charging infrastructure challenge. 
• Battery Technology: Continued advancements in battery technology are needed to improve the range and durability of electric tractors, especially in heavy-duty applications like biomass processing.

In Conclusion

The biomass industry in India is at the cusp of a transformative revolution, driven by the integration of electric tractors. These vehicles not only align with the industry’s sustainability goals but also address critical environmental concerns associated with traditional farming practices. 

The industry is rapidly expanding, presenting a unique opportunity to address environmental concerns, create employment, and bolster rural economies. As technology continues to evolve and infrastructure improves, electric tractors are poised to become an integral part of the country’s agricultural landscape, leading the way toward a greener and more prosperous future.

Electric tractors are poised to play a pivotal role in this revolution by offering a cleaner, more efficient, and sustainable means of biomass collection and processing.

Government support, industry collaboration, and technological innovation are crucial to overcoming the challenges associated with the adoption of electric tractors in the biomass sector. By harnessing the power of electricity, India can not only revolutionize its biomass industry but also pave the way for a greener, more sustainable agricultural future.

The synergy between the two sectors can lead to cleaner energy, reduced pollution, and improved rural livelihoods, making it a win-win for both farmers and the environment.

The post Driving Sustainable Change: India’s Leap Into Electric Tractors And Biomass Energy appeared first on Inc42 Media.

Electric vehicle maker Ather Energy has joined hands with Nepal’s Vaidya Energy, a subsidiary of Vaidya’s Organization of Industries & Trading Houses (VOITH), to export its flagship e-scooter model, Ather 450X, to the neighbouring country. 

As part of the partnership, the companies will also launch an experience centre in Kathmandu next month. Under the deal, Vaidya will not only facilitate the sales of Ather’s products but also set up fast-charging stations, Ather Grids.

“We see Nepal’s automobile market as a microcosm of the rising global consciousness over switching to cleaner mobility choices. In line with our ecosystem approach of market creation, we will also roll out our public fast-charging infrastructure, which has proven to be a huge differentiator for us in India,” Ather’s chief business officer Ravneet Phokela said.

He added that Ather is looking forward to leveraging Vaidya’s extensive experience and established expertise in the automotive retail sector to enhance the customer experience. 

Meanwhile, Ather will introduce its flagship model in two battery options — 2.9 kWh and 3.7 kWh, in the country. 

“Our vehicles not only offer a thrilling experience but also contribute significantly to cost savings, added convenience, and reduced commute times. We pledge to develop the whole ecosystem and focus on the customer experience, whether it comes to the product itself, its services and the infrastructure,” Vaidya Group CEO Suryansh Vaidya said.

Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather is a Hero Motocorp-backed EV maker, which boasts its presence in more than 100 Indian cities, along with 150 experience centres. The company claims to have made India’s first smart and connected electric scooters.

Further, the two-wheeler EV maker asserts that it has more than 1,500 Ather Grids (fast-charging points) across India. With its 3 Lakh sq ft Indian manufacturing unit, the company is looking to expand its production capacity to 4.2 Lakh units per year, starting this financial year. 

Last month, Ather Energy posted an FY23 loss of INR 864.5 Cr, which soared more than 150% year-on-year (YoY). The losses incurred were largely on the back of a steep rise in expenses, which more than tripled during the period under review to INR 2,670.6 Cr from INR 757.9 Cr a fiscal ago.

In the first week of September 2023, the company raised INR 900 Cr from its existing shareholders — Hero MotoCorp and GIC — through a rights issue.

During the same month, there were reports that Zerodha’s cofounder Nikhil Kamath was all set to join the company’s cap table by investing via a secondary stake sale.

The post Ather Energy Partners Vaidya Energy To Ply Its E-Scooters In Nepal appeared first on Inc42 Media.

In recent years, the push towards greener and sustainable mobility has been continually increasing. One of the core challenges we’ve been facing with the rising pollution is caused by ICE vehicles. 

With the rapid growth in ecommerce and urbanisation, the number of delivery vehicles on the road has surged. It adds to air pollution, traffic congestion, and greenhouse gas emissions. 

Electrifying last-mile deliveries can significantly address this challenge by promising a more sustainable supply chain while delivering tangible benefits to businesses, drivers, and the environment alike.

The Urgency Of Electrifying Last-Mile Deliveries

In India, last-mile mobility and deliveries account for 66% of daily trips, which accounts for around 200 million journeys. While it has been facilitating convenience and connectivity across the nation, they are one of the major contributors to the rising pollution levels. 

The connection is clear: more kms covered equals a heavier environmental toll. Electric vehicles (EVs), being cleaner, greener, and more energy-efficient compared to traditional internal combustion engine (ICE) vehicles, hold the potential to drastically reduce pollution when used in delivery fleets.

The last-mile delivery model used by businesses these days could be more optimal. Currently, individual drivers usually have to use their own vehicles for making deliveries for different brands. 

They have to continually switch between multiple platforms for securing orders, from grocery delivery, ride-hailing, food delivery, and logistics apps. This process becomes inefficient since drivers can not anticipate which brand will have higher demand at specific times or locations. 

It exhausts drivers, increasing both their time spent and costs. This approach doesn’t support environmental goals or ensure long-term economic sustainability.

Fleet Electrification: Powering Sustainability In Supply Chains

The global automotive industry is undergoing a paradigm shift, transitioning from fossil fuels to alternative energy sources. Given the mounting pollution levels and natural resource depletion, environmentally conscious nations are increasingly turning to electric vehicles. 

With India’s commitment to reduce carbon emissions by one billion tonnes by 2030, the country is promoting the use of electric cars as the primary transportation for commuters. Over the past few years, the electric vehicle industry has experienced remarkable growth. 

Further, with India setting its sights on achieving zero net emissions by 2070, it is steadfastly working toward electrifying over 30% of new vehicles by 2030. This is where tech-driven companies come into play, revolutionizing the game by providing EVs as a service. Their innovative platform-based approach is aimed at promoting sustainability across the board.

A complete shift to electric vehicles can significantly diminish the carbon footprint associated with ICE two-wheelers, commonly used for last-mile deliveries. Simultaneously, tech-savvy companies are redefining the driver experience. 

They are establishing an ecosystem where drivers can seamlessly switch between different service-based platforms based on demand, optimizing vehicle utilisation and boosting driver earnings. 

Modern platforms, integrated with AI, facilitate the efficient management of vehicle charging and battery swapping. Concerns regarding charging infrastructure and battery availability are being addressed through real-time notifications, guiding drivers on when and where to charge or swap batteries, effectively eliminating range anxiety.

Huge Job Creation Opportunity

In the realm of last-mile logistics, the prospect of significant job creation looms large. 

This intriguing opportunity allows delivery personnel to switch to electric vehicles, presenting an environmentally friendly solution without requiring any financial investment on their part. 

This change has the potential to increase both employment and sustainability in the delivery industry.

Charting The Course Ahead

Electrifying last-mile deliveries not only significantly reduces carbon emissions but also yields sustainable long-term operational costs when compared to traditional petrol-powered vehicles. 

It will also lead to cleaner air, improved efficiency, and a genuinely sustainable supply chain. This is in line with India’s vision of electrifying the country’s fleet by 2030 while keeping the efficiency of deliveries intact. 

As we move towards an electrifying fleet, we are transforming last-mile mobility and forging a path towards a greener and prosperous future.

The post Revolutionising Last-Mile Logistics: Powering Sustainability In Supply Chains appeared first on Inc42 Media.

Electric Vehicles and India’s path towards adopting them have been making headlines for all the right reasons lately. The ‘will he or won’t he’ saga surrounding Elon Musk and Tesla’s plans for India has been taking up a lot of the headlines as we continue to speculate on their India plans. 

That is unfortunate at one level because there is so much more happening in the EV space. Recently, Mumbai saw the first electric double-decker bus in India from Switch Mobility come onto its streets powered by the Chalo platform. And not just double-deckers, we see public transportation in cities across India getting electrified with almost 2,000 electric buses sold in FY23. 

Not just electric buses, but electric three-wheelers and now even electric two-wheeler taxis. The massive advantages of operating an electric fleet over a fleet of aging and polluting internal combustion engine vehicles are manifold, from not just reduced operating costs but lower maintenance as well. 

Most, importantly, this has given state-run public transport corporations the ability to explore new models of operations that benefit both consumers and the state. And with the ongoing funding winter, shared mobility companies are focusing on profitability instead of just growth, and EV’s are playing a major role.  

But What About Intercity Travel? 

While many of you reading this would have noticed the growth of Indian aviation and the railways with the massive investments in infrastructure including the Vande Bharat Express trains, did you know that for many Indians buses remain the most affordable and in many cases the easiest and quickest way to travel. 

The overall size of the intercity bus transport market is estimated at over $15-20 Bn in India and with significant investments in highway expansion is growing at a 10% CAGR. But it has also been woefully ignored in terms of investment and technology innovation. This is why you hear of tragic accidents involving such buses far too often.

A clear change that can be driven is the electrification of intercity bus transport, these buses will not only be cheaper to run, but because of the in-built safety features of these buses, which could include multiple advanced driver assistance systems (ADAS), it would also make intercity buses safer to run.

Is High Capital Cost A Deal Breaker?

Of course, there are valid questions to be asked about the large capital costs of electric buses and also the charging ecosystem. The latter issue is being addressed rapidly, those double-decker buses for Mumbai, they are actually being driven down from the Switch Mobility factory in Tamil Nadu to Mumbai and being charged multiple times along the way. 

Particularly in the south and the west of India, networks of high-speed commercial Direct Current (DC) chargers are being established and this trend should also move to the north of the country soon. 

As such buses often take breaks every 250 km or so and a network of fast chargers, along with systems like ‘double gun’ chargers – that is the ability to charge from two separate points at once – will make it possible to re-charge a bus rapidly during a meal or comfort break.

Adoption of these new electric buses will also help operators reduce their operating costs and stay clear of the expenditure on fuel and lubricating oils for periodic maintaince. Using new models encouraged by urban public transport, private operators and the state transport corporations can collaborate on capital investments and streamline operations. 

In cases where states run intercity buses, they can collaborate with technology-driven private operators to run these services for them, with private players taking on the capital costs for setting up the infrastructure. 

By privatising the system, innovative financing models can be trialled for the electric bus ecosystem with manufacturers, private equity and traditional financial institutions working together. After all, state-run transport corporations are almost as indebted as state-run power distributions according to an Observer Research Foundation (ORF) report. 

In Conclusion

We should not waste time, as there is an urgent need to revolutionalise India’s intercity bus ecosystem and going electricity can be the answer. It can help cut costs, emit less pollution on the ground, but most importantly also offer a safer and more reliable service for customers. 

Once the charging infrastructure is established using the captive demand for EV buses, the same can remove range anxiety for other EV form factors including personal cars & bikes, commercial vehicles etc. A true revolution in ending ICE age is happening. 

The post Electrifying Inter-City Mobility appeared first on Inc42 Media.

The popularity of ebikes isn’t slowing down. Driven by an increasing inclination towards sustainability and rising fuel costs, ebikes have certainly become an e-mobility alternative. Recent stats suggest – the e-bicycle market valuation in India is projected to touch $2.08 Mn by 2026, higher than the $1.02 Mn recorded in 2021. 

The humongous jump in demand is further reflected by an increasing acceptance of EVs in India, starting from electric two-wheelers to now evolving into e-bicycles.

Though the sector is still at its nascence, Tier 1 cities like Mumbai, Delhi, Bengaluru, etc. are the leading drivers of e-bicycles’ growth where commuters look for affordability, sustainability and at the same time, an alternative that can offer an enhanced commuting experience.

Usually, there are two types of e-bicycles – throttle assist which allows the rider to shift into motor mode and move forward without pedalling and pedal assist which requires the rider to pedal the cycle manually.

The evolution of e-bicycles is gradually outpacing the demand for traditional bicycles as it minimises human effort by 70-80%. 

As the industry is innovating itself, several other factors are contributing to its phenomenal growth.  

Rising Fuel Costs

The sheer affordability of EV adaption is leading to soaring sales of ebikes in India. For decades, two-wheelers or scooters have been an affordable choice of personal mobility. A vast majority of the Indian population has relied on such transport options. 

However, the exponential rise in the cost of petrol has pushed customers to switch to electric two-wheelers. 

Constantly rising fuel prices are one of the most sensitive drivers for EV penetration in India. Simply put, the ownership cost is a one-time investment for the consumer while it is cheaper to run than fuel-powered vehicles. 

Technology integration for new-age customers

Gone are the days when people used to pay a few pounds extra for purchasing a GPS-enabled bicycle. In today’s digitally driven world, ebikes are increasingly being integrated with new-age technologies to supplement evolving customer needs. 

The modern ebikes are becoming a game-changer in the advanced and greener world. Apart from boasting a futuristic design, the ebikes are also backed by a range of data-driven technologies.  

As consumers are prioritising fitness and adventurous experiences, ebikes are demonstrating their game-changing capabilities. These vehicles present a range of data related to the location, speed, calorie consumption, distance travelled and information on battery life. 

Ease In Financing And Accessibility

Ebikes, especially e-bicycles are considered costlier than standard electric two-wheelers due to their futuristic design, engine, high-power battery and tech enablement. To ensure that higher cost does not inhibit its overall sales, many industry players have started coming up with easy financing options like EMIs.  

This makes the vehicle more affordable and easy to finance. 

Besides this, a few ebike players have started combining their online marketplace with offline sales networks to create a strong and lasting bond with customers. This captures the essence of an ebike by allowing the potential customers to walk in and get the touch and feel or maybe a test ride before plonking their money onto it. 

Additionally, it assures the customers about the ease of ownership, service and after-sales support during the lifecycle of an ebike. 

Government’s Intervention

The Indian government is continuing to support the EV industry by implementing several measures at the state and centre levels. India’s manufacturing infrastructure demonstrates enormous capabilities to develop EVs and ebikes at a reduced cost. 

Subsequently, the government is doing its part by offering financial incentives and subsidies for ebike manufacturing. The government is providing subsidies under FAME and so far, it has announced initiatives like PLI Scheme, Battery Switching Policy, Special Electric Mobility Zone and Tax Reduction on EVs. 

Bottomline

The government has already realised ebikes are the cornerstone in achieving net-zero carbon emission. The industry stakeholders and other players must work together and provide an opportunity to engage with customers directly, get feedback, and improve product features and service. Also, establishing deep ties with the cycling community can help promote e-cycling as a sustainable lifestyle.

The post Why Future Of Mobility Is Electric appeared first on Inc42 Media.

After Tesla, Vietnamese electric car maker VinFast has announced plans to set up an electric vehicle (EV) unit in India.

In its Q3 2023 earnings release, VinFast said it would invest $150 Mn- $200 Mn in India to set up a completely knocked down (CKD) assembly unit. 

The EV maker said the new facility will start operations by 2026 and will be capable of making approximately 50,000 cars per year in the first phase. 

The automaker said that it aims to leverage the EV market opportunity in India, which is growing fast but has seen only 1% penetration. 

“We aim for our vehicles to be present in up to 50 global markets and countries by the end of 2024,” it said in the statement. 

The establishment of VinFast facilities in these markets can provide access to government incentives for local manufacturing, relief from certain tariffs and taxes and access to raw materials at attractive rates, the company said.

It must be noted that the Indian government has launched a production linked incentive scheme of over INR 25,000 Cr to boost domestic production of automobiles and related components, including electric vehicles.

Commenting on the company’s plans for India, VinFast chief financial officer David Mansfield said, “VinFast is on track to meet its deliveries guidance and is well-positioned to expand in strategic markets such as Indonesia and India.” 

Like India, the company also plans to set up an EV unit in Indonesia. 

India, the most populous country in the world, has emerged as an attractive market for global brands across sectors, including EV makers, over the last few years. While EV adoption has picked up pace in the country, it is largely led by two-wheelers. This provides an opportunity for global electric car makers to grab a big share in the Indian market.

Currently, the likes of Tata, Mahindra and Hyundai sell electric cars in India. Ola Electric also has plans to manufacture electric cars in the country.

Prior to VinFast, Elon Musk-led Tesla announced plans to enter India. From renting office space in Pune to meeting the top government officials and ministers, Tesla is gradually taking necessary steps to launch the business in the country soon. 

In August, Tesla officials reportedly met union minister Piyush Goyal to discuss the acceleration of its plans to establish a manufacturing plant in the country. In addition to opening up an all new facility, the company is also planning to source EV components worth $1.7 Bn to $1.9 Bn this year from local vendors. 

The US-based EV giant also plans to set up a battery storage facility in India. 

In addition to Tesla, Audi and Mercedes-Benz are also in the queue to grab the opportunities in the Indian EV ecosystem. 

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