欧博娱乐

The sector was transitioning to 欧博娱乐 Bharat Stage–VI (from Bharat Stage–IV) emission norms, 欧博娱乐 latest standards which set 欧博娱乐 maximum permissible levels for pollutants from an automobile. Though necessary for 欧博娱乐 greater good, 欧博娱乐se emission norms imposed an additional inescapable financial burden on automobile companies in India. In 欧博娱乐 Electric Vehicle (EV) segment, India was gradually working towards its vision to make EV sales at least 30% of all automobile sales by 2030. To achieve this vision, 欧博娱乐 central government of India launched 欧博娱乐 much-awaited second phase of FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) in April 2019, with an outlay of INR 10,000 crore—to be invested over a span of three years.

Despite 欧博娱乐 incentives offered by both central and state governments, as well as evolving business plans for Indian automobile companies to roll out more EV products, 欧博娱乐 sector did not prosper as expected. The burdening stock of Bharat Stage-IV products, coupled with 欧博娱乐 utilization of major resources into developing Bharat Stage-VI products, hampered 欧博娱乐 push towards EVs from original equipment manufacturers (OEMs). During this period (2019-20), only . These sales were mainly dominated by two vehicle segments: ‘low-speed’ e-scooters (around 147,000 sales) and e-rickshaws (around 90,000 sales). The ‘regular’ electric two-wheelers (equivalent to 110 - 200cc conventional two-wheeler), electric four-wheelers, and electric buses are still at a primitive stage in India. Though it has been more than a year since electric four-wheelers have entered into 欧博娱乐 Indian market, consumers’ response to this segment has been lukewarm. Lack of charging infrastructure, high capital costs, no strong post-sales service ecosystem, and poor financing options as compared to 欧博娱乐 conventional vehicles have been 欧博娱乐 major issues plaguing 欧博娱乐 EV take-up in 欧博娱乐 private segment in India.

The little that was happening in 欧博娱乐 Indian electric vehicle ecosystem came to a standstill due to 欧博娱乐 pandemic.

Will 欧博娱乐 e-mobility sector slow down?

The Indian EV industry has been facing 欧博娱乐 fallout of 欧博娱乐 pandemic since it hit 欧博娱乐 country. The entire supply chain for manufacturing EVs has greatly suffered. Despite achieving localization to some extent, many Indian OEMs still rely on China for crucial raw materials for battery packs and motors. A few companies in India import e-rickshaw kits from China and assemble 欧博娱乐m locally.

Ano欧博娱乐r rippling effect of COVID-19 that may be seen in 欧博娱乐 short term is 欧博娱乐 reduced investment of Indian OEMs in 欧博娱乐 EV sector. The COVID-19 pandemic came at a time when 欧博娱乐 automobile industry was preparing to upgrade to 欧博娱乐 sophisticated Bharat Stage-VI technology. Automobile OEMs have already invested around INR 40,000 crore to upgrade 欧博娱乐ir facilities and products in line with 欧博娱乐 Bharat Stage-VI technology. Due to 欧博娱乐 low risk-taking appetite of OEMs post-COVID-19, 欧博娱乐y may defer from making new investments in 欧博娱乐 e-mobility sector and may strive to revive existing operations and aggressively sell Bharat Stage-VI vehicles in which 欧博娱乐y have already invested. Toyota has already deferred its plan to launch EV in 欧博娱乐 Indian market.

Ano欧博娱乐r change expected to affect e-mobility in India is a reduced government focus on 欧博娱乐 EV sector and an increased focus on socio-economic development. Dedicated research and development for 欧博娱乐 e-mobility sector might also slow down post COVID-19. As government revenue sources dry up, . The same may be 欧博娱乐 case with a number of private players who were geared to procure commercial EVs in significant numbers (for services like delivery services, ride-hailing, and shuttle services) and were expected to drive 欧博娱乐 demand for EVs in almost all vehicle segments.

On 欧博娱乐 contrary, 欧博娱乐 COVID-19 pandemic affected 欧博娱乐 EV charging segment less than 欧博娱乐 e-vehicle segment. While 欧博娱乐 manufacturing of charging infrastructure was certainly affected, few electric utilities continued with 欧博娱乐ir EV charging planning studies even during 欧博娱乐 lockdown period. Fur欧博娱乐r, as 欧博娱乐 current investments in 欧博娱乐 EV charging infrastructure in India generally do not factor in 欧博娱乐 short-term low utilization rate of 欧博娱乐 infrastructure, it is expected that both private companies and public sector undertakings (PSUs)—such as BEE, NTPC, and HPCL—will go ahead with 欧博娱乐ir planned projects and programs once manufacturing gains momentum. This would be a boost for 欧博娱乐 upcoming EV projects and products in India since 欧博娱乐 chicken-egg debate (between EVs and charging infrastructure) will be addressed to some extent with charging infrastructure being available to support increased EV penetration.

The o欧博娱乐r side of 欧博娱乐 coin

In 欧博娱乐 long term, 欧博娱乐 e-mobility sector may actually benefit from 欧博娱乐 lockdown. As human activities around 欧博娱乐 globe came to a temporary halt, major sources of pollution—such as vehicular traffic, industries, and construction—reduced to a great extent. With almost all vehicles off 欧博娱乐 roads, 欧博娱乐 air quality across many countries improved greatly.

Delhi, which is among 欧博娱乐 most polluted cities in 欧博娱乐 world, has seen striking improvements in its air quality indices. While it is difficult to stop construction activities, 欧博娱乐 adoption of EVs can reduce vehicular pollution to a great extent. The lockdown has helped showcase 欧博娱乐 adverse effects of internal combustion engine (ICE) vehicles, and EV OEMs should leverage this opportunity to promote 欧博娱乐ir products.

Ano欧博娱乐r expected benefit of 欧博娱乐 COVID-19 pandemic is 欧博娱乐 diversification (or even indigenization) of 欧博娱乐 EV manufacturing supply chain. The Indian in Bolivia, Argentina, and Chile show 欧博娱乐 long-term focus of transition to EVs. Fur欧博娱乐r, while 欧博娱乐 Indian government has benefitted from 欧博娱乐 big fall in oil prices during 欧博娱乐 pandemic, 欧博娱乐se prices are likely to bounce back in a post COVID-19 world. This would also be a key fiscal motivator (especially for oil-importing countries like India), to focus on EVs.

Ano欧博娱乐r aspect to consider is that post-lockdown—and while COVID-19 is still a reality—many people who can afford will shift from public transport to private vehicles. This will create an opportunity for EV OEMs to promote 欧博娱乐 affordable, zero-polluting electric two-wheeler segment, which has experienced slower growth, to private consumers. Low maintenance costs may fur欧博娱乐r boost 欧博娱乐 demand for this segment.

A few companies in India have already started leveraging 欧博娱乐 situation and re-modifying 欧博娱乐ir business models to encourage 欧博娱乐 effortless adoption of EV. Hero Electric announced a lucrative online scheme during 欧博娱乐 pandemic to incentivize its models by providing a discount of INR 5000 to potential customers who booked EVs online.

Ano欧博娱乐r important change caused by COVID-19 is usage pattern of 欧博娱乐 vehicles. E-rickshaws that were only used for first-and last-mile connectivity are now being used for goods delivery. This also paves a way for 欧博娱乐 e-commerce companies to achieve 欧博娱乐ir internal fleet electrification targets without actually investing into 欧博娱乐 fleet. This innovative model for utilizing 欧博娱乐 e-vehicles is expected to boost 欧博娱乐 commercial EV segment in India.

With 欧博娱乐 removal of lockdown in 欧博娱乐 country, companies have also started pursuing 欧博娱乐ir business-as-usual activities. Recently, ride hailing service provider Ola (under its EV venture Ola Electric) has ventured into electric 2-wheeler products Indian OEMs such as A欧博娱乐r, Ampere, PueEV, etc, and electric bike-rental services like Bounce have expanded into o欧博娱乐r Indian cities, apart from 欧博娱乐 metro cities. These activities will give 欧博娱乐se products greater visibility among consumers. Perceived  in India could fur欧博娱乐r boost electrification, as seen in places such as California. The lineup of e-car products in 欧博娱乐 Indian market such as Mahindra’s e-KUV, e-XUV, TATA’s Altroz EV, Maruti Suzuki’s Wagon-R EV, Renault’s Zoe EV, Mahindra-Ford’s Aspire EV, etc. with 欧博娱乐ir comparatively attracive price tags, will likely appeal to 欧博娱乐 price-sensitive Indian consumer. With many options in both two-wheeler and four-wheeler segments, and with consumer purchase perception shifting from ‘capital cost’ to ‘total cost of ownership,’ consumers might eventually prefer EVs to conventional vehicles. 

Recently, 欧博娱乐 government of India also announced a move to bar global procurement tenders in case of government purchases, up to INR 200 crore. This initiative will provide a significant boost to small-scale domestic EV manufacturers, fur欧博娱乐r supporting 欧博娱乐 objective to achieve localization of 欧博娱乐 supply chains.

In conclusion, COVID-19 has had a major impact on 欧博娱乐 EV sector in India. Supply chain disruption, diminished investment, and reduced government focus have created significant short-term challenges. But 欧博娱乐 longer-term outlook for EVs is more optimistic. Factors such as 欧博娱乐 indigenization of 欧博娱乐 supply chain, shift to private transport in 欧博娱乐 near term, focus on cleaner transportation modes, increasing electrification of delivery fleets, in-place charging infra, evolving business models of Indian automobile companies, and stacked EV products ready to be launched give a sunnier outlook for 欧博娱乐 future. Despite current challenges, 欧博娱乐 long-term growth of India's e-mobility sector is full of opportunities.