Potential need for Electric Vehicles in India

India is one of the top ten automotive markets in the world today and having highly increasing middle class population with buying potential and the steady economic growth. But petrol price has increased more than 50% in 13 different steps in last two years. Here comes the potential need for alternative technologies in automobiles such as electric vehicles (EV) in India. Although the initial investment is around 1.5 times than conventional IC engine, but time has come when cost of environment is now more of concern than the cost of vehicle. National governments are focusing on R&D and consumer incentives, whereas city governments are supporting infrastructure deployment locally through public-private partnerships and other programs.

Rising levels of vehicular emissions is having a detrimental impact on human health and our surroundings. 13 out of world’s top 20 polluted cities in India. CO2 emissions in India alone have exceeded 5164 million tons which is the 3rd highest in the world after China and US.

Global EV stock has surged, rising from about 180,000 electric cars on the road in late 2012 to 665,000 on the road at the end of 2014. The three EVI countries with the highest percentage of global EV stock include the United States (39%), Japan (16%), and China (12%). Vehicle electrification has also gone multi-modal, with 46,000 electric buses and 235 million electric two-wheelers deployed by the end of 2014. China is a standout for this multimodal evolution, with 230 million e-bikes, 83,000 electric cars, and 36,500 e-buses on the road in 2014.

The number of EVs sold each year is growing rapidly, rising from 45,000 EVs sold in 2011 to more than 300,000 sold in 2014. EVs are also increasing their market share. In 2014, EVs represented more than 1% of new car sales in four member countries: the Netherlands, Norway, Sweden, and the United States.

Since 2011, batteries have also made substantial gains. Battery cost has dropped by about 50%, which can help improve EV affordability. Energy density has also risen, which in turn can improve vehicle range — a key consumer concern. Even with these advancements, significant and complex technological, financial, market, and policy challenges remain.

Comparison between three different fuel types keeping total expenditure

Constant Considering the total cost of transportation as constant i.e. Rs. 5000, the table below shows the range can be achieved by all the three types of vehicles. Unit cost of petrol, diesel and electricity is assumed as Rs. 60/ltr, Rs. 45/ltr and Rs. 5.75/kwh. For EV, Nissan Leaf specification is referred, (121 km/24 kWh) with total discharge up to 20%. For ICE vehicles the mileage is taken as 20 kmpl for both petrol and diesel.

With Rs. 5000, 83 liters of petrol, 111 liters of diesel and 870 kWh of electricity can be consumed. From that the maximum range per year can be calculated. Considering diesel range i.e. 26640 km/year as reference, petrol doesn’t even reach that range and the clear winner is electric with an excess range of 16838 km/year, which is equivalent to a saving of Rs. 23684/year. The excess investment in buying an electric car can be easily recovered within couple of years of fuel saving. Otherwise the cost of environment is now more of concern then the cost of fuel.

Government Initiatives.

FAME-India is short for Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India and part of the National Electric Mobility Mission Plan. The scheme, which was launched in April, envisages Rs 795 crore supports in the first two fiscals starting with the current year. Govt scheme offers up to Rs 1.38 lakh incentives for electric, hybrid vehicles.

About Newton Vehicles

Newton Vehicle’s mission is to bring a change in the automotive industry by means of sustainable transport system. Newton Vehicles aims at creating smart, Eco-friendly electric vehicles. The sole aim is to contribute towards reducing our carbon footprints and make driving vehicles not only affordable, enjoyable but also environment friendly.

We are developing a cost effective smart, modular electric vehicles with a top speed of 140km/hr with zero emission traveling more than 200km on single charge. The charging time would be reduced to 30 mins.

We are parallelly targeting the logistics sector mostly to help the SME’s reduce their burn rate of operations by providing clean, powerful vehicles at a lower cost than gasoline counterparts.