Business Standard

Auto, power firms taking baby steps on electric cars

- SURAJEET DAS GUPTA

Last month El on Musk announced the delivery schedule of the much-public is ed Model 3, the electric car for the masses, at $35,000(~22.4lakh) apiece.

TheTeslafo­under, whohasprom­ised to manufactur­e in India, however, didnotgive­any deadline, but had tweeted that he was looking for import duty concession still the factory was putup. With or without the 60 percent duty on Model 3, the car can remain only a novelty.

Action in \India

But the launch has turned the focus once again on India’ s preparedne­ss to shift to electric cars. Especially with the government setting an ambitious target that by 2030 all cars will be electric, which, most carmakerss­ay, isoverthet­op and not achievable.

Thatitmigh­tbe. Afterall, only Ma hind ra Electric Mobility has an electric vehicle running on Indian streets, but sells limited numbers. But prodded by the government there is already a lot of action onthegroun­d. State-ownedcompa­nies —Power Grid Corporatio­n, NT PC, Bharat Heavy Electric a ls Ltd( B HE L ), and Raj as than Electronic­s and Instrument­s Ltd—and a consortium led by Ma hind ra & Mahindra, Ola, andBengalu­ru-based Lithium Urban Technologi­es Ltd are putting together 400- odd electric charging stations( thereare25) inthecount­ry. And they are being supported by a 50-60 percent subsidy being offered by the government. One key inflection point for consumers is to ensure that they areas comfortabl­e charging their cars as they are with refuelling­now.

The other inflection point for car owners is the price of electric cars nearly matching that of gasoline cars, making them an attractive prepositio­n as they would save on running costs. The key barrier is the cost of the battery pack, which constitute­s 30-40 percent of the cost of an electric car, and is imported and therefore expensive. To address that problem, a Suzuki-led consortium and the space agency Indian Space Research Organisati­on( Isro ), in collaborat­ion with Bhel, apart from Sun Mobility( promoted byChetanMa­ini, who introduced electric vehicles ), have decided to provide the technology or setup manufactur­ing facilities. And of course car makers— Nissan, theTatas, Volvo, andMahindr­a Electric, andHyundai— aretakingb­aby steps towards experiment­ing with electric cars even if it might be years before mass production.

Laying the infrastruc­ture

To address the question of charging stations, Power Grid is doing feasibilit­y studies of what model to follow— whether to setup ultra-fast charging stations( a car can be charged in 15 minutes) or put up more scalable and cheaper fast-charging stations( which take 90 minutes to charge the battery ). Says Sub ir Sen, chief operating officer (CT U planning and smart grid ), Power Grid :“We will have a cost-effective model. With the push towards non-fossil energy (likesolar) bythegover­nment, which will be used to provide electricit­y in the daytime, there will be enough surplus thermal power, which can be used to power electric vehicles .”

Ultra-quick charging stations of course come at a steep price tag of ~20 lakh and they lookun viable at the moment. Mahindra-Electric, whichis working on setting up such stations, says that fast-chargers need an investment of ~3-4 la khan dare the most viable option. Critics say customers will not be comfortabl­e if charging takes so much time. ButMaheshB­abu, chiefexecu­tive officer of Ma hind ra Electric, has a different view of the matter and says :“We have seen that people do not use their car for travelling more than two-four hours daily, there st of the time it is in the parking lot. So there is enough time to charge it for 90 minutes as running costs are much lower than gasoline .”

Work has also started on reducing the cost of the car and undertakin­g work indigenous ly. Ma ru ti Suzuki Chairman RCBh ar ga va says :“There is noway you can make an electric carat less than ~5 lakh until you manufactur­e the battery packs in the country. And without that price point you can not have mass use of electric cars .”

He says an imported lithium ion battery, on which a car can run 140 km with its ACon, couldcosta­s muchas~3lakh. Butexperts­say this could be cut by half if the packs, including the cells, are made in India. And the good news is that with growing volumes, especially from China, battery pack prices globally are going down quickly.

Suzuki has taken the first step by setting up a joint venture with Toshiba and Denso to manufactur­e lithium ion battery packs in India with an investment of more than ~1,200 crore in Gujarat. And Isro has modified the battery it uses in satellites for electric vehicles. It has tied up with BHEL to set up a unit to manufactur­e them with an investment of ~100 crore. Maini's Sun Mobility is working on building smart batteries for electric cars and providing the technology to make renewable energy-based battery stations. “Our aim is to provide end-to-end mobility solutions, which are scalable and cost-competitiv­e. We will work in partnershi­p with original equipment manufactur­ers and mobility solutions providers,” says Maini, vicechairm­an, Sun Mobility. There are others working on developing key electric vehicle technology indigenous­ly, which could reduce car prices further.

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