GETTING ELECTRIC VEHICLES GOING

The government has suggested swapping batteries as an alternative to charging. China has tried this with buses. It has also been successful with two-wheelers as they use smaller and lighter batteries. With passenger cars and SUVs, it may not yield the desired results.

“You can look at swapping batteries for commercial vehicles, two-wheelers and even a fleet of cars, but it will not work for individual transportation cars,” says Sohinder Gill, CEO, Hero Electric, India’s largest electric two-wheeler firm.

“Battery swapping has been tried in France and Israel. It is an immensely complex model with challenges related to both vehicles and batteries,” says Bruno Grippay, Vice President, Product Planning, Design & EV Business, Nissan Motor India. “Apart from that, it requires setting up swapping infrastructure, including own charging stations, which is far more expensive than EV charging infrastructure.”

Lack of Policy

Lack of clear government policy and the fear of the unknown among automobile manufacturers are the two big reasons why EVs have remained a pipe dream in India so far. In 2016/17, just

“We should move towards alternative fuel... I am going to do this, whether you like it or

not. And I am not going to ask you. I will bulldoze it. If you do not make electric cars yourself, we will force you to do it” Nitin Gadkari Minister for Road Transport, Highways and Shipping

22,000 EVs were sold in India, the majority of those twoand three-wheelers. There are high chances of India missing out on the opportunity.

The government says a broad policy that takes into account every aspect of EVs is being formulated, but its actions do not inspire confidence. Apart from penalising hybrids with 43 per cent tax under the Goods and Services Tax regime, the government imposed a 12 per cent tax on EVs and 28 per cent on lithium-ion batteries, which flies in the face of the stated aim of encouraging battery replacement technology. There are also questions on what technology the industry must use and whether the government is right in giving priority to one technology over the other? “The policy should be technology agnostic. The government should lay down markers for emissions as it happens elsewhere in the world. Let the industry decide the best way — hybrids, electric or even fuel cell — to achieve these targets,” says Girish Wagh, Head, Commercial Vehicles, Tata Motors.

Previous instances of the government abruptly changing its stance have also made the industry cautious. The only policy document in this area, the National Electric Mobility Mission Plan 2013, laid down a road map targeting annual sales of six-seven million hybrids/EVs from 2020 and provided for incentives and tax rebates for both. This government, however, has been quick to debunk hybrids. It wants manufacturers to directly make the transition to an electric future.

“It will be very difficult to change things from tomorrow. I have never seen that kind of a change anywhere in the world,” says Kenichi Ayukawa, Managing Director and Chief Executive of Maruti Suzuki India Ltd, India’s largest car maker. “I am not sure what the government wants. We need to know what is the realistic programme for shifting to EVs. It is difficult to verify. There are difficulties in expanding sales as the cost is very high. How will we absorb that kind of thing?”

There is a gulf between the industry’s expectations from the government and the latter’s ambition. The mistrust often flows into the public domain. The government has set a target of reducing its oil import bill by 10 per cent by 2022. That is where EVs will play a big role. A NITI Aayog report says the reduction of 156 MT of oil equivalent worth ` 3.9 lakh crore was possible if its target of EVs, accounting for 40 per cent two-wheelers, cars and SUVs and 100 per cent commercial vehicles and three-wheelers, is achieved. It is not possible if the industry does not come on board.

“It is a campaign run by companies who do not have EVs. These companies have come to me also to convince me not to oppose hybrid cars. The world is moving towards EVs, and the country will promote EVs,” says Piyush Goyal. “Hybrids reduce fuel consumption a little, but the future is electric cars. I had also recommended to the finance minister that it is not advisable to support an intermediate technology which reduces fuel consumption a little. The future is all electric cars.”

“First, when I urged you to go for electric vehicles, you said the battery is costly,” Gadkari said at the SIAM convention. “I coaxed you to start at least. Now, the batteries cost 40 per cent less. And if you start now, the cost will be reduced further on mass production. Teething trouble is everywhere.”

EVs have already started disrupting transportation worldwide, and India cannot keep itself isolated. But it cannot be forced from one end nor resisted from the other. “It will start with a clear policy roadmap because that is going to push investments,” says Chetan Maini, Vice Chairman at Sun Mobility. “There is a time lag between the expectations of the industry and what the government is doing or has been doing and it is valid. There is a top-level big push towards EVs and excitement within the industry. But we need to move fast now. The policy is the missing puzzle.”

Without that, the electric vehicle story in India will only be a false dawn.