“Either do not attempt at all, or go through with it” said Ovid.  “We should move towards alternative fuel…… If you do not make electric cars yourself, we will force you to do it,” Nitin Gadkari, Union Minister for Road Transport and Highways, Speaking at the annual meeting of the Society of Indian Automobile Manufacturers or SIAM literally created a flutter when he threatened the domestic automotive industry to start thinking about a future without the internal combustion engine.

Strange how much we have got to know before we know how little we know. Mr Gadkari warned. “You may not like it, but I wish that your growth of internal combustion engine should be less. If this growth continues, I will have to add one more lane to national highways, which will cost a whopping Rs. 80,000 crore. Gadkari literally threatened.

If you can imagine it, you can become it. If you can dream of it, you can achieve it. “Only electric car by 2030,” cautioned Mr Piyush Goyal, The Union Power Minster to a group of Reporters at a FICCI event. “…existing cars may take a little longer to replace, yet, the idea is that not a single new petrol or diesel car should be sold in the country. The government is all set to aid the electric industry in the initial 2-3 years to ease the transition from petrol and diesel cars to electric vehicles before the industry stabilises. Goyal also spoke about the government’s plan to introduce electric vehicles (EV) in India on a massive scale within the next 3 years. The government will be building charging infrastructure and battery swapping programmes to achieve this goal.

The major objective behind this is to lower the fuel import bill and running cost of vehicles in the country.  Ministry of Heavy Industries and the NITI Aayog are working on a policy for promotion of electric vehicles. Pointing towards the cost factor, Goyal said that people would like to buy an electric vehicle when they find it cost effective. Currently, we also have the Faster Adoption and Manufacturing of Hybrid and Electric vehicles a.k.a. the FAME initiative in India, under which the government offers subsidies on hybrid and electric vehicles.

But a big why????? Why the transformation at all?

I expect to pass through this world but once. Any good therefore that I can do, or any kindness that I can show to any fellow creature, let me do it now. Let me not defer or neglect it, for I shall not pas this way again.…………. Stephen Grellet

Paris Climate Conference held in December 2015 launched the Paris Declaration on Electro-Mobility and Climate Change and Call to Action which was duly endorsed by Tesla Motors, Michelin Nissan-Renault, UNEP, the IEA and multiple key initiatives, builds on commitments from companies, cities, States and associations including hundreds of partners that have undertaken decisive efforts towards sustainable transport electrification. According to International Energy Agency (IEA), at least 20% of all road vehicles (cars, 2 and 3 wheelers, trucks, buses and others) must be electric-powered by 2030 in conjunction with the low-carbon production of electricity and hydrogen. A signatory to the Paris climate agreement, India is obligated to bring down its share of global emissions by 2030.

Many of our Indian cities are among the worlds most polluted; suffering utter degradation over the years, and vehicular pollution is one of the major causes for this. Of the circa 200 million vehicles which currently ply India’s roads, less than one percent is electric. And this internal combustion engine-powered fleet is growing rapidly, currently at awhopping  rate of nearly 50,000 new motor vehicle registrations per day — which includes commercial vehicles, the ubiquitous three-wheelers or auto rickshaws, buses and taxis, as well as private scooters and cars. Besides, India is likely to spend up to $85 billion in financial year 2018 on oil imports which would constitute 82% of its oil requirements. And the automobile sector forms a bulk of this demand.

In line with its commitment to Paris Agreement the Government of India  unveiled ‘National Electric Mobility Mission Plan (NEMMP) 2020 in 2013 to address the issues of National energy security, vehicular pollution and growth of domestic manufacturing capabilities and plans to make a major shift to electric vehicles by 2030. In May 2017, Government think tank National Institution for Transforming India (NITI) Ayog and Colorado-based Rocky Mountain Institute released a report that recommended a push to electric vehicles or EVs, with fiscal incentives and discouraging petrol and diesel vehicles. The cornerstone of the government’s plans is a commitment to make India’s electric vehicle mission 2030 a success. This is a very ambitious undertaking. “The level of growth means India’s plan to only sell electric cars by 2030, would require nearly eight times the global stock of such vehicles,” according to blogger Elizabeth Mathew, writing on Plug-in India; an excellent and enthusiastic proponent of India’s push for electric vehicles (EVs). There is an ambitious target to achieve 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards. Government aims to provide fiscal and monetary incentives to kick start this nascent technology. With the support from the Government, the cumulative sale is expected to reach 15-16 Million by 2020. It is expected to save 9500 Million Litres of crude oil equivalent to Rs. 62000 Cr. savings.

The sudden urgency within the government… whose policies (at least the tax rates) actively discourage the development of a robust EV market….. has set the cat among the pigeons in the Industry. India has been a laggard in alternative fuel technologies, for reasons ranging from lack of any plan incentive and infrastructure. Talk of a ban on conventional vehicles, without any effort to develop alternatives and bring down barriers to the development of hybrids and EVs, is making manufacturers nervous. But to move ahead to achieve its vision of only electric cars by 2030, the Government requires an overhaul of policies, tax rates, infrastructure and last but not the least, the mindset. For, the world of automobiles is changing faster than we can imagine.

Electric Vehicles: Pros :

1. The biggest benefit of electric cars is obvious: you no longer need petrol, diesel or gas. Their efficiency means that they cost little to operate as is evidently clear from the following 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. 75/ltr, Rs. 60/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.

Fuel/Data Petrol Diesel Electricity
Cost/Litre Rs. 75 Rs. 60 Rs. 5.75/kWh
Consumption 67 Ltr 83 Ltr 870 kWh
Range / Month 1333 Km 1667 Km 3263 Km
Range / Day 44 Km 56 Km 121 Km
Range / Year 16000 Km 20000 Km 43478 Km

2. With Rs. 5000, 67 litters of petrol, 93 litters 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. 20000 km/year as reference, petrol doesn’t even reach that range and the clear winner is electric with an excess range of 23247 km/year, which is equivalent to a saving of Rs. 32700/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.

3. Electric cars are 100 percent eco-friendly. Battery electric vehicles (BEVs) don’t produce any tailpipe emissions, which are known to be a serious threat to human and environmental health. In comparison, the average gasoline car produces over 350 grams of CO2 per mile.

4. Electric vehicles come with fewer maintenance requirements, and therefore the maintenance costs are lower as well. The electric motor has one moving part, the shaft, which is very reliable and requires little or no maintenance. The controller and charger are electronic devices with no moving parts, and they require little or no maintenance.

5. Since an EV is fully electric, it no longer uses oil to lubricate the engine. That means oil changes are a thing of the past. The same is true for a lot of other expensive engine work that could afflict a gas-powered car. Brakes won’t wear as quickly, either, so you won’t need to replace pads as often as you do on a normal car.

6. You Can Charge at Home or at Work : One advantage of electric vehicles is the ability to charge them at home or at a parking lot. People who live in family houses can simply plug in their vehicles after they return home from work, and leave the next morning with batteries fully charged.

7. Currently, the fastest method of charging electric vehicles is known as DC Fast Charging. With it, most electric vehicles reach about 80% of charge in 30 minutes. EV owners can also pair home charging stations with solar panels, achieving true zero-carbon driving. But even without a home charging station, it’s becoming easier than ever to charge an EV at a public station.

8. The electricity for EVs can be generated using zero-emissions technologies, such as solar PV, wind, hydro, or nuclear power, saving lives and reducing climate change impacts.

9. No Engine Noise : Noise pollution is detrimental to human health, and the engines of gasoline and diesel-powered vehicles are among its most significant sources. Tens of millions of people suffer from a range of adverse health outcomes including heart disease and hearing loss due to noise exposure including traffic noise. At 65 mph, the average interior noise of a car with an internal combustion engine is around 70 dB.  Electric vehicles, on the other hand, are almost whisper-quiet.

10. Most recent speed records have been achieved by electric vehicles. For example, the Tesla Model S P100D hit 60 mph in 2.28 seconds, making it the first production car to reach 60 mph in less than 2.3 seconds. That’s because electric vehicles offer superior power-to-weight-ratios compared to traditional cars.

11. In most modern electric vehicles, heavy battery packs sit below the passengers—making them easier to steer. The main duty of any responsible fleet manager is to protect drivers’ safety. Needless to say those drivers themselves want to ensure their own safety as well as the safety of passengers and the public.

12. It is virtually impossible for a battery powered car to explode on impact, and because heavy battery packs significantly lower an EV’s centre of mass, the car is less likely to rollover.

Given these advantages why don’t most car sales today consist of EVs??? The cons:

1. The main disadvantages of electric car ownership concern range anxiety: the fear you’ll run out of juice when you’re nowhere near a charging station. At the moment, the biggest perceived negative of battery electric cars is their limited range, which leads to what is known as range anxiety. To give an example, the 2016 Nissan Leaf can travel up to 107 miles on a single charge. The thought of only being able to drive 100 miles on a charge worries a lot of potential customers, who think that the somewhat limited range of electric vehicles isn’t enough to meet their needs. However, a number of vehicles have recently/are set to make their debut with significantly higher ranges:

  • Tesla Model S & Model X (250+ miles)
  • Tesla Model 3 (215 miles)
  • Chevrolet Bolt (238 miles)
  • 2018 Nissan Leaf (200+ miles anticipated)

2. Not all regions and places have abundant EV charging infrastructure and majority of people have apprehension that they shall be facing difficulty charging their vehicles at home or even on roads and highways. Many owners and drivers will have to install a charging station at home. It’s not necessary, however, as you can simply charge your EV at work or at various public charging stations. But most shoppers will want a charging station at home, cutting into the cost saving from owning an EV in the first place. Exactly, the lack of success of Reva and the iconic stature of tesla can be attributed as much to the products as the inherent pain points of an electric car – cost, range and charging.

3. Higher initial cost is also one of the reasons: Electric vehicles usually cost is upfront than their petrol/diesel/gasoline versions. The only electric car in India today, Mahindra e20, the modern avatar of Reva, comes of an ex-showroom price of Rs.7.46 lakh in Delhi inclusive of incentives. A comparable petrol car (Wagon RT) costs 40 per cent less at Rs.4.5 lakh.

4. Battery replacement: Depending on the type and usage of battery, batteries of almost all electric cars are required to be replaced every 3-10 years and replacement battery packs can be costly.

5. Incidentally, EV ownership does not eliminate fuel costs entirely. Electricity is not free and charging during peak hours can add to your utility bills. Similarly, Electric Cars are not suitable for cities facing shortage of Power as consumption of more power would hamper daily power needs of the common citizenry.

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This entry is part 11 of 12 in the series October 2020 - Insurance Times

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