EV fire incidents a wake-up call for the industry, says Hero Electric's Naveen Munjal

The recent incidents of electric scooters catching fire are a wake-up call for the industry to get its act together, said Naveen Munjal, managing director of Hero Electric, the country’s largest electric two-wheeler maker by volume.

The electric vehicle industry is facing the heat, with scooters from companies such as Ola Electric, Okinawa Scooters and Jitendra Electric Vehicles going up in flames in recent weeks, casting a shadow over the prospects of a nascent but fast-growing industry.

The government may get stricter with battery standards and how quickly one can launch the product following these incidents which have owners worried, Munjal told Moneycontrol last week in Bengaluru.

"The government may do some audits and come out with stronger standards in terms of thermal management and the testing that they do, etc.

“That said, whether the battery should be standardized is a different story. Right now, it is still evolving but the move to standardise any product could curtail innovation," Munjal said.

The government plans to seek an explanation from Ola Electric, Okinawa Scooters and Jitendra Electric Vehicles, a recent CNBC-TV18 report said.

It has also deputed a team of independent experts to investigate these incidents. The report said the government may take a call on reviewing the testing standards for EVs based on experts’ findings.

Also read: 40 electric scooters of Jitendra EV loaded in truck catch fire in Nashik

Can’t take shortcuts

Munjal said issues with EVs would have to be addressed by proper testing and due diligence, as the government can only do that much.

"They've already got testing standards, which are good in ideal conditions but when you're out, it's anything but ideal. You can't shortcut a lot of these things, which could lead to dangerous territory. So, I think this is a wake-up call for the industry to please get your act together and be responsible," he said.

Munjal also pointed to harsh conditions in India—soaring temperature, dust, water, potholes and constant road shake—and said lithium ion batteries are known to be volatile, hence it must be handled delicately.

"For instance, we don't leave our phones and computers out in the sun when it is peak summer, we keep them in a shade. Provided you manage the battery, whether in terms of the temperature or in terms of what chemistry you are using, it works brilliantly" he said.

Also Read: EV two-wheelers fire: Centre to seek explanation from Ola, Okinawa

The chemistry of it

The Gurugram-based Hero Electric focuses on the commuter segment or entry-level vehicles that use different battery chemistry. It has a lower cell density, which means lower speeds but doesn't heat up to the same level as more dense batteries used in high-speed vehicles.

The company has stayed away from high-speed vehicles, so far, since it would require different battery chemistry, Munjal said.

The company has a “battery safety month” going on and it is inviting customers to dealerships and educating them on various aspects, including how to manage it and what are the signs of a battery not performing properly, he said.

Hero Electric has put in several safety measures to avoid instances of battery heating, which, Munjal said, were necessary as it wasn’t guaranteed that a rider would follow the precautions.

Also Read: Is the scorching summer heat responsible for battery fires in electric scooters?

The company was installing inexpensive chip sensors on batteries that send out different levels of alarms if the temperature breaches certain levels.

These would come installed in new vehicles and inserted in old EVs when they come for servicing, he said.

"Some of this stuff, we are even updating the industry on it, saying you guys can also install these kinds of things and this is what it takes because at the end of the day, it's an industry which has to work properly. So that's where some things that we do, which are more for the company but there are a lot of things that we do where the industry also flourishes" Munjal said.

Also read: Hero Electric aims to raise fresh funds of $200-$300 million; looking to tap PE funds

Battery partnerships

For Hero Electric, portable batteries will remain the mainstay, however, the company is also entering into partnerships to work on swappable and fixed battery systems.

In March 2022, it partnered with Sun Mobility to deploy two-wheelers integrated with its swappable battery technology. Hero Electric plans to deploy around 10,000 two-wheelers with swappable batteries by the end of 2022.

It will likely start with Hero Electric's business-to-business customers to create a base and then move to business-to-consumer customers across cities.

The challenge with the swappable model is that the battery can only be changed at a swapping station, so the ecosystem has to be set up, Munjal said.

Hero Electric had in December 2021 signed a partnership with Bengaluru-based battery technology startup Log9 Materials for fixed batteries that can be charged in 15-20 minutes. The company had then said that these batteries would be deployed through direct sales and battery-as-a-service models.

Munjal said they were also partnering with multiple companies, including Massive Mobility, ElectricPe and Charzer, to install charging infrastructure. The firm aims to install more than 1 lakh charging stations by the end of 2022.