Auto Sector | Electric is the way forward. Battery concerns are a speed bump

Representative Image

Even as Tesla and Ford drop their plans to enter the electric vehicle market in India, there are a host of others eager to get going, with investments exceeding Rs 72,850 crore under the PLI scheme, overshooting the targeted Rs 42,500 crore.

India’s auto sector is busy especially since Minister for Roads, Transport and Highways Nitin Gadkari is keen on transforming it with a series of announcements and commitments aimed at having 80 percent of all two- and three-wheeler sales to be electric by 2030. Currently, India has 1 million-plus EVs and 1,700+ public charging stations installed under the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) scheme. The Agra-Delhi-Jaipur 500-km highway is being transformed into the world’s longest EV roadway.

Despite this, India’s ambition to become global leader in green automobiles has hit a bump with recent incidents of electric bike fires.

State governments are going all out to support EV adoption with policy announcements, infrastructure development, and financial incentives. Currently 17 states have dedicated EV policies in various stages of approval/notification/formulation. Delhi is shifting all official cars (owned/leased/hired) to electric. Under the Delhi EV Aggregator Policy, all aggregators and delivery service providers must have 50 percent of all new two-wheelers, and 25 percent of all new four-wheelers electric by March 2023. Kerala is using this opportunity to attract investment and generate employment by setting up lithium-ion battery manufacturing units. Local governments like Gurugram (Haryana) and Kevadia (Gujarat) have developed zones exclusively for e-vehicles.

Despite the push by the Union, state, and local governments, the action is still largely on public transport, mainly e-buses and auto-rickshaws. Pune is revamping its fleet, replacing old diesel buses with e-buses. Interestingly, Kolkata beats London in terms of electric bus penetration.

While all the efforts need to be acknowledged, and celebrated, this is an evolving technology, and we have a long way to go in fixing the glitches, and challenges.

Following a spat of electric scooter fires, Gadkari has directed all companies to not launch any new models of electric two-wheelers this year till the safety issue is addressed. He also ordered the recall of all batches of defective EVs, with penalties for negligence. A panel has been formed to investigate the fires, and come up with detailed guidelines for quality testing for batteries. A pro-active industry could have avoided the need for such diktat.

The issue of battery heating has been worsened by India’s high summer temperatures hindering cooling. The aggressive push for manufacturing led to the use of Chinese-made kits with poor lithium and battery management software. Battery packs assembled by automation are less prone to these risks, compared to manual assembly as even minor imperfections can cause such issues. The Automotive Research Association of India has already established the AIS 156 standard, but this is currently an optional best practice.

Battery efficiency is another major concern, deterring purchase. The available plug-in chargers are slow, and can charge only one vehicle at a time. People often lack personal parking spaces, and have to rely on public parking areas with no chargers. However, the draft Battery Swapping Policy announced by the Niti Aayog can help make charging as accessible as refuelling at a petrol pump, and safe with rigorous testing standards.

Since batteries account for 40 percent of the EV’s cost, swapping will save customers time, and money. A Grant Thornton report estimates that India will need 400,000 charging stations for 2 million EVs by 2026 — battery swapping will reduce the pressure of building this infrastructure. The parliamentary committee on Industry rightly stated  that visibility of charging and battery swapping stations, especially on highways and in major cities, is important to instil confidence.

With the government’s stress on mass transportation in cities, e-rickshaws are actively providing the crucial first-mile last-mile connectivity, reducing congestion, and pollution. The rickshaw and taxi drivers need to be trained about operating the e-vehicles. This can be complimented with a robust licensing system to ensure trained and limited e-rickshaw drivers.

Another key challenge is the poorly-developed supply chain for parts and components required in EVs, and their batteries. Localisation here is key to reduce costs, and also improve charging infrastructure.

EVs are the future of mobility, and the government has provided a much-needed policy and regulatory framework, even recognising battery and energy as a service in the Union Budget 2022. Yet, for a true revolution, and mass adoption, we need sustained and co-ordinated efforts from multiple stakeholders — central, state, municipal authorities, etc. Industry, civil society, and academia will need to work closely together to facilitate co-ordination, encourage hyper-local innovations, improve technology, and learn from international best practices.

Aishwarya Chordiya is Research Assistant, Indicus Foundation, and Sumita Kale is Advisor, Indicus Foundation. Views are personal, and do not represent the stand of this publication.