Bangalore saw its hottest day in the last five years on April 22, 2024. According to the World Bank, child stunting is projected to increase by 35% by 2050 vis-a-vis a scenario sans climate change.
Climate change is real. Businesses worldover across sectors are making significant business shifts to adopt sustainability as a part of their business operations, in order to go net zero within the next two decades.
For India, the task is even more onerous given our population. As brands from H&M to Hindustan Unilever in the consumer space, to automotive brands such as Tata Motors and Mahindra Electric gun to create sustainable alternatives, it behooves us to pause and ask ourselves, is this enough?
Bharat, under the visionary leadership of our Honorable Prime Minister Narendra Modi Ji, has made significant strides, and one of the key sectors which is transforming rapidly is e-mobility. This roadmap, anchored on the seven key principles of Common, Connected, Convenient, Congestion-free, Charged, Clean, and Cutting-edge Mobility, has the opportunity to transform Bharat as we know it and place us as a global leader in driving technology innovation, with a sustainable-first mindset.
The genesis of this transformation lies in the establishment of the National Mission on Transformative Mobility and Battery Storage, a multi-disciplinary initiative aimed at promoting clean, connected, shared, sustainable, and integrated mobility solutions across the country. Through strategic focus areas such as manufacturing, specification and standards, fiscal incentives, demand creation, regulatory framework, and research and development, this mission seeks to create an enabling environment for the widespread adoption of e-mobility solutions.
Moreover, with the approval of the ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ under the Production Linked Incentive (PLI) Scheme, India is poised to enhance its manufacturing capabilities and achieve self-reliance in advanced battery technologies. The electric vehicle revolution in India, driven by government initiatives, reduction in battery costs, and increasing consumer awareness, is poised to transform the automotive industry and contribute significantly to economic growth and environmental sustainability.
As India sets ambitious targets for electric vehicle penetration and infrastructure development, it is imperative to recognize the pivotal role played by key stakeholders in the e-mobility ecosystem. From established automotive giants such as Tata Motors and Mahindra Electric to innovative startups such as Ather Energy and Ola Electric, companies are driving innovation, manufacturing, and deployment of electric vehicles and charging infrastructure across the country.
Let’s explore the transformative potential of e-mobility in India and highlight the key players shaping the electric transportation landscape, as the nation charts a course towards a cleaner, greener, and more sustainable future.
The Electric Vehicle (EV) industry in India is experiencing a significant uptick, driven by favorable government policies and growing consumer demand. With the possibility of 100% Foreign Direct Investment (FDI) and the establishment of new manufacturing hubs, the sector is poised for substantial growth. Additionally, efforts to enhance charging infrastructure and incentivize the adoption of electric two-wheelers through subsidies and discounts on locally manufactured vehicles are further fueling the industry’s expansion. EV sales have surged exponentially in recent years, with a remarkable 2,218% increase recorded over the past three years alone.
This growth trajectory is expected to continue, especially considering projections that the Indian automotive market will become the third largest globally by 2030. With policymakers emphasizing the importance of transitioning to “Shared, Connected, and Electric” mobility solutions, the goal of achieving 100% electrification by 2030 appears increasingly attainable, marking a significant step towards sustainable transportation in India.
Key Focus Areas and Initiatives
The National Mission on Transformative Mobility and Battery Storage places emphasis on key areas such as manufacturing, specification and standards, fiscal incentives, demand creation, regulatory framework, and research and development. These concerted efforts are pivotal in creating a robust policy framework that fosters sustainable and inclusive mobility solutions across the length and breadth of the country.
National Programme on Advanced Chemistry Cell (ACC) Battery Storage
In a significant move to bolster India’s manufacturing capabilities and promote domestic value addition, the government approved the ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ under the Production Linked Incentive (PLI) Scheme. With a budget of INR 18,100 crore, the program aims to achieve a manufacturing capacity of 50 Giga Watt Hour (GWh) of ACC batteries. Four companies have been selected under the PLI Scheme, receiving incentives to bolster local battery cell production.
The Electric Vehicle (EV) Adoption
The electric vehicle market in India has witnessed exponential growth in recent years, propelled by government initiatives, declining battery costs, and increasing environmental consciousness among consumers. The market size surpassed USD 6.87 billion in 2023 and is projected to reach USD ~637.85 billion by 2032, expanding at a significant CAGR of 65.44% from 2023 to 2032. The government aims to achieve ~30% electric vehicle penetration by 2030, aligning with global commitments to reduce emissions and mitigate the adverse impacts of conventional automobiles.
Driving Economic Growth and Sustainability
The automobile sector plays a pivotal role in India’s economy, contributing 49% to the manufacturing GDP and 7.1% to the overall GDP. The government’s 2nd Automotive Mission Plan (AMP) outlines strategies to elevate the industry to world-class levels while adhering to sustainability goals. India’s commitment to the Paris Agreement entails a reduction in emission intensity by 33%-35% over 2005 levels by 2030, necessitating a shift towards electric vehicles to curb pollution and reduce oil import expenses.
Infrastructure Development and Supportive Policies
Infrastructure development is crucial to facilitate the adoption of electric vehicles. Initiatives such as the installation of solar-based EV chargers along key highways, such as the Delhi-Chandigarh highway, demonstrate the government’s commitment to creating an enabling environment for electric mobility. Financial incentives, subsidies, and non-financial perks further incentivize consumers to embrace electric vehicles, driving the transition towards a sustainable transportation ecosystem.
Benefits of E-Mobility
- Environmental Sustainability: At the forefront of the e-mobility revolution lies its profound impact on environmental sustainability. Unlike conventional internal combustion engine vehicles, EVs produce zero tailpipe emissions, thus mitigating air pollution and reducing greenhouse gas emissions. By transitioning to electric vehicles, societies can significantly reduce their carbon footprint and contribute to global efforts to combat climate change.
- Energy Efficiency: Electric vehicles boast higher energy efficiency compared to traditional combustion engine vehicles. EVs convert a higher proportion of the energy stored in batteries into motion, lowering energy consumption per mile traveled. This translates into reduced reliance on finite fossil fuel resources and fosters energy independence, paving the way for a more sustainable and resilient energy ecosystem.
- Cost Savings: While the upfront cost of purchasing an electric vehicle may be higher than that of a conventional vehicle, the Total Cost Of Ownership (TCO) over the vehicle’s lifetime is often lower. EVs have fewer moving parts and require less maintenance than internal combustion engine vehicles, resulting in lower maintenance costs over time. Additionally, the cost of electricity used to power EVs is typically lower than that of gasoline or diesel, offering significant savings on fuel expenses.
- Health Benefits: The transition to e-mobility brings about tangible health benefits for individuals and communities alike. By reducing air pollution and minimizing exposure to harmful emissions such as nitrogen oxides and particulate matter, electric vehicles contribute to improved air quality and public health outcomes. This, in turn, leads to lower healthcare costs associated with respiratory illnesses and other health conditions exacerbated by air pollution.
- Noise Pollution Reduction: Electric vehicles operate more quietly than their combustion engine counterparts, thereby reducing noise pollution in urban environments. The absence of engine noise not only enhances the overall driving experience for EV owners but also contributes to quieter and more livable cities. Reduced noise pollution has been linked to improved mental well-being and enhanced quality of life for residents in urban areas.
- Technological Innovation: The transition to e-mobility has spurred unprecedented innovation in battery technology, electric drivetrains, and charging infrastructure. Advancements in battery technology have led to increased energy density, longer driving ranges, and faster charging times, making EVs more practical and accessible to a wider audience. Moreover, the development of smart charging infrastructure and Vehicle-to-Grid (V2G) technology holds the promise of optimizing energy use and grid stability, further enhancing the viability of e-mobility solutions.
- Job Creation and Economic Growth: The shift towards e-mobility has the potential to catalyze job creation and economic growth across various sectors. From manufacturing and supply chain management to infrastructure development and renewable energy deployment, the e-mobility ecosystem offers a multitude of opportunities for skilled workers and entrepreneurs. Moreover, investments in electric vehicle production and charging infrastructure stimulate local economies and contribute to the growth of green industries.
Technological Advancements
Technological advancements play a pivotal role in driving innovation and enhancing the performance, efficiency, and affordability of electric vehicles. This section explores key technological developments in battery technology, vehicle design and manufacturing, and the integration of renewable energy to accelerate the transition to sustainable e-mobility solutions.
Battery Technology
Battery technology is a key enabler of electric mobility, influencing factors such as range, charging speed, and lifespan of electric vehicles. Advancements in battery technology focus on improving energy density, reducing costs, enhancing safety, and minimizing environmental impact to make electric vehicles more competitive with conventional vehicles powered by internal combustion engines.
Key Trends in Battery Technology Development
Lithium-ion Batteries: Continual improvements in lithium-ion battery chemistry, electrode materials, and manufacturing processes to increase energy density, reduce weight, and extend battery life.
- Solid-state Batteries: Research and development of solid-state battery technologies offering higher energy density, faster charging rates, and improved safety compared to traditional liquid electrolyte batteries.
- Battery Recycling: Implementation of battery recycling initiatives to recover valuable materials from spent batteries and reduce the environmental footprint of electric vehicles throughout their lifecycle.
Vehicle Design and Manufacturing
Vehicle design and manufacturing play a crucial role in shaping the performance, aesthetics, and user experience of electric vehicles. Innovations in vehicle design focus on optimizing aerodynamics, maximizing interior space, and incorporating lightweight materials to improve efficiency, range, and overall driving dynamics.
Key Considerations for Electric Vehicle Design and Manufacturing
- Platform Flexibility: Designing modular vehicle platforms capable of accommodating diverse powertrain configurations, battery sizes, and vehicle types to meet the evolving needs of the market.
- Sustainable Materials: Incorporating sustainable materials such as recycled plastics, bio-based composites, and renewable textiles into vehicle interiors and exteriors to minimize environmental impact and enhance recyclability.
- User Interface: Integrating intuitive user interfaces, connected infotainment systems, and advanced driver-assistance features to enhance the overall driving experience and promote the adoption of electric vehicles among consumers.
Integration with Renewable Energy
Integration with renewable energy sources is essential for enhancing the sustainability and environmental performance of electric vehicles. By harnessing solar, wind, and other renewable energy sources to power charging infrastructure and vehicle operations, electric mobility can significantly reduce greenhouse gas emissions and dependence on fossil fuels.
Key Strategies for Integrating Electric Mobility with Renewable Energy
- Solar-Powered Charging Stations: Installing solar panels at charging stations to generate clean, renewable energy for powering electric vehicles and offsetting grid electricity consumption.
- Vehicle-to-Grid (V2G) Technology: Implementing vehicle-to-grid technology that enables bidirectional energy flow between electric vehicles and the grid, allowing EV batteries to serve as energy storage devices and support grid stability during peak demand periods.
- Renewable Energy Partnerships: Collaborating with renewable energy providers, utilities, and government agencies to incentivize the adoption of electric vehicles and accelerate the transition to a renewable energy-based transportation system.
Unavoidable Challenges for EV Industry
The Electric Vehicle (EV) industry in India is not just reshaping transportation; it’s also creating ripple effects across various sectors, including real estate. With the increasing demand for EVs, there arises a need for infrastructure to support their manufacturing, charging, and servicing. This presents a lucrative opportunity for real estate investors, developers, and realtors to capitalize on the burgeoning EV market.
One of the key aspects driving the convergence of EVs and real estate is the construction of EV manufacturing units and industrial areas. As the demand for EVs grows, the need for manufacturing facilities to produce these vehicles also increases. This demand translates into a need for large plots of land, creating opportunities for real estate developers to invest in and develop industrial zones tailored to the needs of EV manufacturers.
Moreover, the establishment of charging infrastructure is critical for the widespread adoption of EVs. EV owners rely on charging stations to power their vehicles, and the availability of charging stations plays a significant role in influencing consumer decisions regarding EV purchases. This presents an opportunity for real estate developers to collaborate with EV charging companies to set up charging stations in strategic locations such as shopping malls, office complexes, and residential communities. Retail infrastructure development around these charging stations, such as cafes, convenience stores, and entertainment venues, can further enhance the value proposition for consumers, making these locations more attractive for real estate investment.
According to a report by Colliers, the EV industry’s expansion will require substantial land and space allocation. For instance, setting up 110 GWh battery manufacturing capacity by 2030 would require approximately 1,300 acres of land. Additionally, the installation of charging stations would necessitate around 13.5 million square feet of real estate by 2025. These projections underscore the significant opportunities available for real estate stakeholders to capitalize on the growing EV market.
Furthermore, the integration of EVs into the real estate sector extends beyond physical infrastructure development. It also encompasses the adoption of sustainable and energy-efficient practices in building design and construction. With EVs being touted as a more environmentally friendly alternative to traditional vehicles, real estate developers are increasingly incorporating features such as EV charging facilities, solar panels, and energy-efficient appliances into their projects to appeal to environmentally conscious consumers.
Conclusion
In conclusion, the vision for transforming e-mobility in India represents a paradigm shift towards a more sustainable and inclusive transportation ecosystem. Under the visionary leadership of Honorable Prime Minister Narendra Modi ji, India is poised to leverage innovation, policy interventions, and strategic partnerships to accelerate the adoption of electric vehicles and charging infrastructure nationwide.
The establishment of the National Mission on Transformative Mobility and Battery Storage, coupled with initiatives such as the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, underscores India’s commitment to promoting clean, connected, and sustainable mobility solutions. The electric vehicle revolution in India, fueled by advancements in technology, declining costs, and increasing consumer demand, holds the promise of driving economic growth, reducing emissions, and enhancing quality of life for millions of citizens.
As key players in the e-mobility ecosystem continue to innovate and collaborate, India stands at the cusp of a historic transformation in transportation. By harnessing the power of e-mobility, the nation can pave the way for a cleaner, greener, and more prosperous future for generations to come. As we embark on this transformative journey, let us embrace the principles of sustainability, innovation, and collaboration to realize the vision of a sustainable mobility ecosystem in India and beyond.
Harsh Raj is a Counsellor of One Source Consultancy Private Limited.
