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Research Project
Title of Project:
Shashank Shekhar
Enrolment No. 590
Batch 2020-2022
Under the guidance of:
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Objectives
To analyse the existing condition of EVs and to increase the penetration the study divided into
certain objectives such as :
Literature Review
Key terms:
1. EV (Electric Vehicle): A broad category that includes all vehicles that are fully powered
by Electricity or an Electric Motor.
2. BEV (Battery Electric vehicle): Also known as an “All-electric” vehicle BEV’s utilize
energy that is stored in rechargeable battery packs. BEV’s sustain their power through
the batteries and therefore must be plugged into an external electricity source in order to
recharge.
3. HEV (Hybrid Electric Vehicles): An HEV utilizes a dual system of electric propulsion
and an internal combustion engine.
4. PHEV (Plug-in Hybrid Electric Vehicles): PHEVs contain a battery that is able to be
charged with an external electric power source, PHEV’s are a mixture of all electric
vehicles and ICEV’s.
5. EREV (Extended-range electric vehicles): Vehicles that have the ability to run on a
gasoline engine if the battery gets low
6. EVB (Electric Vehicle Battery): A battery that is used to power the movement of a
BEV.
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Theoretical background of the study
India is committed to reducing emission intensity up to 33-35% from the 2005 level by 2030 and setting
the 40% non-fossil based electricity generation in the energy mix. This requires radical measures to scale
up the share of renewable energy (RE) besides the ongoing program of 175 GW RE by 2022. The new
targets for RE by 2030 could be in the order of 350 to 500 GW.
Road EVs include an extensive range of vehicles from electric two-wheelers, three-wheelers
(rickshaws), cars and electric buses. In addition, plug-in electric vehicles can be classified into battery
electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). BEVs have an electric motor in
the combustion engine and use electricity from the grid stored in batteries. Plug-in hybrid electric
vehicles (PHEV) use batteries to power an electric motor and liquid fuel such as gasoline or diesel to
power an internal combustion engine or another propulsion source. EVs can go beyond the above-
mentioned technology-based classification and can be classified based on their attributes, such as i)
charging time, ii) driving range and iii) the maximum load it can carry. Of these attributes, the two most
essential characteristics of an electric vehicle of concern to the consumer are: -
1. Driving range (i.e. the maximum distance an EV can run when fully charged)
2. Charging time of batteries (i.e. the time required to charge the battery fully) and Charging time
depends on the input power characteristics (i.e. input voltage and current), battery type, and battery
capacity
India endeavors to be on a energy transition path in the road transport sector. The National Electric
Mobility Mission Plan (NEMMP) 2020, launched in 2013, aimed to shift from fossil fuel-based mobility
to an electric-powered one. The mission set an ambitious target of 6–7 million electric vehicles by 2020.
The impact of subsequent schemes and initiatives by the Government of India, mostly channeled through
the FAME schemes, has been limited in achieving the targets of NEMMP. As of June 2019, just about
2.7 lakh electric vehicles have been sold under the FAME scheme since its implementation in April
2015, including about 1.7 lakh electric two-wheelers. The Government has announced that the country
would shift to entirely electric public transport and 30% electric private vehicles by 2030, lending a
further push towards electrification (Sasi, 2019). Recent data collated by SMEV1 indicates that 54,800
electric two-wheelers and 1200 electric four-wheelers were sold in 2017–18. These figures translate into
a minuscule proportion in terms of the total cars and two-wheeler sales. Electric two-wheelers
constituted an insignificant, 0.002%, in the entire two-wheeler sales in 2017–18.
Similarly, electric cars formed a mere 0.0003% of the total car sales in India for the same financial year
(FY). Considering the total market sales in FY 2016–17 were only 39,000 (electric two-wheelers and
four-wheelers), India has undoubtedly progressed towards electric vehicle adoption, but a slow one
(SMEV, 2017). The sluggish growth as compared to the vision Society of Manufacturers of Electric
Vehicles, India numbers indicates the presence of unforeseen challenges impeding the targeted
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electrification. There is a need to acknowledge that a quick transition, howsoever well-desired, might be
challenging to achieve in the absence of a clear policy, limited understanding about technological
challenges, infrastructural deficiencies, and lack of consumer acceptance and awareness in the Indian
market. Quick technological transitions may also have negative externalities on the job markets. To
enable faster adoption of electric vehicles, it is imperative to understand these challenges.
From a study by Morning Consult (2018), only 23% of grown-ups believe gasoline will power most
motor vehicles by 2050, whereas 44% believe most will be electrically powered. EV sales have sharply
increased from 2013 to 2020, and these sales will likely increase further as investments in EV and
government support increase and their costs decrease. According to IEA Global Electric Vehicle Outlook
(2018), the registration of new EVs rose from 1,11,321 in 2013 to 7,51,490 in 2018, representing an
86% increase. However, they only accounted for 0.8% of the global sales in 2017. Meanwhile, the prices
of EVs have declined significantly. India's electric vehicle market size is expected to reach USD 152.21
billion by 2030. The market is expected to expand at a CAGR of 94.4% from 2021 to 2030.
The growing popularity of electric vehicles prompts the leading automotive manufacturers to launch
electric vehicles in India.
For instance, in October 2019, Maruti Suzuki, a leader in the conventional vehicle market, announced
plans to launch electric vehicles for personal use for the Indian market in the following years. Similarly,
in August 2021, Tata Motors launched the Tata Nexon and Tigor in the Indian market and is expected
to launch Tiago and other models in 2022. As the market continues to evolve and the consumer
preference continues to shift from conventional vehicles to electric vehicles, more and more
conventional vehicle manufacturers are expected to launch electric vehicles in the Indian market, thereby
driving the market's growth over the forecast period.
The outbreak of the COVID-19 pandemic triggered a global economic slowdown. Moreover, the initial
purchase price of electric vehicles tends to be higher than the gasoline-fired and hybrid vehicles, which
mainly restrains the adoption of electric vehicles among price-sensitive customers. However, the Indian
electric vehicle (EV) market was unaffected by the pandemic outbreak. In India, the registration of new
electric passenger cars increased by 109% y/y in 2020, with 5,905 new vehicle registrations noted during
the year. In terms of product, the BEV segment dominated the market in 2020 and is anticipated to value
at USD 116.80 billion by 2030. This can be attributed to the increasing preference of consumers towards
EVs over ICE vehicles and restrictions on vehicular CO2 emissions. The passenger cars segment is
expected to expand at the highest CAGR of around 106% over the forecast period. The growth can be
attributed to increasing investments by the Government in EV infrastructure, along with tax benefits
offered to consumers. The rising popularity of electric vehicles is prompting the leading automotive
manufacturers to launch electric vehicles in India, which is anticipated to create growth opportunities
for the market in the country. Concerns have been raised whether the country will be prepared for the
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ban and shift to electric vehicles. Nevertheless, it seems inevitable that petrol vehicles will become
something of the past; India and the world need to quickly adapt to the prevalence of EVs and the
infrastructure required for them.
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