A new generation of electric cars is coming
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- Category: Indian News
- Published on Tuesday, 09 April 2013 12:14
- Written by Tejas Joseph
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Biggies eyeing India with hope and trepidation
Word has it that GM is developing a compact pure electric car for the Indian market. The car is likely to be based on the Electric Networked Vehicle (EN-V) concept electric car-a GM/SEGWAY collaboration- showcased in China in 2012.
General Motors was set to launch the electric version of the Spark in collaboration with the Reva Electric Car Company (RECC) in 2012. However GM pulled out of this when Mahindra announced its acquisition of RECC. GM now plans to be an independent entrant with its own brand of electric car for the Indian market.
While this may sound like good news to electric car enthusiasts in India one wonders how long GM's proposed all -electric car will keep the smiles on the faces of its potential Indian owners. The history of the electric car in India has been a checkered one. Apart from the high costs of ownership there were battery and component problems to contend with. It is unfortunate that this initial taste of electric vehicle ownership in India has not been entirely sweet for many. One can only hope that it does not deter new supporters (and buyers) of electric mobility in India.
The GM name may wrought some mileage initially through brand power and its rather well networked retail and service points. But a lot will depend on dedicated services made available to its fraternity of Indian electric car buyers.Batteries – their life,quality and replacement costs – will also dtermine success or failure in the final analysis.
We also ask if the popularity of electric cars should be left to the markets alone to define and influence?. The government's role in influencing public purchasing behavior is markedly absent in India. Unlike in China there is very little that governments have done to promote extensive use of electric transportation either in the private or public realms. A national electric vehicle policy is still hanging,presumably beaten out by the automobile lobby. Additionally a supporting ecosystem (public charging facilities) and legislations (pollution credits, parking fee waivers and other incentives) are also needed to help set the electric ball rolling. This is and continues to remain Indian's biggest barrier to the acceptance of electric vehicles on larger scales. More than being strange it is alarming that India has not as yet woken up to the potential electric transportation holds for its burgeoning masses,crowded roads and polluted cities. What will it take to tip the status quo – a severe fuel crisis or a pollution pandemic..??
In the meanwhile let us welcome GM and hope their electric cars can start a new chapter in the history of electric transportation in India.
Pedal power_Awaiting reinvention
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- Category: Indian News
- Published on Thursday, 28 February 2013 13:43
- Written by Tejas Joseph
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Electric cycles in India : a mixed bag of potential and problems!
Despite the staggering fact that there are millions of cycles on Indian roads (rural and city),cycling is becoming alien to Indian transportation culture. It has been sidelined heavily by the motorcycle that is finding its way into ever growing social segments of Indian society. Traffic congestion in Indian cities makes it hazardous if not impossible for bicycle use in urban areas. The conventional bicycle has become something of a rarity upon Indian city roads. Big Indian cities now witness the queer spectacle of small numbers of bicycle enthusiasts setting out at the break of dawn for a couple of hours of uninterrupted riding in the suburbs and the outskirts before the onset of rush hour. Weekends will see them pedaling out on the freeways that exit their cities. Sadly though Indian freeways do not have lanes for bicycles.
It is this latent interest in sports cycling that keep Indian cycle makers look out for new market niches.
Electric cycles caught the brief fancy of middle-upper classes when petrol prices started spiking from 2010 on. But cumbersome batteries and uncongenial driving conditions keep that potential market from growing faster. The country's biggest cycle makers - BSA and Hero – have taken note of the potential for electric cycles that appeal to a young generation keen on fitness. This is a small but lucrative market and the coming year will see the presence of high end electric cycles priced at Rs.50,000 and above kitted with light, long range,long life lithium ion batteries.
While this segment is believed by the industry to have growth potential, the same cannot be said for the low-end electric cycles currently selling for around Rs.15,000 with poor design and ponderous lead acid batteries. However, a transition to lightweight lithium ion batteries for this segment is under consideratio in a fervent attempt to stimulate this market as well.
The near future could witness the emergence of reliable, rugged and affordable elctric cycles for a large and varied Indian market. Funnily enough, cycles hold out more hope than scooters and bikes in the electric category in India presently.
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Losing spark!
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- Category: Indian News
- Published on Friday, 01 February 2013 07:30
- Written by Tejas Joseph
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Electric two wheelers in India losing markets and public faith.
Contrary to expectations and projections the market for electric two wheelers - or light electric vehicles (LEVs) consisting of electric scooters,bikes and cycles as a category – in India has not been very dynamic these last two years. Galloping inflation in the country alarmingly accelerated fuel prices since 2010. It was one peg upon which ev makers of all persuasions hung their hopeful hats on, assuming it would turn the tide in favor of electric transportation options. Sadly though it has not been the case.
EvFuture spoke to some leaders in the industry to understand the reasons for this downturn. We provide an analysis of some critical factors and an outlook for the future of the LEV market in India.
High costs of ownership
When compared to conventional (4stroke IC ) motorbikes, electric scooters and bikes are still expensive to own and run. Even though petrol prices keep steadily going up, the vast majority of IC motorbikes on Indian roads are still turning out decent mileage for their owners at the end of the day. Electric scooter/bike/ cycle owners on the other hand have to deal with frequent battery breakdowns and replacements,which eat away whatever gains they may have made on not buying fuel like their non-electric counterparts. The pull-back of government subsidies on electric two wheelers in mid 2012 has further added to cost burdens. In short, electric scooters and bikes are not offering the purported economic advantages that they tout.
1st Generation ev technologies
Battery quality has always been suspect in electric vehicles in general.It is particularly true for electric scooters/bikes/cycles in India. These LEVs are mostly all running with first generation lead acid- based battery technology imported from China*. They are notorious for their high costs, recurrent problems and short lifespans. A transition to high quality,long life and environment friendly batteries is imperative if serious customer interest in electric two wheelers in India is to be revived again.
* Interestingly, India is now where China was in 2002 in terms of electric vehicle technology status.
Poor service
Poor after sales service has always been the bane of the LEV market from the start.The Indian motoring public are new to electric vehicles and not very knowledgeable about this medium– their technology,problems,maintenance and spares. With the exception of a handful (the oldest and biggest players) few others offer reliable after sales service support. This lapse, along with the poor quality of batteries, are two of the biggest factors leading to an erosion in customer confidence and loyalty for electric two wheelers since their introduction almost a decade ago.
Government apathy
In marked contrast to China (where the administration is popularising electric vehicle use through policy and promotion), India is unaccountably indifferent on this matter. No worthwhile program has emerged these last two years offering support to the industry or stimulating the market through incentives for the public. A subsidy on electric scooters ( introduced in 2010) has been revoked. It is estimated by the industry that incentives (like subsidies) can positively impact the market. A national policy for electric vehicles is still under discussion. Industry and market watchers believe that there can be no significant up-turns for electric vehicles until proactive policies are passed.Governments play a critical role in nurturing new technologies to maturity. China and many European nations are actively fostering electric vehicles through creating a preferential environment for them through supportive policies and incentives. India is singularly lacking in such visionary thinking to its own detriment.
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To be continued
Losing spark - pt 2
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- Category: Indian News
- Published on Friday, 08 February 2013 15:45
- Written by Tejas Joseph
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Continuing the second and final part of our analysis of the Indian LEV market's poor showing.
Energy crisis in Indian states
In an ironic twist,the surge in fuel prices acros the nation was accompanied by severe energy shortfalls in many Indian states. In the absence of a public charging infrastructure this development seems to have negatively affected the ebike/scooter market. In the case of Tamil Nadu,one of the largest states in southern India and home to one of the country's largest bicycle and electric scooter makers, the power crisis in the different cities of the state was so severe as to visibly dent the ebike market there according to industry reports. Potential electric scooter buyers were thwarted by the 8-12 hour/day power outages experienced in many parts of the state from mid 2012 on.
Bad roads as a market dampener
Again, in contrast to China and the developed nations, the relatively poor condition of Indian roads is not congenial to delicate electric two wheelers. Small town roads and those in rural areas are pot holed and bumpy for the most part. Electric scooters in particular with their small wheels and low carriages find it hard to negotiate deep pot holes and high speed breakers.
Innovation is the key: Designing for rural India has potential
Interestingly those manufacturers who decided to adress these issues (through larger wheel bases and toughened shock absorbers for e.g) are managing to attract a dedicated market proving the point that one size does not fit all. Makers of electric two wheelers in India may have to consider a variety of local factors and conditions in product-building if they are to be sucessful. The electric two wheeler market here is not a readily definable one, nor can it be appeased easily with standard offerings designed in other parts of the world it looks like.
The future, in our estimate, belongs to electric bike and cycle makers who decide to service a semi urban-rural market, which is both huge and challenging. This breed (tiny as of now) of insightful ev manufacturer will be one who deeply understands the needs of this market segment that has to deal with bad roads, power failures and a host of other conditions that make up the daily reality of an Indian motorist. These new markets respond best to product customisation and innovation. Such an approach,in our view, holds the potential to open a new ev chapter for India.
Some Factoids from the current Indian electric scooter/bike industry and market
>. The market for electric scooters/bikes is visibly showing signs of shrinking. An estimated 35,000 units were sold during 2010-2011, which rose to 45,000 units for the following period 2011-2012. The recent revocation of subsidies,debilitating power cuts and increased ownership costs project the market at no more than 20,000 units for the coming period of 2012-2013. This is surely indicative of a critical market downturn.
>. This market can expand to a staggering 100,000 units in about 3 years if the subsidies are reintroduced and a national ev policy is ratified with benefits to both manufacturers and users,says the industry.
>. The current production capacity of Indian electric scooter/bike manufacturers is underutilised owing to a non-responsive market.
>. Upto 60% of vehicle components are being developed and manufactured indigenously,including batteries. This is a significant improvement from two years ago. However,motors and controllers are still being imported by the industry from China owing to cost advantages. The industry has also not made any major R&D breakthroughs either.
>. Good technology - efficent high speed motor controllers and good battery life and range- is absolutely necessary to revive and sustain the electric scooter/bike market.
>. Poor sales have deterred new entrants into the market in recent years. Falling market shares have also caused a revisioning of market policies and future plans for the big players.
>. The most notable players in the electric scooter, bike and cycle segment in India with brand loyalty and product credibility are Hero Electric, BSA, ElectroTherm and Ampere.
Forecast for the future
The question is how long will their leadership continue? In our opinion brand names and reputations have limited influence if they are not complemented with the power of innovation and adaptation to Indian market realities. Governmental support is also a critical factor in the mix serving to decide if India will be ready for the next revolution in transportation when it comes.
(Concluded).. .
The EV Revolution In India: The Remake
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- Category: Indian News
- Published on Friday, 25 May 2012 03:52
- Written by Akash
- Hits: 5197