Instead of focusing on mass mobility that consumes huge amount of subsidy, the focus should shift towards two-wheelers: Sohinder Gill, CEO, Hero Electric
Sohinder Gill, CEO of Hero Electric and director-corporate affairs at the Society of Manufacturers of Electric Vehicles, says in an interview with TradeBriefs that India needs a clear road map for the future of Electric Vehicles. Also, instead of mass mobility the focus should be two-wheelers to draw the components industry to the fore. Excerpts:
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How are we placed in terms of achieving our target for 2030 for Electric Vehicles?
The direction is that the government is going to push electric mobility on public transport such as buses, shared mobility to an extent, taxis and e-rickshaws, to get big numbers. These segments will be their focus in addition to some collective buying of cars by government for captive use. However, I believe government should set its priority right. Instead of focusing on mass mobility that consumes huge amounts of subsidy, the focus should shift towards two-wheelers. The government is giving Rs 85-lakh subsidy for each electric bus, rather it would help, if 18 million two-wheelers produced in the country are converted into electric vehicles with much less incentives. It would also help create an ecosystem of components and battery making that would help cars and buses next.
Can you elaborate how it could be done?
Even if we consider 20% of 18 million two-wheelers produced in country are converted to EVs, it would mean around 40 lakh vehicles on the road with minimum efforts and incentives. This will give tremendous filip to components industry as well. Besides, 10,000 buses ordered by ESSL would mean a subsidy of Rs 8,500 crore from the government and dependence on Chinese imports. The economies of scale will allow electric two-wheeler consumers to save Rs 1.2 lakh on fuel costs over a period of five years, the life span of EV batteries.
An electric two-wheeler costs around Rs 40,000 more compared with petrol two-wheelers, but if the industry and the government join hands for a year-or-two to make prices of electric two-wheelers same, it would allow the economy to save on petrol costs. It has been calculated that an electric two-wheeler owner can save Rs 1.2 lakh in fuel costs over five years, as an EV battery lasts around five years.
So, the higher cost one did shell out for buying an electric two-wheeler can be recovered in less than two years.
Do you think we have sufficient charging infrastructure for EVs?
One needs to understand which vehicles require charging stations. For example, two-wheelers do not need extensive charging infrastructure on the road. They only need this in exceptional cases, because once charged a two-wheeler can go up to 70-80 kms, and generally they are not used for more than 40 kms in a day. Therefore, when we are talking about large population of 18 million petrol two-wheelers and if we convert them into EVs, the country does not have to spend too much money and time in setting up public charging infrastructure. All that has to be done is in residential complexes and office spaces, place 5 or 15 AMP sockets where people can just plug-in like a mobile and charge. Most of the manufacturers now have portable batteries so you can just charge them at your desk.
Therefore, two-wheelers is a real story that will unfold now. The government should promote it in a big way because they know that subsidy requirement and infrastructure dependence is low.
The infrastructure for commercial vehicles will catch up once component industries start to pick up following the success of two-wheelers.
How are we planning to deal with the challenge of lithium availability in India?
China and some other countries took the first step and they have almost blocked 50-60% of the lithium that is available in the world. It is too late for India to wake up and do something. Perhaps, the government is leaving it to the industry to go ahead, and try and block some of the deposits that are still available around Australia and Bolivia. Now, it all depends upon these industrialists on how much risk they want to take. However, it would have been good if there was some government involvement in trying to tie-up. More importantly, there is a need for clarity of thought on EVs. Also, with changing technology, there are talks of alternate technologies such as manganese and sulphur ion based batteries, which would not require lithium at all. What is required is a clear road map for future, rest all will follow.
- TradeBriefs Bureau -