The passenger car market saw a major decline in sales in 2020. Increasing awareness towards climate consciousness and a ray of hope of revolutionizing possibilities, have convinced car buyers to switch to electric vehicles instead. Surpassing the hindrances of the pandemic, the EV segment witnessed new highs in sales in 2020, worldwide. It is reported that the global sales of this new – gen car segment increased by 39% YoY, to more than 3 million units.
Is India EV ready?
In India, around 3 lakh units were sold in 2020. (total of two-wheelers, three-wheelers and cars) Since this is a budding industry, some more time would be needed to establish the overall framework. Presently, only a few banks are offering loans on EV purchases, that too on selected models only. Many people would even be unaware about the existence of electric vehicles itself. However, the Government outlook is positive, and a lot is being done to increase awareness and build suitable infrastructure. The GOI has set an impressive target of making India a complete EV nation by 2030.
Beginning of a transformation
The transition from the old to the new version of driving, involves drastic challenges – setting up charging stations within short distances, installing charging stations at home, manufacturing batteries and dealing with different variant of chargers suitable for different vehicle types. But, with challenges, come beautiful outcomes. Many countries around the world, including the US and China, have made announcements to achieve ‘net zero emissions’ within the coming decade. ‘Net zero’ means that all the greenhouse gases that are emitted from the engines will be cancelled out by absorbing the same quantity from the atmosphere. In November this year, the 26th UN Climate Change Conference is to be held, which will be attended by many cities and private companies. They have but one aim – removing as much carbon dioxide that is produced from the environment, by 2050. Electricity does not produce CO2 and hence is the key to “decarbonisation”.
No-pollution electrics are the future. Here is a list of some of the EV models that are available in the market :
Are EVs cheaper?
Though it is believed that the lifetime cost of running an EV would be much less as compared to the internal combustion engine cars, it actually depends on the part of the world you live in. Since the price of fuel varies from region to region, the fuel cost saved on transitioning to an electric vehicle would also be different. A lot of people in India are hesitating before buying an EV because of it’s comparatively high price. Ola Electric is trying to solve this problem.
About Ola
Ola Electric is a subsidiary of Ani Technologies Pvt. Ltd., founded by Mr. Bhavish Aggarwal. In May, 2020 it acquired Amsterdam based Etergo BV to enter the global two- wheeler market. Ola Electric raised Rs.300 crore from Ratan Tata, Matrix Partners and Tiger Global. It is also backed by a $250 million funding from Softbank at a valuation of $1billion. This is Mr. Aggarwal’s one more unicorn.
Futurefactory and Hypercharger
Ola Electric’s website tells us that the company is setting up a Future Factory in Tamil Nadu spread across 500 acres. This plant would be two- wheeler production plant. It will have a production capacity of 10 million and have more than 3000 robots. They are not just setting up a factory, but a town in itself. Supplier parks have been created so that procurement of raw materials becomes easier and cheaper. OE is looking to generate an investment of Rs.2400 cr and employ 10,000 people over the years.
A tech service company to enter into manufacturing, is amazing in itself. If the Tamil Nadu plant wasn’t enough, Ola Electric is also creating a hyper charger electric network that is said to be the world’s largest two wheeler charging network. Already spread across 400 cities and with more than a lakh charging points, Ola claims that its scooter gives a 75km range in 18 minutes. They started to go ahead with 2 wheelers because people mostly use them for personal mobility. The founder believes that transformation is possible only when manufacturing is done on a large scale. Large scale would take down the costs drastically. It is said that the scooters would be in the price range of Rs.95,000 – Rs.1,00,000.
Ola : The Complete Package
It is not just manufacturing vehicles, they have also invested a lot of time and money in building their own technology. They will have their own battery packs and battery management system. Their own motor control unit and vehicle computer. They are giving the customers a lot of products to choose from. Europe as an export market would be catered to first, and then they would target the rest of the world as well.
A global design centre for it’s electric car division would be set up in Bengaluru with all the equipment present. To curb the problem of shortage of power stations, it has a plan to provide customers with home charging equipment.
Wayne Burgess, former Jaguar and Aston Martin Executive, was appointed by Ola Electric as the VP of Design. That is the level of sophistication we can expect from OE.
Around the world
Italy is constructing an inductive motorway for EVs. A 1050 meter asphalt ring is being set up so that contactless charging of EVs can be carried out. It is called Project Arena del Futuro and around 14 companies have come together to execute this plan.
Meanwhile, Honda is planning to electrify 2/3rd of it’s global automobile unit sales by 2030.
Ford and BMW are investing $130 mn in Solid Power. This company is developing sulfide solid state battery technology.
People are innovating all around the globe. Ways to get better mileage, longer battery duration and cheaper production. Amidst so many things happening, the consumers are sure to benefit from it all.
This post was written in collaboration with Asif Yahiya Sukri LLP. Asif Yahiya Sukri LLP provides unparalleled personalized financial services to a broad range of clients across different geographical locations. With a presence in the USA, India and the MENA region, they ensure that all of your financial decisions are made carefully and with your best interests in mind. They are innovators who understand what goes into building companies.
You can also reach out to them on info@aysasia.com
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