Transforming Indian Mobility – E-Rickshaw & E-Cart
Post lock-down every state government is striving to bring the economy of their state back on its feet. The governments are initiating some policies which are which are long term as well as ecological. The South Indian states are the great contributors to the National GDP. Any initiation by these business hub states are considered to be an impact on national economy.
Last week Telangana Government has initiated the EV Policy with great initiatives & incentives. The EV policy extended the support to the consumers by waiving the taxes & other cess from the road transport department. Major industrialists & auto manufacturers, have welcomed this step of state government. The Telangana EV policy also stressed on sharing the responsibility to various departments. The EV policy is aimed to encourage the purchase & usage of ecofriendly vehicles. The policy is drafted with a vision to attract the consumer & manufacturer. It shall lift the EV industry and overall automotive trade business.
This week the Tamil Nadu Government too initiated a similar policy for the state. The abstract in the policy of the Tamil Nadu government too showcase some incentives. Hence one may find a surge in the purchases of EV in coming months. The EV adaptation by Deccan & Dravida regions will open the a new chapter in the Indian automotive industry. Though the South Indian states were little cautious prior lock-down, but now with state governments initiation, the market has been open for purchase and use of the these ecofriendly automotive.
The market observed a shift by logistic owners & regular suppliers towards the EV earlier post lock down. The logistic industry is operating to optimize the mobility solution and save themselves from the cash crunch they faced during the lock down. Many big players of eCommerce like Amazon, Flipkart, Bigbasket & Swiggy are encouraging their vendors to adapt the EV in their fleet. It is very hard to beat the advantages that EV has over ICE in the last mile connectivity.
Corona might be very harsh in terms of lives & economy but has taught few lessons to humanity and now the people realize that they are not invincible for the acts against environment. Adapting EV shall be a remission for the future.
We pray for the strained victims of Hyderabad flood. Hyderabad has seen the worst flood effect in a century. The experts predict the worst is awaiting in years to come, if proper “ACTION PLAN” isn’t planned & implemented.
One of the factors for the heavy rainfall is due to the environmental change of the city. And the reason for cause is urban air pollution, waste management system and unplanned land encroachments. One need to act on all the factors to control & safeguard the future of the city. The loss of human & property in any way not acceptable. This rainfall has affected the businesses which were striving to withstand post lock-down. The worst part is the self-reliant owners like the street vendors & daily wagers. The infra and logistics business has come to standstill in internal parts of Hyderabad city affecting the overall business transactions.
A study has revealed that as a result of the changes, damages due to flood is going to increase in the coming years.
The urban areas have registered higher temperatures than rural surroundings. The Urban Heat Island(UHI) effect is making an impact on the rainfall patterns in the city. Due to high temperature in urban areas as compared to rural surroundings, cooler rural air converges towards urban area with low pressure,” Dr. S Venkateshwarulu, a geography expert of Osmania University, said.
Now, its time to act. Its not the time to be critic. Its time to be responsible not to show fingers elsewhere. It is time to protect your environment to save the city. Either by curbing the waste management in proper way to keep the lakes & canals clean, using the electric vehicles for urban transit & transportation to control the air pollution or think before buying your property to avoid real-estate encroachment. The Hyderabad businesses and the citizens need to act on these parameters to survive. The Government bodies must see to it. They(Government) need to bring some good initiatives & incentives to make Hyderabad clean, green & a safe city.
It is not just an ACT OF GOD, it is a warning for the mistakes of the past. One needs to rectify before being punished ultimately for the mistakes.
The effect of pandemic had great impact on world’s economy. Even Indian market is facing the wrath of economic standstill because of lock-down, liquidation of cash flow and consumer trust ability post corona. Post lock-down, every business entity is striving to safeguard whatever is left over after the disaster. The human resource, bad debts & channel of trade are the biggest challenges that businesses are trying to cope up with. Over the above mentioned uphill tasks, the adaptability of market and the consumer confidence are the other major quadrants for the business to least sustain.
The Government & other support agencies are already boosting the business sector category wise. But at last, it is always an individual task to boost the own entity. With meagre consumer foot fall, the businesses are not finding it easy to sell their products. Adapt Motors Private Limited, an electric vehicle manufacturer of three wheeler autos have shared some e-mobility solutions to few of their prospecting consumer base – “SHOP ON WHEELS”, a great way to reach the consumer & safeguarding the risk of spreading the COVID19 virus. The model of business might old & existing but there are many segments who have not yet integrated this business model. The promotional product display & pop-up store at various centres would be an eye-catcher for the business stores. The new traders who cannot afford the monthly rentals of store may begin the business with low investment at least running cost. The mobility of the store allows them to cover a larger business ground & demographic of business.
Lets understand the business of a dry fruit trader, who
“SHOP ON WHEEL” is a business model for every business whether it is service/product from a mobile grooming service store to grooming product display store, vegetable cart to chat canteen, book sales store to advertising agency, the reach ability of the business is spread across the target market demographic channel with an ease. It allows business to grab more market as well as sustain in these catastrophic phase.
Adapt Motors team had an opportunity to speak to the prospects and their needs. They supported dream of these service providers & traders by customizing the product to their business requirements. The company envision that the local business can be made vocal only by integrating mobility solution. We invite the business owners to speak to our e-mobility business development experts in regards to their feasible “SHOP ON WHEEL” business model.
The Telangana government has approved a new electric vehicle policy for the state. Under this initiative, 100 per cent exemption on road tax and registration will be provided to the first two lakh electric two-wheelers and first 5,000 electric commercial four-wheelers. This subsidy also extends to 20,000 three-seater electric auto rickshaws. Also included are 10,000 electric LCVs, 5,000 private electric four-wheelers and 500 electric buses.
These cars will be supported by a proposed ecosystem for electric mobility that will include infrastructure such as charging stations and battery swapping facilities.
Unlike the Delhi government’s policy that is aimed to promote EVs as a viable alternative to current forms of urban mobility, the Telangana government’s focus is on developing the state into an EV manufacturing hub. Manufacturers and other industries related to EVs will be eligible for a 20 per cent capital investment subsidy capped at Rs 30 crore. There will also be a subsidy on power tariffs capped at Rs 5 crore while 100 per cent reimbursement of SGST will b provided. This is limited to Rs 25 crores and seven years. The government will also pay the interest costs for these firms, limited to 5.25 per cent for five years and capped at Rs 5 crore. Finally, other exceptions like that on stamp duty will be given.
The state is expecting a Rs 30,000 crore investment to be made in this industry. This should lead to 1.2 lakh direct and 2.5 lakh indirect new jobs. To make this happen, the Telangana government will be setting up two exclusive induatrial parks for EV industries over 775 acres. These will work with the infrastructure already created for the Electronic Manufacturing Clusters at Raviryal and Maheshwaram.
The Telangana and Delhi EV policy show that there are numerous ways that this integration of EVs into our society can begin. For Delhi, the more populist strategy of incentivizing individual to switch to EVs seems more suitable given its critical pollution problems. While for Telangana, this switch can be integrated deeper through all levels of the economy. This may lead to deeper integration but calls for deeper investment with a more long term plan.
There is a need to reduce dependence on the import of lithium ion batteries, one of the key components in electric vehicles (EVs), road transport and highways minister Nitin Gadkari said on Thursday.
“In e-mobility technology, the most imp thing is we should not depend on import the material used to make these vehicles. Our priority is to make all these materials , particularly lithium ion batteries in India,” Gadkari said at the e-mobility conclave.
“We have given mines of lithium ion to two private companies. We expect to get raw material as early as possible. At the same time we are developing technology. We are also doing research on sodium ion technology,” he said.
Lithium cells are the building blocks of rechargeable batteries for EVs, laptops and mobile phones. Currently, India is heavily dependent on import of these cells as the battery metal is available in India. This is also one of reasons why battery manufacturing has not picked up significantly in India even as the finance ministry last year announced customs duty exemption on lithium-ion cells, to lower the cost. Globally, lithium-ion cell manufacturing is dominated by China, followed by US, Thailand, Germany, Sweden and South Korea.
According to the minister, there is a need to make more EVs as higher volumes will ultimately reduce the cost of the product. “It is (electric vehicle) is economically viable as compared to petrol, diesel vehicle,” he said. “In the due course of time I expect people to use it.”
Government of India (GOI) in its Automotive Mission Plan 2016 has laid a vision of ‘safe, comfortable and efficient mobility with an eye on environmental protection and affordability through both public and personal transport options’.
Electric vehicles in India has received little public interest despite being available for a significant period (REVA was launched in 2001), primarily due to the following issues
India currently has roughly 20 cars per 1000 persons, compared to 800 cars per 1000 persons in the United States, creating the growth opportunity but also posing challenges in terms of energy security, and environmental/infrastructure balance. The Indian Auto market size is projected anywhere between 9.8 M(@5.8 % growth) to 13.4 M(@7.5 % growth) cars alone in the year 2026. GOI launched its FAME scheme in 2015, outlining subsidies for EV adoption and bringing focus on four key areas of technology development, demand creation, pilot projects and charging infrastructure. However, the pace of adoption despite the government push failed to meet expectations, primarily due to lack of adequate charging infrastructure along with the high price & low performance of EVs. While the Pace of EV and battery technologies developments forecast a price/ performance parity with ICE vehicles by 2025, the availability of charging infrastructure remains a challenge and key to mass EV adoption.
Telangana was judged as No. 1 state in Ease of Doing Business for 2016 in DIPP rankings. As per a recent report by ASSOCHAM, Telangana surpassed its southern peer states in attracting investments.
To establish Telangana as the benchmark state in India and a showcase model of International standards for Electric Vehicle adoption across segments (personal, shared and commercial), supported by a world-class infrastructure and ecosystem.
The EV policy is targeted to achieve 100% migration to Electric Vehicles by 2030 in Telangana state in alignment with Government of India vision, supported by enabling infrastructure and local manufacturing base for Electric Vehicles and related components
This policy builds upon the Telangana Industrial Policy framework 2014 that defined the Auto Sector as one of the priority sectors. However, considering the current shift in the Auto Sector towards Electric Vehicles, special status is accorded here to EV and EV component Industry. Both demand and supply side is assigned equal importance for policy support as demand is key to establishing an EV ecosystem.
10.1.1 EV in Shared Mobility
10.1.2 EV in Public/Institutional Transport
10.1.3 EV in Corporate Transport, Hospitals and Educational Institutes
10.1.4 EV in Freight Transport, Logistics & Delivery Services and other applications
10.1.5 EV for personal mobility
10.2 Supports for Charging Infrastructure
10.3 Supply Side Incentives:
The Government will provide benefits/incentives, depending upon the scale of investment as per the categories defined in MSMED act 2006 and Telangana Industrial Policy framework 2014. Investments beyond 200 Crores will be treated as Mega Projects and will be offered tailor made benefits
10.3.1 Infrastructure Support:
EV Cluster: A designated EV cluster spread over 1500-2000 acres catering to EV/EV component manufacturing for two wheelers, Cars, Buses & Trucks will be integrated with the Automotive Park plan. The EV cluster will have common facilities specific to the requirements of EV units, as given below
An Automotive Suppliers Park(ASP) to improve the logistics competitiveness for the units
Built-Up Space with ready factory sheds will be developed to be used mainly by MSME units.
a) Automotive Electronics Cluster: An Automotive Electronics Cluster will be developed within the proposed Electronics city near Hyderabad where Special status and incentives will be accorded to units manufacturing electronic components including batteries cells/Packs for Electric Vehicles.
b) Land: Allotment of land will be carried out across three categories:
c) Industrial Water: Government has earmarked 10% water from all existing and new irrigation sources for industrial utilization. Water will be provided at subsidised rates to Mega Projects
d) Industrial Power: 24*7 Power supply is a norm for Industrial units operating in Telangana State. Furthermore, Power Tariff Subsidy and duty exemption will be extended to EV units in the state.
e) Support Infrastructure: Support infrastructure like roads, power and water will be provided at door step of the industry for standalone units through Infrastructure assistance under IIDF
f) Environmental Infrastructure: In the Auto Parks / EV Clusters, Government will facilitate the development of a Common Effluent Treatment Plant (CETP)/Sewage Treatment Plant (STP) in PPP mode by engaging experienced firms.
10.3.2 Research & Development:
Considering that the EV technologies are fast evolving, the need for Research & Development is key to accelerate the parity point of price/performance with ICE vehicles. It will also help develop solutions as per local operating conditions and local supply chain considerations.
The availability of quality manpower in good supply is key to supporting any Industrial operation. The state will identify nature and quantum of the skill set required by the institute to develop and execute training programs on EV design, development & manufacturing through various channels
10.3.4 Battery Cell Manufacturing and Assembly Promotion
Manufacture and assembly of Advance* batteries will be encouraged in the State by means of special status and incentives.
*Lithium-ion and other battery chemistries with an energy density higher than the Li-ion battery
10.3.5Charging/swapping Equipment Manufacturing Promotion
Development of a charging network is dependent on the quality supply of charging/swapping equipment &machinery.
10.4 OTHER POLICY INTERVENTIONS
Things have changed post covid19 unlock. The awareness about health, hygiene & habitat has exponentially increased & community are adhering these as essentials. New business agenda are set & every business has adapted essence of need to protect the surrounding to be safe. The Logistic EV wagon manufacturers have even brought in some attractive option for anyone who is looking for better cost optimisation & add their brand in ecological friendly business.
Why are the EVs viable & attractive options?
Making it easier to purchase
As a layman or a business tycoon, it is always a priority to maintain the suitable investment & running cost of the business. The special incentives & initiatives by the Government of India as well as various state governments have made the fuel vehicle a serious no-no for most of the business/owners. The exemption in taxes makes the EVs a viable and highly attractive option for the logistics.
An optimised logistic solutions
In my experience, most merchandise/ business don’t currently have company fleet for logistic. This is because they don’t want to divert & take trouble of fleet management. With EVs now a more viable alternative, it’s possible to get the high-yield logistic you want, but within the range of business.
Removing fuel based fleet within the campus or hub range for zero-emission e-cart/e-rickshaw is a game changer. EVs suddenly has become a great option for anyone looking to purchase an efficient solution for their business logistic, while also removing the harmful emissions from ICE automobile, making your commute more environmentally sound.
If you want an efficient commute, it’s a no-brainer to opt for ease to drive & economical viable EVs. Under the new rules from the Government of India, you could buy Adapt Motors’ SWEEKAR model for Hundred Thousand Rupees only, which is far lesser than any Fuel-engine goods/passenger carrier that inreturn incur tax and costs that would make purchasing one as a company vehicle totally impractical, but by going the EV route, you get the same performance with more efficiency.
Driving down your carbon footprint
Of course, the lower tax costs & cost of the vehicle are not the only reasons for choosing an EV. In 2020, with climate change high on the agenda, there’s a pressing need for all of us to become more environmentally friendly – and choosing a more sustainable vehicle is key to this. The awareness created around due pandemic situation & responsibility among the individual to contribute to the society is also a driving factor for implementing e-mobility solution for business.
The Government is doing the right thing and promoting the use of EVs to help lower carbon emissions and meet the India’s sustainability targets. And by making use of these new incentives, you can do your bit to lower your own carbon footprint. It’s now not just your contribution but even your responsibility & would replicate your business attitude towards society.
Leasing, buying or financing your EV
Choosing the best way to finance your new performance EV can seem like a complex task to begin with. Knowing whether you’re better off buying the vehicle outright or leasing it through the business is a big decision and something where professional advice is a definite bonus.
At Adapt Motors, we can help you understand the EV opportunity and make the most of buying or leasing a desirable EV through your company.
Our advisors can help you:
Now’s the time to switch to an EV
Choosing a new EV as your company vehicle is a great opportunity, but one where professional advice will help you gets more value from your new vehicle. By taking the EV route, you can end up driving a highly sustainable performance vehicle, that meets your goals as an owner and is also more economical to finance and run than a similarly speed ICE vehicle.
The Adapt Motors is a good starting point for narrowing down your choice of vehicle. Talk to us about your EV options and the opportunity for purchasing high-spec sustainable electric passenger/goods carriers. Find our E-mobility solutions at Adapt Electric .