By Vansh Sangwan - May 26, 2021
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New Delhi7 hours ago
The electric vehicle industry is coming up rapidly due to the not out century of petrol price and the government’s planning on e-vehicle. Investment in the country’s e-vehicle industry is also increasing. Ola Electric’s founder Bhavish Agarwal has also stated plans to set up the world’s largest electric two-wheeler factory at Krishnagiri in Tamil Nadu. These are also auspicious signs for the economy of the country which is devastated by the Kovid-19 epidemic.
Most of the country’s automobile companies are now vying to make e-vehicles. These are all working with a higher range mission at a lower price. However, until three years ago no one knew that the country will move rapidly towards building the world’s number one e-vehicle hub in the coming days.
11 models of electric two-wheeler launched in 2021
In the first 3 months of this year, 11 models have been launched in the electric two-wheeler segment. These include models of many popular companies and some startups. Goa startup Kabira even made India’s fastest running e-bike. Many models are still in preparation for launch. Overall, this year will be better for the e-vehicle industry.
Country ready for lithium-ion battery production
Union Minister Nitin Gadkari has said that the manufacturing of lithium-ion batteries used in e-vehicles will begin in India within six months. In the coming times, the country will be the first in terms of manufacturing of battery-powered vehicles. We have no shortage of lithium.
Estimated 12.8% growth in electric two-wheeler by 2024-25
If we look at the last 6 figures released by the Federation of Automobile Dealers Associations (FADA), the e-vehicle segment has grown seven times, but these figures are quite small. According to JMK Research and Analytics, the share of electric vehicle in the two-wheeler market will increase to 0.8% in 2020-21. At the same time, the growth is estimated to be 12.8% in 2024-25. Electric two-wheeler demand is expected to come in both personal and business.
Research from analysts at Motilal Oswal Financial Services suggests that electric two-wheelers will be 10–20% cheaper than petrol vehicles. The main reason for this is the fall in prices of lithium-ion batteries due to large factories in China.
Lithium-ion battery prices reduced by 89% per kilowatt-hour
A drop in battery costs can significantly reduce the cost of an electric vehicle. According to McKinsey estimates, this typically accounts for about 40% of the cost of material inputs. According to Bloomberg NEF, lithium-ion battery pack prices have fallen 89% from $ 1100 (about 80 thousand rupees) per kilowatt-hour in 2010 to $ 137 (about 10 thousand rupees) per kilowatt in 2020. It is expected to reach $ 101 (around Rs 7300) per kilowatt-hour by 2023.
By 2030, there will be a big drop in battery prices
The government is providing subsidy on electric vehicles in India through the FAME-2 scheme. Battery prices may fall to $ 58 (about Rs 4200) per kilowatt-hour by 2030. For example, the adoption of solid-state batteries. Bloomberg NEF said last year, battery prices had fallen 13% from 2019 levels due to growth in order size, growth in EV sales and introduction of new pack designs.
China holds 72.5% of global battery production
China tops in investment in battery production. According to a study by the Oxford Institute for Energy Studies, 136 out of 181 battery mega factories are located in China at various stages of planning and construction. According to Benchmark Mineral Intelligence, China accounts for 72.5% of global battery capacity. Even when total battery capacity increases an estimated six-fold over the next 10 years, China will retain a 67 percent share.
There may be a partnership between the electric two-wheeler manufacturer and the battery cell manufacturers. Volkswagen and General Motors have done exactly that in Europe and America respectively. India can also benefit from this, as investors are now turning to the Indian market for EVs.
More charging stations will strengthen EV base
Demonstration of trust in electric vehicles has begun in India. This confidence can be strengthened by increasing the number of charging stations. Research by McKinsey suggests that an EV included in the e-commerce fleet will run 90–100 km per day. Whereas, the EVs included in the food delivery fleet will run 120–130 km per day.
Some electric two-wheelers are promising 90 to 100 km range on a single charge. In such a situation, some special category will be required for the charging station. The Government of India allocated Rs 1,000 crore in 2019 to set up charging infrastructure under its FAME scheme. Now Ola is going to set up the world’s largest electric two-wheeler factory in India. She said she would set up 100,000 charging stations in 400 cities over the next five years.