India is picking pace in the EV market but is it sufficient to make a global mark. What is the gap?

“We have the talent, the capital, a large domestic market… Our upcoming scooter brings together innovation across critical components like vehicle software, motor, battery as well as the vehicle computer, all made by us in India,” says Bhavish Aggarwal, Group CEO, Ola.

We see good traction in the Electric Vehicle (EV) sales, the data shows we have achieved a good 88.2% (Y-o-Y) increase in sales. Good motivational element for the EV manufacturer, especially for those start-ups who sensed the potential in the market 5-8 years ago such as Ather Energy, Ola Electric, Ultraviolette Automotive, Tork Motors.

Key components of an electric vehicle and their respective cost contribution are the battery (35%), Drivetrain (25%), Chassis & Body (20%), and Systems, Equipments, other components (20%). We will be able to offer value to end customers and vehicles at an affordable price by optimizing our cost structure.

“The strongest thing that we have been able to crack is that our cost structure for the powertrain and the connectivity part of the vehicle is likely the cheapest in the Indian Market” – says Tarun Mehta, CEO, Ather Energy.

The battery is a major cost contributor that determines the cost of EV production. We predominantly import Lithium, a rare metal critical in building batteries for electric vehicles. Approximately 85% of the total battery production happens in China, Chile, and Australia. We have found the reserves of Lithium in Mandya a city near Bengaluru, Karnataka. The government has taken initiative to invite big players such as Tesla to support local manufacturing.

Electronic systems that empower vehicle data capture, usage, analysis, and continuous improvement also have to go through stringent validation to ensure the radiations are not affecting other electronic systems around it. There is a huge gap in the test infrastructure, instrumentation, and skilled manpower that ensures the system is compliant with stringent norms that are mandatory. Automotive Research Association of India is playing a key role in helping the automobile industry to sail through this validation or compliance journey.

As a nation, there is a long way to have robust infrastructure to support the promising EV industry driven by start-ups. There is a shortage of Anechoic chambers in the nation that is used to conduct EMC/EMI tests. Every component or sub-system that uses wireless communication has to go through the EMC/EMI tests. Manufacturers/electronic product developers have to wait for the slots at the test houses with a lead time of 3 – 4 weeks.

As we focus our efforts to replace internal combustion engines with electric vehicles, I see a silver lining that we will have safe and fresh air to breathe and leave behind a better place for our next generation.