The Indian EV Revolution has an altogether different flavour

Industry watchers for Electric Vehicles in India fall into two main categories. Wildly optimistic (and thus off late heartbroken) or EV cynics. I prefer to put myself in a third category; that of the quietly confident. ?Allow me to elucidate .

A Bottom-of-the-Pyramid up EV revolution underway

There is a Bottom-of-the-Pyramid up EV revolution underway in India. It is not the top-down “Teslas in every 5-Star Hotel parking lot” envisaged by many and hence not so visible to most industry watchers. The EV revolution in India does not follow the Western model, nor the Chinese model. We are in our own unique way create the Indian Model of electrified mobility.

Western markets have gone electric in a top down fashion. Fancy, expensive cars first and a slow trickle down to democratise the EV. The Chinese jump-started their entire EV eco-system with massive government subsidies. Neither seems to be the case in resource-poor and ROI sensitive India.

EVs in India are getting popular from the Bottom-of-the-Pyramid segments. Human-hauled and animal-hauled transport like rickshaws, carts and cycle-vans were the first to get electrified. Grass-root entrepreneurs put together cheap kits and lead acid batteries to electrify these. These street-modified EV “jugaads” allow the frail or elderly rickshaw pullers to still earn a living in the poorest districts of the country.

Higher up the food chain, three wheeler ToTos or electric auto rickshaws began to proliferate. These are the cheapest cost last-mile transport to rural hubs or as feeders to the Metro Rail and other mass transit networks. These crude contraptions run on Lead Acid batteries and have a short range. However, they still ensure that the operator earns a decent monthly living of Rs. 15,000 a month.

Again grass-root entrepreneurship and start-ups to the rescue. Where there were large numbers three wheeler ToTos, shops sprung up offering swappable lead-acid batteries. Swappable batteries meant extra range and no delays to recharge. This resulted in a 30 to 40% increase in monthly earnings even after paying for the swappable batteries. This also started up the new business of lead-acid battery charging and swapping.

Yet another class of entrepreneurs were empowered with the rise of cheap, low speed electric scooters. E-scooters with speeds capped at 25 km/h do not need any license nor registrations. They enable gig workers to cover further distances and to attend to more clients.

The lady who brought me my Home Rental Agreement was a “Matric pass”, single-mother on such an electric scooter. My signature on a few places on the document, my thumb-print verified via Aadhar and she was done. She headed off to her next assignment covering a territory spanning 40 kms and visiting as many as 30 tenants daily. Her child went to a good school thanks to the hard-working mother and her electric scooter. She could never afford to buy or run a Petrol scooter. Also, it would be a hassle for her to get the driving licence necessary for a Petrol scooter. ?

The next wave of TAAS (Transport As A Service) is already unleashed by companies like Ola and Rapido with bike taxis now shifting to electric. Bike taxis are quick, convenient and cheap for students, new employees and as last mile solutions from public transport hubs. Local governments should enable bike taxis instead of hindering them to pander to vested interests. Allowing bike taxi operators would create earning opportunities for unskilled youth. Micro-loans to female bike taxi operators would empower women to opt for bike taxis as a vocation as well as a safe mode of transport. This model has been operating for decades in dense cities like Bangkok and may be very suited for our crowded cities.

High Mileage, Short Distance Applications

Enough has been written about the electric city buses and last mile delivery. Electric city buses and delivery vans are no longer a curiosity in India. Also, we are seeing more “green plate” Electric taxis waiting for us at the airports and railway stations . EVs will dominate in all high mileage applications where the total distances covered is short, operating within cities and their satellite townships.

Diesel is now rapidly declining in India. Increasingly, high mileage private car users are having to choose between Electric and CNG. An EV makes more sense for self-driven high mileage car owners due to the stop-go nature of Indian urban traffic. Also, the lack of auto transmission options in the CNG offerings means EVs are easier to drive. The case for EVs is stronger as the purchase costs get closer to ICE, with more competitive offerings, improving range and improved availability of fast public chargers.

In Conclusion

EV deniers may still see potential in ICE vehicles or hybrids. But ICEs and hybrids will, at best, see marginal incremental improvements in cost, efficiency or ease of use. In comparison EVs in India have just got started.

EVs will follow the trajectory set by mobile phones in India. Recall how mobile phones went from a rare, expensive luxury to an ubiquitous and indispensable life support for everyone. EVs are following the same path! With the ingenuity of the Indian businesses, today India is the cheapest and most competitive of cell phone markets worldwide. The same players are now applying their best brains and resources to disrupt the EV eco-system in India. Watch this space!