An Electrifying Start

The need to reduce carbon footprint has prompted the automotive industry to manufacture Electric Vehicles (EVs). Industry experts forecast that EVs will most likely dominate the automotive landscape in the coming years. As the industry gears up for the next phase of automotive evolution, toolmakers, who have, until now, focused on the manufacturing of components of commercial vehicles, are likely to face the impact. While manufacturing EVs presents new challenges, it also offers a plethora of new opportunities. Toolmakers need to focus on mobilizing themselves if they want to ride high on the e-mobility wave.

Travel bans and economic slowdown during the COVID-19 pandemic may have reduced greenhouse emissions to some extent. However, this only temporarily redresses the climate change issue. “Once the global economy begins to recover from the pandemic, emissions are expected to return to higher levels… As countries move toward rebuilding their economies after COVID-19, recovery plans can shape the 21st century economy in ways that are clean, green, healthy, safe and more resilient. The current crisis is an opportunity for a profound, systemic shift to a more sustainable economy that works for both people and the planet,” highlighted the United Nations on its website.

The adverse impact of climate change has prodded several countries across the globe to stop and think about sustainable ways of living. At a time when several countries are looking for ways to reduce their carbon footprint, Electric Vehicles (EVs) are garnering appeal as the silver lining in the clouds. Compared to vehicles that run on diesel or petrol, EVs emit less greenhouse gases, which make them an environment-friendly option. In fact, a recent World Economic Forum report states that “Norway, Iceland and Sweden are leading the charge, with plug-in electric vehicles accounting for 74.8%, 45% and 32.2% respectively in 2020”.

Now, let’s understand India’s stand on EVs…

According to a NITI Aayog report titled ‘Zero Emission Vehicles (ZEVs): Towards A Policy Framework’, “While many countries have included EVs as an element of transportation policy, their responses have varied according to their stage of economic development, energy resource endowments, technological capabilities, and political prioritization of responses to climate change. In India, a particular set of circumstances which are conducive to a sustainable mobility paradigm have created an opportunity for accelerated adoption of EVs over ICE [internal combustion engines]vehicles.” As per the NITI Aayog report, the circumstances include:

• A relative abundance of exploitable renewable energy resources.
• High availability of skilled manpower and technology in manufacturing and IT software.
• An infrastructure and consumer transition that affords opportunities to apply technologies to leapfrog stages of development.
• A universal culture that accepts and promotes sharing of assets and resources for the overall common good.

In 2017, several news reports quoted Union Minister Mr. Nitin Gadkari saying that he would strive for India to switch to 100% electric mobility by 2030. Additionally, while addressing the virtual ‘Electric Mobility Conference 2020’, organized by FICCI Karnataka State Council, Mr. Gadkari said, “The future is very bright and India has the potential to become the l

argest EV market in the world as the government continues to push for EV adoption.”

EVs in the market

As the government promotes the use of EVs, Indian automakers are skeptical about making the big switch as they are concerned about the economic viability of the move. However, some Indian automakers decided to take the plunge. Let’s take a look at some of their eco-friendly contributions:

Mahindra Electric Mobility Ltd.

Driven by purpose for a tomorrow that is clean, green and technologically connected, Mahindra Electric Mobility Ltd. has rolled out quite a few EVs. Some of them are:
Treo Zor Electric 3-Wheeler Cargo: Last year, Mahindra Electric Mobility Ltd. announced the launch of its new electric 3-wheeler cargo model, Treo Zor, in India. The Treo Zor is based on the proven Treo platform and comes in 3 variants – Pickup, Delivery Van and Flat Bed, said the company’s press release.

e-Alfa Mini electr

ic rickshaw: Earlier, in 2017, Mahindra & Mahindra Ltd. announced the launch of the e-Alfa Mini, its zero-emission, all-new electric rickshaw for passenger movement. The e-Alfa Mini with a 4+1 seating capacity is a complete 3-wheeler designed specifically for Indian conditions, said a press release issued by the company.

eVerito: A year prior to that, Mahi

ndra Electric had in 2016 announced the launch of its innovative new eVerito – the all-electric, zero-emissions sedan. Powered by electric drivetrain technology from Mahindra Electric, the direct drive single-speed transmission eVerito can be charged at home as well as quick charged in 1 hour and 45 minutes through fast-charging technology.

Tata Motors
Tata Motors has been proactively driving electric mobility in the country. To build a sustainable future for India, the company has been working collaboratively on various electric vehicle solutions. Some of them are:

Nexon EV: Redefining the evolution of EVs in India, Tata Motors announced the launch of the Nexon EV, an aspirational SUV for car buyers looking for a connected drive experience with zero emissions, last year. Powered by the cutting-edge Ziptron technology, the vehicle promises zippy performance, an ARAI certified anxiety-free range of 312 km on a single charge, an efficient high-voltage system, fast-charging capability, extended battery life and class leading safety features, said the company’s press release.

Tata Ultra Urban AC electric buses: Expanding its horizon further, Tata Motors then strengthened its relations with the Brihanmumbai Electric Supply and Transport (BEST) and delivered 26 state-of-the-art electric buses last year. The 25-seater Tata Ultra Urban AC electric buses are equipped with advanced features for the comfort of the driver and the passengers like: ‘Lift Mechanism’ that extends an automated ramp for easy ingress and egress of specially-abled passengers, along with ergonomic seats, roomy interiors, utility provisions like charging ports, Wi-Fi hotspot for on-the-go connectivity and wide entry and exit passages. The full-electric buses come with Intelligent Transport System (ITS), telematics system, regenerative braking system, amongst other features for efficient and smooth operations, said the company’s press release.

Tigor EV: Following the introduction of Tigor EV for government and fleet consumers, Tata Motors in 2019 announced the launch of its extended range Tigor EV Electric Sedan, with a range of 213 km, certified by ARAI. It is available in 3 variants – XE+, XM+ and XT+ – for both fleet and personal segment customers. The new extended version offers an enhanced driving range, low cost of ownership, connectivity, comfort of a sedan and zero emissions, informed the company’s press release.

Toyota Kirloskar Motor
Toyota Kirloskar Motor believes that it is imperative to challenge themselves and provide customers with new breakthroughs that not only promises magnificence and comfort, but also contributes to the well-being of the ecosystem. One such breakthrough is:

Toyota Vellfire: Toyota Kirloskar Motor (TKM) unveiled the illustrious Toyota Vellfire, the new luxurious self-charging hybrid electric vehicle in India, last year. The New Vellfire delivers a powerful driving experience while ensuring low fuel consumption and carbon footprint. The new Vellfire engine which is also coupled with two electric motors and a hybrid battery ensures low emissions whilst delivering a delightful driving experience, stated the company’s press release.

Hyundai Motor India Ltd.
As a technology and innovation driven brand, Hyundai is committed to helping build India’s future mobility. The company focusses on delivering ‘Shared’, ‘Connected’ and ‘Zero Emission Mobility’. Some of its contributions are:

KONA Electric: Showcasing the strengths of its SUV model combined with the innovative technology of an electric powertrain, Hyundai Motor Company launched the KONA Electric in 2018. Hyundai KONA is an expression of Hyundai’s advanced technology in eco-friendly mobility. It is a long-range green SUV that offers 452 Kms/charge, said a press release issued by the company.

Hyundai NEXO: In the same year, Hyundai Motor announced the Next Generation Fuel Cell Electric Vehicle (FCEV) – Hyundai NEXO. The HYUNDAI NEXO SUV model spearheads Hyundai Motor’s plans to accelerate development of low-emission vehicles globally. It combines the practicality of an SUV with clean advanced fuel cell technology. This next generation vehicle offers the most advanced technology on the market with various advanced driver assistance systems and the strongest powertrains in the segment, said a press release.

IONIQ: The company also announced the Global Electric Vehicle – IONIQ in 2018. The vehicle reflects Hyundai’s commitment towards clean mobility solutions and future readiness with unrivalled global technology in electric vehicles for aspiring customers without compromising on driving dynamics and performance, said a press release.

Mission manufacturing
At the virtual ‘Electric Mobility Conference 2020’, Mr. Gadkari had called upon the automobile industry to reduce cost of EVs. This, he said, will ensure that the sales go up and, as a result, the industry would stand to gain. He stressed that the quality of the vehicles should also be maintained and felt that with higher output, the automobile industry would be able to cater to the growing market. He also said that Indian manufacturers have the capability to make efficient EVs t

hat can not only create more jobs but also provide opportunities for exports. “e-Mobility is going to be the future mode of transport with greater efficiency and less impact on the environment. Import of crude oil and air pollution are two major concerns for the country. We need to have an integrated approach for EVs,” he stated.

Referring to the NITI Aayog report, Mr. Gadkari said that India needs a minimum of 10 GWs per hour of cells by 2022, which will be expanded to 50 GWs by 2025. “We need to encourage the manufacturing of these cells in India. I urge the industry to think about manufacturing e-batteries in the country,” he emphasized.

As the journey for emission-free vehicles commences, automakers have already taken charge. For instance, to jointly support the EV revolution in India, Mahindra and LG Chem collaborated in 2018 for the Li-ion battery technology. “Under the aegis of this collaboration, LG Chem will develop a unique cell exclusively for India application and will also supply Li-ion cells based on NMC (nickel-manganese-cobalt) chemistry with high energy density. These cells will be deployed in the Mahindra and SsangYong range of Electric Vehicles. LG Chem will also design the Li-ion battery modules for Mahindra Electric, which in turn will create battery packs for the Mahindra Group and other customers,” informed a press release.

Also, in 2020, Epsilon Carbon, an Indian coal-tar derivatives company, announced its plans to diversify into the battery material business to develop and manufacture high-performance and quality carbon products for anode components of Lithium-ion Batteries (LiB). The manufacturing facility has been set up in Ballari region of Karnataka in August. Vikram Handa, Managing Director of Epsilon Carbon, had said: “To make India self-reliant in e-mobility, India is aiming towards establishing manufacturing leadership in the EV space and Epsilon Advanced Material’s manufacturing leadership in graphite anodes will make India self-sufficient for a key raw material for LiB cells.”

Besides these, in April this year, Lohum announced its plans to invest up to INR 250 crore in the next three years to enhance its capacity with plans to foray into electric four-wheeler battery segment, according to a PTI News report. The company, which currently has a battery manufacturing capacity of 300 megawatt-hours per annum, plans to set up a new unit at Greater Noida to take its total battery manufacturing capacity to a ‘gigawatt-hour scale’ to respond to the surge in demand from the electric vehicles segment, added the news report.

Plans in the pipeline
Although some automakers have already begun manufacturing EVs, there are others who are gearing up to join the EV evolution in India. For instance:

Ola plans to launch electric scooters: According to a PTI News report published in April 2021, Ola Electric said it will bring its electric scooter to the Indian market this July; and is working on setting up a ‘Hypercharger Network’ to include one lakh charging points across 400 cities. Last year, Ola had announced an INR 2,400 crore investment for setting up its first electric scooter factory in Tamil Nadu. Upon completion, the factory will be the world’s largest scooter manufacturing facility that will initially have an annual capacity of 2 million units. “And then, we’ll ramp up – over the next 12 months – after the factory is set up…the sale will also start at the same time, so factory gets completed in June, sale starts in July,” the news report quoted Bhavish Aggarwal, Ola Chairman and Group CEO, as saying.

Volvo plans to launch electric car in India: In February this year, PTI News reported that the Indian arm of Swedish luxury car maker Volvo said 50% of its vehicles would be battery operated by 2025 under its global vision plan and the first product ‘XC40 Recharge’ would be launched in the country later this year. Meanwhile, as part of its ambitious climate plan, which seeks to consistently reduce the lifecycle carbon footprint per car through concrete action, Volvo Cars plans to become a fully electric car company by 2030, the company said in press statement issued in March this year. “To remain successful, we need profitable growth. So instead of investing in a shrinking business, we choose to invest in the future – electric and online,” said Håkan Samuelsson, Chief Executive.

Tesla plans India entry: Earlier this year, Tesla CEO Elon Musk confirmed the company’s plans to enter the Indian market, within days of the electric vehicle maker registering its arm in the country. According to a regulatory filing, the firm has registered Tesla India Motors and Energy Pvt Ltd with Registrar of Companies (RoC) Bangalore. The company is reportedly in talks with five states as it explores the feasibility of setting up its manufacturing unit and research and development (R&D) centre in India, revealed a PTI News report.

Bajaj Auto signs MoU with the Government of Maharashtra: In 2020, Bajaj Auto, a global two-wheeler and three-wheeler manufacturer, announced that it has signed a Memorandum of Understanding with the Government of Maharashtra to set up a manufacturing facility on a proposed investment of INR 650 crores in Chakan. “The facility is expected to commence production in 2023. This facility will be utilised for manufacturing high-end KTM, Husqvarna and Triumph motorcycles as well as for electric vehicles starting with Chetak. Under the arrangement, the Government of Maharashtra will facilitate Bajaj Auto in obtaining the necessary permissions/ registrations/ approvals/ clearances/ fiscal incentives, etc. from the concerned departments of the State, as per the existing policies/ rules and regulations of the Government of Maharashtra,” said a press release issued by the company.

Ashok Leyland and ABB sign MoU: Last year, Ashok Leyland, flagship of Hinduja Group, and ABB Power Products and Systems India Limited, signed a Memorandum of Understanding (MoU) in the public e-mobility space, to expand the ecosystem for efficient and greener electric bus transportation systems in India. The MoU outlines a partnership to develop a pilot electric bus based on ABB’s innovative flash-charge technology, TOSA, which tops up the battery in just seconds while passengers get on and off the bus. This avoids the need to take the vehicle out of service for recharging every few hours or having a replacement bus ready, thus minimising the size of the fleet while increasing passenger carrying capacity, informed a press release issued by the company. “We are pushing the boundaries of e-mobility with our flash-charging technology, TOSA, for buses to contribute to a cleaner, greener, and sustainable future. The aim is to provide a zero local emission mass public transportation bus system with high passenger capacity. We are pleased to be working with Ashok Leyland in advancing responsible urban mobility,” said Mr. N. Venu, Managing Director, ABB Power Products and Systems India Limited (ABB Power Grids’ business in India).

Are Indian toolmakers ready?
The EV market in India is likely to touch the over 63 lakh unit mark per annum by 2027, stated a report by the India Energy Storage Alliance. As EVs begin to dominate the manufacturing landscape, toolmakers will face a jolt. This is because the automotive industry has always thrived on making parts for internal combustion engine (ICE) vehicles and EVs do not require components such as pistons and valves, crankshafts, or even the exhaust system, etc., which are used in ICE vehicles. Industry experts, however, believe that every challenge presents an opportunity. The demand for ICE vehicles’ components will not completely end as aircraft, farm equipment, and military vehicles, among others, will require them. A battery-operated system is not feasible to operate these. However, the demand for ICE vehicle components is likely to decrease, they caution.

It is high time toolmakers rise to the challenge and think of ways to move forward. For instance, toolmakers can consider diversifying into manufacturing components for EVs and look at the manufacturing of batteries, battery casings, charging ports, etc., the demand for which is expected to rise over time. For this, they will need to equip themselves with state-of-the-art infrastructure. They will also need to familiarize themselves with the materials and procedures used to manufacture these components. EVs are the future of the automotive industry, say experts. Toolmakers will need to gear up if they want to be a part of the e-mobility evolution.

Written by  Kimberley D’Mello

This article was first published in TAGMA TIMES newsletter