The recent high-profile acquisition of a small electric car company by an auto giant seems to have electrified the industry, which has been experiencing robust growth. As the world seeks solutions to high polluting and increasingly expensive fossil fuel transportation, electric vehicles could offer a viable solution.
"But where is the electricity?" people ask as they grapple with power cuts in the midst of a scorching summer. Whether it makes the power availability worse when everybody plugs their car into their home is a legitimate worry.
Why would the Delhi government even consider deploying electric vehicles with these constraints? In March this year, Delhi chief minister Sheila Dikshit discussed a plan to promote electric vehicles (EVs) as a mode of transport. Along with promoting efficient public transport, this could be an appropriate solution to increasing urban air pollution and severe congestion, which is also driving up greenhouse gas emissions and turbo-charging India's fossil fuel import bill.
Given the Indian economy's unhealthy dependence on fossil-fuels, over 70% of which has to be imported, any technology that helps phase out oil-dependent forms of transport should be seriously considered. EVs not only provide cleaner environment, but also reduce the dependency of the transport sector on imports and price volatility of fossil fuels. The energy efficiency of EVs is 46% higher than internal combustion engines (ICEs). They also have the potential to reduce carbon dioxide emissions by 13-68% compared to ICEs. With the help of advanced V2G (vehicle-to-grid) technology, deployment of electric vehicles can directly decrease the emissions of carbon dioxide and other pollutants within a vehicle's lifecycle, which will significantly relieve air pollution in cities. Through peak-shaving (sending power back to the grid when demand is high), EVs can also indirectly reduce carbon dioxide emissions.
Key technologies such as batteries, electric motors and motor controllers are still undergoing improvements, along with manufacturing techniques of lithium-ion batteries, including material, battery design and process control . The key performance indicators of batteries, such as power output, longevity, consistency and safety, can still be further improved, and the apprehensions of electricity shortages can be managed by ensuring that cars are charged at off-peak hours.
Given the uncertainty around the global economy and, post-Copenhagen, political direction on climate change many are advocating a wait-and-watch policy. However, India's auto market is showing robust growth of over 20%. Can it afford to slow down as the world searches for sustainable and low carbon solutions to a fuel guzzling pathway?
China doesn't seem to think so, and its going about developing its electric vehicle market in right earnest.
"Electric vehicles are driving economic growth and providing a radical solution for the energy needs of transportation," said Wan Gang, China's Minister of Science and Technology in November 2009. "The Chinese government actively promotes EV development, by providing more funding and favourable policy to EV related infrastructure construction and investment," added Wan Gang.
Many more nations are increasing their efforts in commercialising EVs. A meeting to help fast-track global development of electric vehicles was convened by Climate Group. A group of 25 mayors and heads of regional governments, policy-makers, manufacturers and bankers from over eight countries met in Copenhagen on the sidelines of the UN's climate talks to discuss electric vehicle development around the world.
The Indian government too has initiated moves towards a policy on EVs. In April this year an inter-ministerial group was created to conduct a feasibility study and frame a policy by the end of the current fiscal year. At present 4% excise duty is levied on production of EVs, while components attract 10%. Imported EVs are charged 14% duty.
Despite the constraints, electric scooters and small buses, much more than cars, are becoming popular in Indian mega-cities like Delhi & Bangalore. Many auto manufacturers have either already launched or gearing up to launch EVs in India.
Given India's abundant sunlight, the electricity required for EVs has the potential to be produced from various natural sources like solar energy. India's established auto component manufacturing infrastructure, modest manufacturing and R&D costs, high urban congestion and the presence of a large domestic market could make it a significant global player in electric vehicles.
