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Tag: mobility

  • Raptee aspires to address low e-motorcycle adoption in India • EVreporter

    Click here to watch the Podcast video

    Raptee.HV recently launched its first electric motorcycle, T30, priced ex-showroom at INR 2.39 lakhs. Deliveries are expected to start in Chennai and Bangalore in January 2025. Raptee is currently operating out of a 4-acre facility in Manapakkam, Chennai. The company has also acquired 40 acres of SIPCOT land in Cheyyar for expansion.

    In this interaction with CEO & Co-founder Dinesh Arjun, we discuss T30’s high-voltage architecture (240V DC), use of CCS2 protocol to leverage the growing electric car charging network, vertical integration and in-house development of electronic components.

    Can you briefly discuss the vision and design thesis behind the T30?

    We wanted to understand why electric motorcycle adoption has struggled to gain traction. While we have seen many electric scooter brands emerge and people adopting these products, the motorcycle industry is significantly larger than the scooter segment. Yet, electrification in motorcycles hasn’t progressed as much.

    This challenge drove our mission. We discovered that the existing architecture of current electric scooters has limitations that prevent them from delivering the power needed for a motorcycle. As a result, many products either underperform or others become prohibitively expensive for buyers.

    We aimed to bridge this gap, which led to the development of our high-voltage drivetrain. We are building the world’s first—high-voltage drivetrain- motorcycles specifically designed for the commuter and premium commuter markets. We aim to make e-motorcycles a viable and more enjoyable alternative to petrol motorcycles within this price range.

    Who is the target customer for this motorcycle?

    Our first target group will be those seeking motorcycles in the 250 to 300 cc range. We aim to offer competitive pricing while delivering better performance.

    This group includes individuals looking to buy their first motorcycle in the mid-premium range and those currently riding 125 to 200 cc bikes for the last 3 to 5 years who are looking to upgrade.

    Can you help us understand what does a high-voltage architecture entail?

    Currently, most electric 2Ws operate on low-voltage architecture, which ranges from 48 to 72 volts. This architecture has largely been borrowed from Eastern markets like China, where these products are common. While suitable for certain power levels, many electric scooters today are pushing the limits of physics to achieve their power output from low-voltage systems.

    When you compare the power of petrol vehicles, an average petrol scooter produces about 8 horsepower, while an average petrol motorcycle delivers around 18 horsepower. This significant jump in power makes it impractical to use a low-voltage powertrain to achieve similar performance. If you attempt this, you end up generating excessive heat, wasting energy, and making thermal management challenging.

    A decade ago, electric cars faced similar issues. Small electric cars operating on low voltage were not practical alternatives. Electric cars are now built on high-voltage systems, typically around 300 volts. We are bringing this change to two-wheelers as well.

    The advantages for customers are threefold:

    • Performance: Our vehicles will deliver performance and riding enjoyment comparable to petrol-powered vehicles, not just in short sprints but consistently over time.
    • Longevity of Components: With less heat generated, thermal wear and tear on components is significantly reduced, which means our components are expected to have a longer lifespan. We plan to offer an 8-year or 80,000-kilometer standard warranty on our motorcycles.
    • Unified Charging Standard: Electric cars in India use a DC charging standard called CCS2, but there is no unified standard for electric 2Ws. Each brand has its proprietary plug, which complicates charging options for customers. They often have to rely on a limited number of charging points or carry a 5 to 8-kg charger wherever they go. Our high-voltage architecture can leverage the existing electric car charging infrastructure, making charging convenient. 

    About 13,000 CCS2 chargers are currently available in India. From day one, our customers will be able to take advantage of these chargers, allowing them to charge their motorcycles from 20% to 80% in under 36 minutes. This effectively eliminates range anxiety as a concern for our users.

    We understand there are some standardisation efforts in play for fast charging of electric 2Ws with Type 6 and Type 7 connectors. Why not opt for one of those?

    The Type 6 plugs and other alternatives currently have fewer than a hundred chargers installed, and they are still evolving. Most of these chargers are found at specific manufacturer outlets and are not widely accepted yet, making it unclear which standard will become the default.

    On the other hand, CCS has already become the mandated standard for electric cars in India, and it’s not going away anytime soon. Mr Gadkari has announced plans to double the CCS chargers by the end of the financial year. More importantly, CCS is a relatively future-proof standard. We believe there’s no need for a new standard to emerge, and even if it did, it would take a long time to gain traction. Since CCS already has a robust infrastructure, leveraging it is an optimal solution.

    Additionally, by adopting CCS2, we can help fill utilization gaps at these charging outlets.

    What would be the charging speed for AC and DC charging?

    We can currently take 3.3 kW for AC charging. This allows us to get from 20% to 80% in roughly 64 minutes. DC charging takes under 40 minutes to go from 20% to 80%.

    The goal is that at home or the office, you plug it in for a couple of hours—ideally 2.5 to 3 hours—and then your battery is fully charged. When you drive into a DC fast charger, plugging it in for 15 minutes will give you about 50 kilometres of range.

    Could you provide a breakdown of the components you have developed and manufactured in-house vs sourced from outside vendors?

    A significant portion of our electronics is developed in-house. We manufacture our motor controllers, battery management systems, chargers, and vehicle control units internally.

    We are arguably the most vertically integrated EV OEM in India today.

    This level of integration wasn’t just a choice; it was necessary because we are introducing high-voltage technology at a cost point that hasn’t been seen before globally. We couldn’t find anything suitable for our needs when we looked for components, including in China and Europe.

    Additionally, we manufacture our battery packs in-house, which is critical for us. We hold significant intellectual property regarding how these packs are assembled and designed, and we have a strategic investor who assists with manufacturing our electronics.

    The electronic components are designed and developed internally. We have a contract manufacturer who works with a strategic investor to produce them in Mysore.

    How do you plan to address after-sales support?

    We are approaching after-sales service differently. Currently, the traditional automotive business model ties service targets to dealerships. Our strategy involves separating sales and service operations. While we’ll maintain one or two service bases at each dealership for customer needs, most service will be conducted away from sales counters.

    We are adopting a model similar to white goods, where periodic maintenance is performed at the customer’s doorstep. We have partnered with third-party vendors trained by us to handle replacements and necessary periodic maintenance. In cases of major component failures, we’ll pick up the vehicle from the customer’s location and transport it to central service hubs for repair.

    This approach also addresses the challenges of servicing high-voltage components at multiple locations, enhancing safety and allowing us to consolidate our infrastructure in each geography. Each area we enter will have one primary service hub supported by multiple touchpoints, ensuring efficient and effective service for our customers.

    You already have a manufacturing unit in Manapakam, Chennai. Additionally, you have acquired land in Cheyyar for expansion. Can you share the current scale and your plans for future expansion?

    Our current facility spans approximately 4 acres in Chennai and is conveniently located near the city centre. This campus houses our R&D, manufacturing, and distribution teams, allowing seamless communication among teams to deliver an excellent customer experience. The maximum production capacity we can achieve at Manapakam is around 9,000 units per month, equating to about 108,000 units annually. Currently, we are operating at a production capacity of 1,500 units per month.

    Once we reach about half of our peak production capacity, we plan to transition to our next facility in Cheyyar, with about 41 acres allocated for expansion. Our initial production phase will remain here in Manapakam for the first two years, and later we expect to move production to Cheyyar.

    You have already raised $3 million in pre-Series A and secured a grant from ARAI. What does your next round look like, and how do you plan to allocate those funds?

    Our previous amount was actually $4.1 million. The PR came in before the other funds hit the bank, so we didn’t mention it. We have raised about $5 million in equity and grants.

    We are in the midst of a $19 million funding round, with a significant portion expected from our existing investors. We are backed by two deep-tech VCs and several family offices in the manufacturing and transportation sectors. This funding will primarily increase production capacity and ensure our motorcycles reach customers.

    Also read: Raptee.HV unveils e-motorcycle, T30 priced at ₹2.39 lakh

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  • India’s Auto Parts Industry Poised To Cross $80-Bn Revenue In 2024-25

    Mumbai: The revenue of India’s automotive components industry is expected to cross $80.1 billion in FY2025 while exports have already touched $21.2 billion, according to B2B risk management consultancy Rubix Data Sciences.

    While the country’s production of automotive components has been growing at an 8 per cent compound annual growth rate (CAGR) since FY2020, exports have recorded a CAGR of 10 per cent during the same period, the report says.

    One of the standout trends is the doubling of the EV components industry’s contribution to 6 per cent of total production in FY2024. Battery technology and powertrain systems are emerging as critical areas, comprising 45 per cent of EV manufacturing costs. India’s EV market, supported by the EV 30@30 initiative, saw sales grow by over 76 per cent CAGR from FY2020 to FY2024, with projections to maintain this momentum, the report states.

    The Indian government’s focus on localisation and self-reliance has led to significant investments in domestic manufacturing capabilities. Between FY2020 and FY2024, exports saw a 10 per cent CAGR, reaching $21.3 billion, with the US being the largest market. Simultaneously, a trade surplus of $300 million in FY2024 underscores India’s strategic shift in global automotive supply chains, the report points out.

    The report also focuses on investments in technology upgrades and modernization, with Indian manufacturers allocating $2.5 billion to $3 billion for capacity expansion and innovation. This aligns with the increasing demand for advanced components such as electric motors, Advanced Driver Assistance Systems (ADAS), and lightweight materials. The report forecasts a sixfold growth in the ADAS market, from $169 million in FY2023 to nearly $1 billion by FY2028.

    Rubix Data Sciences co-founder & CEO Mohan Ramaswamy said: “India is rapidly becoming a vital player in the global automotive supply chain, thanks to robust growth in vehicle production, strong government support, and the unwavering commitment of component manufacturers – including a vibrant network of SMEs – to quality and innovation.

  • Elon Musk takes a jab at Tata Jaguar’s new logo in colourful rebrand video, Car maker responds

    Jaguar recently unveiled a new logo as part of a bold rebranding campaign, but its colourful and car-less ad has drawn mixed reactions, including a roast from Elon Musk. The British luxury carmaker introduced its new logo in a vibrant video, which featured eye-catching visuals instead of showcasing the actual cars. The video, accompanied by the caption “copy nothing,” quickly caught the attention of Musk, who took to X (formerly Twitter) to comment, “Do you sell cars?”

    In response, Jaguar playfully invited Musk to join them for a “cuppa” in Miami on December 2nd, adding, “Yes. We’d love to show you” in reference to their cars.

    The reimagined logo, which replaces the iconic teeth-baring big cat design, also raised questions about its meaning. Jaguar clarified that the logo had been “reimagined” but offered little explanation beyond that, leaving many social media users puzzled. Some commenters sarcastically suggested that Jaguar no longer made cars, with one saying, “They don’t make cars anymore. They make mistakes,” while another quipped, “I thought this was a dating site.”

    When asked whether the video was intended to promote fashion, Jaguar responded cryptically, calling it “a declaration of intent” and urging followers to stay tuned as the “story is unfolding.”

    However, the responses failed to calm disgruntled Jaguar enthusiasts. One user, who identified as a Jaguar owner, expressed frustration, saying, “Where are the cars? Isn’t that what you do? This will cause me to not go forward with y’all when it’s time to trade mine in. What a joke you’ve become.”

    Jaguar replied with a polite acknowledgment, saying, “Thanks for the feedback! We’ll be sure to pass it onto the team. Best wishes.”

    The rebranding campaign has certainly stirred up conversations, but it remains to be seen whether it will resonate with the brand’s loyal customer base.

  • Understanding energy storage systems for commercial and industrial (C&I) applications

    Lithium-ion batteries, especially Lithium Iron Phosphate (LFP/LiFePO4) type batteries have become the most popular type of energy storage system. They come with the following advantages:

    • Safety: LFP batteries have the highest safety and acceptable energy density (both gravimetric and volumetric) for stationary applications.
    • High-temperature operation: LFP batteries work well in high temperatures, making them a choice for countries around the equator and tropical countries.
    • Low cost: LFP battery prices are considered the lowest in the Lithium-ion battery industry.
    • Long life: LFP batteries for energy storage systems provide low power but very high life.
    • Less critical minerals: Does not use critical minerals such as Cobalt and Nickel.

    Energy storage systems for Commercial and Industrial (C&I) applications has been gaining traction for the following reasons:

    Storing Renewable Energy

    Solar PV system installations for commercial and industrial are already seeing good adoption, bringing a different set of problems. For places with no net metering option or with a gross metering option, the solar PV system owner tends to divert the additional solar energy generation into storage, preferably an LFP-based energy storage system.

    Net metering is a system in which any excess energy sent to the grid can be adjusted in the energy utilization from the utility company, hence lowering the energy bills. Gross metering is a system in which any excess energy sent to the grid is paid a different value (usually lower than the buying price of energy from the utility company) compared to the energy taken from the utility company, sometimes leaving the PV system owners feeling they didn’t get a fair price for their energy export.

    Many countries began with net metering to encourage solar PV system installations. When they see a rise in solar PV system generation, they tend to switch to gross metering to safeguard the utility company’s regular energy supplier’s commitment to take energy.

    No net metering or Zero export is a system in which excess energy can not be sent to the grid. This situation leads to the PV owner looking for energy storage options.

    Off-grid Use

    Energy storage systems can enable off-grid applications to operate 24*7 when paired with renewable energy. The energy storage system must be sized well to include battery degradation year by year, maintain a healthy depth of discharge (DoD), and allow for auxiliary power consumption (including the cooling system and other components that consume power) during idle and discharge states. Similarly, renewable energy must be sized well to provide energy to compensate for losses during transmission and conversion to supply to loads, to the battery and back from the battery to the load, including efficiency losses of the battery during charge and discharge and auxiliary power consumption of the battery during its operation.

    Supplying Power During Excess Demand

    Energy storage systems can support excess energy demands for commercial and industrial applications when the power requirement increases. This situation arises for industries where the production is at maximum utilisation (which happens occasionally).

    Energy storage system is an alternative for upgrading the sanctioned load for those who find it difficult to upgrade for the following reasons:

    • Expensive upgrade: Enhancing the sanctioned load can be time-consuming and expensive in certain places. This makes it difficult for the user to source the excess power quickly.
    • Unavailability of upgrade: Certain places do not have the option to upgrade sanctioned loads from their utility company. They are forced to look for other options, such as diesel generators or battery systems, as a long-term solution. A typical scenario is fast charging stations in remote locations.
    • Need extra power only for a limited time: Certain companies might not require excess power regularly and do not want to upgrade their sanctioned load, pay higher charges, and look for storage options once in a while for excess power demand and use it for power outages.

    Supplying Power During Power Outages

    Energy storage systems are an ideal solution to ensure continuous power supply during power outages. It is a perfect replacement for a diesel generator if the power outage pattern is known.

    High Peak Time Power Charges

    Energy storage systems can reduce costs during peak usage times when electricity rates are higher than the cost of energy from off-peak time and the total cost of ownership of the battery, including the battery efficiency losses during its charge and discharge. The savings are even higher if the user has free energy from a solar PV system during excess generation.

    Part 2 of Understanding Energy Storage Systems for Commercial and Industrial (C&I) Applications will focus on battery and bi-directional inverter (both non-hybrid and hybrid) technical details and system functionality details.

    About the author:

    Rahul Bollini is an R&D expert in Lithium-ion cells with 9 years of experience. He founded Bollini Energy to assist in deep understanding of the characteristics of Lithium-ion cells to EV, BESS, BMS and battery data analytics companies across the globe. Rahul can be reached at +91-7204957389 and bollinienergy@gmail.com.

    Also read: 2000V DC architecture for BESS and solar PV systems

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  • Better together: building Zero Trust security into federal mobility

    icon of a clockBy:

    Increasingly sophisticated and targeted cybersecurity threats and the consequent risk to national and economic security have led to a government effort to modernize its cybersecurity practices and create trust in digital systems. As first outlined in the May 2021 Executive Order on Improving the Nation’s Cybersecurity and reinforced in the 2024 Federal Civilian Executive Branch (FCEB) Operational Cybersecurity Alignment (FOCAL) Plan, a central focus of these ongoing efforts is a move toward Zero Trust architecture.

    The basics of Zero Trust

    Zero Trust is a cybersecurity model based on one simple principle – no user or device can be trusted by default. It recognizes that a secure perimeter no longer exists and applies the same scrutiny to every access request, whether it originates from inside or outside the network. Simple in principle, but challenging in practice, Zero Trust requires a system that is designed to:

    1. verify every identity and device connecting to the network explicitly;
    2. always assume the possibility of breach;
    3. enforce least privilege access; and,
    4. continuously monitor for and take action against abnormal or malicious activity.

    This requires an end-to-end security approach that touches every endpoint and encompasses a mix of tools and capabilities from enhanced identity and access management to integrated security automation and orchestration.

    Zero-trust security is not an end state but a journey. Agencies are grappling with cybersecurity and navigating a broader digital transformation as they strive to reach IT modernization goals and support an increasingly mobile and distributed workforce. As these efforts progress, we expect to see an increasing focus on extending Zero Trust principles across more elements of the digital infrastructure, including the mobile computing environment.

    Zero Trust security in a mobile world

    The move toward a Zero Trust architecture places new demands on endpoint security in the mobile environment. At a high level, it requires the ability to evaluate and protect the identity and behavior of both the user and the device, as well as precisely manage access to network resources. Fortunately, much of this capability already exists, and many agencies have started to lay the groundwork needed to align their mobile security strategy to Zero Trust principles.  

    At Samsung, Knox is the cornerstone of our security efforts and the foundation for our support for Zero Trust architecture. Samsung Knox combines a defense-grade security platform built into Samsung devices from the chip up with a comprehensive set of cloud-based solutions that enable IT administrators to secure, deploy and manage devices to meet their Zero Trust goals. Since its introduction in 2013, Knox has secured over 2 billion Samsung devices and is used to manage over 150 million devices.1 Knox has successfully met the rigorous security requirements set by governments and major enterprises around the world, including Common Criteria and FIPS 140-22.

    Samsung Knox provides federal agencies with a foundation to extend their Zero Trust architecture to the mobile environment in alignment with the Cybersecurity and Infrastructure Security Agency’s (CISA) guidance on Applying Zero Trust Principles to Enterprise Mobility.

    Key examples of Samsung Knox support for Zero Trust principles include:

    • User identity: Zero Trust requires ongoing verification of users beyond initial log-in to ensure that access rights are continuously appropriate. For example, imagine a federal law enforcement officer puts their phone down briefly during an active field investigation. If a bad actor quickly picks up that phone while the officer is logged in, there is a risk that the phone could be used to access sensitive agency data. However, with continuous authentication from Samsung Knox, the phone can detect that the person using the device is not a legitimate user and can automatically lock itself before wider network access is granted. Samsung Knox supports this need with its multi-factor authentication framework that allows for the regular collection and interpretation of data to authenticate user identity.
    • Device health: In Zero Trust, the identity and health of the device must be verified before network access is granted. This is an area where the chip-level, built-in security from Samsung Knox provides a significant advantage. For example, Knox can provide trusted boot and Device Health Attestation to verify that only Samsung-authorized platform software components are running on the device and to confirm device integrity. Further, in partnership with Microsoft, Samsung offers an on-device, mobile hardware-backed attestation solution that works equally well on enterprise-managed and consumer devices, an essential capability for agencies with Bring Your Own Device (BYOD) policies.
    • Secure network access: Even after network access is granted, Zero Trust principles require that access be precisely managed. For example, enforcing least privilege can significantly limit the impact of a breach even if a bad actor or malicious insider is able to connect to the network. By ensuring agency employees have access to only the apps and data appropriate to their roles and clearance, agencies can eliminate opportunities for unnecessary or malevolent lateral movement and reduce the risk of data compromise. Samsung Knox Platform for Enterprise3 provides several essential features to achieve strong local isolation and tighter control over enterprise apps and data. Further, Cisco Secure Access is supported on select Galaxy smartphones and tablets to allow organizations to enforce Zero Trust access policies and facilitate least privilege access to apps via granular, app-specific permissions.

    Opportunities for the future

    As we look toward the future of federal Zero Trust initiatives, opportunities exist for tighter integration between mobile security platforms and security information and event management (SIEM); extended detection and response (XDR); and security orchestration, automation and response (SOAR) platforms. At their core, these solutions help security detection and response teams maintain visibility into all aspects of the network, identify and analyze threats and, when possible, speed time to remediation through automation. Extending the breadth of these tools with deeper integration into the mobile security stack will open a number of possibilities in mobile threat intelligence and advance security automation.

    The move toward a Zero Trust security architecture signals a significant transformation in how we think about security, and especially how we extend protection to the endpoint. However, it is a challenge that agencies and their industry partners are prepared to meet, and many aspects of current mobile security and device management tools and platforms provide federal agencies with a solid foundation for success. Strengthening the integration between mobile security, endpoint management and enterprise security platforms under the principles of Zero Trust presents an immense opportunity to work together to positively impact the security of the digital infrastructure that powers the government and its missions.

    Learn more about Samsung’s secure, reliable and compliant government technology solutions.

    1NOTE this is on About Knox page with no additional citation: https://www.samsungknox.com/en/about-knox

    2For the full list of Knox certifications, please visit https://www.samsungknox.com/en/knox-platform/knox-certifications

    3Requires separate license

  • Greaves Finance partners with Eqaro Surety to enhance EV financing for e2Ws • EVreporter

    Greaves Finance Limited, a non-banking financial company (NBFC) and a subsidiary of Greaves Cotton Ltd., has announced a partnership with Eqaro Surety Private Limited to strengthen Smart.fin, its buyback and upgrade financing product for electric two-wheelers (E2Ws) under the evfin platform.

    Smart.fin offers buyback options and facilitates upgrades for electric two-wheelers, addressing the developing secondary market for these vehicles. The partnership with Eqaro Guarantees secures the buyback value, addressing resale concerns and refining the EV ownership model.

    As per the company statement, the partnership provides advantages for multiple stakeholders. Customers receive guaranteed buyback options and assured resale values, reducing concerns about depreciation and facilitating vehicle upgrades. For OEMs and dealers, the partnership minimizes financial risk associated with resale values, fostering consumer trust and encouraging sales and customer retention.

    Commenting on the partnership, P B Sunil Kumar, CEO, Greaves Finance, said, “Our collaboration with Eqaro is a pivotal step in reimagining the ownership experience for electric two-wheeler customers.  This partnership not only ensures secure resale value but also motivates a wider shift to electric mobility.  By eliminating depreciation uncertainty, we’re committed to driving sustainable growth and making electric two-wheelers an increasingly compelling choice for today’s consumers.”

    Vikash Khandelwal, CEO, Eqaro Guarantees said, “We are really excited about our partnership with Greaves Finance Limited, a first in the industry, which will fundamentally change how people at large purchase and start adopting electric mobility.  Electric mobility is the future, and we are committed to doing our bit for democratising this category.  With our rigorous processes and underwriting framework, we offer resale value guarantees that forms the backbone of a vibrant ecosystem for the future and is a win-win for all stakeholders, be it financers, manufactures, channel partners or end consumers.”

    evfin has established partnerships with major OEMs, such as Ather Energy, Ampere, and River Mobility, to offer financing solutions. evfin’s services are available across key EV two-wheeler dealerships in 47 cities in India.

    Also read: Greaves Cotton partners with Tsuyo for e3W component manufacturing

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  • Biogas Body Bats For Odd/Even Rule To Encourage EV, CNG Adoption

    New Delhi: Indian Biogas Association (IBA) has suggested enforcement of the odd-even rule for four wheelers in Delhi NCR to check air pollution and encourage people to shift to electric vehicles or those based on compressed biogas (CBG) or natural gas. Under the Graded Response Action Plan (GRAP) 4 (with air quality index of over 450) measures, odd/even rule for four wheelers is imposed. The Commission for Air Quality Management (CAQM) has already imposed GRAP 3 measures with the air quality remaining in the ‘severe’ category. Taking in an interaction, Indian Biogas Association (IBA) Chairman Gaurav Kedia said, “We recommend implementing the Odd-Even Rule for Petrol and Diesel Vehicles in the coming months so that a good impact can be seen for the air pollution levels in Delhi, and subsidy on EVs and CNG/CBG vehicles, as this will compel the citizens to shift to greener fuel alternatives. The air pollution situation in Delhi NCR worsens every winter, with the seasonal air quality index consistently remaining above the 300 mark. Delhi due to its the severely polluted AQI has received worldwide attention as one of the most polluted cities on earth. Crop residue burning, particularly of paddy straw, in neighbouring states is a major contributor to this scenario, but that’s just a small piece of the bigger puzzle.

    Kedia suggested that the government must focus on incentive schemes such as reduced charges on electricity bills, PNG connections, and LPG cylinders for houses that effectively segregate organic waste. It would yield a double dividend: cleaner energy generation from green and leafy biomass collected for biogas plants and a significant reduction in landfill loads, he said.

  • PV Retail Sales To Sustain Momentum In Q3

    In quarter three, we expect retail to be strong, driven by festivities and the year-end demand. Industry wholesale may be lower than retail, so as to reduce the channel inventory ahead of the new calendar year. That is for the industry – Shailesh Chandra, MD, Tata Motors Passenger Vehicles

    New Delhi: Tata Motors is expecting passenger vehicle (PV) retail sales to maintain growth momentum in the ongoing quarter driven by year-end demand, according to a top company executive.As per FADA data, festive demand helped PV retail sales rise 32 per cent year-on-year (YoY) to 4,83,159 units in October. The segment reported a 7 per cent YoY increase to 6,03,009 units during the 42-day festival period this year. In September, PV retail sales had seen a dip of 19 per cent to 2,75,681 units.

    The Mumbai-based auto major saw its PV volumes decline 6 per cent YoY to 1,30,500 units in the July-September period hit by tepid demand. “In quarter three, we expect retail to be strong, driven by festivities and the year-end demand. Industry wholesale may be lower than retail, so as to reduce the channel inventory ahead of the new calendar year. That is for the industry,” Tata Motors Passenger Vehicles MD Shailesh Chandra said in an analyst call. The automaker, on its part, will focus on driving significant growth in retail on the back of new model launches, which would also be backed by marketing campaigns, he said.

    Tata Motors is planning to drive in various models, including Harrier EV and Sierra EV, and other model upgrades over the next two years. “In the next two financial years, we should start reaching a penetration level of about 70 per cent. And we have said 80 per cent by FY30 is what we have committed. It will, of course, include a few white space products, but that is not something we can share at this stage,” Chandra said. In terms of sales network, he noted that the automaker has taken sharp cuts in dispatches to dealers. Strong retail sales in October, has allowed the automaker to significantly bring down the inventory levels for the majority of its dealers to less than 30 days, Chandra said.

    With reduced inventory, finance cost would have significantly gone down for the dealers, he added. Chandra stated that the company will continue with its effort regarding mainstreaming of EVs with focused market development and ecosystem actions. “We will continue to intensify the cost reduction efforts to maintain profitability in the intensifying competition environment,” Chandra said. Elaborating on the commercial vehicle business, Tata Motors Executive Director Girish Wagh said the automaker expects a gradual increase in infrastructure spending to boost the consumption and improve the demand going ahead. “October has been a fairly good month with a marginal increase on a YoY basis. Within trucks and buses, we will continue to introduce new variants, drive our value selling agenda, of course by improving the value propositions being delivered to the customer,” he stated. On small commercial vehicles where the automaker is challenged on the volumes, it is working on a three-pronged agenda, Wagh said.

  • Hyundai Motor India Bets On CNG Vehicles

    New Delhi: Hyundai Motor India Ltd is betting big on CNG fuel option with sales of models equipped with the technology witnessing increasing demand across rural and urban markets in the country, according to a top company official.

    The company, which currently offers CNG option in its three models — Grand i10 NIOS, AURA and EXTER — has seen an increase in contribution of the CNG models to its domestic sales to 11.4 per cent in FY24 from 9.1 per cent in FY22. So far in the April-October period this fiscal, the contribution of CNG models to the company’s domestic sales has risen to 12.8 per cent. Its overall vehicle sales across different fuel options stood at 3.54 lakh units in the domestic market during the period.

  • The consequences of waiving EV road tax exemptions • EVreporter

    Guest article by Meheli Roy Choudhury, Lead, Centre for Clean Mobility, OMI Foundation

    The Electric Vehicles (EVs) ecosystem in India is rapidly expanding its market presence, driven by a combination of government incentives balancing demand-supply needs, infrastructure improvements, and growing environmental consciousness. One such critical measure aiding this growth has been the exemption of road tax for EVs, which has directly contributed to reducing the Total Cost of Ownership (TCO) for consumers. By eliminating this significant cost component, which can range between Rs.11,600 (Delhi for Ola Electric S1 Pro 2nd Gen) to Rs.8,725 (Gujarat for Ola Electric S1 Pro 2nd Gen) per EV (varies as per state and vehicle category), this waiver has helped lower the higher initial price of EVs which stands as one of the biggest roadblocks towards consumer acceptance of the offering. However, the decision to waive these exemptions poses important implications for the future of EV adoption in India. Without these exemptions, the price gap between EVs and ICE vehicles widens, potentially slowing the adoption rate.

    By waiving the road tax exemption on 4Ws, 3Ws, and 2Ws, the cost burden on consumers increases, directly impacting the affordability of EVs and tipping off the balance, which helps make EVs cost-competitive. Table 1 shows the EV road tax levied on 2Ws and 4Ws separately for these states that have rolled back the benefits, highlighting price differences.

    Table 1: State-wise depiction of road tax levied on EVs. Source: Author’s analysis based on PIB updates

    Andhra Pradesh’s EV policy elapsed in July 2023 (applicable for 5 years from June 2018), which automatically made road tax for EVs mandatory. This was exempted again in October 2024, a full 15 months later. As per data from the Vahan Dashboard for Andhra Pradesh, we can notice the drop when comparing EV registrations in H1 (20,231) to H2 (12,619), marking a 37.63% decrease. This remarkable fall can be attributed to the re-introduction of the tax in the market, which hurts consumer confidence due to the impact on affordability, keeping in mind the festive season is a huge pull for automobile sales, which faltered expectations in this regard and failed to pull in a larger consumer base for EVs. In contrast, states like Maharashtra (55,899) and Uttar Pradesh (97,331), which continue to offer 100% road tax exemptions, are experiencing growth in EV registrations in the Q3 FY 2024-25. Compared to Q2, registrations increased in  Maharashtra by ~24.56% and by ~ 23.91% in Uttar Pradesh.

    In Table 2, there is a comparison of states that have waived the exemption vis-a-vis states that continue offering it, along with different models of 4W and 2W to understand how the price of an EV varies across the country with the application of the road tax.

    Table 2: Comparison of prices of different EV models across different states in India. Source: Author’s analysis based on CarWale and Ola App, as of 1st October 2024

    Herein, it can be noted that comparing the price of Tata Nexon EV’s top-selling model in Punjab, where a full road tax exemption exists, to states like New Delhi, where the exemption has been revoked, shows a marked difference in final costs. In Punjab, the model may cost approximately Rs.17.14 L, while in Delhi, the same vehicle’s on-road price could surge to Rs.17.3 L after adding the tax, insurance and other charges, making it less attractive for consumers. Comparing Punjab and Kerala, there is a difference of Rs.15,464. Likewise for a 2W segment, taking the Ola electric S1 Model as an example, Punjab has the lowest price among the four states and New Delhi again faring a substantial price.

    Consequences of policy shifts

    This underscores the stark price disparity in EVs caused by a policy change, which significantly affects consumer willingness to pay. At this stage, the market needs incentives to build consumer confidence, encourage manufacturers to scale production and lower future costs. Removing these could negatively impact consumer interest, investment in R&D, and the long-term sustainability of India’s EV market.

    The potential revenue loss from road tax exemptions for EVs could be a reason for states to reconsider their policy. However, this view overlooks the long-term benefits of higher EV adoption, such as job creation, a green economy, and lower healthcare costs due to reduced pollution. Increased EV sales also generate indirect revenue from GST and electricity consumption. Interestingly, Delhi’s EV cell addresses revenue loss through a non-lapsable fund sourced from ICE vehicle cesses like the Air Ambience Fund and Pollution Cess, demonstrating innovative solutions to support EV adoption.

    Global practices

    Several countries have used road tax waivers to boost EV adoption, making them more affordable and accelerating sales. Norway, a leader in EV transition, exempted road taxes for 25 years, reaching 82% EV market share in 2023 and 94.3% of new registrations in August 2024. In 2023, The Netherlands (43% EV sales), France (25%), and Sweden (40-50%) have followed suit, using tax waivers & incentives to lower EV TCO. While the impact is evident, the direct correlation between road tax waivers and EV adoption needs to be quantitatively studied across geographies.

    Driving Forward

    EV adoption is steadily growing in India, with a 13.16% rise in EV registrations in the first half of 2024 compared to 2023, with 9,50,655 EVs registered in 2024 as of October 29, 2024. It becomes prudent to sustain this ecosystem for all stakeholders. Herein, we see how retaining road tax waivers is essential to maintaining affordability and fostering adoption. The cost differential created by such waivers often serves as the tipping point for potential buyers. As states aim to meet their electrification goals and lower tailpipe emissions, they must consider the broader implications of their fiscal nudges in the EV policy. Instead of revoking road tax exemptions, state governments should advocate for a 100% waiver of road tax for EVs, recognising the long-term benefits. By maintaining these financial incentives, states can ensure that EVs remain within the reach of consumers, ultimately contributing to meeting the ambitious target of EV30@30 and fostering a sustainable future for India’s transport sector.

    Also read: How taxation on premium ICE cars could drive EV adoption in India

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