Monthly EV update- April 2020
New Product launches
Bajaj and KTM will be manufacturing the electric moped in India and the production is expected to start in 2022. The moped will be available in the international market initially. It is not known the same will be launched in the Indian market. According to Stefen Pierer, Chairman of the executive board, Pierer Mobility, as part of the series development project for PTW (powered two-wheelers) electric vehicles in the low voltage range (48 volts), which was developed together with Bajaj, various product variants in the segment of electric scooters will be produced from 2022 under both the brands of both partners.
Audi e-Tron India launch has been delayed due to the on-going Coronavirus pandemic. The company is now reconsidering the plans to launch the electric-SUV in the country. According to NDTV Auto, the company is now re-evaluating its plans to launch the e-Tron electric SUV in India. Audi has already showcased the e-Tron SUV ahead of its launch in India and would have been the first luxury carmaker in the country to launch an all-electric SUV.
NTPC has invited Global Expression of Interest (EoI) to provide 10 Hydrogen Fuel Cell (FC) based electric buses and an equal number of Hydrogen Fuel Cell-based electric cars in Leh and Delhi. The EoI has been issued by NTPC’s wholly-owned subsidiary, NTPC Vidyut Vyapar Nigam (NVVN) Limited.
BLive, an eco-tourism start-up which has pioneered the concept of Electric Vehicle Tourism in India, has raised an undisclosed amount from Mumbai Angels Network in its pre-Series A funding round. The company has raised close to 1milion USD from a strategic investment by DNA Networks and a seed funding round led by Shrinivas V Dempo, Chairman of Goa’s leading business house Dempo Group and Shivanand V Salgaocar, Chairman, Vimson Group.
EV market size
Electric vehicle sales in the country increased by 20% to 156,000 units in the last financial year. According to data available with industry body Society of Manufacturers of Electric Vehicles (SMEV), this includes 152,000 two-wheelers, 3400 cars and 600 buses. The corresponding sale for the FY 18-19 was 126,000 two-wheelers, 3600 cars and around 400 buses making a total of 130,000 units. This growth of 20% has largely come from two-wheelers.
Other interesting reads
The government’s push to incentivise the purchase of electric vehicles in India has failed to take off, with only a fraction of the targeted number sold in the first year of the three-year Rs 10,000 crore subsidy scheme. The second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-2) looked to subsidise the purchase of 1 million electric two-wheelers, 7,000 electric buses and 55,000 electric and hybrid passenger cars in the three-year period starting April 2019. However, only 13,490 two-wheelers, 2,300 electric cars and 600 electric buses got the subsidy benefit during FY20, according to the Society of Manufacturers of Electric Vehicles (SMEV).
The next most accessible electric car in India happens to be the Tata Nexon EV. Tata launched the Nexon EV earlier this year and the response so far has been good. In a somber March, Tata managed to sell 198 Nexon EVs. In comparison, MG Motors managed to sell 116 units of the much more expensive and bigger ZS EV. That’s a difference of 82 units. The Hyundai Kona EV, the car with the highest range right now in India, numbers are awaited from the company.
Hero Electric on Saturday has announced discounts on its entire range of electric scooters, amounting Rs 5,000. Besides that, the company also announced that it will offer Rs 3,000 discount for the Glyde and e-cycle, available between April 17 and May 15, 2020.
Global market updates
Norway’s electric vehicle revolution broke new ground in March 2020, with plug-in vehicles now representing over 75% of vehicle sales in the country. Of the remaining quarter share, plug-less hybrids took 7.1%, diesel 10%, and petrol 7.7%.As usual in Norway, pure battery electric vehicles (BEVs) were favoured over plug-in hybrids (PHEVs), by a ratio of approximately 3:1. BEVs alone represented 55.9% of the total auto market.
Before the coronavirus outbreak, 2020 was to be a crucial year for automakers selling electric vehicles in China, with several industry titans opening new factories and rolling out new models. The country already has more EVs than any other, thanks to government policies encouraging production and generous subsidies to help consumers buy them. But sales had been sputtering and now the economic fallout from the pandemic is threatening to further slow Chinese EV sales – at least for now.
French automaker Renault said that it would start building only electric vehicles for China’s huge passenger car market, dropping conventional internal combustion engines as well as its joint venture with local manufacturer Dongfeng. The strategy shift comes after years of sluggish sales in China. But the coronavirus outbreak in Wuhan forced the factory to shutter, just as Renault was wrestling with slowing growth worldwide and a cashflow squeeze that has prompted ratings agencies to cut its credit ratings to “junk” status.
China will cut its subsidies on new energy vehicles (NEV) by 10 per cent this year, and will expand government purchases of NEVs. NEVs include battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles. China will in principle cut such subsidies by 20 per cent in 2021 and 30 per cent in 2022. The new policy is effective from April 23. China has set an aggressive goal for NEVs to account for a fifth of auto sales by 2025 compared with the current 5 per cent, as it seeks to reduce pollution and cultivate homegrown champions.
China’s two largest power utilities, State Grid and China Southern Power Grid, are investing heavily in the expansion of charging infrastructure. The country plans to pump more than 10 billion yuan (around 1.3 billion euros) into charging infrastructure industry by the end of the year, thus accelerating the installation of 200,000 new charging stations, including 20,000 for public use. State Grid plans to provide 2.7 billion yuan this year alone, and China Southern Power Grid plans to provide 25.1 billion yuan within four years.
The energy supplier Fortum has signed an agreement to sell a majority stake of its public charging station operator Fortum Recharge to Infracapital. The transaction is expected to be completed in the second quarter of 2020. In the future, Fortum’s share in Recharge will stand at 37 per cent. Fortum stated that the motivation for the sale was that the partnership will create a joint ownership structure and accelerate Recharge’s growth plans. Meanwhile, Fortum will retain its Charge&Drive and Plugsurfing mobility services, and the company also intends to continue to offer its own Software as a Service (SaaS) activities.
Toyota announced today that preparations have proceeded since they first signed an agreement in November 2019 for the establishment of a joint venture company with Chinese automaker BYD. The two companies have announced that registration of the new joint venture has been completed and operations are scheduled to begin next month. The new company will focus on the research and development of battery electric vehicles (BEVs) for the world’s biggest auto market.