Current
affairs
Economic Times — June
6, 2003
They
look futuristic – and they certainly pack more
than a few advantages. But is India ready for
electric vehicles, especially when the concept
has failed to excite the western world.
When
Steven Spielberg, renowned vehicle designer Harald
Belker and Toyota Lexus come together to envision
a car fit for Tom Cruise in the Sci-Fi blockbuster
Minority Report, they come up with an electric
vehicle (EV). For all of Toyota’s claims that
Cruise’s Lexus is closer to fact than fiction,
a history of EVs compiled by the Alfred P Sloan
Foundation indicates that EVs have been struggling
to make the journey from fiction to fact from
before Henry Ford’s time.
Fact or fiction, treat it how you will, but EVs
are now testing Indian shores. For years, we’ve
heard about India’s first EV Reva, and then came
Mahindra’s Bijlee. The latest to tinker with EV
technology is V Sumantran, head of Telco’s passenger
car division, who is working on the Indica Electric.
There must be something about EVs if it’s captured
the fancy of most Indian automakers, despite its
dismal performance in the West.
For example, Ford abandoned the production of
its EV brand called Think late last year, just
as GM gave up on its EV1. So where does that put
Indian EVs? For all those who have a thing for
passion on wheels, Corporate Dossier decided to
delve into automotive history and put together
a complete picture on electric vehicles and whether
the concept can work in India.
Our first port of call was obviously V Sumantran,
not just because he’s working on the Indica Electric
but also because he was closely associated with
GM’s EV1. Commenting on Telco’s new baby, Sumantran
cautions: "A company like Telco needs to
play with R&D. Indica Electric is an R&D
project, and few of these go past engineering
feasibility."
According to Sumantran, one of the biggest issues
EVs face is the cost of the battery — and its
lifespan. He says this first hurdle needs to be
overcome before one can even consider the commercial
viability of electric cars. There have been a
few breakthroughs in recent years, including the
use of lead acid batteries in EVs. There’s also
talk of Lithium-Ion batteries and Cadmium, but
few of these are in mainstream use.
The nature of usage of the battery and its replacement
every few years is another cost issue. Incidentally,
an EV battery can cost up to 25-30 per cent of
the actual cost of the car. Economically, the
battery issue has been a difficult one to overcome,
even internationally. Another factor that contributed
to the demise of the EVs in the US is its limited
range. A fully charged EV cannot go beyond 80-100
km without a recharge.
However, Chetan Maini, managing director of Reva,
which is commercially launching its EV called
‘ElectriCity’ in India, feels this is not a limitation
for Indian city dwellers. According to Maini’s
claims, surveys show that city dwellers travel
under 25 km on an average day. In addition, given
Reva’s size, it’s an ideal vehicle for crowded
city centres, whose stop-and-start traffic is
easily tackled by the Reva. Maini is positioning
Reva as an ideal second car for cities suffering
from pollution problem.
The Reva has an interesting parentage. It’s an
offspring of a joint venture between California-based
Amerigon’s Electric Vehicle Technologies division
and the Bangalore-based Rs 65 crore Maini Group.
The total development cost has been in the range
of $20 million, with an additional $5 million
for production. Amerigon was actively working
on EV technology when California had mandated
that by 1998 at least 2 per cent of vehicles would
have to be zero-emission vehicles or EVs.
However, California had to postpone that requirement
to 2005 as it was not EV-ready in terms of infrastructure
to cope with electric vehicles and their maintenance.
Reva, like any other EV, comes with many positives
— zero emissions, easy manoeuvrability and low
maintenance. But Maini admits there are a few
drawbacks that EVs may face in terms of infrastructure.
While every EV manufacturer, including Reva and
Mahindra, extol the virtues of an EV, they are
unable to come up with answers when it comes to
infrastructure problems.
For instance, where can you readily charge your
electric car? Maini says one can charge the car
at home or at work. It works like the cell phone,
you just plug it in and in a couple of hours your
Reva’s charged. Bingo! But how many homes can
the Reva fit into? This has become a huge problem
in cities like Mumbai where organised parking
itself is a problem. Maini admits this: "In
regular circumstances, plug points can be installed
in flats. However, in Mumbai, where infrastructure
is a problem, one can work around the system and
install plug points at work."
He cites examples of environment-friendly companies
like Mico and some other smaller software companies
which have installed such plug points for employees.
There has been no response from state governments
on the issue of infrastructure. According to published
reports, Maini had approached the Karnataka government
to set up charging stations, but got no response.
This brings one back to the US experience, where
the number of charging stations was a paltry 8,000,
even after years of experience with EVs.
Compare this with regular gas stations in the
country, which number 200,000! Apart from ad hoc
initiatives, no company has been able to address
the issue of battery charging in an appropriate
manner, even if one assumes that EVs can be charged
from home. Mahindra, which has entered the electric
vehicle market with its Bijlee, a substitute to
three-wheeler public transportation, comes with
similar problems.
To begin with, the cost of the 10-seater Bijlee
is Rs 3 lakh compared to the Rs 1.8 lakh for a
6-seater vehicle, and the battery needs to be
replaced every 12-18 months. The battery replacement
would cost Rs 45,000 to Rs 60,000. Though Mahindra
runs a couple of charging stations in Delhi and
Pondicherry, Somi Saran, the company’s president
for Eco Vehicles, feels that the stakeholders
should get together to solve the infrastructure
problems.
According to Saran, owners can come together and
start a charging station, and so could others
who look upon this as an employment opportunity.
Given the low penetration of EVs, one wonders
if it’s lucrative enough to have charging stations
for electric vehicles alone. Here are the figures:
in all, there are 300 Revas and about 90 Bijlees
on Indian roads today.
Finally, if one were to do a well-to-wheel analysis,
the full impact of zero emission vehicles is taken
away. Says Sumantran: "If you do an entire
analysis, most power plants across the world are
coal-based. This means there will be pollution
in a different place." Despite this, he maintains
that the entire automobile industry is interested
in electric vehicles, and hopes it becomes a feasible
proposition.
Meanwhile, the Big Three automakers — namely,
Ford, GM and DaimlerChrysler — have not completely
abandoned their quest to launch environment friendly
vehicles. Currently, what they are betting big
on are fuel-cell technology (which uses hydrogen)
and hybrid vehicles. Hybrids combine a regular
combustion engine with an electric battery and
motor. However, this means mounting two technologies
into one automobile, which raises the cost substantially.
Some hybrids available today include Honda’s Insight
and Toyota’s Prius.
Does this mean EVs are only concepts that may
never find their way out of Hollywood or Bollywood
flicks? Not necessarily. Sumantran feels that
EVs are utilitarian, and are successful where
short distances are involved. He cites the example
of gated communities in the US — small, self-contained
townships for senior citizens, where electric
vehicles can successfully serve transportation
needs. India may still be a long way off from
having gated communities, but EVs could well come
here for keeps!
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