Robust infrastructure needed to support Indian Electric Vehicle market

By Mr. Hitesh Bhardwaj, General Manager – Semiconductor and Device Department, Mitsubishi Electric India Pvt. Ltd

The Indian vehicle market witnesses volatile developments on a regular basis. Some time back, the government had ambitious plans to shift on a mass scale to electric vehicles (EVs) by 2030. The plans were opulent and certainly held several paybacks for environment conservation.

India has become the hot spot for growing polluted cities. However, the reality is a little disturbing here. Today, 19 out of the 35 most polluted cities in the world are in India. In the past two years, New Delhi has been one of the most polluted city in the world, as a confluence of factors turns the Capital’s environment into a labyrinth of smog and pollutants. While several causes and solutions are being examined and discussed, it is known that a major percentage of the pollution in densely-populated urban areas is vehicular.

Electric vehicles are known to cause zero emissions and consequently, are extremely eco-friendly. The transformative thrust for electric vehicles would have been a very positive move for India and the world, since; it presents myriad opportunities as well as challenges. The government, however, is now of the opinion that the current need is just an action plan because new technology keeps coming into the market and it is always ahead of rules and regulations. The view is that in India, it is tough to change rules and regulations, so more than policy, it is actions that can work better.

If the EV policy package has been considered for implementation, it would have needed huge investments, which may have been a challenge for the government. Now, the idea is in the hands of the open market, manufacturers and the consumers. Naturally then, as manufacturers, we share some responsibility towards ensuring that the environment is taken care of in some way.

To overcome the issues of EVs, NITI Aayog, in collaboration with Colorado-based Rocky Mountain Institute, in their 2017 report, on the future of electric, shared and connected mobility future in India, had mentioned setting up “a manufacturer consortium for batteries, common components and platforms to develop battery cell technologies and packs and to procure common components for Indian original equipment manufacturers”. The report had said that adoption of electric and shared vehicles could help India save $60 billion in diesel and petrol, along with cutting down as much as 1 gigatons of carbon emissions by 2030.

That would have made a big change both in terms of fuel as well as environment conservation. So then, what we need, at the moment, is manufacturers who have already taken a step towards making the idea of mass scale shifting to electric vehicles a reality. Companies like Mitsubishi Electric pioneered the mass production of power semiconductor modules for hybrid vehicles as early as 1997.

EVs as a section is still evolving globally and the costs are quite high even though they are coming down gradually. Also, for them to become a credible option, proper charging infrastructure needs to be in place. India needs to improve majorly on these counts. But, the change of decision on the government’s part puts the ball back in the court of the industry giving it freedom to decide the future course of action. It is now upto companies like ours to decide what steps to take further. It would be good to know the target for reduction in emissions for cars or the required improvements in fuel economy to curb dependence on fossil fuel.

For now, EV adoption will be highly dependent on the rapidity of fall in battery costs as EVs are significantly more expensive than traditionally propelled vehicles due to high cost of lithium ion batteries. India does not have any policy framework or mechanism for the battery recycling and second use market.

Companies like Mitsubishi Electric are taking steps in the right direction for the desired actions for a clean environment. The company recently launched a new J-Series transfer molded power semiconductor module (T-PM) mainly for motor drive applications in electric and hybrid vehicles. It is known that automotive components must especially meet stringent safety standards, which creates demand for power semiconductor modules that provide greater reliability than modules for industrial equipment. The company’s new module is expected to contribute to further compactness, weight reduction and reduced power consumption in inverters for electric and hybrid vehicles. It has some cutting-edge features like reduced inverter size and weight achieved through the extra compact package with high integration.

For now, what we need for the EV market to work in India is for manufacturers, innovators, entrepreneurs, and other stakeholders to work together to evolve new business models for successful adoption. There needs to be better equipment, more incentives and intensive efforts to develop a robust infrastructure around EVs. Once these are in place, the market can move to reduce the cost of electric vehicle ownership and help bring about a theoretical shift in how EVs are used in India.