The entry of electric vehicles (EVs) in India in the late ?90s introduced the concept of emission-free and eco-friendly vehicles. With skyrocketing environmental challenges and global warming issues concerning the use of conventional fuelled cars, electric cars emerged as a saviour with more eco-friendly features and lower maintenance cost. Currently, Reva Electric Car Company is the only electric car company in India. In the next couple of years, India?s electric car market is expected to witness increased competition with companies like Renault-Nissan and Ford launching electric cars. To boost the concept and use of EVs, the Indian government reduced the excise duty to 4% in the 2010-11 Budget. This has given relief to makers of EVs and they are currently expanding their portfolios and adopting new technologies to play a more active role in the market. Increasing cost of conventional fuel has boosted the electric vehicle industry. The running cost of electric cars is much lower than that of conventional ones. According to Reva Electric Car Company, the running cost of an electric car is 40 paise per km compared to Rs 4.5 per km for a conventional car. Technically, the conversion of electric power to actual motion is much more efficient than burning fuel in an internal combustion engine.
Despite all their inherent advantages (low maintenance, and lower per mile cost) and government subsidies, demand for these cars has been low. Further, underpowered performance, speed limits, low distance travel per charge, and absence of a charging infrastructure are additional restraints.
Now arises the question: ?Are electric vehicles really green?? The answer depends on various factors. Electric cars do not normally give off any emissions. This depends, however, on the source of power running the vehicle. Power from an inefficient plant is likely to result in comparatively higher emissions. Emissions from the source of energy that power electric cars need to be considered while assessing whether electric cars are truly green. If the source of energy is renewable, then it actually makes the electric car green. Indian power stations are lower in efficiency as compared to world standards and generate around 50% more carbon dioxide (CO2). Moreover, 65% of power generated in India is thermal based; hence, emissions in India are higher. It is estimated that in the UK, a conventional car emits 170 gm of CO2 per km; a hybrid like the Toyota Prius emits 104 gm of CO2 per km. An electric car emits nothing on road directly, but when adjusted for emissions for operating power plants it has been seen that electric cars indirectly emit 65 gm of CO2 for each km run. The emission is lower if the power used for charging electric car batteries is sourced from renewable sources such as wind turbines. In short, an electric car is not a zero-emission car, but one that emits substantially less CO2 when compared to a conventional car.
Another factor to be considered is the disposal of batteries. Electric cars run on batteries that require frequent replacement. Battery technology in India is still at a nascent stage. Almost all the electric cars use lead acid batteries, which are cheaper but have a shorter shelf life. Moreover, they contain lead, which is an environmental hazard. Fumes generated during their manufacturing process or disposal is harmful for the environment. Indian law requires 90% of the batteries to be recycled; however, currently only 20% are being recycled.
However, there is a positive aspect. Technology is being continuously refined and shift from lead-acid batteries to Li-ion batteries would result in lower emissions and easier disposal of batteries. In future, stricter enforcement of disposal norms is expected to help in making the technology greener and more promising for widespread acceptance. Thus, while the current electric cars may not be zero-emission, they are definitely greener than conventional cars and expected to be even closer to the zero-emission vision of the future.
?The writer is research analyst, South Asia and Middle East, automotive and transportation, Frost & Sullivan