A global chain reaction has set off an urgent need to develop and incorporate electric mobility solutions. The increase in demand for vehicles impacts air quality and increases a country's dependence on crude oil which in turn leads to heftier import bills. Having experienced both these consequences, India too has pledged to bring down carbon emissions by 33-35% by 2030 (in comparison to 2015), and development of alternative fuels and electric vehicles has become the need of the hour.
A report released by Deloitte India points out to a comprehensive approach to the adoption of electric mobility in India. The report underlines that a robust ecosystem will be key to EV adoption and it will require three focussed elements:
Demand-side factors: These include government subsidies and incentives like registration tax, grants, tax waivers, old vehicle buy-backs, free parking among others. Besides this, it also includes Demand Aggregation through bulk procurement.
Supply-side factors: The reports mentions incentives like provision of land at subsidised rates, tax holiday, special zones as supply-side factors.
Enablers: Charging Infrastructure, Institutional Mechanisms, Technology, Financial Mechanisms, Policy framework.
The report then moves on to identify the roles and expectations of various stakeholders that will be an integral part of the EV ecosystem. These stakeholders will have well-defined roles and responsibilities - Government Authority, Manufacturers, Battery Providers, Power Companies and Utilities, Energy Supplier, Operators, Commuters and Citizen Groups, and Financial Institutions.
Potential models for adoption of EVs in public transport
Deloitte's report on EV adoption stressed on the need of electric public transport with a focus on electric buses. It further explains the advantages of electric buses have been recognized globally and different cities have taken initiatives to deploy electric buses in their fleets.
Business models for electric buses: Deloitte's EV report then mentions four business models for electric bus operations - government driven, a collaboration between government and energy supplier, government partnering with private operators, and partnership among government energy supplier and private operator (which acquires buses with or without batteries).
Potential business models for electrifying first- and last-mile connectivity
Deloitte's analysis report points out that the electrification of auto-rickshaws is one of the optimal solutions for electric first- and last-mile connectivity. Keeping this into consideration, it suggests four business models - manufacturer driven, operator driven, government driving the procurement by creating a dedicated association/society, and public transport authority driven.
The report includes an in-depth study on the correct choice of business models for electric buses and first- & last-mile connectivity, followed by possible models for EV charging stations as well.
“Integrated efforts in a unified direction are important for sustainable and smart electric mobility. The aim should be to bring synergy amongst players involved in electric mobility, encourage innovation, leverage private sector expertise, enhance governance, and distribute risk among players with risk-bearing capacities,” Vishwas Udgirkar, Partner, Deloitte India, said.
“Urban transport in India is facing a challenge, and comprehensive logistics framework for favorable EV ecosystem in the country is the only way to address this. EV integration will not only transform the mobility pattern but will also create opportunities to redistribute responsibilities within the ecosystem.”