RESEARCH PROJECT

ON
ANALYSIS OF AUTOMOBILE INDUSTRY-
ELECTRIC VEHICLES IN INDIA

SUBMITTED IN PARTIAL FULFILLMENT FOR

THE AWARD OF THE DEGREE OF
BACHELOR OF COMMERCE (H)

2019-2022
UNDER THE GUIDANCE OF

DR. VRINDA RAWAL

SUBMITTED BY:
NAME: VANSHIT JAIN
ROLL NO.: 06917788819

Vivekananda School of Business

Studies
Vivekananda Institute of Professional studies
AU Block (Outer Ring Road), Pitampura Delhi-110034
 INDEX

S. NO CONTENT PG.
NO

i STUDENT UNDERTAKING, CERTIFICATE AND

ACKNOWLEDGEMENT

1 CHAPTER-1: INTRODUCTION

2 CHAPTER-2: LITERATURE REVIEW

3 CHAPTER-3: RESEARCH METHODOLOGY

3.1) OBJECTIVES OF STUDY
3.2) SCOPE OF STUDY
3.3) DATA COLLECTION
3.4) SAMPLING DESIGN
3 CHAPTER-4: DATA ANALYSIS AND
INTERPRETATION
4 CHAPTER-5: FINDINGS

5 CHAPTER-6: LIMITATIONS

6 CHAPTER-7: SUGGESTIONS

7 CHAPTER 8: CONCLUSION

8 BIBLIOGRAPHY

9 ANNEXURE
 STUDENT
UNDERTAKING

This is to certify that I have completed the Project titled

“ANALYSIS OF AUTOMOBILE INDUSTRY- ELECTRIC
VEHICLES IN INDIA” under the guidance of “DR. VRINDA
RAWAL” in partial fulfilment of the requirement for the award of
degree of Bachelor of Commerce (H) at Vivekananda Institute
of Professional Studies, Vivekananda School of Business
Studies, New Delhi. This is an original piece of work and has not

been submitted elsewhere.

STUDENT SIGNATURE:

STUDENT NAME: Vanshit Jain

 CERTIFICATE

This is to certify that the Project titled “ANALYSIS OF AUTOMOBILE

INDUSTRY- ELECTRIC VEHICLES IN INDIA” is an academic work
done by “Vanshit Jain” submitted in the partial fulfilment of the
requirement for the award of the Degree of Course from Vivekananda
Institute of Professional Studies. It has been completed under the
guidance of Dr. Vrinda Rawal (Faculty Guide). The authenticity of the
project work will be examined by the viva examiner which includes data
verification, authenticity of information etc. and it may be rejected due to
non-fulfilment of quality standards set by the Institute.

Signature of the Faculty Guide

 ACKNOWLEDGEMENT

Every work involves efforts and inputs of various kinds and people. I am
thankful to all those people who have been helpful enough to me to the extent
of their being instrumental in the completion and accomplishment of the project
entitled “ANALYSIS OF AUTOMOBILE INDUSTRY- ELECTRIC
VEHICLES IN INDIA”. I am very thankful to Dr. Vrinda Rawal for her
timely guidance, supervision & encouragement that have helped me to get this
golden opportunity and who provided me their expert advice, inspiration &
moral support. I thank her for contributing and guiding me for the same, the
valuable suggestions & guidance provided by her really helped me in
successful accomplishment of my project.
Last but not the least I would like to express my heartiest gratitude to my
family members and friends. Their motivation, love and moral support boosted
my confidence to work sincerely and in an effective way. Thank you for being
my guide and motivator throughout this difficult path.

Vanshit Jain
 EXECUTIVE SUMMARY
In order to evaluate electric mobility as a promising solution, an in depth
analysis of current and expected future mobility usage is required. According
to 2011 census, approximately 31% of India’s population resided in cities.
This number is expected to increase to 40% in 2030 and 50% in 2050.
Analysis of travel pattern in Indian cities shows that two-wheelers are very
popular. Two-wheelers provide a lifeline to majority of citizens in absence
of an affordable and reliable public transport infrastructure. Two- wheeler
ownership is at 45–50% of households in Tier II and Tier III cities and close
to 30% for households in Tier I cities. Census data also shows that two-
wheelers remain the most popular motorized mode to travel to work, even
ahead of buses. According to the same data, 17% of people in urban areas
and 8% in rural areas depend on two-wheelers for commuting to work. As
most rural citizens do not have fixed places of work and have mixed
transport needs, their dependence on two wheelers therefore have not been
fully captured in Census numbers.
Analysis of trip lengths shows that 85% two-wheeler owners in rural and
75% two-wheeler owners in urban use their vehicles for <20km distance.
This report therefore focuses on analysing electrification of two wheelers,
the most popular mode of motorized transport in India

Role of Electric Vehicles in

India’s Mobility Scenario
In 2017, with total vehicular production over a 25 million in numbers,
India’s auto industry was the fourth largest producer of cars and largest
producer of two wheelers. Though penetration levels of the private vehicles
is still among the lowest in the world, the sheer number of vehicles on roads
presents some challenges. Emissions from vehicles are source of local
pollution and is one of the challenges towards achieving India’s climate
change targets. Switching to alternate powertrains can help in reducing the
emissions. As per the analysis in this report among all the alternate
powertrain options- biofuel, hydrogen fuel, and CNG- electric powertrain
promises to be more close to mass deployment. Electric powertrains will not
only help in reducing urban air pollution but also mitigating GHG emissions,
and enhancing energy security. This report further validate the narrative by
calculating the actual impact of electric vehicles on emissions, and energy
consumption in possible EV adoption scenarios.
Emission and Energy Impact of Electrification of
Two- Wheelers in India
According to TERI analysis, Two-wheelers which composed of more than
To estimate the emission and energy savings from phased adoption of
electric two- wheelers, the analysis followed a bottom-up approach. Growth
scenarios in two- wheelers by 2025 and 2030 across different segments were
projected based on GDP and population growth. This was followed by
estimation of EV penetration under three scenarios. In the business as usual
(BAU) scenario, a growth trend similar to what has been observed till now
for this segment is assumed. The other two future scenarios are based on
technology improvement and high ambitious policy pursued by the
government with a very high degree of policy push along with technological
improvements. Further savings in energy consumption and CO2 emission
were calculated under these EV penetration scenarios.
The analysis reveals that the impact on emissions and energy savings is only
significant in high ambitious scenario and is further limited in scope of
consideration. The calculations consider only tank to wheel scope i.e. the
emissions are estimated only for the use phase of the vehicles. If the scope is
expanded to include well to wheel, the impact of transition may be lesser
with projected mix of sources of generation of electricity in India. To
achieve the energy independence and emission targets, phased adoption of
EVs will have to be complimented with change to greener energy mix and
thrust on expanding the reach of public transport systems.
The market penetration of electric two-wheelers in new sales under the
three scenarios is assumed to range between 2-5% in 2025 and 10-30% in
2030. Corresponding range of expected emission and energy savings in
2030 are 2.7- 6% and 3-7% respectively. The High Ambition scenario is
assumed with several unlikely factors playing in favour like policy support
continuing at central and state level and falling battery prices in order to
ensure parity between ICE and EV in twowheelers.

Perspective of Consumers in
Electrification of Two-Wheelers
In order to achieve a higher EV penetration, an in depth understanding of
consumer perspective towards EV is critical. An online stated preference
survey was conducted on 212 individuals across the country towards this
objective. The preferences of three categories of individuals were
evaluated:
Existing electric two-wheeler owners
 Potential electric two-wheeler owners and
Potential petrol two-wheeler owners
The survey results as summarized below best describes EV as a secondary
vehicle with limited applicability and associated with range anxiety. Higher
price for ICE comparable EV, lack of adequate charging facilities and
uncertainty around battery replacement came out as major barriers to
adoption. Analysis of
1. Most electric two-wheeler owners also owned another ICE two-wheeler.
None of them used the electric two-wheelers for work trips.
2. The potential and existing electric two-wheeler owners did not consider
electric vehicles being economically better or having better utility than
the comparable ICE vehicles. Environment friendliness comes out as the
justification for choosing electric vehicles over ICE.
3. The range between charging and lack of charging facilities were the
major sources of anxiety for existing and potential electric two-wheeler
owners. However, the degree of anxiety amongst the potential owners
was much higher than the existing owners.
4. The respondents who were planning on buying a petrol two-wheeler in
the near future stated lack of charging facilities and concerns about
battery replacement as the main reasons for not choosing to buy an
electric twowheeler.

Business Feasibility and

Overall Expected Charging
Infrastructure Requirement
To address the range anxiety among potential EV customers, adequate
charging infrastructure is required. An in-depth analysis of various
possibilities of EV charging and associated business models has also been
carried out in this report.
Almost all electric two-wheeler owners charged their vehicles at home.
Home charging is a complex problem in India as most urban citizens live
in MURB (Multi Unit Residential Blocks) and many lack parking
facilities within their buildings. Private charging facility at home is a
primary consideration for boosting the initial uptake of electric vehicles.
As adequate public charging infrastructure is essential for increasing the
adoption of electric vehicles. This report assessed the business feasibility
of public charging stations (PCS). Through analysis it was found that
break even occurs at tariffs significantly higher than home charging rates.
On the other hand, it was found that existing or potential electric two-
wheeler owners require public charging tariff to be competitive with the
home charging rates, for regular charging and not charging only in the
case of emergency. The main driver of longer breakeven are the real-
estate rental costs in cities for PCS.
To make charging infrastructure viable for initial low demand scenario,
measures such as enabling real estate procurement at key locations at
lower costs, capital subsidy, or interest subvention on capital
expenditure should be considered. The minimum charging station
requirements to be eligible for incentives as per ministry of power
guidelines should also be brought window approvals and providing
power infrastructure to bear additional electricity load is also needed.
Finalization of charging standards for all vehicle categories will be
helpful in reducing demand uncertainty for type of charging equipment
and yielding higher utilization of charging infra.
Business analysis of battery swapping stations was also undertaken. The
analysis shows that BSS would even be more expensive than PCS and
home charging, and presenting host of other customer satisfaction,
operational and technical challenges.
This report also attempted to understand how much energy be required
to be set up to cater to the electric two-wheeler demand projected in the
technology upgradation scenario and what will be the costs for the same.
To make a successful adoption of electric vehicles there has to be
planned coordination in research, policy, and implementation of both
energy and transport sectors.

Industry’s Perspective in
Electrification of Two-
Wheelers
With the phased adoption of electric vehicles, the entire supply chain of
the automobile industry is expected to be affected. All the major value
drivers such as battery, motor, controller, chargers, and other electronics
are currently being imported from other countries. India also does not
have reserves of key raw materials for all the major components such as
lithium, cobalt, permanent magnets etc. According to conversation with
industry executives, Indian companies are already investing in EV
research and manufacturing. But there is general concern against hasty
push to EV. Therefore, policy measure is equally required for supply
chain to retain the value addition in India. Initiatives at country level to
procure strategic raw material reserves, bring investments for cell and
other electronic component manufacturing, and reskilling of the
workforce should be of paramount importance. Phased manufacturing of
EV and its components linked with financial incentives such as laid out
in FAME II is therefore a much appreciated a step in that direction.
More than 50% of the workforce directly employed in automobile sector
is involved in engine manufacturing.
The sector also indirectly employs a large population in the after-sales
service industry for ICE vehicle and the ancillary industry. This
workforce will be at risk of unemployment and therefore is an area of
concern for industry. Industry and government will have to work towards
a reskilling plan and explore investments in charging infrastructure and
energy management to create new employment opportunities.

Business and Financing

Models
Study projects phased adoption to electric two- wheelers as an important
necessity, however, it comes with significant demand and supply side
challenges. Bridging of wide cost gap of electric two-wheelers with ICE
vehicle, setting up of widespread charging facilities to overcome the
range anxiety issues among initial prospective customers are the key
demand drivers. On the supply side, building a robust value chain for
manufacturing electric two-wheelers will be necessary.
The electric vehicle adoption also presents the classical chicken and egg
problem. Sustained policy support to bridge large cost gap and improve
consideration for initial customers. Followed by achieving the critical
mass demand and supporting EV research, supply chain localization and
value retainment. Finally, leading to higher scale of domestic production
has the potential sustainably reduce the vehicle cost for customers.
Direct financial incentives such as laid out in FAME II is the right step
towards achieving this critical mass. Specific use cases highlighted in
the report can further be focused upon. Use cases such as commercial
application of electric two-wheelers for food & goods delivery, shared
rental services can specifically be targeted. For the personal use case,
cost effective leasing and other financial products need to be explored.
Measures such as lower taxes, lower tolls, and special parking
provisions can further aid the EV selling.
Battery amounts to almost 40~50% of the EV cost. Localization of cell
manufacturing will therefore help in reducing EV costs, and achieving
self-sufficiency to ensure a sustainable EV growth. A national level
strategy to secure critical raw material sources for cell manufacturing,
and to incentivize local cell manufacturing through capital subsidy,
favourable trade & FDI policies, and investment models such as PPP are
need of the hour.

CHAPTER -1

INTRODUCTION
 Mobility Scenario In India

India is witnessing urbanization at a pace experienced by no other country.

Between 2001 and 2011, the urban population in the country grew by 90.99
million. According to 2011 Census, India’s urban population is 377.11 million
that is around 31.16% of the country’s total population. Around 600 million
people will start living in towns and cities in India by 2030. As a result of
urbanization, cities are also experiencing a rise in their travel demand. While
the role of transport as an enabler of economic growth is well recognized,
mobility also remains critical to ensure well-being of citizens by facilitating
their access to socio- economic Indian cities display a diverse mobility
pattern. Larger cities have the higher mode share catered by public transport
and non-motorized transport. The role of public transport, especially the mass
transport services such as buses and metros, diminishes significantly as the
city size decreases. Private vehicles especially two-wheelers assume an
important role in fulfilling the mobility needs of the people. The same is also
reflected in the spiralling population of cars and two-wheelers (2W) in the
country, which have been witnessing a CAGR of 10.1% compared to 5.9%
for buses between 2006 and 2016 (MoRTH, 2016).
It is estimated that the road transport contributed to approximately 213
Million Tonnes of carbon dioxide. Two wheeler segment contributed to about
20% of the emissions (see Figure 3b). Similarly, the road transport segment
consumed about 2.9 Million Tera Jule of energy in 2017-18 and two wheeler
segment contributed to about 21% of the energy consumed (see Figure 3c).
The relative shares of two wheelers in energy consumed and emissions
released is not estimated to change significantly till 2030.
It is estimated that two-wheelers constitute 78% of the total passenger
vehicles stock at present and will account for 77% by 2030. This translates
to approximately 285 million two- wheelers on-road by 2030. The share of
cars is expected to grow up to 16% by 2030 while light motor vehicles
(LMVs) or three wheelers (3W) expected to hold a constant share in the total
passenger vehicle stock (see Figure 4).
India’s automotive industry is the fourth largest in the world, contributing
7.2% to the Indian gross domestic product (GDP) in 2017.2
Lack of quality public transport in cities has resulted in growing dependence
on private modes. Rapid economic growth, urbanization along with rising
incomes and aspirations of the population are expected to further fuel the
ownership and usage of personal automobiles in Indian cities. It is, therefore,
imperative to counter the negative externalities associated with the transport
sector such as air pollution, emissions, noise pollution, congestion, and
resultant loss of productivity, by expanding public transport and building non-
motorized infrastructure, while also decarbonizing private cars and two-
wheelers.
Electric mobility offers a potential solution to lower emissions and pollution
while offering similar level of mobility to the people. Latest developments in
some parts of the world demonstrate that the electric vehicle technology has
reached a level where it is comparable to their ICE counterparts in terms of
performance, such as speed, pick-up, and range. In some applications, it
offers greater benefits especially in terms of operational cost savings given its
better efficiency, lower maintenance requirement, and lower energy and
emissions. While the electric vehicle market in India is still evolving,
government support in terms of FAME-II and entry of large number of EV
players in the market are a positive sign and indicate a large Electric
technology may assume a greater market share in the two-wheeler vehicle
segment, if it becomes affordable and cost competitive when compared to
conventional ICE two-wheelers. Low dependence on public charging
infrastructure may also contribute in higher acceptance of this product.
Proliferation of public charging or provision of removable battery may lead to
faster growth of electric two-wheelers among the consumers.
The next section of the chapter discusses the mobility pattern in different
Indian cities and the role of different modes of transport in meeting the
transport needs of the people. The analysis is mostly drawn from the
information compiled from various comprehensive mobility plans for
individual cities and the information on work-related mode use provided in
the Census 2011.

Mobility Pattern in Indian Cities

The past few decades have seen a process of rapid urbanization globally with
more than 50% of the world’s population residing in urban areas since 2007
(UNDESA, 2015). In 2018, there were 33 megacities in the world with more
than 10 million inhabitants. By 2030, it is projected that there will be 43
megacities, with most of them located in developing regions (UNDESA,
2015). India has been one of the fastest urbanizing countries in the world
(Table 1). According to the Census 2011, India’s urban population increased
from 286 million in 2001 to 377 million in 2011. As of 2011, 31.1% of
India’s population resided in urban areas. It has been projected that by 2030,
40% (600 million) of the population will reside in urban areas and that by
2050 this figure will increase to 850 million, that is 50% of the total
population (MoUD, 2016). As per Census 2011, there were 53 urban
agglomerations (UAs) with population more than a million and 3 mega-
cities with a population of over 10 million (Census, 2011). It is expected that
by 2030, 63 UAs will have

population greater than 1 million and 4 UAs (Chennai, Bangalore,

Hyderabad, and Ahmedabad) will enter the 10 million plus population
bracket in addition to Delhi, Mumbai, and Kolkata (UNDESA, 2015). The
rapid pace of urbanization will also result in massive need for transport in
Indian cities. Table 2 shows the rate of change of urban population amongst
the BRICS nations.

Mode share in Indian cities

Globally, SDG, COP 21, and New Urban agenda identify mobility as a
foundation for sustainable development. Goal 3 and Goal 11 focus on
promoting healthy lives and well-being for all at all ages, by targeting
substantial reduction in air cities’ spatial spread is increasing, leading to
higher trip lengths and proliferation of personal vehicles around the world.
Although there has been phenomenal increase in population of private motor
vehicles in the last 10 years, Indian cities are still, typically, catered by non-
motorized transport and public transport. The share of non- motorized trips
varies with the size of the city. The share of walking trips ranges from 37% in
cities of 0.1 million population to 28% in mega-cities with a population of 10
million (Tiwari, 2006). In cities having a population range of 0.5 to 1 million,
about 20% of trips are made through cycles in contrast to larger cities with a
population more than 1 million where cycling trips account for less than 15%
(Ghate, 2014). The share of public transport also varies as per the size of the
city with Tier I cities such as Delhi having 31% public transport share
(MoUD, 2016) and Mumbai having mode share as high as 67% of the total
motorized trips (Lea Associates, 2016). The share of non-motorized trips has
declined from about 40–60% of the total trips in the early 1980s (Kumar
Kartik, 2015) to about 30–40% in 2008 (MoUD, GoI, 2008). The share of
public transport has declined significantly too.
Lack of adequate public transportation in Indian cities is reflected in rapidly
rising shares of the personalized transport modes, especially two-wheelers.
The share of two-wheelers ranges between 30% and 35% in medium-size
cities which have limited public transport availability whereas it caters to
5% and 10% mode share in Tier I cities. Trip lengths are a function of city
size; with the sprawling cities, the trip lengths in Indian cities have been
rising. Table 5 shows the trend in average motorized trip lengths in Indian
cities. The same can also be corroborated from two-wheelers ownership
data(Figure 5) which is around 45–50% for Tier II and Tier III cities whereas
it is only 32% for Tier I cities.
As per CSTEP and IUT (2015), the average motorized trip length for cities
with population above 8 million was in the range of 11 to 16 km; 8 to 11 km
for city with 4–8 million population, 6 to 8 km for 2–4 million city, 6 to 3 km
for 1–2

million city, and 4–7 km for city with less than 1 million population in 2011.
Clearly, city size is closely correlated with the trip length in cities. It can be
seen that trip lengths across cities have increased by 30–40% between 1994
and 2011 for larger cities (1 to 8 million).

Mode preference and trip length for

work purpose
Census 2011 carried a question on the mode used by people for work, while
this data does not provide an accurate picture of the mode share; however, it
does provide a good understanding about the preferred mode choice of
people. The response for this question was captured for 200 million people in
India, of which 78% were males and 22% were females. Of the people
surveyed, 42% resided in rural areas and 58% resided in urban areas. 17% of
the urban work trips and 8% of rural work trips were attributed to two
wheelers
urban areas and 35% in rural areas rely on walking and cycling to go to
work. Two-wheelers constitute the next most commonly used mode to reach
the workplace. In urban areas, the number of people using two-wheelers
exceeds the ones who rely on buses which are used by 11% of the people. In
the case of Delhi too, the use of two-wheeler is 13%, compared to 11% of
people using buses

Trip length as per the Census, 2011

The analysis of distance travelled by motorized modes in rural India, urban
India, and a metropolitan city (Delhi) shows that two-wheelers are used in a
similar manner as cars and buses in terms of trip lengths. In rural areas, the
trip lengths covered by two-wheelers are similar to the ones covered by
cars.Almost 80% of people using cars and two-wheelers travel in a range of
11 to 20 km. Buses cover distances as long as 31 to 50 km in rural areas. In
the case of urban India, almost 80% of people used two-wheelers for
travelling distances up to 6–10 km and cars and buses for 11–20 km. In the
case of Delhi, the trip lengths were found to be very similar for two-
wheelers and buses. More than 80% of people used them for covering 11–
20 km, more than 80% of people using cars for travelling distances up till
21– 30 km.
Role of various modes
Cities depend on a range of transport modes, varying from non-motorized to
motorized. While motorized modes are typically used to cover larger
distances, buses and metro typically form the mass transport services in the
larger cities in the country. There is also a large dependence on para-transit
systems such as rickshaw, both motorized and non-motorized. They are
typically used as a last mile solution in larger and medium cities where the
mass transport services such as buses including BRTS and metro form the
skeletal transport network. In the smaller and medium towns, where no such
skeletal transport systems are available, these solutions are used for end-to-
end line primary trips.
Expansion of public transport has taken place in a very limited manner in
Indian cities. Formal bus systems operate in handful of cities. Most of the
cities are catered by informal or poorly regulated transport systems which
create externalities such as pollution, safety. In larger cities where some kind
of public transport is present, comfort and convenience factors prevent people
from using these modes. Non-motorized transport and public transport have
been reduced to largely being a captive mode of use. People aspire to shift to
a twowheeler as soon as owning it becomes possible; the same is also
applicable to two-wheeler users, who aspire to own a car.
As per Road Transport Year Book (MoRTH, 2015), 210 million vehicles are
plying in Indian roads in 2015 out of which two-wheelers have highest share
at 73.5%, followed by cars with 13.6% and the lowest share is of buses with
Tier III cities.
In order to curb the negative externalities associated with high personal
vehicle use, it is important that cities invest in quality public transport
systems that are affordable to the masses. The long distance trips in cities
must be shifted to public transport. Intermediate public transport such as
mini-buses, auto-rickshaws and non- motorized transport modes including
cycle rickshaws, walking, and cycling should typically form the last and first
mile solutions. Non-motorized facilities need to be strengthened so that
people can walk and cycle for short distance trips, which the data shows are
substantial in the case of Indian cities; 40% of people travel less than 5 km
as per Census, 2011 for work. Census 2011 accounts only for the trips made
by “other workers” from home to work. It defines ‘other workers’ as workers
other than cultivators, agricultural labourers or workers in the household
industry. However, in the absence of strong public transport, personal
vehicles will continue to play an important role in fulfilling the mobility
needs of Indian people.
 Alternative Fuel Technology
Solutions
An alternative fuel technology may be defined as a technology solution which
powers the vehicle by any fuel other than the conventional petroleum-derived
fuels (diesel or petrol); it can be primarily referred to any technology of
engine powering that does not entail solely petroleum (such as solar powered,
electric car or hybrid electric vehicles). Such a vehicle is therefore “cleaner”
and safer for the environment.
While it is widely agreeable that there is an urgent need to decarbonize the
transport sector, the development and wide-scale use of alternative fuels is
important due to a number of factors such as a) conventional fuels running out,
b) reducing air pollution and greenhouse gas emissions, and c) sourcing these
fuels domestically
CNG
Natural gas, a fossil fuel comprised mostly of methane, is one of the cleanest
burning fuel in terms of NOx and soot (PM) emissions (CTCN, 2018). It can
be used in the form of compressed natural gas (CNG) to fuel passenger cars
and city buses or in the form of liquefied natural gas (LNG) to fuel heavy
duty trucks. Usually, a CNG passenger vehicles emits 5 –10% less CO 2 than
ICE passenger vehicles, and the Nox and soot emissions of CNG powered
vehicles are substantially lower (CTCN, 2018).
While CNG is widely used in passenger four-wheelers, buses, and trucks,
they find limited use in two- wheeler segment. CNG might not be the most
feasible technology for two-wheelers primarily because the installation of a
CNG kit Rs. 20, 000 per vehicle (Times of India, 2016), which makes the
overall upfront cost of CNG- based two wheeler very high and a CNG kit
may reduce power pick-up.

Bio fuels
Biofuels are liquid fuels that have been derived from other materials such as
waste plant and animal matter. The two main types of biofuels currently in
production are bioethanol and biodiesel. Bioethanol is used as a replacement
for petrol and biodiesel is used as a replacement for diesel (BioEnergy
Association, 2018).
Biofuels represent an immense growth opportunity around the world and
have an important role to play in displacing the fossil fuels on which the
world has relied upon in the past, with a cleaner, renewable alternative. To
meet the increasing energy needs of the country, the Government of India
announced its first Biofuel Policy in December 2009. The major goals of the
policy are development, and utilization of indigenous non-food feed stocks
raised on degraded or waste lands, thrust on research and development on
cultivation, processing , and production of biofuels and a blending mandate
of 20% ethanol and biodiesel by 2017 (Plinio Nastari, 2018).
In 2018, Brazil substituted 42% of its petrol with ethanol and, the US which
uses nearly half of the world’s petrol, the level of substitution is 10%.
Ethanol is economically competitive, and its cost today is about $1.3 per
gallon, while petrol has a wholesale price of $2.1 per gallon. Therefore, it
helps alleviate the price pressure on consumers (Chibber, 2018).
Average blending of ethanol in petrol in India was about 4.22% in 2017-18.
However, India is set raise the ethanol blending to 7.2% in 2018-19. This
steady rise in ethanol blending is not only expected to reduce the
dependence on crude imports, but also reduce the vehicular air pollution.
While efficiently utilizing cane juice and other raw materials.
The primary use of biofuels is in transportation sector, these fuels are not
just energy dense (unlike electricity and batteries) but also function similar
to petroleum- based fuels which in term requires no or little modification in
the existing ICE power-train (Biofuel.org, 2017).

Electric Vehicles
The developments in the past decade have established electric vehicles as the
most promising mode of transport all around the world. Electric Vehicles
moving parts in an ICE vehicle, amounting to far greater reliability. There are
various other benefits of adopting electric vehicles such as reduced
dependence on imports of crude oil, and reduction on greenhouse gas
emissions and air pollution. The EVs are also believed to provide an indirect
push to renewable energy due to the excess energy demand that would be
created due to uptake of electric vehicles (TERI, Yes Bank, 2017).
Despite the stated advantages of the EV technology, the deployment of EVs
has not happened at a rapid rate. This has been primarily due to the high
upfront cost of the battery, which in turn leads to higher cost of an electric
vehicle. The cost of battery is a major deterrent in the uptake and mass
production of EVs in India, presently; India doesn’t have battery cell
manufacturing plants and is only assembling the battery packs which are
imported.
(EVs) are almost five times more energy efficient as compared to ICE vehicles
India stands at a critical juncture so as to either provide heavy financial
incentive or proactively innovate (Plug- In-India, 2017). Hydrogen
Fuel Cell
The most recent advancement in the field of alternate fuel technology is
discovery of hydrogen fuel cell. Hydrogen as a fuel has various advantages
and disadvantages in its application for transportation and energy storage
purposes. However, due to high cost involved in setting up an infrastructure
for production, it has resulted in a lower inclination to use hydrogen as a fuel
(OilPrice.org, 2019).
However, despite the high cost of the hydrogen fuel cell technology,
academia and intelligentsia are keen to research and experiment on various
method to harness this energy. The primary driver for this is that hydrogen
can be produced by an environmentally friendly method called ‘hydrolysis’
or through the process of ‘reforming’ natural gas, which is the approach to
produce 95% of the hydrogen on the market

CHAPTER -2

REVIEW OF LITERATURE
Overview of Indian Automotive
Sector
The automotive industry has been rightly called as the ‘industry of
industries’ since it utilizes the outputs of nearly all the manufacturing
industries and also supports the upstream industries like steel and
downstream industries like insurance (Drucker, 1946). Undoubtedly, it is
widely considered as the driver of the nation’s economy and is as a
significant contributor to the global economy. According to the Society of
Indian Automobile Manufacturers (SIAM), the industry has grown by
14.4% in the past decade. The industry contributes 7.2% of India’s total
GDP and about 22% of the manufacturing GDP (Supriyo, 2017). In 2017,
with total vehicular production over 25 Million in numbers, India’s auto
industry was the fourth largest producer of cars and seventh largest
producer of commercial vehicles in the world (SIAM, 2017a).

Vehicle production in India

The automotive industry produced a total of 29.86 million vehicles
including commercial vehicles, passenger vehicles, tractors, three-wheelers,
two- wheelers and quadricycle in the FY 17–18. The two wheelers are the
dominant automobile manufactured in India, accounting for 79.7% of the
total vehicles manufactured in the FY 2017–18, followed by passenger
vehicles (13.7%), three-wheelers (3.5%), and commercial vehicles (3.1%)
(SIAM, 2017a).
Within the two wheeler segment, motorcycles accounted for 66% of the
production followed by scooters (30%) and mopeds (4%).
71% of passenger vehicles produced in the FY 2017
– 18 were cars, followed by utility vehicles (24%) and vans (5%).
Passenger carriers dominate the three-wheeler segment by constituting
86% of the production. The rest (14%) are goods carriers.
57% of the commercial vehicles produced in India during the FY
2017–18 were LCVs and 43% were M&HCVs. However, only 12%
of these commercial vehicles produced were passenger carriers and
88% were goods carriers.

In the past 10 years (2008-09 to 2017-18), vehicle production in India

increased by 126%. The increase in the manufacturing volume was led by
the two wheeler segment which increased by 139% in 10 years, followed
by commercial vehicles (92%), passenger vehicles (83%) and three
wheelers (83%).
The commercial vehicles segment saw a production increase by 10.4% in FY
17–18 over the FY 16–17 which was mainly due to the 19.9% and 17.8%
growth in goods carriers and tractors respectively.
The passenger carriers in the medium and heavy commercial vehicles in
this segment, which includes mainly buses, witnessed a reduction in
production by 24.1% during the FY 2017–18.
Passenger vehicles segment witnessed an increase of 5.5% in FY 17–18
over the FY 16–17 mainly due to the 19.9% increase in production of
utility vehicles.

Vehicle Sales in India

The automotive industry sold (including exports) a total of 27.6 million
vehicles including commercial vehicles, passenger vehicles, tractors,
threewheelers and two- wheelers in the FY 16–17. Similar to
manufacturing the two-wheelers are also the dominant automobiles sold
in India, accounting for 79.2% of the total vehicles manufactured in the
FY 2016–17, followed by passenger vehicles (14.4%), three-wheelers
(3.2%) and commercial vehicles (3.1%) (SIAM, 2017a). 22.1% of the
total sales composed of exports and 77.9% were domestic sales.
Within the domestic sales in two-wheeler segment, motorcycles
accounted for 63% of the sales followed by scooters (32%) and mopeds
(5%).
69% of passenger vehicles sold in India were cars, followed by utility
vehicles (25%) and vans (6%).
Passenger carriers dominate the three-wheeler segment by constituting
of 79% of the production. The rest (21%) are goods carriers.
58% of the commercial vehicles sold in the domestic market in India
during FY 2016-17 were LCVs and 42% were M&HCVs. However,
only 14% of these commercial vehicles produced were passenger
carriers and 86% were goods carriers.

Policy Framework Supporting

Electrification In India
According to the Climate Action Tracker, India is leading the G20 countries
in closing the gap between the targets set and the trajectory followed. India
aims to over achieve its NDC with the adoption of its National Electricity
Plan released in April 2018. One of the important measures that can be
adopted is to shift from carbon intensive fossil-fuel driven mobility to
cleaner mobility solutions such as electric vehicles.
National Level Policies and
Interventions
Some of the key policies undertaken by the Government of India over the last
decade, which have provided support and push to EVs, are discussed below

Alternate Fuels for Surface

Transportation (AFST) Programme
The AFST programme of the Ministry of New and Renewable Energy
promoted all types of BEVs, PHEVs, HEVs and Electric/ Exercise Bike
Generator Inverters (E2BI). The programme aimed at providing support
for dissemination of such vehicles, their research and development, pilot
projects, and awareness related activities. The programme had been
offering Central Financial Assistance to all such vehicles since 2010. The
programme came to an end in 2012–13; with the launch of the National
Electric Mobility Mission Plan 2020.

National Electric Mobility Mission

Plan (NEMMP) 2020

The National Electric Mobility Mission Plan (NEMMP) 2020, was

launched in 2013 by the Ministry of Heavy Industries and Public
Enterprises in order to promote the demand of environment-friendly
electric vehicle technologies. The primary aim of the Plan was to provide
financial and infrastructural support to electric vehicle technologies in
India. The budget outlay of the Plan was divided into a) Technology
Platforms, b) Demand Incentive, c) Charging Infrastructure, d) Pilot
Projects and, e) IEC/Operations (conductive charging)
The vision statement of NEMMP is mentioned below:
“To encourage reliable, affordable and efficient electric vehicles that meet
consumer performance and price expectations through government-
industry collaboration for promotion and development of indigenous
manufacturing capabilities, required infrastructure, consumer awareness
and technology; thereby helping India to emerge as a leader in the EV
two-wheeler and four-wheeler market in the world by 2020, with total EV
sales of 6 – 7 million units thus enabling Indian automotive industry to
achieve global EV manufacturing leadership and contributing towards
national fuel security.” NEMMP was targeted to achieve expansion of
domestic electric vehicle market, coupled with global leadership in vehicle
manufacturing. The primary objective of NEMMP is to provide the initial
boost to the EV industry in India
which will then in turn stimulate the manufacturing of these vehicles in larger
volumes. The four key principles that guide the future roadmap for EVs
penetration in NEMMP include the following:
1. Creating consumer acceptability for EVs

2. Developing infrastructure to support ownership and use of EVs

3. Development/acquisition of EV technology
4. Creation of local manufacturing capability
The Plan projected the total potential demand for full range of electric
vehicles (mild hybrids to full electric) to be in the range of 5 –7 million
units in new vehicle sales by 2020. The bulk of this demand has been
anticipated to come from (pure) electric two-wheelers, followed by hybrid
electric vehicles (HEVs) and pure electric vehicles or battery electric
vehicles (BEVs). In order to achieve the objectives laid out in the NEMMP,
the Government of India announced an incentive scheme, which provides
subsidies on purchase of EVs – the Faster Adoption and Manufacturing of
(Hybrid &) Electric Vehicles (FAME) scheme.

Faster Adoption and Manufacturing of (Hybrid &) Electric

Vehicles (FAME - India), Phase 1
The Ministry of Heavy Industries and Public Enterprises launched the
FAMEIndia Scheme in April, 2015. The salient features of FAME India
scheme are as under:
The scheme was launched for the initial two years of the 12th Plan period–
Phase I (2015-17), which was further extended till March 2019.
The scheme had an outlay of Rs. 795 Crore under various plan heads for
Phase I of the scheme, which was increased to Rs. 895 Crore due to the
extension of Phase I
The scheme covered all vehicle segments i.e. two, three, and four-
wheelers, cars, LCVs, buses etc. and all forms of hybrid (Mild / Strong /
Plug-in) and pure electric vehicles; the incentive on hybrids was
withdrawn when the Scheme was extended after March 2017.
The demand incentive is availed by buyers upfront at the point of purchase
and the same is reimbursed to the manufacturers from (Department of
Heavy Industries) DHI on a monthly basis.
In January 2018, realizing the role of pilots in boosting the adoption of
EVs, DHI approved pilots for 390 electric buses, 370 electric taxis and
720 electric autos spread across 11 Indian cities under the Scheme. While
the nine big cities were given subsidy for 40 buses each, Jammu and
Guwahati got subsidy for
15 buses each. In terms of taxis, subsidy was provided to Ahmedabad (20),
Bengaluru (100), Indore (50) and Kolkata (200), based on their demand.
Bengaluru was allotted subsidy for 500 three-wheelers, while Indore and
Ahmedabad were offered subsidy for 200 and 20 three-wheelers, respectively.
The amount sanctioned is Rs. 437 crore, out of which Rs. 40 crore is allotted
for charging infrastructure. The implementation of these pilots are underway,
for example electric bus pilot has been started in Ahmedabad-BRTS since
January 2019.

Faster Adoption and Manufacturing

of (Hybrid &)
Electric Vehicles
(FAME - India),
2019 Phase 2
The Government of India launched Phase-II of FAME or FAME-II in
March 2019 with ten times the financial resources of FAME-I. FAME-II
has an overall budget of Rs. 10,000 crore allotted for demand incentives,
charging infrastructure and IEC activities. FAME-II deviates from its
predecessor in the logic of demand incentive allocation. Unlike FAME-I,
the subsidy in FAME-II is not based on the specific vehicle model but on
the battery size. As it is the battery prices which drive the EV prices up,
FAME-II offers a uniform incentive of Rs. 10,000 per kWh of battery for
two, three and four wheelers. For buses, it offers a uniform subsidy of Rs.
20, 000 per kWh. The focus of FAME continues to be promoting purchase
and sale of electric vehicles with almost 86% of this scheme’s budget
being allocated for demand incentives. FAME-II targets to provide the
purchase subsidy to 10,00,000 two-wheelers, 5,00,000 threewheelers,
55,000 four- wheelers and 7090 buses over a period of 3 years.
The scheme is mainly applicable to vehicles used as public transport or
those registered for commercial purposes in three wheeler, four wheeler and
bus segments. However, the scheme does not exclude privately owned two
wheelers. Deriving learning from FAME-I, the demand incentive in limited
to vehicles with ‘Advance Batteries’, defined as ‘Motor Vehicles’ in
CMVR(Central Motor Vehicle Rules) by Ministry of Road Transport and
Highways. The scheme also lays down eligibility of vehicles for demand
incentive based on proportion in domestic manufacturing, compliance to
CMVR standards, fitting of monitoring device for mileage and display of
DHI sticker indicating that the vehicle has been purchased under the
scheme.

National Energy Storage Mission, 2018

In February 2018, an expert committee under the chairmanship of
Secretary, Ministry of New and Renewable Energy, with representatives
from relevant ministries, industry associations, research institutions and
experts were constituted by the Ministry of New and Renewable Energy to
propose draft for setting up National Energy Storage Mission (NESM) for
India.
The primary objective of the NESM is to strive for leadership in energy
storage sector by creating an enabling policy and regulatory framework that
encourages manufacturing, deployment, innovation, and further cost
reduction. Furthermore, India’s NESM has proposed three-stage solution
approach, which is:
creating an environment for battery manufacturing growth
scaling supply-chain strategies
scaling of battery cell manufacturing
The mission also highlights the importance of energy storage with
perspective of India in order to provide the much needed thrust to
renewables and electric vehicles. The key areas that were identified as a
part of the mission were:
Integrating renewable energy with distribution and transmission
grids.
Setting rural micro grids with diversified loads or stand-alone systems.
Developing Storage component of electric mobility plans. National
Policy on Electronics, 2019
The policy envisions positioning India as a global hub for Electronics
System Design and Manufacturing – (ESDM) by encouraging and driving
capabilities in the country for developing core components, including
chip-sets, and creating an enabling environment for the industry to
compete globally. The policy would indirectly affect technological
advancements and innovation in the field of electric vehicles.
The following are the salient features of NPE 2019:
Create eco-system for globally competitive ESDM sector by promoting
domestic manufacturing and export in the entire value chain of ESDM
 by providing incentives and support for manufacturing of core
electronic components.
Provide special package of incentives for mega projects which are
extremely high-tech and entail huge investments, such as
semiconductor facilities display fabrication, etc.
Formulate suitable schemes and incentive mechanisms to encourage new
units and expansion of existing units.
Promote industry-led R&D and innovation in all sub- sectors of electronics,
including grass-roots level innovation and early stage start-ups in emerging
technology areas such as 5G, loT/ sensors, Artificial Intelligence (Al),
machine learning, Virtual Reality (VR), drones, robotics, additive
manufacturing, photonics, nano-based devices, etc.
Provide incentives and support for significantly enhancing availability of
skilled manpower, including re-skilling.
Special thrust on Fabless Chip Design Industry, Medical Electronic
Devices Industry, Automotive Electronics Industry (primarily EVs) and
Power Electronics for Mobility and Strategic Electronics Industry.
State-Level Policies
Realizing the important role electric mobility can play in addressing the air
pollution and climate change concerns, many states in India have drafted
Electric Vehicle Policy to accelerate the uptake of EVs. Karnataka,
Telangana, Maharashtra, Uttar Pradesh, Kerala and Tamil Nadu have
formulated EV policies promoting EV adoption and manufacturing in their
respective states. Delhi has also come up with a draft EV policy. The Table
7 State-level EV policies and their targets, sums up the targets that the state
polices have set up for their respective states.

State Targets

1000 e-buses by 2030

Karnataka Electric
100% three-wheelers / four-wheelers moving
vehicle and Energy
Storage policy goods will be encourage to transit to electric
2017 mobility by 2030
Incentives for first 100 fast charging stations
Telangana Electric Telangana State Transport Corporation to set a
Vehicle Policy Draft target of 100% electric buses by 2030 for
2017 intracity, intercity, and interstate transport
Government will set up first 100 fast charging
stations in GHMC
 Maharashtra’s Increase number of EVs registered in
Electric vehicle and Maharashtra to 5 lakh
related infrastructure To generate an investment of Rs. 25,000 crore in
Policy 201 EV
Uttar Pradesh Electric Public Transportation – 1000 EV buses by 2030
Vehicles
Manufacturing Private Transportation – State government
Policy 2018 will encourage electric 2-wheeler taxies
for short distance mobility, and existing auto
rickshaws will be
encouraged to resort to EV
technology
Goods Transportation – Further, to promote
adaptability of EV in Goods
transportation, EV-3 wheelers, 4-wheelers mini
goods vehicles will be
encouraged in GB Nagar, Ghaziabad, Agra,
Lucknow, Kanpur, Varanasi
Kerala EV Policy 1 Million EVs by 2022
Pilot Fleet of 200,000 two- wheelers, 50,000
three wheelers, 1000 goods carriers, 3000 buses
and 100 ferry boats by 2020 Part of Public
Transport fleet of 6000 buses to be made electric
by 2025
Tamil Nadu EV Attract ₹50,000 crore in investments and create
Policy 1.5 lakh new jobs
100 per cent road tax exemption for all types of
EVs, capital subsidies,
reimbursement of State GST, subsidy on land
cost and special incentives for job-creating EV
projects
Draft Delhi Electric Battery Electric Vehicles (BEVs) 25% of all
new Vehicle Policy vehicle registrations by 2023
 CHAPTER - 3

RESEARCH METHODOLOGY

OBJECTIVES OF STUDY

The proposed study aims to develop an understanding of the challenges that are
limiting the adoption of electric vehicles in the country and suggest measures to
address them. The study will focus on bringing forth the perspective of the
consumers in terms of their preference and willingness to pay, perspective of
the industry focusing on challenges faced in terms of their manufacturing
capabilities, and resource availability.
The adoption of electric two-wheelers in India is larger and faster than other
personal vehicle segments. Other than contributing to reduction in air pollution,
switching to electric two-wheelers will also generate considerable savings for
the users with negligible dependence on public charging. Even then, the growth
of adoption of electric two-wheelers is just at a fraction of the rate required for
achieving the national target. For the same reason, the electric two-wheelers are
the primary focus of this study.

The broad objectives of the study are as follows:

• To understand the mobility scenario in India
• To understand the role of electric vehicles in India’s mobility scenario
• To estimate emission and energy impact of electrification of two-
wheelers in India
• To understand perspective of consumers in electrification of two-
wheelers
• To assess business feasibility and overall expected charging
infrastructure requirement
 • To understand industry’s perspective in electrification of two-wheelers
• To identify suitable business and financing models for different electric
vehicle segments

SCOPE OF STUDY

This study focuses on approaching towards faster adoption of specifically electric

twowheelers in India. Geographically, the analysis is largely limited to India. This study
also focuses solely on electric technology for automobiles and does not explore the
literature on other clean technologies. Within the automobile sector, this study limits itself
to understanding the two- wheeler segment and its pathway to electrification.

THE 3 TYPES OF SURVEY

RESEARCH

Most research can be divided into three different categories: exploratory, descriptive and
causal. Each serves a different end purpose and can only be used in certain ways.

In the online survey world, mastery of all three can lead to sounder insights and greater
quality information. Let’s do a quick overview of all three types of research, and how
they fit in a research plan.

EXPLORATORY RESEARCH

Exploratory research is an important part of any marketing or business strategy. Its focus
is on the discovery of ideas and insights as opposed to collecting statistically accurate data.
That is why exploratory research is best suited as the beginning of your total research plan. It
is most commonly used for further defining company issues, areas for potential growth,
alternative courses of action, and prioritizing areas that require statistical research.
When it comes to online surveys, the most common example of exploratory research takes
place in the form of open-ended questions. Think of the exploratory questions in your
survey as expanding your understanding of the people you are surveying. Text responses
may not be statistically measureable, but they will give you richer quality information that
can lead to the discovery of new initiatives or problems that should be addressed.

DESCRIPTIVE RESEARCH
Descriptive research takes up the bulk of online surveying and is considered conclusive in
nature due to its quantitative nature. Unlike exploratory research, descriptive research is
pre planned and structured in design so the information collected can be statistically
inferred on a population.
The main idea behind using this type of research is to better define an opinion, attitude, or
behaviour held by a group of people on a given subject. Consider your everyday multiple
choice question. Since there are predefined categories a respondent must choose from, it is
considered descriptive research. These questions will not give the unique insights on the
issues like exploratory research would. Instead, grouping the responses into predetermined
choices will provide statistically inferable data. This allows you to measure the
significance of your results on the overall population you are studying, as well as the
changes of your respondent’s opinions, attitudes, and behaviours over time.
CAUSAL RESEARCH

Like descriptive research, causal research is quantitative in nature as well as preplanned

and structured in design. For this reason, it is also considered conclusive research. Causal
research differs in its attempt to explain the cause and effect relationship between
variables. This is opposed to the observational style of descriptive research, because it
attempts to decipher whether a relationship is causal through experimentation. In the end,
causal research will have two objectives:

• To understand which variables are the cause and which variables are the effect.
• To determine the nature of the relationship between the causal variables and the
effect to be predicted.

For example, a cereal brand owner wants to learn if they will receive more sales with
their new cereal box design. Instead of conducting descriptive research by asking people
whether they would be more likely to buy their cereal in its new box, they would set up an
experiment in two separate stores. One will sell the cereal in only its original box and the
other with the new box. Taking care to avoid any outside sources of bias, they would then
measure the difference between sales based on the cereal packaging. Did the new
packaging have any effect on the cereal sales? What was that effect?

DATA COLLECTION

Information in this report is collected from the following sources:-

PRIMARY DATA:

• QUESTIONNAIRE
 • OBSERVATION
• INTERVIEWS

SECONDARY DATA:

• COMPANY WEBSITE
• COMPANY BROCHURES
• MAGAZINES
• NEWSPAPER
SAMPLE SIZE

The sample size is 50. The method of sampling used is simple random sampling. The
sample has been collected from the customer feedback form desk of the company.
Charts and diagrams are created after taking details from the physical feedback forms
available in the office

QUESTIONNAIRE

A questionnaire is a research instrument that consists of a set of questions or other types of

prompts that aims to collect information from a respondent. A research questionnaire is
typically a mix of close-ended questions and open-ended questions.

Open-ended, long-form questions offer the respondent the ability to elaborate on their
thoughts. Research questionnaires were developed in 1838 by the Statistical Society of
London.

The data collected from a data collection questionnaire can be both qualitative as well
as quantitative in nature. A questionnaire may or may not be delivered in the form of a
survey, but a survey always consists of a questionnaire.
 CHAPTER – 4

DATA ANALYSIS &

INTERPRETATION
Q. How much more are you willing to pay for an
Electric Vehicle with more or less the same
functionality as an ICE Vehicle?
 Insights and Analysis
The price band and expectations of the customers are in general
challenging to the manufacturers. OEMs do not always meet
customers’ expectations on the functionalities and reliability, but a
trade-off between investment and required functionalities and
reliability is always seen. Based on the data collected, the following
insights are built:
1. The majority of the participants in all age groups, educational
qualifi- cations, and occupation are willing to pay up to 10%
more for EVs vis-a-vis gasoline-powered vehicle’ cost.
2. People with high school education tend not to pay a higher
amount than the gasoline-powered vehicle’ cost. People with
education up to a bach- elor’s degree tend to pay slightly higher
than the gasoline-powered ve- hicle’s cost. The majority of the
participants with masters and Ph.D. are inclined in buying the
electric vehicle even at a higher price than a gasoline-powered
vehicle. In general,the education qualification raises concerns
about the climatic changes and the requirements of transition
from carbonemitting fossil fuel-based systems to greener
alternatives. Hence, respondents with higher qualifications are
seen to be willing to invest higher in EVs.
3. Individuals working with government organizations are unwilling
to pay for EVs if it costs more than the ICE-based vehicle.
4. Most academics and retired professionals are willing to pay a
slightly higher amount than the ICE-based vehicle.
5. Individuals who mentioned occupation as homemakers are
unwilling to pay higher than the ICE-based vehicle. In general,
homemakers do not prefer to take the risk of newer technologies.
 6. Most people from business/self-employed and healthcare sectors
are willing to pay a slightly higher amount. In contrast, most
people from farming/agriculture backgrounds are not willing to
pay a higher amount for EVs.

Q. What factors do you consider when buying an

electric vehicle?
This question is floated to the respondents to find out the factors
which are majorly considered by an individual while purchasing EVs.
Price emerged as a major deciding factor by any individual while
purchasing EVs. The other factors are also shown in the plot. These
factors are categorically studied for different genders, age groups,
educational qualifications, and occupations.
Insight and Analysis
1. Price, performance, and environmental impacts are the key
buying factors considered while buying an EV. Factors like
insurance, financ- ing options, brands, resale value, and road tax
are not the major thought factors considered while buying an EV.
The price and perfor- mance are analyzed while purchasing ICE-
based vehicles as well. How- ever, environmental concerns are
not taken into consideration. A few rea- sons for environmental
impacts being one of the significant factors while buying EVs
are:
• The EVs worldwide are boosted with the basis to improve
environ- mental conditions and air quality. Hence, an
individual aware of the benefits of EVs will always consider
 environmental condi- tions as a major factor for shifting
towards a newer technology such as EV.
• Majority of the respondents in the survey were elite
individuals who were primarily aware of the changes in the
environments via a variety of social media platforms and
news sources worldwide. This insight is further supported by
the finding as well, which is revealed in the previous
subsection. The individuals with higher qualifications prefer
to buy EVs when compared to individuals with a bachelor’s
degree.
2. The evolution in the industry with the emergence of a variety of
start-ups focused on EVs has diluted the brand value in the EV
ecosystem. Indi- viduals often prefer to buy products considering
the functionalities, safety, and reliability irrespective of a bigger
brand name. Further, the plots showed that an individual would
purchase EVs of a particular competitive brand against
established and have a suitable price range with appropriate
support services.
3. Insurance, financial options, and road tax are secondary factors
con- sidered while buying an EV. Resale value is not considered a
significant factor while buying. A reason behind the output might
be the financial status of the respondents of the surveys. The
respondents are either employed, hence have financial security or
students who expect to be se- cured in the near future.
4. When gender is looked into, both price and performance are
again the significant factors considered by both male and female
categories.
5. On the basis of age, except for the age group below 20, the
6. Occupation of individuals is essential while looking into the
dominating factors impacting the purchase of EVs. Hence, they
are differentially dis- cussed here. Following were the most
critical factors for people from different professional
backgrounds. The percentage value mentioned in the brackets
represents the choice of individuals from various professional
backgrounds expressed as a percentage of total individuals
belonging to the same background
 Q. What factors discourage you when buying an
Electric Vehicle?
Few general factors which discourage individuals from investing in
procur- ing EVs are determined. These factors mostly compare the
EVs and ICE-based vehicles. The factors are a limited driving range,
higher price, lack of con- sumer choices, lack of charging
infrastructure, lack of options in variants of EVs, and trust in the
newer technologies.
Insight and Analysis
1. Regardless of gender, educational qualification, and occupation,
“lim- ited options for recharging vehicles” is determined as a
major dis- couraging factor. The recharging of EVs has a variety
of challenges that are specific to India. These include a lack of
space to park vehicles while recharging. A longer recharging time
further adds to the challenge. As a user of ICE-based vehicles, the
EV users expect a similar refueling pace while recharging
batteries in EVs. Further, time to recharge, infras- tructure
requirements, and accelerated battery degradation due to fast
charging are common challenges in India, including worldwide.
2. Another aspect while looking into the plots of gender and the
factors de- terring the purchase of EVs, "lack of consumer
choices" is a significant concern as conveyed by the female
respondents. The lack of consumer choices refers to the variations
in color, model types, range of prices, and functionalities.
3. Majority of the survey respondents considered “limited options
for recharg- ing vehicles” and “higher price” as significant
factors that discourage the purchase of EVs.
4. Trust to the technology or reliability and safety are other
challenges in- ferred from the survey, especially from individuals
above 50 years. Al- though the percentage is small, yet lack of
trust in technology should not be neglected.
5. The educational qualification-based plots inferred that “limited
options for recharging vehicles” is one of the prominent
discouraging fac- tors. However, the individuals with academic
qualifications upto the sec- ondary school level considered
“limited driving time” and “higher price” the most discouraging
factors.
6. In general, irrespective of age, gender, qualification, and
occupation, lim- ited driving time, higher price, and limited
options for recharging are considered to be the most significant
discouraging factors.

Q. What are the causes for the delay happening in

EV adaption?
Insights and Analysis
1. The gist of factors which are causing the delay in EV adaption in
terms of percentage is given below:
• Lack•• of Charging Infrastructure (46%)
• Expensive (20%),
• Lack of awareness (19%)•
• Range• issue (15%)

The requirement of an EV charging infrastructure and technologies

or al- gorithms to fast charge remains a significant challenge for
ensuring more rapid adaption of EVs. According to the inputs from
the respondents of the survey, 45.52% female and 56.39% male
thinks that lack of charging infrastructure is a significant problem. In
general, any tech- nology which relies on a specific type of fuel must
ensure ease in avail- ability of fuel to ensure faster adaption. ICE-
based vehicles are popular not only because of the level of maturity,
the availability, and the cost of fuel also have an essential role in
setting the preference to purchase by an individual.
The inference further extends to the efficiency of the powertrain and
the cost of recharging batteries of EVs. The efficiency of the
powertrain relates to the mileage of vehicles. In contrast, an increase
or decrease in the fossil cost relates to the types of battery
electrochemistry and prefer- ence to invest in EVs. Digging deeper,
the cost of the battery changes with the electrochemistry, which
determines the rate of charge and discharge or application and size
of the battery pack. The battery electrochemistry resembles the
types of fuel for ICEbased vehicles -petrol, diesel, or CNG. The
ICE-based vehicles’ fuel type selection is made based on the types
of operation- public or private. Hence, an individual purchasing EVs
does not limit the thought to the requirement of recharging
infrastructure but extends to the efficiency of power train (impacts
range) and time to charge or rate of degradation.

3. When insights were drawn from the levels of educational

qualifica- tions, lack of charging infrastructure remains as the
significant chal- lenge causing the delay in the adaption of EVs.
Q. To consider buying an Electric Vehicle, how
quickly (time) would it need to take to fully
charge?

The requirement of fast charging of batteries in EVs is one of the

most common hurdles for a smoother transition from ICEbased
vehicles to EVs. Although the challenge of range anxiety is met, there
is a possibility of indi- viduals to a tradeoff with the requirements of
fast charge; the challenge shall exist. Hence it is essential to get an
idea of the expectations of individuals who would consider opting for
an EV for transportation.
Another challenge with the requirements of fast charge is its relation
with the rate of battery degradation. With an increase in the charging
rate, the rate of battery degradation increases. Hence, the challenge of
fast charge is a problem statement involving the upgradation of
existing electric infras- tructure to support fast chargers and working
on the electrochemistry of the battery to improve the capability to fast
charge with constrained battery degra- dation. In this survey, charge
timing ranging from 0 to more than 2 hours is given for the
respondents to discretely analyze the variations of choice with
changes in gender, age, educational qualifications, and occupation.
 Q. Do you feel that Electric Vehicle improves
the environment?
The primary reason for promoting the usages of EVs is reducing
the car- bon emissions from ICE-based vehicles to zero. The
transportation sector con- tributes more than 25 % of the total
greenhouse gas emissions. The rise in the global temperature, poor air
quality, and extinction of fossil fuel reserves have been a few general
causes to promote greener technologies by various govern- ments and
organizations worldwide. Although the respondents were asked to
specify their choice to purchase EVs instead of ICE-based vehicles, it
is crucial to understand the environmental changes globally. Hence, a
similar analysis incorporating awareness based on gender, age,
educational qualifications, and occupation is done.
 CHAPTER - 5

FINDINGS

The survey gave interesting insights into the possibility of an

individual owning an EV. Apart from the individuals who own a
vehicles, those who have never driven and owned any vehicle have
also shown willingness to purchase EVs in the future. The desire to
own an EV is an indicator of the wider accep- tance of newer
technologies. However, the willingness extends challenges to the EV
manufacturers and policy-making bodies to gain the confidence of the
prospective users. The expectations of an EV user are not just limited
to lower cost, more extensive range, fast charging, and required
infrastruc- ture; the expectations extend to the safety and reliability
while driving a vehicle as well.
The safety directs towards the batteries in the EVs that are susceptible
to exothermic reactions leading to fire, burst, and harmful fumes.
These exothermic reactions are a result of operations of batteries
outside safety lim- its. These include operation in over-current mode
during charging or dis- charging, changes in the ambient temperature
(at an extremely lower or higher numbers), improper selection of
battery electrochemistry and design of battery pack, higher
mechanical disturbances while the operation of the battery, lack of
precise BMS to estimate appropriate parameters and ensure
appropriate protections, and unforeseeable events such as accidents.
Although the survey does not look deeper into the aspects mentioned,
the insights pointed out the challenges that the manufacturers of EVs
and their related subsystems should not neglect.
A timeline of 5 years
The survey showed that more than 50 % of the respondents are willing
to buy EVs as their first vehicle. The number is not suitable to be
related to the overall population of the country. However, considering
the respondents’ educational qualifications and occupation, it can be
inferred that most of the people from the organized sector would
prefer EVs over ICEbased vehicles. Further, the individuals working
in the unorganized niche of transporta- tion sectors such as rikshaws,
cab, and bus drivers are already seen tran- sitioning from ICE-based
vehicles to EVs. The recent purchases of buses in various state run
transport corporations such as Ahmedabad Municipal Transport
Service, Himachal Road Transport Corporation, and Bihar State Road
Transport Corporation are EVs. Similarly, the three-wheelers (mostly
called toto or e-rikshaw) have become very popular for drivers
providing short- distance commuters.
The pace of transition to EVs in the transport sector is pushed by
various policies framed at national and state levels. An example of a
current national policy is Faster Adoption and
Manufacturing of Electric Vehicles in India Phase II (FAME India
Phase II), which is expected to boost manufacturing by original
equipment manufacturers and the sale of EVs. The infrastructure
require- ment is, however, a challenge at both state and national
levels. Other challenges are common standards to be followed during
EV manufacturing systems and by the service providers to EVs, such
as charging stations, bat- tery swapping, and cloud support.
A timeline of 10 years
The timeline of 5 years is further extended to 10 years. Considering
the numbers corresponding to the respondents who have never owned
an EV to date, based on gender, the survey found out that 78% of men
and 77% of women have never owned an EV. However, when the
interest is analyzed, if the same trend (preference of purchasing an EV
by more than 50 % of the respondents) goes on then, within ten years,
the survey results shows that the respondents of age between 20 to 40
years would be leading the usage of EVs. Hence, by the timeline of 10
years, more than 70 % of the respondents would purchase an EV.
Among all the age groups, every age group has less than 10% of
respondents who owned an EV. Though statistically, it is a tiny
interest in owning this emerging technology in future. If the
challenges mentioned in the previous subsection are met, as per
survey results, a smooth and faster transition from ICE-based vehicles
to EVs would be visible in the timeline of 10 years.

Average time to adopt to Technology

The time to adopt a technology depends on the confidence of a
prospective automobile customer. The belief is to be built by
stakeholders in the EV ecosys- tem. The government organization in
India should ensure supportive policies to provoke automobile
customers is looking for alternatives to ICE-based ve- hicles. A few of
the policies to support EV sales are higher subsidies while purchases,
tax exemptions, and a reliable power supply in every region for easy
access to charging. The central and state governments have already
im- plemented these policies but, the implementation challenge is yet
to be solved. The cumbersome processes to get benefits of the
subsidies and tax ex- emption demotivates the choice of EVs.
By 2030, the Government of India has set targets to replace 30% of
IC En- gine Vehicles with Electric Vehicles. As per the data,
November 2021 available on Vahan website by MoRTH, Govt. of
India, 5.29 Crores of 4 wheelers, 0.76 crores of 3 wheelers and 20.23
crores of 2 wheelers are registered in the coun- try. On an average
annual expected growth of 8% sales in each segment, by 2030, 15.12
crores of 4 wheelers, 2.16 crores of 3 wheelers, and 57.80 crores of 2
wheelers will be registered in the country.
To reach the ambitious targets of replacing 30% of IC Engine
vehicles with Electric vehicles, around 4.53 crores of 4 wheelers, 0.65
crores of 3 wheelers, and 17.35 crores of 2 wheelers of Electric
vehicles should penetrate the market by 2030. To reach these massive
numbers, EV sales have to be increased by 177%, 68.8%, and 143.8%
in 4 wheelers, 3-wheelers, and 2wheelers segments, respectively. The
plots below show the yearwise manufacturing requirements of Electric
vehicles in 4 wheelers, 3-wheelers, and 2-wheelers segments.
The manufacturing and the service providers do not have a set of stan-
dards for every system and subsystem of an EV. The standards set by an-
other part of the world does not necessarily meet all the requirements − in
the Indian scenario. For example, in India, ambient temperature variation
is from 15oC to 45oC. Such huge variations result in a challenge in the
reliability of the overall system. An example of the challenge in reliability
is the changes in the rate of degradation with variation in the ambient
temperature. Further, the reliability of the discrete components in the
power electronics converters and the motor of the powertrain is also
impacted. Performance of other com- ponents such as motor and auxiliary
power supplies are also impacted. As per survey results, the time to adopt
EVs is approximately 15 years by about 42% of respondents, while the
other 30% of the respondents consider 25 years or more.

Price at which people want to buy the EV

A general expectation of every prospective automobile customer
would be to buy an EV at the lowest price with maximum
functionalities. However, the OEMs have their own challenges in
reducing the cost. Although gov- ernment subsidies can provide
backing to the expectations of the auto- mobile customer, an assurance
of Indian manufacturing base for various
systems and subsystems of EVs from discrete components to
assembly plants would ensure a drastic price reduction.
 As per the survey, in every age group or profession, about 30% to
40% of people expect the cost of EV should not be more than ICE-
based vehicles. Also, about the same percentage of people in the range
of 35% across all professions are willing to buy an EV with 10% more
than ICE-based vehicles. However, a good percentage of respondents,
8% to 25% are willing to pay a 20% higher price for EV. Further, a
tiny percentage of respondents (less than 10%) are willing to pay 30%
more for EV than ICE-based vehicles generously. Table below shows
the summary of the expected price of the variants of the EVs.

Type of EV Expected Price Range

(INR)
E-Scooter 85,000 - 90,000
E-Bike 90,000 - 1,10,000
Entry level E- 5,00,000 - 6,50,000
Car
Mid level ECar 9,00,000-10,00,000
As expected by
the respondents, the cost of an EV varies over a wider range with a
benchmark of the current price of ICE-based vehicles. The popularity
of the technology can impact the cost an EV user would bear at the
time of purchase. The popularity again depends on the reliability of the
tech- nology, available charging infrastructure, and related support
service providers. If these three concerns are addressed, a prospective
automobile customer might tradeoff with the cost of ICE-based
vehicles.

Environment and Electric Vehicle

The relation between constraining the deteriorating environment
and air quality is already discussed in the previous subsections. The
lack of under- standing on the requirement of greener technologies for
power generation must be disseminated among the masses. However,
switching power generation to greener technologies is primarily a
concern for the organizations man- aging the nation’s power system.
Hence, the survey results show Causes for delay in adopting
Electric Vehicle
The various challenges related to the faster adaption of EVs are well
defined in multiple reports and scientific literature worldwide.
However, it is seen that EVs are penetrating in the transportation
sector gradually. The pace of penetration is dependant on one of the
critical factors- ease to refuel. Irrespective of challenges of fuel
efficiency, lack of OEMs, lack of servicing stations, and reliability
issues, ICE based engine became a preferred choice of transportation
in late 1990s because of the availability of refueling station and the
fast refueling processes. If similar recharging stations are available for
EVs and the OEMs can meet the expectations of reduced cost and
range anxiety, the delay in the adoption of EVs can be reduced. The
survey results also corroborate the discussion as 40% of the
respondents stated the lack of charging infrastructure is a considerable
concern, followed by other factors like higher price (20-30%) and
limited driving range (15-25%).

EV in Rural scenario
The expectations of rural populations, when compared to the urban
popu- lation, vary drastically. The technology and the need to
transition from ICE- based vehicles to EVs are not major concerns.
The rural population looks into the price of the vehicle and the
reliability (least maintenance) as a deciding factor. Further, the ease to
refuel is also looked into as a criterion for decid- ing the type of
vehicle. The survey in the rural population showed that the
population pictures the EV charging at home rather than a planned
charging station. Hence, the infrastructure requirements in rural and
urban vary. The charging infrastructure for the rural area has to be
extended to every home.
The other concerns are the prices of the vehicle. The rural population
prefers vehicles that simply meet the expectation to commute,
transport loads, and meet the day-to-day requirements. Hence, to
propel the transition from ICE-based vehicles to EVs, EVs’ price
needs to remain competitive with the ICE-based vehicles. Further, the
electricity service provider should ensure appropriate infrastructure at
every home for ease in recharging EVs.

Range per hour of recharge

The challenge of ensuring more considerable distances from a single
charge is usually termed as range anxiety. The range anxiety is in one
way related to the challenge of fast charge as well. Even the ICE
engine has a limited fuel tank which allows the vehicle to be driven
for a limited distance. However, the refueling of ICE-based vehicles is
very fast, which solves the challenge of range anxiety. Further, there
are possibilities to carry fuels of ICE-based vehicles in containers, but
in EVs, an infrastructure or an energy generating source is

required. Hence, the survey extended to determine the requirements of

current and prospective EV users concerning the expected distance
coverage from a single charge. Since the range will vary for the types
of EVs, viz. 2-wheelers, 3wheelers, and 4-wheelers, multiple options
ranging up to more than 500 km are given.
The value of range per hour of recharge resembles the rate of
charging in EVs. A faster charging will result in a more rapid transfer
of energy to EVs batteries in less period while a slower would result
in the vice-versa. If 100 km per hour of recharge is considered a base
value, the survey responses showed that the overall expectation is
higher by 64.53 %. The challenge in meeting the requirements of fast
charge depends on the change in battery electrochemistry and the
availability of rapid charging points. Researches are going worldwide
to develop battery electrochemistry which can recharge faster with the
least degradation per cycle of recharge and discharge. The
fastcharging points are a concern of the electricity service provider. If
these two are solved, the possibility to meet the expectation will
increase.
The EV customers are often worried about the vehicle’s capability to
reach point B from point A before the battery runs out. This issue is
closely con- nected to the inadequate charging infrastructure and time
to recharge the bat tery in India. According to the survey, the average
range of people prefers to have 314.29 km of range with an average
charging time of 2.71 hours. Both the tasks are individually possible
to achieve but combining these two factors is very difficult.

Correlation of adoption of EV with age

Age is a factor that affects the adoption of newer technology. It is
believed that the younger age group is always eager to explore and do
experiments.The results obtained in the survey are also in line with
the stated. Correlation is figured out between age and the willingness
to opt for EVs. The correlation coefficient is found to be -0.7898,
which shows a good negative correla- tion between the willingness to
adopt EVs and the age of the respondents. It is to be noted that in the
process of calculation of the correlation coefficient the opinions of the
respondents have been weighed according to the Demo- graphics
Profile of India 2016 (as per https://censusindia.gov.in/) age wise.

Henceforth, it is inferred that for the respondents whose age is

below 30, the possibility to adopt EVs is higher, while with an
increase in age after 31, the possibility to adopt EVs decreases. We
can further extend the inference to state that the sale of EVs and their
usage in the next five years will depend on the age group up to 35
years. However, the other expectations of this age group of below 30,
like fast charging and ease to access recharging, should be met. As per
the survey, the age group expects a charging time of fewer than 3
hours and an average range of 300km in a single charge. Further, 64%
of the respondents in this age group are also confident over the
technology, leading to their agreement to pay 10% to 20% higher
prices for EVs compared to ICE-based vehicles.

CHAPTER - 6
 CONCLUSION

Conclusion
With all the buzz circulating around the electrification of the
transportation sector, there is also a need to understand the consumers’
acceptance of this new technology. This report provides an extensive
analysis of the public’s view of electrification, its expectations,
challenges, and consequences. With only 10% of the survey
participants owning an EV, which might decrease if we project it to
the whole population and consider Heavy-duty vehicles, India is still
far behind in penetrating EVs. We might see a better penetration in the
future with the decrease in the cost of Li-ion batteries and the Union
transport minister announcing the plan to install at least 2700 EV
charging stations in Major Highways and government framing a
policy allowing petrol pumps to set up EV charging stations.
Despite all this massive potential for EVs, there is still a dire need for
public awareness to consider buying an EV, as this dynamic transition
in technology is very new and rapid. So, this survey analysis
indirectly em- phasizes the customer’s situation towards adapting to
the EVs and presents one of the significant hurdles for policymakers
to consider. Although there are substantial fluctuations and
unpredictability in the EV market, there is a massive growth of 200%
every month and an eight-fold jump last year in two- wheeler EV
sales. We also anticipate this will happen in India, as a dominant two-
wheeler country, and also the survey shows that 54% of the total
electrical vehicles owned are two-wheelers. This positive trend
towards growth indi- cates the customers’ willingness to adapt and
accept the challenges posed by the EVs if they are available at a
reasonable price. There are still many uncertainties from the
consumer’s end which remain unanswered, and the targets of net zero
emissions from the government’s end remain unattainable. There is
still significantly less intervention from state and central governments
into making the transportation sector carbon-free.