E-vehicles find favour with firms, not office-goers

The Chennai Metro Rail Limited recently purchased five electric bikes for its employees to commute between its fragmented office complexes located across the city. 

A few popular companies, including the Apollo Tyres and Daimler India, too have purchased e-bikes to enhance mobility within their campuses. An electric bicycle, also known as an e-bike, powerbike or booster bike, is a bicycle with an integrated electric motor which can be used for propulsion. 

Industry sources attribute this trend to the surge in fuel prices, new government policies and heightened awareness about the environment.

City-based dealer of Hero Electric Vehicles, Chennai Eco Motors, director of operations, A Rajagopal, said, “We registered a growth of 75 per cent in sales when compared to the previous year. Last year, nearly 480 e-bikes were sold. While, this year, we have already crossed 500 and hoping to close with a good number.” 

Currently, women, senior citizens, students and delivery boys are showing a keen interest on 

purchasing electric vehicles (EV). 

He, however, added that electronic vehicles (EV) are more popular among women, senior citizens, school and college-goers and delivery boys.  “Office-goers do not even consider it as an alternate mode of transport. Also, when it comes to electric cars, we have a long way to go as our Indian automobile market caters to over 80 per cent to the two-wheeler segment. The next few years are crucial for the growth of EVs in the country,” Rajagopal added. In our country, the segment is at its nascent stage with one of the lowest penetration rates in the world, he said.

The recent development in this sector includes manufacture of vehicles with the use of lithium-ion removable batteries which comprises dual points for recharge. Earlier, the vehicles were manufactured with lead acid batteries, which lasted for less than two years.  

The lithium-ion batteries weigh nearly 8 kilograms and can easily reach 50 per cent charge within an hour and full charge within 5 hours. Previously, the vehicles were manufactured with the single battery change. Now, however, the use two lithium-ion batteries has increased their efficiency manifold. 

A transport expert said that the main challenges that the industry faces are its limited ability to manufacture cost-effective batteries and the lack of supporting infrastructure. 

“The local production of inputs for EVs is at just 35 per cent of total input production. The country is entirely dependent upon Japan and China to import lithium-ion batteries. Further, the high rates of GST on EVs also discourages those involved in this segment,” he said.

Currently, the ongoing Research and Development (R&D) aims to increase the mileage of these bikes from 110 kilometre per hour (kmph) to 150 kmph. Likewise, these bikes have now restricted its top speed to 40 kmph, which are planned to increase to above 80 kmph.

Rajagopal added, “Besides, it is also dependent upon the position of EVs in the market, and the satisfaction level of the users.”

In general, there are two types of charging stations: slow and fast. Sources said that the slow charging stations would require an investment of less than Rs 1 lakh and nearly around 500 square feet of space to establish points for both two-wheelers and four-wheelers. Meanwhile, the fast charging points will require high-end technology. Hence, the initial investments would go up more than Rs 20 lakh, but the space requirements would be the same.

In contrast, an investor of fuel stations would need nearly Rs 2 crore, including land and operational costs, to establish an outlet.

The country’s think-tank, Niti Aayog, in its report said that electric vehicles are the future of India’s transportation system and could save billions of dollars in fuel cost while also reducing pollution. 

Along the same line, the government aims to see six million electric and hybrid vehicles on the roads by 2020 under the National Electric Mobility Mission Plan 2020.  The Union Power Ministry has categorised charging of batteries as a service, which will help charging stations operate without licenses. 

Commenting on this, a senior official attached to the State Transport department, said, “It was only last year that the state government gave its approval to register the private electric vehicles. Since then, the number of EVs has not gone up in the city.” 

An existing provision exempts EVs with a battery below 0.25 kilowatts from the registration or driving license with the Regional Transport Offices (RTOs). But, the department has sent a proposal to the government seeking to allow issuing permits to the commercial electric vehicles.

“The number of requests to issue permits for the commercial vehicles has increased of late,” the official said.