OMI Report - Beyond Nagpur - The Promise of Electric Mobility

BEYOND
NAGPUR:
THE PROMISE
OF ELECTRIC
MOBILITY
LESSONS FROM INDIA’S

FIRST MULTIMODAL
E-MOBILITY PROJECT
A STUDY BY
BEYOND
NAGPUR:
THE PROMISE
OF ELECTRIC
MOBILITY
LESSONS FROM INDIA’S
FIRST MULTIMODAL
E-MOBILITY PROJECT
A STUDY BY
Ola Mobility Institute (OMI) is a policy research and social innovation think-
tank of Ola that is focussed on developing knowledge frameworks at the
intersection of mobility and public good. The Institute concerns itself with
public research on the social and economic impact of mobility as a service,
the climate footprint of mobility innovations, skill development and job
creation, transportation-oriented urban planning, and the digitization of
mobility. All research conducted at OMI is funded by ANI Technologies Pvt.
Ltd. (the parent company of brand Ola).
www.ola.institute
[email protected]
@olamobilityinst
AUTHORS: Nitish Arora, Aishwarya Raman
CONTRIBUTORS: Ola Electric Team, Paroma Bhat, Carson Dalton, Anand Shah
DISCLAIMER
This report takes into account data points from all aspects of EV operations
spread over 18 months since inception, data points from primary research as
well as established sources of secondary data. Whilst every effort has been
taken to validate and verify correctness and accuracy of all material in this
document, neither Ola, Ola Mobility Institute nor any other party associated
with this report will we liable for any loss or damage incurred by the use of
this report.
© Ola Mobility Institute
Copyright 2019 Ola Mobility Institute. This work is licensed under the
Creative Commons Attribution 4.0 International License. To view a copy
of this license, visit http://creativecommons.org/licenses/by/4.0/.
CONTENTS
EXECUTIVE SUMMARY 5
PROLOGUE 13
AN IDEA IN MOTION 14
The E-mobility Challenge
The Pilot & The Study
Leading the Change
DRIVE LEARNINGS HOME 30

Pain Points & Resolutions
Improvement Measures
DESTINATION EV 34
TCO Economics
Vehicle Segment Prioritisation
Recommendations for Tomorrow
CONCLUSION 51
REFERENCES 52
EXECUTIVE
SUMMARY
BEYOND NAGPUR: THE PROMISE OF ELECTRIC MOBILITY
As one of the most populated countries in the world coming of age with one
of the lowest vehicle penetration rates of a major economy, India has a unique
opportunity to establish a sustainable transportation system. The Central
Government flagged off radical policy changes since 2018 to encourage the
Electric Vehicles (EV) ecosystem, helping India move closer to delivering on
the promise of e-mobility. Ola Mobility Institute (OMI) believes e-mobility is the
gateway to more affordable, reliable, cleaner, and efficient transportation –
enabling India to become an example for other nations.
THE STUDY
The Institute studied India’s first With the key objective to determine to lower-cost conventional ICE
multimodal*1 electric mobility project how to proliferate EVs, this study hatchback services. Driver-partners
in Nagpur. attempts to gain an understanding of were provided free-of cost-charging
operational issues that include vehicle in the first month, followed by 50%
The pilot, inaugurated by Hon’ble performance, customer charging rebate*3 in subsequent months. To
Chief Minister of Maharashtra, Shri behaviour, the impact of temperature address concerns of driver-partners
Devendra Fadnavis, and Hon’ble on charging and battery life, and regarding their income, time taken
Union Minister, Shri Nitin Gadkari of integrating renewables at the for charging, and dry run, the
in May 2017, excited industry and charging station, etc. initial lease for vehicles was just
government stakeholders to execute 10% of what was being charged
and understand the potential for The study found that the pilot on conventional ICE vehicles. To
electrification of transport. The pilot required a broad set of actions. increase effective on-road hours,
built battery charging and swapping To start with, the Nagpur fleet Ola deployed multiple fast charging
infrastructure and deployed a comprised of electric cabs and stations in Nagpur. It also installed
multimodal EV fleet in a brief span. electric rickshaws from the slow charging points at driver-
At the time of conducting this study manufacturers, Mahindra and Kinetic. partners’ residences. This provided
the electric fleet by Ola in Nagpur - Ola’s vehicle leasing arm, Ola Fleet driver-partners the technical
a combination of e-rickshaws and Technologies, procured all EVs and know-how of charging their EVs,
e-cabs - had served over 3,50,000 offered them on daily lease to driver- and pioneered the home charging
customers, clocked over 7.5 million partners, as a key component of Ola’s infrastructure for the ecosystem
clean km, saved over 5.7 lakh litres e-mobility strategy. Ola designed in Nagpur. Thus, the pilot focused
of import-dependent fossil fuel, and lucrative value propositions for a primarily on ensuring usage of EVs
reduced CO2 emission by over 1,230 seamless transition to e-mobility. - or simply put, clean kilometres
tons since its inception. For e-cabs, riders were offered Ola travelled – to test the viability of
Play*2 sedan services at fares equal EVs on economic metrics.
*1
More than one mode of commute. The project in Nagpur, for instance, had e-cabs and
e-rickshaws.
*2
Ola Play, the world’s first connected car platform, aims to transform the in-cab experience
by bringing advance car controls, choice of personalised content and a fully connected
6 interactive experience, to the backseat of the cab, creating a perfect ambience for oneself.
*3 The driver partners were charged only for 50% of electricity units consumed.
LESSONS FROM INDIA’S FIRST MULTIMODAL E-MOBILITY PROJECT
KEY LEARNINGS AND RECOMMENDATIONS

With evidence from the Nagpur first or the charging infrastructure. rationally consider the TCO profile
pilot, OMI has the following key of an EV and compare it with ICE
recommendations to accelerate EV Vehicle segment prioritisation, with vehicles, while making their purchase
adoption in India. an eye on TCO viability, is at the decisions. They weigh savings from
heart of the EV adoption drive across EVs on account of lower operational
The success of e-mobility is hinged the country. and maintenance costs against
on leveraging shared mobility. high upfront purchase prices. TCO,
Unlike Western models, India may therefore, is a useful calculation to
On the one hand, high upfront costs, not easily kick start its electric assess the direct and indirect costs
lack of charging infrastructure and journey by deploying premium associated with a purchase.
uncertain performance of a battery- electric cars. Instead, it makes sense
powered vehicle may hold back rapid to focus on electrifying vehicles with The OMI study found that since TCO
adoption of e-mobility for private the highest demand and utility in parity for four-wheelers (4W) will not
users; on the other, fleet operators the Indian context: two-wheelers be occurring before 2026, vehicle
are potential early adopters due to and three-wheelers. The rickshaw segments must be prioritised for
business sensitivity to operating is already proliferating in electric electrification. This will help better
costs. Due to the low operating cost variants, suggesting it is both viable expend resources on supporting
of an EV, commercial and public and practical. Thus, appropriate segments where the TCO differential
utility vehicles have more compelling prioritisation of vehicle segments with ICE counterparts is minimal – as
economics when compared with for electrification may prove to be is the case of electric two-wheelers
private / passenger-owned vehicles. critical to the adoption of e-mobility. (2W) and three-wheelers (3W). This
Ergo, shared mobility actors, such would also make fleet operators less
as fleet operators / app-based This study carried out extensive TCO dependent on the government for
aggregators, can lead and accelerate analyses - comparative analyses subsidising the upfront cost of the
the EV penetration because they between EV and ICE (Internal EV and battery. Third, given the price
generate more km on their vehicles. Combustion Engine) categories of sensitivity of the Indian consumer
They can amortize the high upfront various segments of vehicles. (Refer market, leveraging fleet operators to
costs over more travel in a shorter pages 34 to 40 for detailed TCO drive down costs for the market may
payback time frame, despite a higher analysis for all vehicle segments.) prove to be a significant catalyst.
TCO*1 (Total Cost of Ownership) per Public transit agencies, new age app
km (Arora. N and Raman. A, 2019). aggregators of bikes, auto-rickshaws, Further, currently, over 80% of
For instance at current crude prices and cabs, and fleets managed by vehicles plying on Indian roads are
and electricity tariffs, when an government agencies put in more km 2W and 3W, contributing to 35%
electric four-wheeler is compared on their vehicle each year compared of pollution (NITI Aayog and World
to an ICE powered 4W - it provides to personal vehicles*2. Such high Energy Council, 2018). Any attempt
operational savings of Rs 3.07/km asset utilisation allows these fleet at electrification of the country’s
and Rs 4.57/km to fleet operators and operators to spread the cost recovery vehicle fleet must include emphasis
private owners respectively. The high of buying, maintaining and operating on these segments. In addition, the
upfront costs get recovered in five the vehicle, thereby making electric highest proportions of passenger-
years for a fleet operator, which takes mobility service a more viable km traveled are by public and
almost 11.5 years when driven for prospect. This consideration, referred shared transport vehicles (bike-
private use. Fleet operators provide to as Total Cost of Ownership (TCO), taxis, auto-rickshaws, taxi-cabs,
the necessary scale and ability to is critical to the financial viability of and buses) (Roychowdhury. A and
manage with limited infrastructure: market-based e-mobility initiatives in Dubey. G, 2018).
resolving the classic question of EV India. In other words, fleet operators
*1
Total Cost of Ownership - TCO - uncovers hidden costs over the lifecycle of an
asset, incorporating direct and indirect expenses.
*2
On average, personal vehicles run only for 10,000-15,000 kms annually (adapted from 7
UNEP, 2014 and Economic Times, 2017).
Additionally, the largest fleets in The Prime Minister commented at governments have signaled major
the country are maintained by the Move Summit in 2018 that India steps at waiving permits and offering
government agencies and civic should focus on “clean km travelled.” a combination of fiscal and non-fiscal
bodies. Decisions to electrify Indeed, a national framework on incentives, with the intent to reduce the
government-owned vehicles is a electrification should emphasise relative costs of ownership for EVs.
significant opportunity to address increasing clean km travelled using
a large number of vehicles at once. different modes of mobility. This would To ensure that EVs are being powered
Given that EVs have zero tail-pipe naturally promote the electrification by clean energy, state governments
emissions, such electrification of high utilisation vehicles, i.e. shared should ease access to renewable
of public fleets could lead to a mobility solutions such as public energy by allowing aggregation of
disproportionate reduction in air transit, commercial vehicles, three- open access electricity wherein buyers
pollution. On the basis of such wheelers, delivery services, etc. (such as shared mobility providers)
an analysis, it is recommended (Arora. N and Raman. A, 2019). have access to the transmission and
that commercial 2W and 3W be distribution (T&D) network to obtain
converted to electric first, followed by One way to achieve this is to subsidise electricity from suppliers other than the
commercial / fleet 4W. Electrification operational expenditures of managing local distribution company (discom).
of private vehicles should follow EV fleets, which would link incentives State governments should offer an
these early adopters as the costs of to usage rather than moving vehicles exemption to maintain contracted
batteries and technologies reduce. off a sales lot. In addition, this could demand. Today, there is a requisite
be seen as a “pay-for-success” to maintain a minimum threshold of
TCO parity must be achieved for arrangement, where public money is 1 megawatt of power on standby to
the viability and sustainability of only spent when an electric vehicle contract open access electricity. This
e-mobility in India. Financial viability is used. This could be done indirectly requirement of a minimum threshold
is the only way to have a Sunset by maintaining the delivered cost on contract demand especially for EV
Clause* in EV promotion policies. of electricity for charging vehicles charging should be removed. Further,
low at INR 5/unit for 4-5 years to the government rightly encourages
The Government may provide subsidies make e-mobility projects financially the adoption of renewable energy
and concessions until a critical viable, GST subvention for charging sources to power electric vehicles. To
threshold limit for fleet electrification / swapping services, creating zero- strengthen this, the state electricity
is achieved: thereby successfully emission zones in cities, allotting regulatory commission in collaboration
introducing a Sunset Clause across dedicated and sufficient parking with local discoms should create
all fiscal incentives. Policies that spots for EVs, enabling the land lease necessary infrastructure in the form
accelerate the path to a viability rental to set up energy infrastructure, of net metering and banking facilities,
threshold will reduce the continuing and other non-fiscal initiatives to among others, to measure the energy
burden on the exchequer, enabling incentivise demand for electric mobility derived from renewable sources.
national and subnational governments in India. These incentives would only Experience from the country’s first
to implement initiatives for longer, and be delivered if demand for clean multimodal electric mobility project
helping the e-mobility industry find a kilometers is generated and delivered shows that solar net metering reduced
market-based path to scale. by the recipient. It is commendable that electricity bill by 28% and contributed
the Department of Heavy Industries, to improved economic viability.
Incentives should be on USAGE the Ministry of Road Transport and
rather than the purchase of EVs. Highways (MoRTH), and several state
* In public policy, a sunset provision or clause is a measure within a statute, regulation or

8 other law that provides that the law shall cease to have effect after a specific date, unless
further legislative action is taken to extend the law.
Fiscal incentives should be designed time - is also considered as idle time. that makes EVs expensive: batteries.
to specifically subsidise the one cost Slow and fast charging alike cause a Most other components are already
that makes EVs expensive: batteries. driver to miss an earning opportunity. produced at scale in India’s thriving
Conventional fast and slow charging automotive sector, with the exception
The government should also could take anywhere from 2 to 6 of advanced batteries. The high
recognise battery swapping as a hours respectively (Refer pages 23 upfront cost of EVs is on account of
viable alternative to direct charging and 24 for details) for a vehicle to the high cost of the battery pack,
of a vehicle. Battery swapping, as be fully powered. This is precious which constitutes 40-50% of the cost
piloted in Nagpur, offers significant time that a commercial vehicle driver of an electric vehicle. It is this cost,
advantages in the EV paradigm, with cannot afford to lose. The OMI study i.e. the cost of the battery that needs
global implications. of the country’s first multimodal to be subsidised to promote faster
electric mobility project found that adoption of EVs in India.
The Nagpur pilot has provided proof EVs usually have 20-25% less running
of battery swapping acting as a time compared to conventional fuel By offering financial incentives for
reliable charging mechanism for small vehicles, given the time spent in manufacturing of batteries as against
vehicles (2W, 3W). Battery swapping charging. (Refer pages 23 and 24 for the entire EV, the manufacturing of
is doable, efficient, and in the case of more details.) batteries too would get accelerated;
Nagpur, successful. Battery swapping technology and innovation would
helps in mitigating long waiting time Battery swapping, therefore, offers flourish; economies of scale would be
of drivers at charging stations, for the much-needed solution to reduce achieved; and batteries would be both
commercial and private users alike. wait time / idle time, increase the domestically produced and affordable.
(Refer pages 28 and 29 for details.) running time of an electric vehicle,
and improve the earnings of drivers. This tipping point is crucial to make
Consider the case of e-rickshaw It is imperative that the government e-mobility dream a reality in the
drivers in Nagpur. Their livelihood is recognises the value of battery country, and to avoid replacing
dependent on driving throughout the swapping especially in the shared imports of fuels with imports of
day with minimal idle time, i.e. time mobility context of India, and designs batteries. This type of battery subsidy
not spent in ferrying a passenger ways of promoting the technology should sunset as the viability gap of
around. For EVs without battery across the country. Fiscal incentives batteries closes with reducing costs
swapping mechanism, the time spent should, therefore, be designed to over time.
at charging stations - i.e. waiting specifically subsidise the one cost
9
Nagpur pilot offers hope for a new revenue source for EV batteries • Sustainable management of end-
powering India’s EV dreams through (Arora. N and Raman. A, 2019). of-life EV batteries is crucial to
renewable energy. avoid pollution from toxic waste
Build sustainable e-mobility ecosystem and secure a strong supply of raw
Integration with renewable energy through Make in India solutions. materials at low environmental
brings out the dual benefits of not cost. Once batteries have reached
only achieving financial viability but It is commendable that the Central 60-70% of their rated capacity
also greening the entire EV usage Government has recently approved and not fit for automotive uses,
from cradle to grave. This serves as a Phased Manufacturing Programme policy should incentivise its reuse
a promise towards a low carbon, (PMP), valid for five years till 2024 to as power banks for storing solar
resource-efficient future for India. localise production with a focus on energy and for non-automotive
the upstream part of the EV value applications. Reasons abound for
Nagpur pilot offers visibly tangible chain. The Union cabinet approved why government funding should
evidence of the financial and the setting up of a National Mission on encourage the development and
environmental benefits a city can Transformative Mobility and Battery deployment of advanced battery
witness at scale. Installing solar rooftop Storage (PIB, 2019). Additionally, technologies. The government may
at charging stations in Nagpur reduced establish centres of innovation and
the average electricity expense by • Scrappage incentives should be excellence for various components
28%. (Refer page 31 for details.) offered on End-of-Life ICE vehicles of EVs and Autonomous
(ELVs), with a condition that such vehicles industry including
On the same lines, batteries can an incentive is redeemable only battery technologies, drivetrain
also be treated as decentralised at the purchase of EVs. Such an technologies, software development
electricity storage solutions to further approach helps manage the current and charging technologies,
intertwine e-mobility with renewable fleet of ELVs besides accelerating and thereby promote research,
energy. Discoms should be able to EV penetration. State governments innovation, and Make In India.
draw power from vehicle batteries may incentivise setting up of
to balance the grid. This will help recycling-businesses to focus on
meet the storage needs of renewable ‘urban mining’ of rare materials
commitments and reduce the cost of within the battery for feeding it back
maintaining grid loads while enabling to the value chain.
10
Today, the nation has a real opportunity to change the

EV landscape. With a vision for bringing 1 million EVs
on the road by 2022, players like Ola can bolster the EV
movement and help India lead EV adoption at scale. As
a catalyst for the EV ecosystem of OEMs, policymakers,
battery manufacturers and utilities, India could grab
a significant opportunity for improving air quality,
creating jobs, supporting domestic manufacturing, and
boosting the Make in India initiative. India could lead
this way by example.
11
12
PROLOGUE
The electric vehicles (EVs) story a comfortable and sustainable
in India has sparked a world of way of moving around.In India,
possibilities. The automobile industry electric mobility presents a massive
is one of the key sectors driving the opportunity for improving air quality,
country’s economic growth. But it is creating jobs, supporting domestic
also one of its biggest pollutants – a manufacturing, and providing a
glaring problem that India inherently boost to the Make in India initiative
understands. It is at this intersection – pressing needs for a sustainable
of growth and sustainability that India. There are immediate positive
alternative mobility solutions, such as impacts on strengthening national
EVs, are brimming with potential to economic security through reduced
transform tomorrow. oil import bills and self-reliance, and
far-reaching benefits such as on
EVs are steadily gaining traction. Not health and productivity. Countries
only are they relatively emission- around the world are taking initiatives
free, thereby holding the key to to replace gasoline taxis with plug-
India’s burgeoning air pollution issue, in EVs. These sustainable and
they also have massive potential sensitive business practices don’t go
to reduce our oil import bills. As unrecognised by the customers of
the next generation automotive these companies, but rather create
technology, EVs offer a pathway brand loyalty and recall. Further, the
towards low carbon, cost-effective social license protects the future
and reliable mobility solutions. While interests of businesses and sets them
the environmental impact of electric apart from their competitors.
vehicles is obvious, there are other
advantages to electric mobility Ola Mobility Institute believes that
solutions over conventional fossil the success of electric mobility
fuel-powered vehicles. Apart from the is hinged on leveraging shared
high upfront costs, they are cheaper mobility. Given India’s proliferating
to maintain as they are powered by ride-sharing players; the nation has
electricity and not fuel. The eco- a real opportunity to change the
friendly option means a lower carbon EV landscape. It can bolster the
footprint for the country, while no EV movement and finally lead EV
combustion engine means a quieter, adoption at scale.
smoother ride, thereby offering
13
AN IDEA
IN MOTION
THE E-MOBILITY CHALLENGE

With many environmental and socio-economic benefits,
Electric Vehicles (EVs) can be the mobility game
changer in more ways than one. But there are several
perceived challenges on the road ahead.
Climate challenge: Within a single cabs, and fleets of cars and buses
city, extreme temperatures within a managed by government agencies
day, variations across seasons, could put in more km on their vehicles
affect the performance of EVs, which each year compared to personal
are essentially operated on batteries. vehicles. This high asset utilisation
allows fleet operators to recover
Knowledge challenge: Lack of the cost of buying, maintaining
awareness regarding how to operate and operating the vehicle, making
EVs, and inadequate information electric mobility service a promising
on the functioning, care, repair and prospect. This makes fleet operators
maintenance. the ideal candidates for accelerating
EV penetration, indicating a possible
Effectiveness challenge: Lack of a potential for shared mobility players
network of charging and battery such as public buses, taxis, rickshaws
swapping stations for electric and shared cabs such as Ola, one of
vehicles whether publicly or privately, world’s largest ridesharing platforms,
uncertainty around performance and, to build an electric mobility
most importantly, the high upfront ecosystem at scale.
cost of the vehicle, especially for
individual owners. A 2017 NITI Aayog and RMI report
on electric mobility emphasised
that India could save 64% of
anticipated passenger road-based
mobility-related energy demand
and 37% of carbon emissions in
In Contrast 2030 by pursuing a shared, electric,
Fleet operators appreciate the low and connected pathway. Given the
operational cost of EVs, and can way technology alters business-
recover high upfront costs through as-usual scenarios, the report
the vehicle lifespan. Public transit generated a larger debate around
agencies, new age app-aggregators EV operations in Indian conditions.
of bikes, auto rickshaws, and
15
THE OLA PILOT

INDIA’S FIRST MULTIMODAL* ELECTRIC MOBILITY
PROJECT IN NAGPUR
In May 2017, Ola launched the country’s first multi-modal EV project -
inaugurated by Hon’ble Chief Minister of Maharashtra, Shri Devendra Fadnavis,
and Hon’ble Union Minister, Shri Nitin Gadkari in Nagpur.
Traditionally, EVs have been designed for personal use and to be operated
in protected environments. In a first-of-its-kind bid to offer sustainable and
comfortable rides to users and drivers on a shared mobility platform, Ola
began testing e-cabs and e-rickshaws on Indian roads, thereby exposing
them to extreme heat and cold. What unraveled was a turning point in the
mobility journey of the company. Ola was able to discover a plethora of
factors instrumental in operationalising EVs at scale in India.
RIGHT TURN
16 * More than one mode of commute. The project in Nagpur, for instance, had e-cabs
and e-rickshaws.
At the time of conducting this study, Ola’s electric fleet had:
Served over Clocked over Saved over Reduced CO2

3,50,000 7.5 million 5.7 lakh litres of emission by over
customers clean km import-dependent 1,230 tons
fossil fuel
For the pilot, Ola worked with multiple industry partners including government
authorities to understand how to execute electrification, and launch an industry-
first e-mobility project from scratch. Key stakeholders came together to help
build a robust battery charging and swapping infrastructure and a wide-ranging
EV fleet in a brief span of time.
As a catalyst for the entire EV ecosystem of OEMs, policymakers, battery

manufacturers and utilities, Ola committed to bring 1 million EVs for everyday
mobility, on Indian roads by 2022 (Mission: Electric, 2018). The Nagpur electric
mobility project was a stepping stone towards this.
WHY NAGPUR
Nagpur became an early mover in • Smaller average trip lengths of 8
e-mobility because of a variety to 12 km allowing for a short and
of reasons: well-defined network of charging
stations in the city, allaying range-
• A pro-active state Government with anxiety in driver-partners.
favourable policies and regulations
to increase the adoption of • Extreme climate conditions ideal for
e-mobility in the state. battery and vehicle testing.
• A convenient size and controlled This confluence of factors provided

ecosystem and therefore, the precise environment needed
requirement of fewer charging to understand and test e-mobility
stations than compared to large operations at scale.
metropolitan cities.
The Multimodal E-Mobility pilot in Nagpur was a first of its kind initiative
to discover the various aspects of operationalising EVs at scale in India.
We look forward to sharing our insights and learnings from here, with
stakeholders in the mobility ecosystem to build the right sustainable
mobility solutions at scale. This is a big step in the direction of achieving
India’s Nationally Determined Contributions (NDCs) for the success of the
Paris Agreement.
Bhavish Aggarwal, Co-founder & CEO, Ola
17
THE STUDY
In 2018-19, Ola Mobility Institute it to arrive at evidence-based policy as lessons for all actors of the
(OMI) analysed Ola’s Nagpur recommendations. It conducted a ecosystem. It also revealed insights
e-mobility project, in a study that scenario building exercise to evaluate on driver-partner and customer
dived deeper to extract crucial the economic viability of operations experiences, emphasising the need
lessons that India could learn from its under regulatory provisions supporting for incorporating value propositions
first multi-modal e-mobility project. EV penetration. Envisaging on-ground for drivers and customers alike to
learning from the pilot, the study keep demand alive. It stressed on
With the key objective to help projected the tipping point where EVs expediting regulatory processes and
understand how to proliferate EVs, achieve parity with ICE vehicles with building a robust policy framework
the study attempted to gain an appropriate assumptions on battery for accelerating the transition to
understanding of operational issues pack prices, crude prices, technological electric mobility in India.
that include vehicle performance, developments, BS VI* getting
customer charging behaviour, impact implemented in future, and more. Ola Mobility Institute sincerely
of temperature on charging and intends that these findings would
battery life, and impact on grid and The study also examined the assist policymakers in making
of integrating renewables at the usability of EVs in a shared fleet, informed decisions regarding
charging station, among others. besides assessing the financial allocating public resources for EV
viability of the project. It delved deployment.
The study collated monthly data on into operational issues faced by
required parameters and analysed Ola, and provided critical insights
LEADING THE CHANGE

With the goal of gauging the financial viability of The Fleet: The pilot encouraged
Ola to commit the deployment of
e-mobility projects in cities, the EV pilot was launched over 10,000 electric three-wheelers
on 26th May, 2017. across the country by 2019, and
a million electric vehicles by 2022
(Mission: Electric, 2018).
Ola’s vehicle leasing arm, Ola Fleet Technologies, procured all the EVs and
offered them on daily lease to driver-partners. This was a key component
of Ola’s e-mobility strategy, wherein the burden of ownership of a vehicle
with high upfront cost is borne by Ola, clubbed with a financially viable and
mutually beneficial engagement model with driver-partners.
RIGHT TURN
*Bharat Standard VI: Bharat stage emission standards {BSES} are emission
18 standards instituted by the Indian Government regulate the output of air pollutants
from ICE and Spark-ignition engine vehicles.
The Nagpur fleet comprised electric cars and electric rickshaws from the
manufacturers, Mahindra and Kinetic.
Ola’s EVs were fully operational in Nagpur for day-to-day commute,

notwithstanding permit and RC issuance-based issues.
ELECTRIC CABS IN THE OLA NAGPUR FLEET
Mahindra e2o Plus Average Daily Run

Hatchback 142 km
Battery capacity:
Charging Time Slow:
15 kWh Advanced
7-8 hrs
Lithium ion battery
Fast: 1.5 - 2 hrs
In peak summer, the

Practical Range battery pack consumes
~100 km 50% more units to
reach full charge.
ELECTRIC RICKSHAWS IN THE OLA NAGPUR FLEET
Kinetic Safar Top speed

E-Rickshaw 25 kmph
Kerb Weight Passenger

295 kg Capacity
4
Average Daily
Battery Capacity
Run
2.8 kWh
66 km
Practical Range
in full charge
35 km
19
OPERATIONALISING THE INITIATIVE:

MAKE CHANGE HAPPEN
Ola took several measures to create a smooth transition to e-mobility for
its existing customers and driver-partners in Nagpur. For driver-partners,
uncertainty over the performance and concerning operational costs of running
the vehicle needed to be addressed immediately. Ola designed lucrative value
propositions for a seamless transition to e-mobility.
Just as with all vehicles under Ola Fleet Technologies, Ola handles repair and
maintenance of EVs too. In partnership with manufacturers, vehicles are
serviced after every 10,000 km of run / vehicle. This helps maintain optimal
performance levels for the entire fleet.
For e-cabs, riders were offered Ola Play*1 sedan services at fares
commensurating conventional ICE hatchback services. This encouraged
riders to prefer e-cabs over conventional choices of commute. Driver-
partners were provided free-of cost-charging in the first month, followed by
RIGHT TURN 50% rebate*2 in subsequent months. The feebate is phased out now, and the
driver-partners pay a charging fee depending on the number of electricity
units consumed.
We were not sure of swapping Air pollution is an imminent danger

the horsepower of a combustion for my loved ones and also a public
engine for a battery. But driving health emergency. Cleaning the
an EV for longer hours effortlessly air is solely not the Government’s
with relatively less fatigue changed responsibility – but must be shared
our perception. For us as the by all citizens. Ola’s EVs empower
driver community to make a mass us to contribute by cleaning our ride
adoption, the charging infrastructure and offering a more sustainable way
and time taken to charge under to move.
different temperature conditions are Swapnali Jagdale, Passenger
important. Only this can inspire true
confidence in using electricity as a
transport fuel.
Roshan Paunekar, Driver Partner
To address concerns of driver-partners regarding their income and concerns

of time taken for charging and dry run*3, the initial lease rent for vehicles was
just 10% of what was being charged on conventional ICE vehicles. Partners
were also compensated for time spent on charging. Today, incomes and
earnings parity has been achieved between drivers of ICE vehicles and electric
vehicles, thereby allowing the fleet operator to charge the same lease rental
from the two categories of driver-partners
*1
Ola Play is a connected car platform, that aims to transform the in-cab experience by bringing advance car
controls, choice of personalized content and a fully connected interactive experience, to the backseat of the cab.
20 * 2 The driver partners were charged only for 50% of electricity units consumed.
* 3 Idle run or distance traveled by drivers to pick up a passenger.
ELECTRIFYING FUEL PUMPS TO CHARGE BATTERIES

Ola helped build a network of Simultaneously, other charging charging stations were set up -
charging stations - based on its stations were constructed as per one in partnership with Indian Oil
offering of a demand-responsive the size and spread of Nagpur. As Corporation Limited (IOCL) at their
mobility solution, historical trends the company ramped up its vehicle fuel station with two fast and two
on rides, expanse and coverage of deployment to 100, the construction of slow chargers, and an Ola-owned
a service within a city, increased other charging stations was expedited charging station at Nandanvan,
adoption of and demand for with the support of the Municipal with five fast and five slow chargers.
e-mobility services, and so on. Corporation of Nagpur and other Overall, Ola-owned stations can
partners in the ecosystem. charge 22 vehicles at a single point in
To start with, a charging station time. This is the combined capacity
was set up during launch at This paved the road for a second of all Ola-owned stations in Nagpur.
the premises of Dr. Babasaheb charging station in Nagpur. This Ola also partnered with Hindustan
Ambedkar International Airport station, equipped with two fast Petroleum Corporation Limited
at Nagpur. Independently built by and two slow chargers, met with (HPCL), allowing driver-partners to
Ola, the station was equipped with limited success at continuing access HPCL charging facilities.
four fast and four slow chargers. operations. Subsequently, two more
Notwithstanding the charging stations set up in public places by Ola and

its partner organisations, Ola also installed slow charging points at driver-
partners’ residences. This provided driver-partners the technical know-how
of charging their EVs, and pioneered the home charging infrastructure for the
ecosystem in Nagpur.
RIGHT TURN
Ola partnered with the Indian Oil

Corporation Limited (IOCL) to
establish and operate India’s first
ever fast-charging station for EVs
at a fuel station in Nagpur.
21
EXPANDING THE CHARGING INFRASTRUCTURE

To increase effective on-road hours of the EV fleet,
Ola deployed multiple charging stations in Nagpur (as
detailed in the previous section). The following table
outlines the availability of fast and slow chargers along
with the connected load at various charging locations.
Table 1: Average Location and Capacity of Charging Stations
Charging Station Location Connected load (in KW) Number of chargers
Airport 150 4 fast and 4 slow

IOCL fuel station 30 2 fast and 2 slow
Nandanvan 150 5 fast and 5 slow
Professionals operating the charging infrastructure were trained and the highest
level of safety measures was ensured. The safety training and measures are from
the government-prescribed Automotive Industry Standard (AIS) 138 - part 1. This
training covers safety precautions to be followed throughout the charging cycle
from start to end, including measures to be taken in case of power failure and
charging interruptions (DHI, 2017).
As India’s leading oil refiner and marketer, IOCL promotes ecological

sustainability as part of its core business. A robust network of charging
stations can address range anxiety for EVs, by establishing nationwide
charging infrastructure. Nagpur added one more feather to our cap by
installing the first electric charging station at Indian Oil’s COCO (company-
owned, company-operated) fuel station in the city – it brings us closer to
how we re-imagine India will commute in coming years.
Indian Oil Corporation Limited (IOCL)
HOW 4W ELECTRIC BATTERIES WORK

The vehicle battery functions optimally safety, average range and cycle- under-performing battery. However
within certain operating windows lifetime of lithium ion batteries. discharge rate of batteries was
of temperature, voltage, structural relatively less at lower temperatures
changes (during charge–discharge), For instance, at higher temperatures, compared to higher temperature.
and other parameters. These operating the battery ran the risk of Thus, it is seen that the average
windows are specific to each battery decomposition of electrolyte and range per full charge is influenced
management system. electrode materials which could by ambient temperature (Fig. 1). For
lead to thermal runaway of the instance, the average range / charge
Specific to Indian conditions, the battery. If temperatures fell below the is 100 km in summers and increases
temperature was expected to have a operating window, the diffusivity of to 110-115 km in winters.
significant impact on the performance, Li-Ion decreased and resulted in an
22
100 km
Average Range during summers
110-115 km
Average Range during winters
Fig 1: Average Range per charge (in km)
Range is influenced by ambient temperature. This figure shows the seasonal

variations in average range per charge experienced in Nagpur.
125.0
Average Range per charge (in km)

100.0
75.0
50.0
25.0
0.0
July 2017 October 2017 January 2018 April 2018 July 2018
EVs usually have 20-25% less running time compared to conventional fuel
vehicles, given the time spent in charging. This would imply that for earning
a similar level of income as operating ICE vehicles, driver-partners needed
to increase their login hours which dis-incentivised them to transition to
e-vehicles. To eliminate this pressure and for smoother transition to e-vehicles,
Ola fleet technologies compensated its driver partners as mentioned earlier.
TALKING NUMBERS Fig 2: Average fast charging time (in hours)
Average fast charging takes 90- Compared to slow charging, fast charging is severely affected by weather
110 mins of plug-in time for a full conditions. This figure shows seasonal variations in charging time for fast charging.
charge. But the time for fast charging 4
was affected severely by weather
conditions, as against slow chargers.
Average fast charging time
3
In summers, when temperatures
rose to over 45oC, the charging time
increased from 90 mins to 200+ mins 2
for a full charge. It also increased
electricity units consumed for a full
1
charge by up to 50%.
0
July 2017 October 2017 January 2018 April 2018 July 2018
23
Fig 3: Average slow charging time (in hours)
Time for slow charging is not affected by weather conditions. This figure
shows seasonal variations in time taken for slow charging.
10
Average slow charging time

6
July 2017 Sep 2017 Nov 2017 Jan 2018 March 2018 May 2018
However, there were no reported instances of battery life getting affected on

account of increased ambient temperatures during charging. The air conditioner
prevented overheating. However, one fast and one slow charge a day was desired
for optimal vehicle performance and extended battery life. On the other hand,
average slow charging took over 7-8 hrs of plug-in time for a full charge. But
the time taken for slow charging did not seem to get affected by external
conditions such as temperature and weather.
CHARGING E-RICKSHAWS
Ola’s e-rickshaw provided a convenient and eco-friendly mode for going short
distances. These e-rickshaws had advance li-ion battery packs of 2.8 kWh,
and clocked an average daily run of 66 km. An e-rickshaw would get charged
in 2 hrs flat using fast rack chargers whereas charging through slow portable
chargers took up to 6 hrs. As with four-wheeler charging, high electricity
tariffs coupled with limited fleet size, restricted fast charger utilisation to 25%
of its installed capacity.
Fast-Rack Slow Portable

Charger Charger
24
CHARGING BEHAVIOUR
Analysing the charging behaviour of driver-partners showed that power demand at charging stations peaked during noon
time (12pm-4pm) and at night (8pm- 12am) - with 63.5% of charging happening at this time.
Fig 4: Percentage of Cars Charging

40
36.3%
35
30 27.2%
25
20 17.6%
15
10.6%
10
5.3%
5 3.0%
0
12 am-4 am 4 am-8 am 8 am - 12 pm 12 pm-4 pm 4 pm-8 pm 8 pm-12 am
CHARGING INFRASTRUCTURE AND COSTS INVOLVED
To keep up the on-road hours of the EVs i.e. comparable to ICE vehicles,
Ola created a robust network of charging infrastructure with numerous
stations spread across the city, all with different capacities. This accessible
network of charging infrastructure was critical for smoother operations.
It would meet on-demand charging needs of driver-partners and cut wait
time at charging stations.
RIGHT TURN
The high electricity tariffs coupled component accounting for over state EV policy, starting October
with limited fleet size led to under- 31% of overall opex. The commercial 2018. This was followed by manpower
utilised charging infrastructure. electricity tariff of INR 17.7 per expenses and depreciation. Land
The average utilisation rated 40% kWh made electricity expenses the lease rental coupled with electricity
and 5% for fast and slow chargers second biggest contributor at over expenses constituted over 62%
respectively. Fig. 5 shows the 30% of the total opex. However, the of total operation costs, adversely
operating costs of charging stations. share of electricity expenses shrunk affecting the economic viability of the
The land lease rental alone at INR significantly post the implementation project and discouraging scaling up
23-28 per sq. feet made it the largest of special EV tariff proposed in the of operations.
*SI Unit - International System of Units: The kilowatt hour (symbol kWh, kW-h or kW h) is a unit of energy equal to
3.6 megajoules. If energy is transmitted or used at a constant rate (power) over a period of time, the total energy in 25
kilowatt hours is equal to the power in kilowatts multiplied by the time in hours.
Fig 5: Operating costs of charging infrastructure

(May 2017 - Sep. 2018)
Depreciation
18.1%
Electricity
expenses 30.7%
19.5%
Manpower
31.7%
Land lease rental
Fig 6: Operating costs of charging infrastructure

at current electricity tariff (Oct. 2018 onwards)
Depreciation
19.7%
43.2%
Land lease rental
Manpower
22.5%
14.6%
Electricity expenses
26
BREAKUP OF ELECTRICITY TARIFF (INR/KWH)

The tables below provide breakup / unit of delivered cost of electricity.
• Energy charge reflects the per unit electricity costs.
• Wheeling charges shows transmission cost - transfer of electrical power through
transmission and distribution lines from one utility’s service area to another.
• Fuel adjustment costs reflects the amount which utilities apply based on
varying price of fuel or coal. This value differs every month and is based on
current cost of coal.
• Fixed charges depend on the connected or sanctioned load.
Table 2: Breakup of the Electricity Tariff applicable from May

2017 to Sep. 2018 (INR/KWH)
Energy Charges (INR /kWh) Energy Cost 12.55
Wheeling Charges (INR /kWh) Transmission Cost 1.21
Fuel Adjustment Charges Due to varying price of Coal [-1,1]
Electricity Duty Tax on electricity consumption @ 21% on above items [2.8,3.3]
Tax on sale (INR /kWh) 9 Ps/kWh 0.09
Sub Total 16.7
Fixed Charges 1
Net Payable Per kWh 17.7
Table 3: Breakup of the Current Electricity Tariff from Oct. 2018

onwards (INR/KWH)
Energy Charges (INR /kWh) Energy Cost 4.63
Wheeling Charges (INR /kWh) Transmission Cost 1.3
Fuel Adjustment Charges Due to varying price of Coal 0
Electricity Duty Tax on electricity consumption 1.38
Tax on sale 9 Ps/kWh 0.09
Sub Total 7.4
Fixed Charges 0.61
Net Payable (INR /kWh) 8.01
27
BATTERY SWAPPING
Battery charging time plays a pivotal and 24 for details) for a vehicle to
role in the adaptability of EVs– be fully powered. This is precious
hence as a critical cog in the wheel, time that a commercial vehicle driver
the Nagpur pilot experimented cannot afford to lose. The OMI study
e-rickshaws with battery swapping of the country’s first multimodal
for over a year from May 2017 to July electric mobility project found that
2018. The EV ecosystem has been EVs usually have 20-25% less running
evincing interest in battery swapping time compared to conventional fuel
because of speed and ability to vehicles, given the time spent in
downsize battery capacity. Swapping charging. (Refer pages 23 and 24
may successfully eliminate wait for more details.) Battery swapping,
time of drivers at charging stations therefore, offers the much-needed
and reduce total capex per vehicle. solution to reduce wait time / idle
Consider the case of e-rickshaw time, increase the running time of
drivers in Nagpur. Their livelihood is an electric vehicle, and improve
dependent on driving throughout the the earnings of drivers. In Nagpur,
day with minimal idle time, i.e. time battery swapping boosted driver-
not spent in ferrying a passenger partner earnings as they were able
around. For EVs without battery to operate the vehicle for 25% longer
swapping mechanism, the time spent range compared to conventional
at charging stations - i.e. waiting Li-Ion battery-based vehicles and
time - is also considered as idle time. 50% more compared to conventional
Slow and fast charging alike cause a Lead-Acid battery-based vehicles.
driver to miss an earning opportunity. The Nagpur pilot provided sufficient
Conventional fast and slow charging evidence against the apprehension
could take anywhere from 2 to 6 over the success of swapping in
hours respectively (Refer pages 23 Indian conditions.
With the aim to assess the viability

of battery swapping solutions for
Indian use conditions, Ola piloted
e-rickshaws with swappable batteries.
RIGHT TURN
28
Unlike dedicated charging, 60,000. This was the cost of the

battery swapping could offer fast battery alone. Although lead-acid
“recharge” (5 minutes for swapping batteries would cost much less at
vs. 1.5-2 hrs for dedicated fast INR 20,000, its life was one-fourth
charge solution). Battery swapping that of Li-ion, and usually needed to
stations require a fraction of the be replaced every 8 months, besides
real estate per vehicle compared requiring more frequent charging
to park-and-charge solution. This compared to Li-ion batteries.
approach would reduce the cost of
building charging infrastructure, as A key pain point being experienced
land lease rental forms one of its by e-rickshaw drivers in the
biggest cost components . country is a need for sustainable
energy solutions for e-rickshaws
Battery swapping technology using to revolutionise first and last mile
Li-ion batteries offered another connectivity across cities. Li-ion
advantage over the current set up of battery-operated e-rickshaws offer
e-rickshaws prevalent across Indian the most pragmatic solution.
cities, where lead-acid batteries are
predominantly used. A conventional Such focus on battery swapping
e-rickshaw with lead-acid battery creates a huge opportunity for the
was around INR 80,000 - 1.2 lakhs manufacture of lithium batteries in
- the battery alone accounting for the country with more battery swap
one-third to one-fourth of the total stations dotting the landscape. Just
vehicle cost. as mobile telephony infrastructure
created huge employment (Telecom
On the other hand, the cost Sector Skill Council, 2018), battery
significantly changed with a Li-ion swap stations too could have
battery which costs around INR tremendous potential for job creation.
* Land lease rental for the battery swapping station in Nagpur, for 29
instance, stood at INR 40 per sq. feet.
DRIVE LEARNINGS HOME
A learning curve marks the road to growth.
PAIN POINTS & RESOLUTIONS

There were several challenges around operating and
charging the vehicles at the on-ground level. But a
series of quick resolutions helped address the situations
in an agile manner.
High electricity tariffs: The electricity Limiting design and systems: metering which fed the power
tariff of INR 17.7 per kWh was Interactions with riders highlighted generated back to the grid.
adversely affecting the economic the need for a better e-vehicle design As a result of this corrective
viability of the operations and to accommodate more luggage measure, the average monthly
constituted more than 30% of total volume. There had been concerns electricity bill reduced by 28%.
operating costs. Although the cost about the effectiveness of air-
of electricity shrunk significantly conditioning systems as well. More charging stations: Setting up
post the implementation of special more stations reduced the waiting
EV tariff in October 2018, the tariff Limited exposure to operating EVs: time from 3-4 hrs to 15-20 mins. But
continues to be unfavorable for TCO Driver partners, due to lack of this has significantly increased the
economics to work. familiarity of the mechanics of an EV, land lease rent and affected the overall
required more hands-on support. In economic viability of the project.
High waiting time: The limited the initial days of the pilot, the EVs
availability of charging infrastructure were taken for frequent repair and Periodic vehicle service camps
increased driver partner’s waiting maintenance due to the unfamiliarity at charging stations: To take care
time* to around 3-4 hours implying of the driver-partners. This resulted of repair and maintenance needs
that they spent considerable time in the vehicles spending more time in of EVs, periodic service camps
(login hours) off-road while charging. the workshop and less time on-road, provided driver-partners with
thereby affecting the earnings of the requisite information and advice on
Voltage fluctuations at charging driver-partners. the ‘dos and don’ts’, suggestions on
stations: There had been instances upgrades and repairs, and tips on
of fast chargers becoming non- The following measures were taken to improving performance and overall
functional due to voltage fluctuations resolve the most critical challenges: experience. Service camps followed a
once every 40 days. These would ‘preventive maintenance approach’:
tend to increase as more EVs hit Cut electricity bills: To improve the a systematic process of inspection,
the city roads, emphasising the financial viability of the project, detection, and correction to ensure
need to improve transmission and Ola installed solar rooftops at two that incipient failures are identified
distribution networks and integrate charging stations – Nagpur Airport much before they develop into
energy storage systems at charging and Nandanvan with a capacity of major faults. Such workshops led
infrastructure facilities. 16 kWh and 15.12 kWh respectively. to a reduction in actual repair
This helped in reducing the overall and maintenance frequency and
electricity bill, thanks to solar net- increased driver-partner earnings.
*
Waiting time refers to the time period that the vehicle waits at a queue for a
charging outlet to become available (called queuing time). It doesn’t include the 31
time period during which the vehicle is being charged (called charging time).
To safeguard driver-partner earnings against high commercial electricity tariffs,

Ola installed slow charging points at driver-partners’ residences, so they could
charge at home at a relatively low cost.
RIGHT TURN
IMPROVEMENT MEASURES
The Nagpur pilot shed light on several
learnings to follow through on.
ENHANCE THE CHARGING FACILITY

• The electricity tariff of INR 17.7 charging stations – airport and • A strategic location for setting
per kWh proved unfavourable Nandanvan with a capacity of 16 up charging infrastructure is
for the economic viability of the kWh and 15.12 kWh respectively. essential for economic viability
project. Here the states’ decision to would be needed. Apart from
design a special EV tariff provided This helped in reducing the overall considering the geographical
some relief. However, despite the electricity bill, thanks to solar spread and demand pattern in the
implementation of a new tariff, metering which fed the power city, multiple parameters from
the delivered cost of electricity generated back to the grid. As a construction feasibility would
continues to remain at INR 8.01 result of this corrective measure, determine site selection:
per kWh. For scaling up e-mobility the average monthly electricity • Location of the nearest
initiatives in a successful fashion, bill reduced by 28%. The overall electricity transformer
there is a need for placing the electricity expense could also be • Site depth below road level
delivered cost of electricity at INR reduced by open-access regulations • Future development plan of
5 per kWh along with a lock-in and reduction in wheeling charges. surrounding area
period of 4-5 years to align with • Legal cases/inheritance disputes
life of assets. • Innovative business models for
setting up charging infrastructure • User interface and display
• Installing rooftop solar at customised towards both franchising requirement for chargers would be
charging stations would have and company-owned stations would needed. Unlike chargers for four-
a significant value proposition be required. With over 60,000 fuel wheelers which had robust technical
financially and environmentally. stations in the country, these spaces specifications, chargers used at
It was observed that to improve could be utilised for setting up battery swapping facility, such as
the financial viability of the project, charging infrastructure. for three-wheelers, did not display
Ola installed solar rooftops at two critical input and output parameters.
32
• A lock-in period for land leased • The Nagpur experience showed that
for charging infrastructure would demand for slow charging would
be desirable. In the current remain limited on account of time
setup in Nagpur, for instance, the taken to charge. Thus, there is an
lease agreement for the charging impending need to build demand-
station at the airport needs to be responsive charging stations given
renewed regularly. This makes the paucity of land. Public charging
operationalising the charging stations could limit the space
station a time-consuming and designated for slow chargers to a
cumbersome process. third of the total space required for
charging infrastructure.
SHIFT THE MOBILITY MINDSET

• Demand aggregation would system (BMS) was vital to learn
be the key to gain from about vehicle performance and
economies of scale, and ensure support operations real-time.
optimum utilisation of charging
infrastructure. By aggregating • There would be a need to
demand at charging stations, expedite regulatory processes
the stations would be utilised to and facilitate faster diffusion of
optimal capacities. Maximising information through a regulatory
the utilisation of the charging setup. Although the state EV policy
infrastructure would, thus, allow the provisioned for a special EV tariff in
charging station operator to benefit February 2018, implementation of
from higher returns on investment. it was only seen in October 2018.
Till then, local utilities continued
• Building customer value proposition to charge a tariff rate of INR 17.7
and design vehicles for shared per unit. Standard guidelines on
mobility ethos would be important. construction and operation of
It was seen that low-speed Charging Stations and Swapping
e-rickshaws made for shared rides Stations could be provided by
were not preferred by drivers and Municipal departments, City Planning
customers. There is an urgent need Offices, and other statutory bodies.
for accelerating R&D on battery Such a regulatory clarity would
chemistries and develop battery significantly reduce the time spent on
packs for shared mobility uses to sanctioning the site for construction
address the range anxiety. Having of charging infrastructure.
an intelligent battery management
33
DESTINATION EV
Sometimes it’s the journey that teaches
a lot about the destination.
TCO ECONOMICS
Public transit agencies, new age app their purchase decisions. They weigh In the most generic case, for either
aggregators of bikes, auto-rickshaws, savings from EVs on account of lower fleet operator or individual drivers,
and cabs, and fleets managed by operational and maintenance costs the overall cost could be bundled as
government agencies put in more km against high upfront purchase prices. one that includes both the cost of
on their vehicle each year compared TCO, therefore, is a useful calculation electricity and cost of operating the
to personal vehicles. Such high to assess the direct and indirect cost charging infrastructure.
asset utilisation allows these fleet associated with a purchase.
operators to recover the cost of
buying, maintaining and operating To evaluate the economic viability
the vehicle, thereby making electric of operations under different TCO is defined as the total cost
mobility service a profitable prospect. regulatory provisions supporting of purchasing, running, and
This consideration, referred to as EV penetration, we built different maintaining a vehicle over its
Total Cost of Ownership (TCO), forms scenarios. These scenarios assume lifetime (1,80,000 km, or 4 years
the basis for the financial viability of that the service provider owns in the case of a car operating in a
e-mobility initiatives in India. In other both the fleet of vehicles and the fleet). It also takes into account the
words, fleet operators consider the charging infrastructure and have losses incurred due to depreciation
TCO profile of an EV and compare disaggregated cost of fuel, i.e. of the vehicle over its lifetime.
it with ICE vehicles, while making electricity and cost of charging infra.
FOR A FLEET OF CABS (ELECTRIC 4 WHEELERS)*

The TCO breakup in terms of capex (acquisition cost), and fuel, maintenance,
insurance, and charging infrastructure costs have been adapted from analyses
carried out by SIAM, IESA, EY, ICCT, Mahindra Electric, and Ola EV operations.
SCENARIO 1:
Baseline Scenario: TCO Comparison EV vis-a-vis ICE - at
commercial electricity tariffs implemented till September 2018.
Fig 7: Baseline Scenario: TCO Comparison EV vis-a-vis ICE - at

commercial electricity tariffs implemented till September 2018
15
13.14
Charging Infra Cost
Fuel Cost
10
8.86
7.94 Insurance Cost
Maintenance cost per km

5
Capex Cost of vehicle per
km inclusive of interest
0
Rs/km: EV in a fleet Rs/km: ICE Diesel Rs/km: ICE CNG
in a fleet in a fleet
*While modeling the TCO scenarios for 4Ws, the authors have assumed the following.
1. Fuel price: Diesel price at INR 70-75 / litre; CNG price at INR 41 / kg.
2. The modeling incorporates incentive structure of FAME I. 35
3. The modeling doesn’t take into account the impact of BS VI norms due for effective implementation from April 1, 2020.
Baseline scenario shows an - to an extent that at commercial its nascent stage and is still evolving.
exorbitant TCO differential of electricity tariffs, the operating costs To address the TCO differential, the
operating an Electric Taxi in a fleet are greater than that of a diesel state government created a special
vis-a-vis an ICE taxi. Apart from high vehicle. While limited short-term EV tariff which got implemented in
capex costs of an EV, surprisingly measures can be taken to reduce the October 2018.
the fuel cost contributes significantly capex cost of an EV, technology is at
SCENARIO 2:
Current Scenario: TCO Comparison: At special EV tariff* proposed
in the State policy and implemented w.e.f. October 2018
Fig 8: Current Scenario: TCO Comparison: At special EV tariff*

proposed in the State policy and implemented w.e.f. October 2018
12 11.54
Charging Infra Cost

10
8.86
7.94 Fuel Cost
8
Insurance Cost
6
4
2
0
The scenario reveals that after the put in more km on their vehicle each choice obsolete, lack of awareness,
implementation of special EV tariff year compared to personal vehicles. and access to capital and inability
proposed in the state EV policy, TCO This solves the deadlock of high to assess lifetime benefits and
for operating an EV has reduced by upfront costs by providing a shorter costs. Slow adoption could mean a
INR 1.60 per km - but TCO differential payback time period. disproportionate rise in air pollution.
continues to remain significant. Fleet operators would also provide
High upfront costs, lack of charging Benefits of electrifying shared the necessary scale effect, resolving
infrastructure and uncertainty mobility will outweigh any benefits the classic question of what should
regarding performance are whatsoever of electrifying personal come first - EV or the charging
bottlenecks. Given the low operational mobility. Private users have to battle infrastructure. This would also
costs, it implies that fleet providers with high discounted future savings, maximise a Make in India opportunity
would be the ideal candidates for uncertainty associated over newer missed in the case of promotion of
accelerating EV penetration as they technological developments making solar energy.
36 *Electricity Tariff w.e.f. 1 st September 2018 and Implementation thereof. Maharashtra State Electricity Distribution Co.
Ltd. https://www.mahadiscom.in/consumer/wp-content/uploads/2018/10/Comm_Cir_311.pdf
SCENARIO 3:
TCO comparison: When the delivered cost of electricity
at INR 5/unit is augmented with reduced land lease
rental for charging infra, and zero registration and
permit charges.
The previous scenario reveals that even at the special EV tariff implemented by
the state government, the TCO for an Electric 4W in a fleet continues to remain
high when compared to ICE counterparts. Further as seen above, the high land
lease rental makes it the largest component accounting for over 31% of overall
opex of charging infrastructure. On the positive side, a few state governments
have waived off registration tax, road tax and permit charges for improving the
economics of EVs.
Fig 9: TCO comparison: When the delivered cost of electricity at INR

5/unit is augmented with reduced land lease rental for charging infra,
and zero registration and permit charges
9.77
10
8.86 Charging Infra Cost
7.94
8
Fuel Cost
6
Insurance Cost
4 Maintenance cost per km
2
0
Overall, the scenario building exercise for four-wheelers (4W) reveals that the
incentives modeled above, along with the delivered cost of electricity at INR 5
per kWh, could reduce the TCO for Electric 4W in a fleet by INR 1.77 / km.
37
TIPPING POINT FOR ELECTRIC 4-WHEELERS:

LEARNING FROM THE SCENARIOS
Having captured massive learnings and further to $86/kWh (Adapted
from the Nagpur pilot, this section from Mosqouet. X et. al. 2018).
aims at utilising the on-ground
learnings to project the tipping With battery costs expected to come
point, where EVs achieve parity with down and the cost for meeting
ICE vehicles. The tipping point has CO2 compliance on ICE vehicles
been estimated a few times in the going up, the question arises - are
recent past using assumptions on we approaching TCO parity? To
parameters such as battery pack arrive at TCO values, the following
prices, crude prices, technological assumptions have been considered:
developments etc. With BS VI norms ( i ) Battery prices expected to
(MoRTH, 2016) going into effect decrease by 40% in 2025 and by
from April 2020, it is expected that 55% in 2030 from current levels;
prices of ICE vehicles would rise. (ii) The delivered cost of electricity
The analysis shows that battery remains at INR 5 per kWh;
costs will come down due to better (iii) Prices of ICE vehicles increase
technology and manufacturing from April 2020 with BS VI coming
processes. Battery pack prices are into effect;
expected to drop from around $203/ (iv) Minimum incentives to the level
kWh in 2017 to $110/kWh in 2025 of FAME I continues (DHI, 2015).
Fig 10: TCO Parity: 2026 Tipping Point for Electric 4-wheelers
9.9 9.45
10
8.51
Charging Infra Cost
8
Fuel Cost
6
Insurance Cost
4
2 Capex Cost of vehicle per

0
TCO analysis to determine the Tipping Point reveals that in 2026, the total cost
of owning an EV (in terms of INR/km) over its lifetime will be lower than that for
a conventional combustion engine car in small and medium car segment, which
constitutes majority of car sales in the country.
38
Fig 11: TCO Parity: 2026 Tipping Point
12
10
0
2018 2020 2022 2024 2026 2028 2030
TCO EV in a fleet (Rs/km) TCO Diesel in a fleet (Rs/km) TCO CNG in a fleet (Rs/km)
Having seen that TCO parity for four-wheelers is not occurring before 2026,
fleet electrification may be considered. Additionally, the ecosystem may
prioritise vehicle segments for electrification by identifying modes where
TCO differential with ICE counterparts is minimal.
RIGHT TURN
VEHICLE SEGMENT PRIORITISATION

From the TCO analysis for 4W, it the government for subsidising the mobility vehicles (buses, bike taxis,
is evident that India is in a unique upfront cost of the EV and battery. auto-rickshaws, taxi-cabs, private and
position - the country cannot aspire public sector employee transportation,
to kick start its electric mobility While the benefits to a fleet operator etc.). Their electrification will
journey with e-cars. The country are clear, electrification of 2W and 3W generate a disproportionate
should explore if TCO viability can be is beneficial to the country as well. reduction in air pollution.
achieved in other vehicular segments Currently, over 80% of vehicles plying
such as 2W and 3W. The next couple on Indian roads are two-wheelers and In short, India should prioritise its
of figures show at the delivered three-wheelers, contributing to 35% vehicle segments for electrification to
cost of electricity of INR 5 per kWh, of pollution (NITI Aayog and World achieve e-mobility success. Vehicle
the TCO is most attractive for 3W Energy Council, 2018). Therefore, segment prioritisation based on
and 2W, compared to 4W. This is any attempt at electrification of the TCO calculation for all segments is
primarily because TCO differential country’s fleet must address these presented in the sections below. On
is minimal in the case of electric 2w segments on priority. Further, the the basis of such an analysis, it is
and electric 3w. This would also make highest proportions of passenger km recommended that 2w and 3w be
fleet operators less dependent on traveled are by public and shared converted to electric fleets first.
39
FOR FLEETS OF ELECTRIC THREE-WHEELERS AND TWO-WHEELERS*
Fig 12: TCO Comparison for 3-wheelers

4
3.73
3.44
Charging Infra Cost
3
Fuel Cost
2 Insurance Cost

1
Capex Cost per km
inclusive of interest
0
E-Auto in a fleet ICEAuto in a fleet CNG
Fig 13: TCO Comparison for 2-wheelers

2.5 Swapping Cost
2.25
2.03
2
Fuel Cost
1.5
Insurance Cost
1 Maintenance cost per km
0.5 Capex Cost per km

inclusive of interest
0
E-2ws in a fleet ICE-2ws in a fleet
ADOPTION SEQUENCE
The above TCO modeling has been has been factored in. Only at such ideal at INR 5/kWh making the opex
carried out using ideal factors, i.e. conditions, TCO differential between an attractive and thereby encouraging
conditions most favourable to achieve EV and its ICE counterpart is minimal usage. Overall, the modelling exercise
TCO parity: a) FAME I incentives, for 2W and 3W, as can be seen above. concludes that the TCO differential is
which were relatively higher for 2Ws This indicates that for mass adoption the least for 2W followed by 3W, and
and 3Ws compared to the recently of EVs, substantive impetus needs 4W. Accordingly, it is recommended
announced FAME II structure, have to be offered by central and state that India adopt the following sequence
been incorporated for the calculation; governments to address the viability for electrification of its fleet.
b) an ideal electricity tariff at INR 5/ gap between EV and ICE, including
kWh as the delivered cost of electricity offering delivered cost of electricity
Sequence of adoption of EVs
*While modeling the TCO scenarios for 3Ws and 2w, the authors have assumed the following.
1.Fuel price: Electricity at INR 5 per kWh; CNG price at INR 41/kg; Petrol price at INR 75 per litre.
40 2. The modeling incorporates incentive structure of FAME I.
3. The modeling does not take into account the impact of BS VI norms due for effective implementation from April 1, 2020.
RECOMMENDATIONS FOR TOMORROW

As part of its Nationally Determined Contributions (NDCs) to the Paris
Agreement, India has pledged to improve the emissions intensity of its GDP
by 33 to 35 percent below the 2005 levels by 2030. In India, the transport
sector contributes close to 10% of the total national GHG emissions, with
road transport contributing about 87% (MoEFCC, 2015). Electrifying the road
transport sector has the highest energy savings potential of around 40% in
2030, which is largely driven by ambitious adoption of electric vehicles and
a shift from private to shared modes (CSTEP, 2018). Hence, only a leapfrog
opportunity through EVs will bring India closer to its mission. The following
strategies, initiatives and programmes would translate EV dialogue into action,
accelerating the adoption of electric vehicles in India and taking India closer to
its 2030 EV targets.
AT A GLANCE
Suggested Schemes Suggested Initiatives
A. For Augmenting Early Adoption of Electric Mobility F. Promoting use of Shared Mobility Services like app-
B. To make E-Mobility Operations financially Viable and based e-bikes/e-autos/e-rickshaws/e-cabs
Sustainable G. Decentralised Feebate policy and ZEV mandate
C. To Setup and Strengthen Charging Infrastructure H. Non-fiscal incentives
D. To Promote Sustainable Manufacturing of EVs
E. Schemes For Higher Education, Research, Capacity
Building, and Re-skilling
SUGGESTED SCHEMES
A. FOR AUGMENTING EARLY
ADOPTION OF ELECTRIC MOBILITY
A.1 Incentives should be on USAGE rather than purchase of EVs:
To unlock the existing economic mobility demand by nearly 1,800 pollution and improve air quality,
benefits of EVs, the policy should billion vehicle km in 2035, by the focus should be on increasing
specifically encourage high improving asset utilisation with usage of EVs.
utilisation rates of EVs. This will high adoption of ride-sharing and
help owners realise advantages of public transit. To embrace shared Reduced vehicular emissions due to
TCO, while maximising electric km mobility and discourage vehicle the use of EVs would depend upon (i)
traveled in aggregate. ownership, financial incentives the distance or journeys completed
should be provided on usage and through EVs and (ii) source or fuel
A study by NITI Aayog, RMI, and not the purchase of vehicles. used for electricity generation.
ORF (2018) estimates that shared Since one of the primary goals for Any financial incentive should be
vehicles could reduce annual introducing EVs is to fight vehicular designed to encourage usage of EVs
rather than vehicle purchase.
*In public policy, a sunset provision or clause is a measure within a statute, regulation or other
law that provides that the law shall cease to have effect after a specific date, unless further 41
legislative action is taken to extend the law..
A.2 Incentives should be targeted towards BATTERIES:

Fiscal incentives should be designed Ergo, incentives should be targeted e-mobility dream a reality in the
to specifically subsidise the one cost towards batteries to promote faster country, and to avoid replacing imports
that makes EVs expensive: batteries. adoption of EVs in India. Most other of fuels with imports of batteries.
The cost of EV batteries constitutes components are already produced at
almost half the overall costs – posing scale in India’s thriving automotive Further, batteries made in India -
a great challenge to the adoption sector, with the exception of advanced transferring technologies to India
and acceleration of e-mobility in batteries. A potential subsidy per kWh - may be considered for higher
India. Incentivisation of batteries should be provided along with quality subsidies over batteries imported
necessitates the acceptance of the criteria that encourage advanced from outside. This would allow the
larger paradigm of treating the battery technologies, such as batteries with a entire ecosystem to embrace the
and vehicle as separate entities. When higher number of certified recharge Make in India opportunity concurrent
batteries and vehicles are treated cycles compared to others. Although with market development (India
separately, a battery swapping system FAME II provides an incentive of missed this opportunity in the case
can operate seamlessly. INR 10,000 per kWh on vehicles of solar energy push in the country
fitted with lithium-ion batteries, the - an industry which continues to
The Nagpur pilot has provided proof incentive here needs to be extended rely heavily on imports). Towards
of battery swapping acting as a to batteries without the vehicles for this, the Central Government has
reliable charging mechanism. Battery reasons discussed above (PIB, 2019). recently tightened the localisation
swapping is doable, efficient, and This subsidy can progressively phase criteria for availing benefits under
in the case of Nagpur, successful. out, i.e. have a sunset clause, as the FAME II. OEMs now need to ensure
Battery swapping helps in mitigating viability gap of batteries closes with minimum localisation content of
long waiting time of drivers at reducing costs over the next few years. 40% on ex-factory price of the
charging stations, for commercial vehicle in case of buses and 50%
and private users alike. It further By offering financial incentives for for all other categories of vehicles
increases the running time of an manufacturing of batteries as against (electric two-wheelers, electric three-
electric vehicle, and improves the the entire EV, the manufacturing of wheelers, electric four-wheelers,
earnings of drivers. It is imperative batteries too would get accelerated; and e-rickshaws). To encourage
that the government recognises the technology and innovation would component makers to localise,
value of battery swapping especially flourish; economies of scale would be electric powertrains will attract an
in the shared mobility context of achieved; and batteries would be both import duty of 15% in a year’s time.
India, and designs ways of promoting domestically produced and affordable. Import duty of batteries will be raised
the technology across the country. This tipping point is crucial to make to 15% in two years from the current
5% (Mukherjee and Chaliawala, 2019).
Fiscal incentives should be designed to specifically subsidise the one cost that
makes EVs expensive: batteries. Reducing the cost of the battery through
subsidies initially makes the capex of an EV comparable to ICE vehicles. This
type of battery subsidy should sunset as the viability gap of batteries closes
with reducing costs over time. Overall, providing a subsidy on the battery and
electricity can address the viability gap vs ICE counterparts.
RIGHT TURN
42
A.3 Incentives on scrappage of ICE fleet needs to be

linked with EV adoption:
For easier and timely transition to million vehicles would reach end-of- Given that fleet operators are (i)
e-mobility, scrappage*1 incentives life by 2025. Over 3.2 million tonnes major buyers of vehicles and (ii) their
should be offered on End-of-Life of steel scrap, 0.3 million tonnes fleet would be reaching End of Life
ICE vehicles (ELVs), with a condition of aluminium scrap, 0.05 million (EOL) earlier compared to others, on
that such an incentive is redeemable tonnes of copper and 0.075 million account of higher utilisation rates,
only at the purchase of EVs. Such an tonnes each of plastic and rubber extending such incentive to fleet
approach serves the dual purpose could be recovered from the current operators ensures a more aggressive
of managing current fleet of ELVs fleet of end-of-life vehicles (Arora.N transition to e-mobility.
besides accelerating EV penetration. et.al 2017).
It is estimated that as many as 21
Low operational cost implies that fleet providers would be the ideal candidates
for accelerating EV penetration. They put in more km on their vehicle each year
compared to personal vehicle, which solves the deadlock of high upfront costs
by providing a shorter payback time period. The benefits of electrifying fleets
and shared mobility are more effective than encouraging electric personal
mobility. Fleet operators would provide the necessary scale and ability to
manage with limited infrastructure: resolving the classic question of what
should come first - EV or the charging infrastructure. RIGHT TURN
A.4 Retrofitment across vehicular segments:

Given the high upfront costs of EVs, Hybrid or Pure electric systems although the investment could be
state governments should promote (MoRTH, 2019). Retrofitment is relatively recovered in a short span of time. The
retrofitment*2 for timely transition to simpler. For instance, an existing 3W Central Government should subsidise
e-mobility. Towards this, the central post retrofitment is cheaper to run retrofitment with electric drive trains as
government has recently amended and maintain, but the high cost of part of FAME 2; this would yield benefits
Central Motor Vehicle Rules for conversion inhibits auto drivers in for the millions of drivers who rely on
retrofitment of motor vehicles with adopting these systems en-masse, autos for their sustenance.
A.5 Corporate ownership of three wheelers:

The cost of ownership of electric discount rate on future returns. They
three-wheelers is closest to their are only concerned with high upfront
conventional counterparts but the costs, with no understanding of the
initial investment is high. This implies TCO concept. To encourage the push
that this segment of vehicles would towards fleet electrification, the
lead the transition towards electrifying state governments should allow for
the fleet. However, drivers put a high commercial ownership of 3W fleets.
*1A scrappage program is a government budget programme to promote the replacement of old vehicles with modern
vehicles. These programmes generally have the dual aim of stimulating the automobile industry and removing
inefficient, more polluting vehicles from the road.
*2 Addition of new technology to an existing model of vehicle. For example, as three-wheelers in Delhi transitioned from
petrol / diesel to CNG powered-engines, they were retrofitted with a CNG kit. Similarly, as threewheelers transition to 43
e-mobility, the ICE 3Ws may be retrofitted with EV kits allowing for time- and cost-efficient transition to e-mobility.
A.6 Reduced and consistent GST on EVs, Batteries, and

Charging-Swapping Station Services:
The current costs of EVs are almost twice compared to their conventional
ICE versions. Taxes and registration charges further elevate on-road prices of
vehicles by approximately 10-15%.
The GST on EVs, batteries, chargers, and related components should all belong
to the same GST slab as that of the EVs. Reducing GST rates on EVs and batteries
from 12% and 18% respectively to 5% and relaxation of road tax would provide
the necessary boost in the short term. Further, GST waiver on charging and
swapping services would offer the much-needed fillip to the electric mobility
ecosystem of the country without creating a burden on the exchequer. RIGHT TURN
A.7 Exemption from Permits:

Commercial EVs for city transportation should be exempted from all the
necessary permits otherwise needed to run commercial vehicles, including taxis,
auto-rickshaws, and 2W used for commerce in the country. This has proven to
be a strong barrier to EV deployment, given the lack of awareness in regulatory
bodies. Commercial vehicles would therefore be incentivised to go electric, and
have a tendency to run disproportionately more km than personal vehicles.
A.8 Bridging the Gap with a Predefined Sunset Clause:

The Government should provide subsidies and concessions until a critical
threshold limit for fleet electrification is achieved.
B. TO MAKE E-MOBILITY OPERATIONS

FINANCIALLY VIABLE AND SUSTAINABLE
B.1 Cost of Electricity including wheeling charges to be reasonable:
Delivered Cost of Electricity at deployment of EVs financially an EV. Time of Day (ToD) charges
INR 5/unit, for a period aligned viable. This rate can rise as costs of and timings, energy banking, load
with viability of business models: batteries and EV components drop. balancing, should be considered
To have viable vehicle economics while extracting value from
from Total Cost of Ownership (TCO) Time of Day, Net Metering, and available batteries to reduced
perspective, electricity rates have Battery-to-Grid: Electricity rates pressure on electricity price alone.
to be at INR 5/unit for next 4-5 are the single most important factor
years. This will make large-scale in the economics of operating
44
Time of day (TOD)*1 tariff structures from suppliers other than the local infrastructure in the form of net
that give cheap electricity rates distribution company (discom). metering and banking facilities,
during off-peak periods (eg. late b) The State Electricity Regulatory among others, to measure the
at night) and higher rates for using Commission should offer an energy derived from renewable
electricity during high-demand exemption to maintain contracted sources. Experience from the
times would help in peak load demand. Today, there is a requisite country’s first multimodal electric
shaving*2. Because most EVs are to maintain a minimum threshold mobility project shows that solar
parked at home overnight, TOD of 1 megawatt of power on net metering reduced electricity
rates appeal to the EV drivers. standby to contract open access bill by 28% and contributed
electricity. This requirement of a to improved economic
Allow the Aggregation of Open minimum threshold on contract viability.d) For fleet operators, it
Access to Electricity, and greater demand especially for EV charging is recommended that transmission
Integration of Renewable Energy: should be removed. and distribution costs of electricity
c) Further, the government rightly flowing from a central node to
a) The State Electricity Regulatory encourages the adoption of multiple centres across the country
Commission should allow renewable energy sources should be kept low.
aggregation of open access electricity to power electric vehicles. e) In short, wheeling charges, as
wherein buyers (such as shared To strengthen this, the State well as other charges and
mobility providers) have access to Electricity Regulatory Commission surcharges for accessing
the transmission and distribution in collaboration with local discoms electricity, must be reasonable.
(T&D) network to obtain electricity may also create necessary
Continuous Supply of Required Electricity Load at Demand Locations

The right location for charging and swapping stations is important for a
better experience for driver-partners, optimisation of daily runs, and battery
performance. These are also required to be deployed at prominent demand
locations (metro stations, malls, office complexes) which are easily accessible.
Hence, ease of installation and availability of continuous electricity supply at
RIGHT TURN these locations for the desired load is vital for smooth operations.
B.2 Ensuring optimum utilisation of charging infrastructure:

To ensure optimum utilisation apart from ride-hailing platforms, corporate
adoption must be incentivised along with a mandate for government agencies
and local civic bodies to convert their fleet to electric.
C. TO SETUP AND STRENGTHEN CHARGING INFRASTRUCTURE

With land lease rentals forming market matures and stabilises, zones within cities. By minimising
a major portion of the opex of market rent could be levied. the dry run for drivers of EV fleets,
charging / swapping stations, it is This viability support in the form this proposition would solve the
recommended that viability gap of reduced lease rental may be dual problems of range anxiety
support in the form of land at low provided for setting up charging and low utilization of charging and
rentals with a predetermined initial and swapping stations at strategic swapping stations.
lock-in period be provided. As the locations in areas of high demand
*1Time of Day (or TOD) tariff is a tariff structure in which different rates are applicable for use of electricity at different time of 45
the day. It means that cost of using 1 unit of electricity will be different in mornings, noon, evenings and nights.
*2 Peak shaving is the process of reducing the amount of energy purchased from the utility company during peak demand hours.
Concessional locations for swapping stations should be made available by the

State Govts to Battery Swapping Operators (BSOs) in every district along with
bare minimum lease rentals. These Concessional locations should be carved out
from existing public parking zones, bus depots and terminals, metro stations
and other identified locations such that they offer easy entry and exit. Further
reimbursement of 100% of net SGST, accrued to the State, should be provided
to BSOs for purchase of Advanced Batteries to be used at swapping stations. RIGHT TURN
D. TO PROMOTE SUSTAINABLE MANUFACTURING OF EVS

The Central Government has recently businesses to focus on ‘urban mining’ for automotive uses, policy should
approved a Phased Manufacturing of rare materials within the battery incentivise its reuse as power banks
Programme (PMP), valid for five for feeding it back to the value chain. for storing solar energy. Further,
years till 2024 to localise production Sustainable management of end-of- batteries need to be designed for
with a focus on upstream part of the life EV batteries is crucial to avoid easier repair and repurposing with
EV value chain. The Union cabinet pollution from toxic waste and secure the objective of prolonging its
approved the setting up of a National a strong supply of raw materials at in-use life. The design needs to be
Mission on Transformative Mobility low environmental cost. receptive to use secondary resources
and Battery Storage (PIB, 2019). and enable greater recovery
Further, state governments should Once batteries have reached 60- when recycled at its end-of-life
incentivise setting up of recycling- 70% of its rated capacity and not fit (Bhattacharjya. S et.al 2018).
E. SCHEMES FOR HIGHER EDUCATION, RESEARCH,

CAPACITY BUILDING, AND RE-SKILLING
Many new jobs would be created due Additionally, the Government may consumption and pollution from road
to increasing EV adoption, with some consider establishing centres of transport, project for increasing the
jobs requiring re-skilling and some innovation and excellence for various energy and performance density
requiring newer skill set. There is a components of EVs and Autonomous of lithium-ion batteries, research in
need to set-up Centre of Excellence vehicles industry including battery newer battery chemistries, support
(CoEs) to train in EV mechanics and technologies, drivetrain technologies, for developing advance cells and
charging station staff. Vocational software development, and charging design technology for electric vehicle
courses should be developed in technologies. The curriculum of IITs batteries with the aim to reduce
association with OEMs, EOs and and other colleges and universities battery costs and improve its use-life,
BSOs. Here the Govt should focus should be customized to incorporate and for developing advanced energy
on apprenticeship programmes in and adhere to the industry storage technologies and to enhance
collaboration with players across requirements. For instance, some value through secondary use of EV
the value chain. Apprenticeship of the EU member states have been batteries. It is commendable that
would make the manufacturing and using policy instruments/schemes the Indian Government will provide
service base of the country even to facilitate newer developments a policy framework as part of the
more robust that it is today. For such across the value chain of the EV recently launched National Mission
apprenticeship programmes to be sector. These include support for on Transformative Mobility and
successful, incentives coupled with developing new vehicle concepts and Battery Storage, to promote effective
regulations are needed. technologies for reducing energy use of applied research and analysis
to support innovation.
46
SUGGESTED INITIATIVES
F. PROMOTING THE USE OF SHARED MOBILITY SERVICES
SUCH AS APP-BASED E-BIKES/E-AUTO/E-RICKSHAW/E-CAB
User incentive scheme: For all above rides taken through an app-based EV
aggregator, the state should offer ‘cash back’ rebates for short first and last
mile connectivity trips. Such a rebate can make rides on EVs at least 10-20%
cheaper than an equivalent ride in an ICE vehicle.
G. DECENTRALISED FEEBATE POLICY AND ZEV MANDATE

States should resort to the ‘feebate’ concept i.e. adopting measures by which
inefficient or polluting vehicles incur a surcharge while efficient ones receive a
rebate to provide for the viability gap funding needed to accelerate EV adoption.
For instance, the Delhi Government in its draft EV policy (2018) proposes to create
a State fund by levying instruments such as Pollution Cess Air Quality Parking
Surcharge, additional Road Tax, Congestion Fee and ECC to support EV targets.
Playing out the Decentralised Feebate Policy

One of the prime reasons for the delays in the announcement of fiscal and
non-fiscal incentives to accelerate EV adoption by both the central and state
governments is because of its burden on the exchequer. Towards this, a state
level fee-bate policy along with other fiscal and non-fiscal incentives would
provide the right framework for accelerating EV adoption in the state. For
instance, about 35 lakh vehicles are sold annually in Maharashtra. A feebate
policy that imposes a tax of mere INR 1,000 on conventional ICE vehicles can RIGHT TURN
yield INR 350 crores. This can then be used to cross-subsidise EVs.
Further, to fastrack feebate, it could the auto industry has over- at feebate-style fiscal instruments
be coupled with a zero-emission complied with the ZEV regulation that levy penalties on inefficient
vehicle (ZEV) mandate. The ZEV requirements, with several times or polluting vehicles, and creates
mandate requires automakers to sell more ZEV credits than required. As sufficient funds for subsidising
a government-stipulated number of mid-2017 leading companies such EV adoption. This also acts as a
of electric vehicles. The exact as BMW, General Motors, and Volvo disincentive scheme discouraging the
number of vehicles is linked to the have already transitioned their fleets use of polluting vehicles. The other
automaker’s overall sales within a to greater EV shares (9 to 11%) than mechanism is a regulation imposed
specified geography. what is required for the fleet to meet by the government on automobile
California’s 2025 regulation (8%) manufacturers mandating the
ZEV regulation aims at increasing the (Lutsey.N, 2018). substantial production and sale of
share of EVs sold annually, something electric vehicles. While the Feebate
which has worked in US markets. EV Therefore, the government may mechanism may be considered as
sales grew faster, as the availability consider a combination of two a demand-side impetus, the ZEV
of new EV models increased. The mechanisms to promote faster mandate / regulation may be treated
ZEV regulation and rebates have adoption of EVs in the country. One as a mechanism providing supply-
expanded the market, for instance, is a funding mechanism that looks side impetus.
47
H. NON-FISCAL INCENTIVES
Some of the most valuable incentives • Priority approvals from ARAI / and priority pickup zones could be
that the Govt. can provide are non- ICAT for certification of EVs created near Metro stations, markets
fiscal and should be considered at and other high demand areas. We
par with any fiscal considerations. A Single Window Clearance for have seen from our experience that
range of non-fiscal incentives could Registration and Vehicle Transfer such zones can increase vehicle
be offered that provide a boost to process /issuance of permits, and earnings by over 10%, thereby
revenue streams thereby minimising from Electricity Department - reducing the need to subsidise costs.
the need for subsidising the cost.
• There should be a defined (iii) Preferential Parking and Charging:
(i) Fast track approval and Single checklist of documents to
window clearance: be uploaded online with self- City wide parking locations should
declaration along with timeline be retrofitted to maximise EV access
For effective and timely of 48 hrs to execute the transfer to charging. Further, there should be
implementation of state’s EV policy and registration of cars, for free parking for EVs at coveted public
a dedicated EV cell should be issuance of permits and fitness and commercial spaces.
established. It is further submitted that certificate etc. While this
state governments should consider would speed up the process (iv) Faster Homologation process
the following recommendations for of registering or transfer of for EVs:
faster implementation of EV projects vehicles, it would also curb
in the state. irregularities at the RTOs’ end. Homologation process includes
A dedicated EV cell shall be performance-oriented test
Fast Track Approval - established within the Transport requirements as well as administrative
• Standard guidelines and Department for effective day- procedures. The administrative
single-window clearance for to-day implementation of State procedures address the type-
approvals from Municipal EV Policy. approval of vehicle systems, parts
departments, City Planning and equipment, the conformity of
Offices and other Statutory • Similarly, such a single window production to prove manufacturer
bodies for the construction clearance system is required for ability to produce a series of
and operation of Charging approvals from the electricity products exactly matching type-
Stations and Swapping Stations. department as well. approval specifications. Further for
This needs to be augmented EVs regulation also defines safety
with fast track approvals for (ii) Dedicated zones: requirements with respect to the
sanctioning of electricity load, Rechargeable Energy Storage System
design and building plan, fire Zones should be defined where (REESS), of road vehicles equipped
and safety approval. Currently, only EVs will operate, or will provide with one or more traction motors
this process takes around preferred access to EV. For instance, operated by electric power and not
90-120 days, which should be Airports / Train Stations / Tech permanently connected to the grid. The
done within 7-14 days for faster Parks / Hotels / Markets could be whole process takes around 3-4 weeks
operationalisation and mass zones where price sensitivity is which if reduced to 7 days could help
adoption of EVs. lower. Waiver of parking charges operationalise projects relatively faster.
48
NON-FISCAL INCENTIVES FOR ADOPTION OF

EVs ACROSS COUNTRIES
DENMARK
• Reduced or exemption from parking fee.
• Free use of toll roads for EVs.
GERMANY
• Preferential parking.
NORWAY
• EVs have free access to public areas.
• Free parking in public places since 1990s.
• EVs can use the toll roads for free; EVs are permitted in bus and taxi lanes (since 2003).
• Free use of charging infrastructure. EV users can use the public charging infrastructure for free.
SWEDEN
• Reduced Parking fee: In about 50 % of the 70 cities in Sweden where you have to pay to park.
• Exemption from Toll Tax: EVs bought before 1 January 2009 were exempted from paying toll tax
in Stockholm until 2012.
• No congestion charge on EVs: A congestion charging scheme was implemented on a permanent
basis in August 2007 in central Stockholm. A fee is charged during times of trafﬁc congestion.
However, plug-in hybrids and pure electric vehicles were exempted.
UNITED KINGDOM
• Zero or reduced parking charges: Some local authorities in London provide exemptions or a
reduced parking charge for electric cars.
• Zero Congestion charge: EVs are exempted from congestion charge with drivers saving up to
£2,000 per annum in London.
UNITED STATES
• High Occupancy Vehicle (HOV) Lane exemption: More than 10 American states have allowed EVs
to use HOV lanes, including California, Colorado, Florida, and New York. A special sticker must be
obtained from the Department of Transportation displaying an HOV lane exemption decal.
• Alternative fuel vehicle emission test exemption.
• Alternative fuel vehicle conversion tax credit.
• Zero Parking fee: Hawaii provides free parking for EVs at public places.
• Discount on toll roads: EV drivers in New Jersey enjoy a 10 percent discount on off-peak New
Jersey Turnpike and toll road rates.
CHINA
• EVs are not restricted by traffic control measures (policies to limit the number of cars on the
road during a prescribed period).
• EVs are allowed to use bus lanes.
• Free parking for EVs.
• EV drivers in some Chinese provinces and cities can get their license plates without paying the
typical fees and faster than conventional vehicle drivers. For example, Shanghai has waived EV
drivers’ license plate fee, which is about RMB 100 thousand ($15,900).
49
Source: Adapted from Steen. M et.al, 2015, Lu. J (2018), TERI (2018) and the US Department of Energy
50
CONCLUSION
India has kicked off its EV journey their components that meets the
with confident strokes. Lessons from operating needs of fleet operators.
Nagpur pilot come at an opportune Similarly charging infrastructure
time when the central and state providers need to partner with
governments alike are mulling over smart city planners, fleet providers
their EV policies. The pilot has offered to plan, finance and implement the
in-depth learning in understanding right infrastructure which minimises
the operating issues. Unlocking the operating complexity. Support from
2030 agenda calls for the right kind of the government in terms of allowing
business models to help in introducing corporate ownership of vehicles,
sustainable mobility solutions at scale. ease of permit license, dedicated
points for pick-up and drop for shared
Just like any other technological mobility and viability gap funding for
innovation, EVs are going through land needed to set up the required
their technological adoption lifecycle infrastructure, can further accelerate
and diffusion will take time. Ola’s EV penetration for shared-use mobility
Nagpur initiative reflects the efforts programs. This, in turn, will amplify
to remain ahead of the curve and environmental benefits besides yielding
lead the e-mobility transition in the significant monetary savings. The shift
country. To accelerate these initiatives, to electric vehicles could potentially
there is a need to incentivise clean help India save up to $300 Bn (INR 20
kilometres traveled. It is critical that Lakh Cr) in oil imports and nearly 1
EVs incorporate value propositions that gigatonne of carbon dioxide emissions
are significantly better than existing by 2030 (FICCI and RMI, 2017).
choices. It also fits with consumers’
perceptions about the projected cost of It is often said that tomorrow lies in
switching such as TCO viability. the hands of today. EVs can finally be
a stepping stone towards designing
A collaborative approach from players an intelligent, futuristic transport
across the value chain can help achieve infrastructure in India that is capable
the EV dream faster. For instance, of catering to the mobility needs of the
OEMs need to adopt mobility-as-a- country’s huge population.
service ethos and the need to redesign
51
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53

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BEYOND

LESSONS FROM INDIA’S

AUTHORS: Nitish Arora, Aishwarya Raman

© Ola Mobility Institute

DRIVE LEARNINGS HOME 30

KEY LEARNINGS AND RECOMMENDATIONS

* In public policy, a sunset provision or clause is a measure within a statute, regulation or

Today, the nation has a real opportunity to change the

THE E-MOBILITY CHALLENGE

THE OLA PILOT

At the time of conducting this study, Ola’s electric fleet had:

Served over Clocked over Saved over Reduced CO2

As a catalyst for the entire EV ecosystem of OEMs, policymakers, battery

• A convenient size and controlled This confluence of factors provided

Bhavish Aggarwal, Co-founder & CEO, Ola

LEADING THE CHANGE

Ola’s EVs were fully operational in Nagpur for day-to-day commute,

ELECTRIC CABS IN THE OLA NAGPUR FLEET

Mahindra e2o Plus Average Daily Run

In peak summer, the

ELECTRIC RICKSHAWS IN THE OLA NAGPUR FLEET

Kinetic Safar Top speed

Kerb Weight Passenger

OPERATIONALISING THE INITIATIVE:

We were not sure of swapping Air pollution is an imminent danger

To address concerns of driver-partners regarding their income and concerns

ELECTRIFYING FUEL PUMPS TO CHARGE BATTERIES

Notwithstanding the charging stations set up in public places by Ola and

Ola partnered with the Indian Oil

EXPANDING THE CHARGING INFRASTRUCTURE

Table 1: Average Location and Capacity of Charging Stations

Charging Station Location Connected load (in KW) Number of chargers

Airport 150 4 fast and 4 slow

As India’s leading oil refiner and marketer, IOCL promotes ecological

HOW 4W ELECTRIC BATTERIES WORK

Fig 1: Average Range per charge (in km)

Range is influenced by ambient temperature. This figure shows the seasonal

Average Range per charge (in km)

TALKING NUMBERS Fig 2: Average fast charging time (in hours)

Fig 3: Average slow charging time (in hours)

Average slow charging time

However, there were no reported instances of battery life getting affected on

Fast-Rack Slow Portable

Fig 4: Percentage of Cars Charging

CHARGING INFRASTRUCTURE AND COSTS INVOLVED

Fig 5: Operating costs of charging infrastructure

Land lease rental

Fig 6: Operating costs of charging infrastructure

BREAKUP OF ELECTRICITY TARIFF (INR/KWH)

Table 2: Breakup of the Electricity Tariff applicable from May

Energy Charges (INR /kWh) Energy Cost 12.55

Wheeling Charges (INR /kWh) Transmission Cost 1.21

Fuel Adjustment Charges Due to varying price of Coal [-1,1]

Electricity Duty Tax on electricity consumption @ 21% on above items [2.8,3.3]

Tax on sale (INR /kWh) 9 Ps/kWh 0.09

Sub Total 16.7

Net Payable Per kWh 17.7

Table 3: Breakup of the Current Electricity Tariff from Oct. 2018

Energy Charges (INR /kWh) Energy Cost 4.63