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Overall Problem- It has been estimated that worldwide, the total number of vehicles is most likely to triple by the year 2050, and it will be concentrated in developing regions, leading to energy and ecological calamity. Governmental agencies are now directing their focus on the development of electric vehicles to avert the impending crisis. Current Scenario India currently spends $102 billion on importing crude oil to cover 80 % of its transport needs, putting a strain on the Indian Economy and pointing towards a shortage of energy reserves soon. The automobile sector has reported an increase in sales, from 21.5 million in FY19 to 26.2 million in FY20, making it lucrative for the transport giants to increase the production of EVs. The move also puts the focus on Indian infrastructure for electricity generation. India produces 374 Gigawatts of electricity, providing for 97.6 % of the households in India, and around 90% of the rural areas, which indicates that the energy sector may soon face a shortage. Advantages The gains consist of environmental and economic benefits. By adopting a shared and electric model for transportation, energy consumption and carbon emissions can be reduced by 64 percent and 37 percent, respectively, by 2030. Current Framework Government policy advisor NITI Ayog has proposed electrification for 80 percent of two- and three-wheelers, 30 percent of four-wheelers, and 45 percent of buses by 2030. Authorities have introduced the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India (FAME) - II; a scheme that incentivizes the purchase of EVs. It has also been proposed that the Goods and Services Tax (GST) rate on EVs should be reduced from a rate of 12 percent to 5 percent. The scheme of Battery-swapping has been introduced wherein users pay only when they swap a used battery with a charged one instantly. The market for EV battery-swapping is likely to increase up to $6.1 million by the year 2030 Challenges- 1. Estimate the growth of the 4-wheeler EV segment over 5 years (till FY25). Calculate the projections for all the years. 2. What will be the main challenges of the EV segment to grow in the given scenario of COVID-19? 3. Suppose you are the Indian head of Tata Motors. Propose a detailed plan to increase the penetration of the 4-wheeler private EV in Agra. (Consider COVID-19) 4. Estimate the cost of providing charging spaces in a popular marketplace like Connaught Place in Delhi. 5. Come up with strategies to implement the practice of battery swapping feasibly to the consumers.
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