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Commercial viability of electric vehicles in India

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International Journal of Mechanical Engineering and Technology (IJMET)
Volume 9, Issue 6, June 2018, pp. 730–745, Article ID: IJMET_09_06_082
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=9&IType=6
ISSN Print: 0976-6340 and ISSN Online: 0976-6359

© IAEME Publication Scopus Indexed

COMMERCIAL VIABILITY OF ELECTRIC

VEHICLES IN INDIA
Ankit Kumar
UG Student, Department of Aeronautical and Automobile Engineering, Manipal Institute of
Technology, Manipal Academy of Higher Education, Manipal

S K Choudhary
General Manager, Retail Department, Head Office, Indian Oil Corporation Ltd., Mumbai

Chethan K N
Assistant Professor-Senior scale, Department of Aeronautical and Automobile Engineering,
Manipal Institute of Technology, Manipal Academy of Higher Education, Manipal

ABSTRACT
E-Vehicles are poised to cause a major disruption in the automobile as well as the
energy industry across the globe. This disruption is propelled by powerful purpose of
creating a greener, safer and sustainable planet. Over 194 participating countries in
the historical Paris climate agreement enforced in 2016 pledged to limit the average
increase in global temperature to less than 2 degree celsius in this century. The USA,
China and India combined together account for a staggering 50% of the world’s
Green House Gases (GHGs) emissions. The transport sector of these major economies
form the bulk of the emission of GHGs. The USA and China have already promoted
the replacement of fossil fuel powered vehicles by e-vehicles and as of 2016 have the
highest stock of e-vehicles in the world; however, India is lagging behind its counter-
parts. Out of the 20 most polluted cities in the world, 15 cities are in India. India has
pledged to cut down its share of GHGs emissions significantly in order limit the
average increase in global temperature. As a result of this, the Indian government has
set a target of 100% e-mobility by 2030. India embarked upon its e-vehicle journey in
November 2017 by the deployment of 100 e-vehicle units and installation of four
charging stations in a city. This paper is aimed to examine the commercial viability of
the pilot project and identify the initial roadblocks and its rectifications in order to
scale up on pan-India basis. In order to achieve this, the pilot project was studied in
detail and interviews and surveys were conducted among all the stakeholders in April-
May 2018. While it was found that it is a win-win proposition for stakeholders, major
roadblocks in scaling up were found to be - bureaucratic hassles in the setting up of
charging stations, high initial investment and waiting time for drivers. The paper also
uniquely identifies the charging pattern of the commercial electric vehicles at a
particular charging station.

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 Commercial Viability of Electric Vehicles in India

Keywords: E-Vehicle, Battery Technology, Electric charging station, Emission,

Retail Outlet
Cite this Article: Ankit Kumar, S K Choudhary and Chethan K N, Commercial
Viability of Electric Vehicles in India, International Journal of Mechanical
Engineering and Technology, 9(6), 2018, pp. 730–745
http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=9&IType=6

1. INTRODUCTION
The Indian automobile industry is all-set to embrace vehicles without an IC engine and a
hydrocarbon fuel. The powerful purpose and the need for a cleaner environment along with
dependency upon fossil-fuels are ready to create a major disruption. As per the Society of
Manufacturing of Electric Vehicles, the population of e-vehicles is growing at the rate of
37.5% in India [1]. India aspires to become 100% EV nation by 2030. However, one of the
major roadblocks in the growth of e-vehicles envisaged by SMEV is availability and viability
of charging infrastructure in India. In the light of the above background, it makes a
compelling objective to study the commercial viability of e-vehicles and charging
infrastructure required for it. Hence, it is proposed to investigate and perform detailed study
on the first of its kind pilot project in India for deployment of 100 e-vehicle units by an
application based fleet operator and its collaboration with an Oil company for providing
charging infrastructure. An electric vehicle is powered by one or more electric motors, using
rechargeable batteries which have electrical energy stored in it. Electric motors give electric
cars instant torque, creating strong and smooth acceleration. Electric vehicles (EVs) are
considered to be superior technology than internal combustion engine vehicle from an
efficiency and environmental perspective. EVs, are about four times as efficient as vehicles
with an internal combustion engine at using the energy delivered to the vehicle to overcome
vehicle road load [2].

1.1. Working of an e-vehicle

Principle: The electric motor gets its power from a controller which in turn gathers power
from a rechargeable battery. The electric vehicle operates on an electric/current principle. It
uses a battery pack to provide power for the electric motor. The motor then uses the power
(voltage) received from the battery pack to rotate the transmission system, thereby, turns the
wheels. A potentiometer is hooked to the accelerator pedal which signals the controller how
much power is to be delivered.

Figure 1 Working Principle of an Electric Vehicle [3]

1.2. An electric vehicle has three main sub-systems

I. Rechargeable Battery: It powers the controller. A battery pack generally consists of
around 16 modules with 48 cells. The modules are arranged in series and cells are

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 Ankit Kumar, S K Choudhary and Chethan K N

arranged in parallel. The battery’s voltage remains constant around 48V and develops
current of about 3500A.[4]
II. DC Controller: A controller extracts power from the battery pack and delivers it to
power the electric motor. It accordingly transfers zero power (when the vehicle is
idled), full power (when the driver floors the accelerator pedal), or in between any
power level.
III. Electric Motor: The motor accumulates power from the controller and turns the
transmission system on. The transmission system further causes the wheels to turn and
propel the vehicle.
The propulsion system of an electric vehicle is shown in the following figure:

Figure 2 The propulsion system of EVs[5]

2. METHODS
2.1. Electric Vehicle Charging Methods
The efficiency of a battery charger is a measure of the efficiency of power electronics used to
convert the grid AC voltage supply into a regulated DC voltage at the terminals of the battery.
Battery charger efficiency according to the available current technologies around the world
varies in percentage from low 70s to high 90s [6]. The existing technology sustains mainly
three types of charging methods:
i. An Alternating Current and an on-board charger ( Normal Charging ) - In this
method of charging, the vehicle is plugged into an AC source (normal 16 A socket
- household charging) from which alternating current is transmitted to an on-board
charger. The function of the charger is to convert AC to DC and deliver the
resulting current to the Li-ion battery. Hence it takes 6-8 hours (in Indian context)
to fully charge an e-vehicle through this method of charging which can be done in
accordance with the household consumption of electric units per month. This is
somewhat cheaper source of charging when compared to fast charging method.
ii. A Direct Current and an off-board charger (Fast Charging) - This method of
charging involves an off-board charger or a fast charging equipment which directly
converts AC supplied from the grid to DC for the battery use. The fast charging
method takes around 90-110 minutes (Indian context) to fully charge an e-vehicle.
This method of charging requires increased initial investment and is a costlier
method of charging.
iii. Wireless charging method - This method of charging makes use of coupled
magnetic field to transmit power without any physical connection. There are three
types of wireless charging techniques [7]- by using the principle of
electromagnetic induction, electromagnetic resonance and high frequency radio
waves to transmit power.

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 Commercial Viability of Electric Vehicles in India

Figure 3 Depiction of normal and fast charging methods [8]

2.2. Comparison among Internal Combustion Engine, Hybrid and Electric

Vehicles
Table 1 ICE, Hybrid and Electric Vehicle Comparison[9]

Parameters ICE Vehicles Hybrid Vehicles Electric Vehicles

Converts 20% of the
Efficiency energy stored in gasoline energy stored in gasoline
to power the vehicle
Speed (Average Top
199.5 km per hour (kmph)
Speed)
0-96.5 kmph in 8.4
Acceleration (average)
seconds
High maintenance owing
Maintenance to more number of
moving parts
Can go over 480-500 kms
before refuelling.
Mileage (average)
Typically achieves 10-12
kmpl
Cost (average) INR 0.7-1.1 million
Converts 75% of the
Converts 40% of the
chemical energy from the
batteries to power the
to power the vehicle
vehicle.
48-153 km per hour
177 km per hour (kmph)
(kmph)
0-96.5 kmph in 6-7 0-96.5 kmph in 4-6
seconds seconds
Maintenance is minimal
Same as an ICE vehicle due to lesser number of
moving parts.
Typical achieves 20-25 Can travel 120-200 kms
kmpl before recharging.
INR 1.2-2 million INR 0.9-6 million

2.3. Battery Technology

In the past 15 years, lithium ion has grown dramatically and has become widely used for
portable electrical products. The most commonly used battery in an e-vehicle is Li-ion battery
[10]. These batteries have been tested on road worldwide and are the most suitable for EV
applications.

2.3.1. Principle of Li-ion Battery

Lithium ions are inserted or extracted from the interstitial pace between atomic layers within
the active material of the Li-ion battery during a typical charging/discharging cycle. In simple
terms, the Li-ion is exchanged between anode and cathode through a lithium electrolyte.

Figure 4 Li-ion battery principle [11]

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 Ankit Kumar, S K Choudhary and Chethan K N

2.3.2. Working
The working of a Li-ion battery depends upon “intercalation” mechanism (i.e. the reversible
inclusion of a molecule into materials with layered structures). This process comprises of the
inclusion of Li-ions into the crystalline lattice of the host electrode without affecting its
crystal structure. The electrodes involved in Li-ion batteries possess two key properties:
i. They have an open crystal structure which allows the insertion/extraction of Li-
ions freely.
ii. The electrodes have the ability to accept compensating electrons at the same point
of time.

2.3.3. Why Li-ion batteries

Efficiency of li-ion batteries has a typical range of 95-98% in its life cycle [6].
The specific energies of secondary batteries for electric appliances is depicted below:

Figure 5 Specific Energies of commonly used secondary batteries[12]

2.3.4. Cost challenge

Generally, in India, the battery costs approximately INR 0.32-0.35 million which is 42-46%
of the total cost of manufacturing of the vehicle. The excessive cost of this battery is due to
the import cost as there is no bulk production unit of Li-ion batteries in India. Also, lithium as
a natural resource is limited in amount which has contributed to sky-high price of Li-ion
batteries globally. Research is being done all around the globe on how to decrease the battery
cost and what are the alternative sources to power an e-vehicle. United States Advanced
Battery Consortium of USA has set a cost target of $250/kW-h from $1200-1400/kW-h by
2020. Clearly, battery cost will play a pivotal role in determining the commercial viability of
e-vehicles.

2.4. Global Trend

According to the Paris climate agreement, which was introduced in December 2015 and
enforced in November 2016, 194 participating countries pledged to limit the global increase
in average temperature below 20C in this century and further limit the temperature rise to
1.50C in the next century. China, USA and India being the top three countries with highest
GHG emissions annually, account for almost 50% of world GHG emissions. Hence, in order
to comply with the Paris agreement, the major economies of the world are gearing up their
technologies and framework on how to reduce their GHG emissions and contribute to limiting
the global average temperature rise. The transport sector, which alone contributes to 23% of
global GHG emissions, has to deliver major cuts in emissions for countries to achieve their
environmental goals [13]. The electrification of the transport sector will play a pivotal role in
decarbonizing the energy system. Countries like USA, China and Norway have already placed
huge bets on electric vehicle initiative. Apart from zero tailpipe emissions which is the case in
full-electric driving vehicles, EVs also serve as clean alternative to the vehicles using Internal
Combustion engine by helping to reduce pollution which arises from fuel combustion and
noise from the moving parts. These vehicles can be especially relevant in urban areas and

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 Commercial Viability of Electric Vehicles in India

along major transportation axes. The Electric Vehicle Initiative (EVI) is a multi-government
forum established in 2009 under Clean Energy Ministerial (CEM) which constantly works on
policies and frameworks for accelerating the deployment of EVs worldwide. As of May 2017,
EVI comprises of ten member countries- Canada, China, France, Germany, Japan,
Netherlands, Norway, Sweden, UK, and USA. Countries like Korea and India also engaged
themselves in EVI activities and in 2017 shared their data on electrification of road-
transportation. The USA and China have the highest stock of e-vehicles in the world, together
comprising of about 50% of the world stock. However, as of 2016, Norway has the highest
EV market share in the automobile sales annually accounting for almost 28% of the total sales
[14].

2.5. Roadblocks in EV penetration

Apart from the lack of infrastructure and structured policy and framework for the R&D,
manufacturing and deployment of e-vehicles which can be attributed to the government
initiatives, the following attitudinal barriers exist in the commoners/public which are
hindering the penetration of EVs in world automobile market [6]:-
(i.) Indecisiveness regarding the sustainability credentials of new/breakthrough
technologies. These technologies include regenerative braking, route selection
and state of charge (SOC).
(ii.) The belief that high initial investment will not be recovered through the
ownership period of the e-vehicle. The concept of cost of ownership is acting
as a major barrier in the penetration of e-vehicles.
(iii.) Range anxiety i.e. the fear that EVs will have insufficient energy to meet the
daily needs of the user. Planning and judgement of the journey has to be
performed by the user beforehand.

2.6. Assumptions
It is assumed that public vehicles (taxi) make use of the charging outlets mostly. Private
vehicles do household charging (normal). The assumption that private vehicle do household
charging is corroborated by the daily distribution of parking time in Europe:

Figure 6 Daily distribution of parking time in Europe[15]

A commercial driver charges the e-vehicle fully at home once at night and in the day they
go the charging station for a top-up as and when required. It is assumed that a private vehicle
travels 10000 km/year and a public (taxi) vehicle travels 72000 km/year in India. The driver
of a petrol/diesel public vehicle travels a distance of 250 kms/day whereas the driver of a
public e-vehicle covers a distance of 200 kms/day. Though the peak hours of charging an e-
vehicle is between 12 pm-6 pm, it is assumed that the outlets provide charging continuously
for 24 hours a day. Therefore, each charging dispenser is charging the e-vehicles 24 hours a
day.

2.7. Methodology
Complete literature review of the working of e-vehicles, battery technology and the existing
EV market globally. Conduction of survey of 30 drivers of e-vehicles for the application
based transport aggregator. Analyze their average response to the questionnaire prepared.

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 Ankit Kumar, S K Choudhary and Chethan K N

Observing and analyzing the ground data of the electric vehicle charging pattern at an outlet
on a particular day. A visit to the car manufacturer service station to get first-hand experience
of the troubleshooting of e-vehicles. Using the response from the survey and data collected at
the charging outlet to conduct a comparative study on the benefits and shortcomings both for
the
Aggregator and the drivers of e-vehicles. Conducting a comparative study on the grounds
of - cost per km, waiting time for refueling/charging, cost of charging/refuelling, business and
savings per day for different categories of vehicles of the same aggregator (i.e petrol, diesel
and electric vehicles). Estimating the total energy requirement and total number of charging
stations required to power the e-vehicles if all the passenger vehicles in India are replaced by
EVs. Calculation of the average cost per km for passenger e-vehicles across India.

2.8. Indian scenario

India is shifting gears- the fifth largest auto market in the world is readying for a stupendous
transformation in order to achieve 100% e-mobility by 2030. As per projection of the Indian
government, the transport sector’s transformation is believed to cut the oil imports by
approximately $60 billion and emission reduction by 37%. As per the Paris Climate
agreement, India has pledged to bring down its share of GHG emissions by 2030. Out of 20
world’s most polluted cities, 15 cities are in India suffering utter degradation over the years,
and pollution from transport sector is one of the major causes for this. According to World
Bank study, the health cost of ambient air pollution may run into billions of dollars for the
country as a whole. In Delhi alone, it is estimated to be $100-400 millions per year [16].
Apart from this, India imports 82% of its oil requirements, making world’s sixth largest
economy desperate for alternatives tofossil fuels [17]. The nation is expected to spend upto
$85 billion in 2018 on oil imports, according to Petroleum Ministry of India, of which
automobile sector forms the bulk. National Electric Mobility Mission Plan (NEMMP) was
launched in 2013 to provide with structured framework on adoption of electric vehicles with
an estimated investment of INR 3 billion. After 3 years of relative inaction, India has made
progress in adoption of EVs in the past 1-2 years. India plans to deploy 5-7 million e-vehicles
by the year 2020 under the revised NEMMP 2020, released in August 2017. From 2016 India
has been adding 25,000 EVs annually with a growth rate of 37.5%. Faster Adoption and
Manufacturing of E-Vehicles in India (FAME), established in 2015, is aided by the
Government of India and has the following objectives [18]:-
i. To achieve the targets set by NEMMP.
ii. Strengthen the technological capabilities of EVS and its infrastructure through
research and development.
iii. Set up charging infrastructure for electric vehicles.
iv. Spread field-studies and awareness to build the consumer confidence and scale up
adoption.
FAME-India data show that 1, 05,215 EVs have been deployed till date resulting in saving
2, 70, 84,740 litres of fuel i.e. 46,356 litres of fuel per day. The deployment of electric
vehicles has helped in reduction of 6, 78, 10,751 kgs of CO2 i.e. 115434 kgs of CO2 per day
[18]. Maharashtra is the first Indian state with a structured EV policy. A statement issued by
the state government notified that all three segments of the EV sector- manufacturing,
infrastructure creations and consumers- are all accounted for in this policy [19]. The policy is
targeted at building an enabling environment for the production of 500,000 electric vehicles in
Maharashtra within the next 5 years. According to the policy, the state government has
proposed to exempt EVs from road tax and initial registration charges in Maharashtra.

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 Commercial Viability of Electric Vehicles in India

3. RESULTS AND DISCUSSIONS

3.1. Study of the pilot project
In this pilot project there are four main stakeholders:-
i. Car manufacturer: 100 units of e-vehicles were sold to the application based
transport aggregator. They have a dedicated service centre for the e-vehicles in
case of any kind of troubleshooting.
ii. App-based transport aggregator: This transport aggregator holds the highest stake
in the pilot project. The business model of the aggregator for e-vehicles is
explained below:
• Vehicle is owned by the aggregator and is rented out to the drivers.
• The aggregator charges a rental amount of INR 1000 + (20% commission
on each ride) per day for 26 days a month.
• After 3.5 years, the ownership of the vehicles passes to the driver.
• Collaborated with the oil company to provide charging infrastructure at
their already existing retail outlets.
• The aggregator bears all the expenses from installing the charging
equipments to the electricity bill generated per month.
• Planning to install 10 more charging stations in the same city.
iii. Oil company: Given the size of the oil company, it is silently observing its future
prospects and how to go about implementing their own plans for providing
infrastructure for EVs on a large scale in India. The oil company has leased out the
space available at one of its retail outlet to the application based transport
aggregator. It will play a key role in providing charging infrastructure given the
number of their already existing retail outlets.
iv. Drivers: They are the ones who are implementing this pilot project at the grass root
level. Drivers have to pay a specific amount (approx. INR 10,000) to enrol with
the application based public transport aggregator in this business model. The
operating system of the application developed by the aggregator gives preferences
to the drivers of e-vehicles i.e. more bookings are given to the drivers of e-vehicles
in comparison to normal ICE vehicles. The only source of earning for the drivers
is through passengers.

3.2. Data Analysis

3.2.1. Data collection at charging station

Table 2 Charging pattern of public EVs at a retail outlet

Units Total charging

Waiting time Charging time Charging % Charge Cost
S.No. or (Household + Outlet)
(mins) (mins) to % % (Rs)
kW-h (hours)
1 0 53 40% to 100% 60% 195 9.74 6 + 0.89
2 1 106 25% to 92% 67% 260 13.00 6 + 1.77
3 2 85 11% to 76% 65% 213 10.69 6 + 1.41
4 38 57 7% to 59% 52% 140 7.00 6 + 095

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 Ankit Kumar, S K Choudhary and Chethan K N

5 2 63 15% to 67% 52% 190 9.50 6 + 1.05

6 20 62 29% to 84% 55% 200 10.00 6 + 1.03
7 40 104 12% to 100% 88% 300 15.00 6 + 1.73
8 48 108 7% to 83% 76% 300 15.00 6 + 1.80
9 16 72 9% to 67% 58% 200 10.00 6 + 1.20
10 1 95 15% to 90% 75% 240 12.00 6 + 1.58
11 16 50 35 % to 61% 26% 100 5.00 6 + 0.83
12 48 70 16% to 80% 64% 230 11.50 6 + 1.17
13 0 60 19% to 63% 44% 165 8.26 6 + 1.00
14 35 90 9% to 63% 54% 213 10.65 6 + 1.50
15 0 60 12% to 52% 40% 149 7.47 6 + 1.00
16 1 84 13% to 91% 78% 260 13.00 6 + 1.40
17 1 45 49% to 100% 51% 149 7.66 6 + 0.75
18 15 72 17% to 90% 73% 250 12.50 6 + 1.20
19 35 61 36% to 100% 64% 190 9.48 6 + 1.02
20 45 52 39% to 90% 51% 150 7.30 6 + 0.87
21 65 100 14% to 90% 76% 300 15.00 6 + 1.67
22 9 52 37% to 79% 42% 160 8.00 6 + 0.87
23 0 45 22% to 76% 54% 150 7.25 6 + 0.75
24 42 67 20% to 77% 57% 207 10.30 6 + 0.12
25 8 50 45% to 100% 55% 172 8.63 6 + 0.83
26 5 16 54% to 71% 17% 50 2.43 6 + 0.27
27 40 45 31% to 100% 69% 150 7.25 6 + 0.70
28 35 45 34% to 88% 54% 150 7.30 6 + 0.75
29 5 76 14% to 100% 86% 254 12.60 6 + 1.27
30 45 64 15% to 100% 85% 210 10.00 6 + 1.07
Mean 20.6 66.97 61% 196.5 9.78 7.1

Source- Primary Data

3.2.2. Response to the questionnaire

Table 3 Average response of the drivers to the questionnaire

Average response of
Questions in brief Remarks- based on interview
drivers
Around 90-110 mins; Also, drivers charge at
Time to fully charge the vehicle 1-2 hours
home in 6 hours
Range of the vehicle when fully
100-130 kms 120 kms to be specific
charged

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 Commercial Viability of Electric Vehicles in India

Waiting time at charging station <30 mins This time will be added to the time taken to charge
Distance to reach the charging Charging stations are within city limits, hence not
5-10 kms
station much distance is travelled
Daily expense on charging Rs 150-250 Around Rs 230-250/day
Distance travelled per day >150 kms Around 200-220 kms
Compulsory to make reasonable savings at the end
Hours driven per day 10-12 hours
of the day
Business made on daily basis Rs 2000-2800 Around Rs 2500
Savings per day Rs 500-1000 Around Rs 600-800
Rs 1000 + 20% commission on each ride from the
Ola charges per day Rs 800-1200
drivers
Battery is provided with 4 years maintenance and
Average monthly battery
Nil other maintenance charges are covered by the
maintenance cost
application based transport aggregator
Battery dry out experience Once Mostly all the drivers have experienced it once
It will take time is
Whether e-vehicles will grow what most of the It is bound to grow.
drivers think

Source- Primary Data

3.2.3. Plots & Graphs for the pilot project

The data calculations, graphs and its inferences shown below are in proportion with the data
collected from the survey of drivers, observing the charging pattern at the charging station and
person interview with the drivers.
i. Expense vs Earning: For application-based public transport aggregator, the
following are the expense and earning per vehicle:

Table 4 Data showing the expense/earning of the aggregator per month for different vehicles

Type of vehicle Expense/month (Rs) Earning/month (Rs)

Petrol Vehicle 6,333.3 41,000
Diesel Vehicle 8,600 39,000
Electric Vehicle 14,833.3 39,800

Source- Primary Data

Figure 7 Graph expense vs earning of the aggregator in different vehicle categories- Primary Data

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 Ankit Kumar, S K Choudhary and Chethan K N

ii. Expense vs Earning: For the drivers involved in the pilot project, the following are
the expenses and earnings per vehicle.

Table 5 Data showing the expense/earning of a driver for different vehicle categories

Type of Vehicle Expense/month (Rs) Earning/month (Rs)

Petrol Vehicle 65,650 91,000
Diesel Vehicle 62,517 91,000
Electric Vehicle 42,500 65,000

Source- Primary Data

Figure 8 Graph depicting the expense/earning of drivers per month for different vehicle categories-
Primary Data.
iii. Cost per km vs Distance travelled per day

Table 6 Data showing the cost per km and the distance travelled by different vehicles
Type of Vehicle Cost per km (Rs) Distance travelled per day (km)
Petrol vehicle 4 250
Diesel vehicle 3.2 250
Electric vehicle 1.51 200

Source- Primary Data

Figure 9 Graph depicting the cost per km vs distance travelled- Primary Data
iv. Operating time vs Waiting time

Table 9 Showing operating vs waiting times for the two categories of vehicles

Type of vehicle Waiting time (hours) Operating time (hours)

ICE vehicle 0.10 14

Electric vehicle 0.35 12

Source- Primary Data

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 Commercial Viability of Electric Vehicles in India

Figure 10 Graph depicting operating vs waiting time for ICE and Es for refuelling/recharging- Primary
Data
v. Charging cost vs % Charging time
The following graph is based on the data collected in table 2:

Figure 11 Graph depicting the charging cost vs charging time for an EV- Primary Data
(vii.) Charging cost vs % charge achieved:-

The following graph is based on the data collected in table 2:

Figure 12 Graph depicting the charging cost vs % charge achieved for an EV- Primary Data

3.3. Estimates for scaling up pan-India

3.3.1. Cost per km calculation for e-vehicles
Average per unit cost of electricity- India
After taking into consideration the Energy charge, Fuel Adjustment Cost (FAC),
Wheeling charge, State government duty and Central government duty, on an average
(approximate) per unit cost of electricity for residential/commercial purpose[20][21]:
i. Residential: Rs 8.523 /unit
ii. Commercial : Rs 11.11 /unit
Private vehicles
Residential charging
Units of electricity required to fully charge an e-vehicle = 16 units from Table 2
Total private vehicle population [22] = 2,60,69,546

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 Ankit Kumar, S K Choudhary and Chethan K N

Average cost of electricity (residential, per unit) = Rs 8.52 /unit

Total electricity units required for entire private vehicle population = 26069546 X 16 units
= 417112736 units
Total cost per vehicle for these many units = (8.52X 417112736)/26069546
= Rs 136 /vehicle
Therefore, Rs 136 is the charging cost at residential electricity rate to achieve 100%
charge and cover a distance of 130 kms.
If a fully charged e-vehicle has a range of 130 kms, then cost/km= Rs 136/ 130 km= Rs
1.04 /km
Moreover, if a private vehicle travels 27 kms/day then Rs 136 will power them for 4-5
days
Public vehicles
Residential charging
Units of electricity required to fully charge an e-vehicle = 16 units from Table 2
Total public vehicle population[22] = 35,11,022
Average cost of electricity (residential, per unit) = Rs 8.52 /unit
Total electricity units required for entire private vehicle population = 35,11,022 X 16 units
= 56176352 units
Total cost per vehicle for these many units = (8.52 X 56176352)/3511022
= Rs 136 /vehicle
Therefore, Rs 136 is the charging cost per vehicle at residential electricity rate to achieve
100% charge and cover a distance of 130 kms.
Commercial charging
For the rest of 70 kms, the following calculations are done:
Units of electricity required to fully charge an e-vehicle = 8.62 units from Table 2
Total public vehicle population[22] = 35,11,022
Average cost of electricity (commercial, per unit) = Rs 11.11 /unit
Total electricity units required for entire private vehicle population = 35,11,022 X 8.62
units
= 30265009.64 units
Total cost per vehicle for these many units = (11.11X 30265010)/3511022
= Rs 96 /vehicle
Therefore, Rs 96 is the charging cost per vehicle at commercial electricity rate to achieve
54% charge and cover a distance of 70 kms.
Therefore, cost per km for public (taxi) vehicles = Rs (136+96) / 200 km
= Rs 1.16 /km

Moreover, if a public (taxi) vehicle 200 kms/day then Rs 232 will power them for 1 day

3.3.2. Electricity and infrastructure requirement

India has a total installed capacity of 3,30,861 (MW) as on 2017[23]. Out of this, 66%
electricity is generated through thermal means (non-renewable energy) and the rest 34% is
generated through renewable sources of energy (hydro-power, nuclear power, solar power
etc.). The average amount of additional capacity required if all the passenger vehicles in India

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 Commercial Viability of Electric Vehicles in India

are electrified comes out to be 58,623 MW. If we go about the charging time, the number of
charging stations required in India to achieve 100% e-mobility in passenger vehicle category
comes out to be 75,832. Moreover, there is a requirement of 42 fast charging dispensers per
1000 vehicles in India.

3.4. Summary
The Indian government’s vision towards 100% electric mobility is a right step ahead to cut
down emissions from the transport sector. Though, right governance and perception of the
commoners will play a pivotal role in determining the success of this magnanimous
transformation. The inferences drawn from the pilot project- EVs have higher expenses in
comparison to an equivalent ICE vehicle (considering the ROR of initial investment).
Therefore, the profit made from an EV is the least for a fleet operator. Profit margin of drivers
of EVs is lesser when compared to ICE vehicles. This can be attributed to the higher waiting
time for recharging process which decreases the operational hours and in turn decreases the
profit generated. The cost of battery which powers an EV than the cost of an engine which
powers an ICE vehicle owing to limited lithium metal resource and excessive cost of imports
from foreign countries. Although there is higher investment in case of EVs, it is completely
balanced by the running cost which is less than half of the running cost of an ICE vehicle.
Form the graphs plotted, it is clearly visible that the charging time (T) and charging cost (C)
of an EV vary linearly given by the equation: C=31.834 + 2.46T. However, it was observed
that for the same charging time, costs keep varying owing to three main factors: (i.)
Frequency of charging, (ii.) Charging method (Fast or Normal), (iii.) Weather conditions. All
the above factors affect the charging cycle of the battery. It can be seen that the charging cost
(C) and % charge achieved (%c) vary linearly given by the equation: C=14.104 + 3.061(%c).
However, it was observed that for the same % charge achieved, cost keeps varying which can
also be attributed to the change in the charging cycle of the batteries over time for different
vehicles. The population of electric passenger vehicles (4-wheelers) in India as of now is
105215[17] which stands nowhere when compared to the population of ICE vehicles which is
29580568[21]. To provide charging infrastructure on the basis of the actual time for which e-
vehicles are getting charged, the total number of charging outlets required is 75,832.
Moreover, there is a requirement of 42 fast charging dispensers per 1000 e-vehicles. Hence,
India will have to develop these many charging infrastructure to achieve the target of 100% e-
mobility by 2030. The question that can be raised here is whether India is poised to achieve
the goal of becoming 100% EV nation when some states are still facing deficit in terms of
electricity production and supply. Almost 66% of electricity production in India is by thermal
means which itself is a polluting channel of electricity production. If additional 58,623 MW
electricity is required for this ambitious project and it comes through thermal means then the
amount of pollution or emissions generated remains the same. This can be corroborated by the
fact that there are two types of emissions - well to wheel (WTW) and tank to wheel (TTW)
emissions. For electric vehicles, the TTW emissions are 0 g/km but the WTW emissions are
dependent on the emissions associated with the fuel source which recharges the battery [6].
Therefore, the electricity used up for recharging purpose should be generated through
renewable means, so that the WTW emissions are also 0 g/km. The fuel cost for a private e-
vehicle comes out to be Rs 1.04/km whereas the fuel cost for a public (taxi) vehicle comes out
as Rs 1.16/km.

4. CONCLUSION
The pilot project of EV deployment has a win-win proposition for all stakeholders i.e. car
manufacturer, fleet operator, oil companies, drivers and most importantly for mother Earth. If
this mass transformation is achieved in case of passenger vehicles the fuel cost will be

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 Ankit Kumar, S K Choudhary and Chethan K N

reduced to Rs 1.04/km for private e-vehicles and Rs 1.16/km for public (taxis) e-vehicles.
This will be a huge reduction in comparison to the fuel cost of Rs 4/km (petrol) and Rs
3.2/km (diesel). Here, comes the concept of total cost of ownership (TCO). Due to minimal
components and lower fuel costs, when compared to ICE vehicles, TCO is lower. To further
lower the TCO, batteries at the end of its useful life for EV use, typically has 70% capacity
left in it [16]. These batteries can be recycled for other purposes. Major roadblock seems to be
undue delay in obtaining permissions/NOC from local civil authorities. The government must
make provision for single window mechanism for obtaining clearances for setting up of
charging outlets. Each public parking space available at railway stations, airports, malls and
big offices must have normal charging facility for top up the charge during the idling hours of
the e-vehicle. It is compelling for the government and private players to collaborate with oil
companies to provide charging infrastructure given the number of their already existing retail
outlets. Battery technology will be a key factor for growth of e-vehicles in India. The
government will play an important role here as it has to work out plans and incentives to set
up Li-ion battery production indigenously. This will reduce the battery cost significantly as
most of the batteries in use today are imported. Indian Oil has already signed an MoU with
Israel for transfer of technology for other metal-air batteries which can reduce the
infrastructure requirement by 50%. There is a need for the government to incentivise and
subsidise the manufacturing cost of both the e-vehicles and the fast charging equipment. This
will help in cutting down the initial investment for both the buyer and the seller. Indian
government has to play a critical part here to attract the investors for production of e-vehicles
and setting up of charging stations. Further research should be done to study the reporting
pattern of vehicles at charging outlets. Because unlike fuel stations, the reporting of e-vehicles
will not be uniform. This will help in planning optimal manpower positioning at charging
stations. An application must be developed for pre-booking of charging at outlets for drivers
which will reduce the waiting time at the charging stations and the business done over a
particular day. Oil companies should perform a detailed trading area analysis to find out
which retail outlets can fetch more rental income and accordingly take a decision for leasing
out area for charging dispensers. There is need for a longitudinal study as the population of e-
vehicle grows/battery technology improves in order to make correct assessment of
infrastructure requirement.

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