EMobility+ interviewed Mr. Gaurav Arora – Director, KPMG and got some great insights on
the different EV policies, key role of charging infrastructure in accelerating the EV sector and how the sector is going to evolve in the next few years.
What is your take on the recent EV policies which have been introduced by the different states? Do you think with these policies we are moving ahead in the right direction?
The central government’s FAME policy and the Delhi government’s EV policy offer monetary incentives to customers which help reduce the purchase price of EVs and bridge the price differential between EVs and ICE vehicles. A number of state governments, on the other hand, have primarily focused on supplyside incentives to attract investment in the EV sector in their respective states to help generate
employment opportunities. The combination of demand incentives from the central FAME-II subsidy and state measures should help bring down the upfront cost differential substantially for EVs. While existing policy measures represent a step in the right direction, there is scope for improvement if India is to create a conducive environment for EV adoption.
Charging infrastructure plays a key role in the development of the EV sector. How do you think we can accelerate the development of Charging infrastructure?
Across the world, electricity distribution companies and oil and gas players are developing solutions and entering into partnerships in the EV charging infrastructure space. Globally, the number of private chargers (slow) were ~6.5 million in 2019, and public chargers were 0.6 million (slow) and 0.26 million (fast) respectively. While private chargers form a major share in the availability of charging infrastructure, public fast
charging is picking up. In order to enable faster adoption of EVs, the government has issued guidelines and standards for public charging infrastructure wherein it phased out plans for rollout of public charging infrastructure.
Are there any specific untapped opportunities in the EV sector which if focused upon can lead to significant improvements?
TCO parity has not provided the expected push towards mass adoption of EVs. Globally, several innovative business models have emerged in order to address the challenges that are inhibiting wide scale adoption, including range anxiety, upfront cost differential ,
reliability of battery, and time required for battery charging.
- Vehicle subscription / leasing model
- Battery subscription / leasing model (includes Sale of vehicle without the battery)
- Battery swapping model
- Charging as – a – service (CaaS)
While these innovative models are focused on driving mass adoption of EVs, most of these models are still at a nascent stage. As the size of the market grows, these models are expected to take shape in the context of evolving customer requirements and market dynamics.
Read the full interview here: https://emobilityplus.com/2021/01/29/emobility-december-2020-issue/