1. Can you share your perspective on the evolution of India’s electric vehicle (EV) market over the last 2-3 years?
Over the past 2-3 years, India has undergone a remarkable transformation in the electric vehicle (EV) market, marked by a surge in enthusiasm. EV sales have crossed the one-million mark, with significant traction in the 3-wheeler and 2-wheeler segments leading the way, followed closely by e-Buses and e-LCVs. The growth in the latter categories can be attributed to factors like contracts with State Transport Undertakings (STUs), last-mile delivery targets for commerce and logistics companies, positive customer reception, compelling total cost of ownership (TCO), and corporate mandates toward electric fleet adoption. The e-bus segment has particularly flourished, witnessing a fourfold growth compared to 2019, with over 1900 buses sold in FY22-23 and an anticipated 50% growth in the upcoming period. The e-LCV category is also showing signs of recovery and is expected to witness substantial growth, propelled by increased customer acceptance, advancements in charging infrastructure, and enhanced affordability. This evolution aligns with the government’s vision to expand electric mobility into tier 2 and tier 3 regions, supported by robust STU tenders.
2. With the escalating EV demand and rising investments, how can one capitalize on the lucrative market opportunity?
To effectively capitalize on the burgeoning electric vehicle (EV) market in India, our company can implement key strategies aimed at seizing the opportunity. One crucial approach involves developing a diverse range of EV products tailored to local applications and ensuring best-in-class Total Cost of Ownership (TCO). At SWITCH, we prioritize innovation to guarantee our customers receive optimal TCO through the creation of innovative products.
Additionally, understanding local market insights is essential, encompassing consumer needs, driving patterns, and road conditions. An exemplary instance is our development and delivery of the Double Decker within a record time of less than 14 months, boasting an impressive uptime of 98.5%. Moreover, focusing on durability and efficiency is paramount, to withstand the challenges of Indian roads while offering exceptional range and energy efficiency.
Currently, we have 550 buses operating in India and approximately 750 globally. Staying at the forefront of the rapidly evolving EV industry entails embracing innovation and technological advancements. This involves continuous research and development to enhance battery technology, improve vehicle performance, and integrate connected vehicle solutions. Prioritizing advancements in battery performance, range, and charging efficiency addresses range anxiety and reduces reliance on fossil fuels. Additionally, incorporating cutting-edge technologies such as powertrain optimization, regenerative braking, and energy management systems contributes to superior vehicle performance. The integration of advanced telematics and connectivity features further ensures a seamless and personalized driving experience for our customers.
3. How do you evaluate the Make In India Mission? Are we on the right track to create a positive impact on the supply chain dynamics?
The Make In India Mission stands as a pivotal initiative, significantly impacting the supply chain dynamics of electric vehicles (EVs) in the country. The government’s laudable commitment to domestic manufacturing is evident in initiatives like FAME II, the Production-Linked Incentive (PLI) for the automobile industry, and the PM e-bus Sewa initiative, all of which play a crucial role in establishing a robust EV ecosystem. Notably, the financial support provided through the PLI Scheme for Advanced Cell Chemistry is addressing the critical need for giga-scale battery manufacturing.
Additionally, measures such as GST rate cuts and road tax waivers serve as incentives for EV adoption, contributing to enhanced affordability. Under the Make In India Mission, the focus on public transportation electrification, particularly through the PM e-bus Sewa initiative, is laudable for its role in reducing emissions and improving air quality. This emphasis on public-private partnerships in city bus operations reflects a comprehensive approach to advancing the adoption of electric vehicles and fostering environmental sustainability.
4. What, in your opinion, are the major challenges and growth drivers in upscaling EV manufacturing in the country? How is Switch Mobility contributing to accelerating manufacturing growth for the segment?
Addressing the multifaceted challenges in the electric vehicle (EV) industry requires a strategic approach, and several key areas demand focused attention. Enhancing production modularity is identified as a critical aspect, involving the standardization of components, adoption of modular assembly processes, and the integration of automation to streamline production for increased flexibility and efficiency. The evolving demands of the EV sector also highlight the importance of workforce upskilling, particularly in areas such as battery technology, power electronics, and EV-specific manufacturing processes. Training programs and skill development initiatives are deemed essential to cultivate a skilled workforce capable of supporting the industry’s growth. Access to finance emerges as a significant challenge, necessitating efforts to facilitate financial support for EV manufacturers. This involves providing government incentives, encouraging private-sector investments, and exploring innovative financing mechanisms to support capital investments and expansion plans.
In navigating these challenges, SWITCH Mobility adopts a globally evolved and locally involved approach. We bring our innovative global technologies to India, customizing them to suit local driving conditions and building products aligned with consumer expectations. This commitment is underscored by strategic initiatives, including substantial investments in research and development to create innovative EV products tailored to Indian driving conditions, the establishment of a robust manufacturing facility in India with a focus on quality and efficiency, the development of a pan-India network to enhance reach, and strategic partnerships with key stakeholders such as government agencies, research institutions, and component suppliers to foster collaboration and innovation.
5. What specific factors have been considered to tailor Switch Mobility’s technology for Indian driving conditions while keeping consumer expectations a priority?
At the core of our approach is a dedicated focus on modularity, recognizing the diverse transportation needs of the Indian market. We have meticulously designed our EV platforms with a modular framework, allowing us to create a versatile range of vehicles, from city buses to intercity coaches. This modular approach not only enhances production efficiency but also facilitates rapid adaptation to specific customer requirements. Understanding the challenges posed by Indian roads, known for their varying terrain, extreme weather conditions, and dense traffic, we have integrated these realities into our vehicle design. Employing high-quality materials, rigorous testing procedures, and robust chassis designs, our EVs are engineered to withstand the rigors of Indian roads, ensuring durability and reliability.
Continuous innovation and technological advancements are integral to our commitment to pushing the boundaries of EV technology. This dedication has resulted in significant strides in battery management, powertrain efficiency, and connectivity features, contributing to superior performance and a seamless user experience. Upholding uncompromising safety standards, we adhere to the highest global safety norms, incorporating advanced safety features such as anti-lock braking systems and electronic stability control into our vehicles, ensuring the safety of passengers and other road users.
Our understanding of local market requirements is reflected in the customization of our vehicles. Recognizing unique preferences and needs in the Indian market, we have tailored our offerings accordingly. For example, we have implemented robust suspension systems with heavy-duty shock absorbers and reinforced springs to provide stability and comfort. Additionally, our tires are designed for durability, capable of withstanding potholes and rough terrains. The chassis and frame of our vehicles are engineered to handle the stress of Indian roads, with all components designed to be waterproof and dust-proof, providing protection against waterlogging.
6. Are the policy initiatives taken by the federal government and state governments adequate for sectoral growth? What more could be done?
While acknowledging the positive strides taken by federal and state governments in formulating policy initiatives to support India’s electric vehicle (EV) industry, it is evident that further measures are essential for sustained sectoral growth. A critical proposal is the introduction of the FAME 3 policy, which will be an extension to FAME 2 policy, to provide ongoing stability and encouragement for the EV industry. To broaden its impact, an expansion of the scheme to encompass heavier vehicles, including buses and trucks, is recommended, thereby accelerating the electrification of India’s commercial transportation sector. Additionally, the establishment of an EV priority lending sector is proposed, aiming to simplify consumer financing for EV purchases and subsequently boost demand.
Addressing the need to electrify privately managed buses, accounting for a significant portion of India’s bus fleet, the government is encouraged to introduce incentives specifically tailored for this segment. Simultaneously, while the government’s plan to set up 69,000 public EV charging stations nationwide is a positive step, challenges such as high upfront investments, lower utilization, prolonged charging times, and a lack of standardization in charger types need further attention. In this regard, incentivizing private companies to invest in charging infrastructure is suggested as a viable solution.
In addition to these measures, the government can play a pivotal role in increasing awareness about EVs through public campaigns, addressing prevalent consumer perception challenges. Furthermore, promoting innovation in the sector by offering incentives for companies to develop cutting-edge EV technologies is crucial for enhancing affordability and efficiency. Lastly, to ensure a skilled workforce that can support the growth of the EV industry, the government is encouraged to invest in upskilling programs tailored for the unique demands of the EV sector.
7. What target has Switch Mobility set for itself as an enabler of clean transport in India?
Our commitment to advancing clean transport in India is steadfast, with a primary focus on electrifying public transportation and last-mile delivery vehicles to mitigate emissions and improve air quality. In the realm of public transportation, we have successfully deployed over 500 electric buses, boasting an impressive 98% uptime, and we have ambitious plans to expand our on-road bus fleet to 2,500 within the next three years. Operating across two distinct segments, our efforts have covered a significant distance of 45 million kilometers, resulting in the commendable reduction of approximately 30,000 tons of CO2 emissions. This environmental impact is equivalent to the conservation of 1.8 lakh trees. Recognizing the growing demand for electric vehicles in last-mile delivery, particularly within the realms of e-commerce and logistics, we are poised to leverage the untapped potential in the e-LCV segment.
With confidence in Switch Mobility’s pivotal role in India’s transition to a cleaner and more sustainable transportation future, our commitment to innovation, quality, and customer service positions us to achieve ambitious targets and make a meaningful impact on the environment.
