Category: Franchise Agreement

The automobile industry consumes plenty of energy before they ever make it to the open road. Automotive production leaves an enormous footprint because materials like steel, rubber; glass, plastics, paints, and lots of more must be created before a replacement ride is prepared to roll.

Similarly, the top of a car’s life doesn’t mark the top of its environmental impact. Plastics, toxic battery acids, and other products may stay within the environment. Fortunately, junkyard pile-ups are getting much smaller than they were within the past. About three-quarters of today’s average car, including the majority of a steel frame, are often recycled.

Production, recycling, and disposal costs to the environment are difficult to quantify and largely beyond the control of most consumers. It’s also true that the majority of an automobile’s environmental impact, perhaps 80 to 90 percent, are going to be thanks to fuel consumption and emissions of pollution and greenhouse gases that climate scientists say are driving global warming.

Petroleum products raise environmental red flags even before they’re burned. Extracting them from the world is an energy-intensive process which will damage local ecosystems. Shipping fuels can also consume plenty of energy, and creates an occasional environmental disaster like an oil spill. As world demand rises, and unconventional fuel sources, like oil sands, become more economically viable, the ecological impacts of petroleum extraction may additionally increase dramatically. That’s another reason why fuel efficiency is so important.It’s also partly why electric-powered vehicles can help reduce environmental impacts, because the natural resources are not harmed.

The issues are often difficult to tease out of other factors, like increase and resource consumption. And to eradicate such global issues on environment due to the growing of automobile industry the new type of battery based plans has recently been introduced by the Indian government that led to the  holistic plan of a  roadmap for the future of battery sector with different ministries like power, new and renewable energy, road transport, department of science and technology, heavy industries, external affairs, mining and environment, forest and global climate change working in sync as all of them would govern some aspect for the success of the world . With the inevitable growth of Electric Vehicles (EV) and renewable energy sectors, it’s imperative for India to forge an ecosystem that permits setting-up an indigenous battery manufacturing industry. India has been hooked in to external imports for oil, solar Photovoltaic (PV) equipment and now even batteries to satisfy its requirements. This makes India vulnerable to becoming hostage to risky supply chains and geopolitical tensions alongside mammoth capital expenditures. India cannot afford to lose the bus within the battery sector which is becoming a key for achieving a coffee carbon economy.

The Electric Vehicle Market is projected to achieve 26,951,318 units by 2030 from an estimated 3,269,671 units in 2019, at a CAGR of 21.1% during the forecast period. The base year for the report is 2018, and thus the forecast period is from 2019 to 2030. The electric vehicles market has witnessed rapid evolution with the continued developments in the automotive sector. Favourable government policies and support in terms of subsidies and grants, tax rebates and other non-financial benefits within the sort of set lane access, and new car registration (specifically in China where ICE engine new car registration are banned in some urban areas) the increasing vehicle range, better availability of charging infrastructure and proactive participation by automotive OEMs would drive the global electric vehicle sales.

The involving and evolving of charging units and battery manufacturers-

The coronavirus pandemic has strengthened the necessity for encouraging domestic manufacturing in India since it’s overly hooked in to imports to suffice its requirements. This has gained urgency since substantial commodities are imported from China, a country, with whom India’s geopolitical tensions is making trade increasingly difficult. With mega targets to build up the renewable energy mix, especially solar, to its power generation capacity, and an increased specialise in electric vehicles (EVs), India has got to make concerted efforts to incentivise the domestic manufacturing of EV components, renewable energy equipment and batteries.

India bought batteries worth USD 1.2 billion in 2019-20 making this sector heavily hooked in to imports. The key sectors which will drive the demand for batteries is that the growth of electrical vehicles (EVs) and renewable electricity storage. EVs are poised to scale back India’s oil import bill and contribute to cleaner air and hence the country has set a target of getting 30 percent EV penetration by 2030. India is additionally tendering many renewable energy plus storage projects where the stationary storage components are going to be catered to by batteries. India lacks the capacity to manufacture cells commercially and, hence, to chop the cost on imports, the Indian government has made plans to indigenise battery manufacturing.
A report by NITI Aayog has stated that if India has got to meet its EV targets through one hundred pc domestic manufacturing of batteries, it might require a minimum of 3,500 GWh of battery storage at a wholesale cost of USD 300 billion, which can be but half the value of oil imports thus avoided. The India Energy Storage Alliance (IESA) has estimated a 300 GWh demand till 2025 taking into consideration the EV and energy storage system opportunities.
In lieu of the growing battery sector, the Indian government launched the ‘National Mission on Transformative Mobility and Battery Storage’ last year to plug phased manufacturing programmes for battery and EV components. The initiative will support fixing of large-scale export competitive integrated battery manufacturing plants in India. NITI Aayog has proposed fixing gigafactories aggregating a capacity of fifty GWh over subsequent ten years at projected cost of USD 5 billion.
The most dominant battery technology today is that the lithium ion (Li-ion) batteries. All the opposite breakthroughs in battery innovation aren’t scalable commercially as of now. Research shows that cost of Li-ion battery packs fell by 85 percent within the last decade and can further fall by 35 percent by 2024 to below USD 100 per kWh. A recent report states that the Li-ion battery manufacturing capacity will grow fourfold to 1.3 TWh in 2030 compared to 2019. Asia Pacific dominates this capacity by accounting for an 80 percent share and, within this region, China, who is that the leader is predicted to double its capacity from 345 GWh to more than 800 GWh by 2030.
Rare earth metals like lithium, cobalt, nickel, manganese, etc are the essential raw materials required to manufacture Li-ion batteries, for which mining of the required metals and fixing of manufacturing plants are highly capital intensive. China has made heavy investments locally and overseas (Latin America, Africa and Australia) in mining lithium and rare-earth element metals. Also, China has financed a huge battery manufacturing capacity making it difficult for other countries to compete.

India has so far not surveyed if it’s sufficient reserves of lithium. Last year India discovered around 14,000 tonnes of lithium, but this is so often often far less compared to 8.6 million tonnes in Chile, 2.8 million tonnes in Australia and 1.7 million tonnes in Argentina so as to achieve building a battery manufacturing industry.

Boldly, India has recently acknowledged Khanij Bidhesh India Pvt. Ltd. to explore strategic mineral assets abroad. And, India and Australia recently signed a preliminary deal to supply the critical minerals required for a new-energy economy.
Though India was late to the solar power equipment and Li-ion manufacturing race, but it shouldn’t miss the long run battery technology opportunity. Instead it should explore new approaches by providing for long-term research in multiple aspects of battery manufacturing. These include solid state batteries, battery-chemistries with higher energy densities, new battery materials and chemicals withstanding higher temperatures, hydrogen fuel-cells, etc. If India lays a robust research foundation for battery technology, it can use this unique opportunity to steer during a sector that interests many economies. India could jump an entire technology phase by moving straight to novel battery technologies and strategically reduce its battery import dependence and risks of supply squeeze.
Bridging the rift between industry and laboratories can aid faster transitioning towards commercial manufacturing of batteries. The government offers venture funding or high-risk funding to research institutions that specialises in battery technology which shall enable them to showcase the commercialisation potential of their innovations. An example might be sodium-ion battery technology whose performance is inching on the brick of that of Li-ion batteries and therefore the staple for these batteries are often sourced locally leading to low costs also,
As the number of batteries start multiplying, it will cause a big question of battery waste disposal since this will have serious environmental implications. A report has predicted that by 2030, the battery recycling industry in India are often a million-dollar opportunity. Recycling at an industrial level is completed by EU and China, but the market is at a nascent stage. To scale back imports and attain sustainable battery manufacturing, but looking up to the battery recycling matter is equally important.

There is a requirement for an enabling framework where circular economies of manufacturers undertaking battery recycling or new enterprises that specialize in recycling develop within the approaching years.
Government of India has renewed its support to the domestic industry to form India self-reliant under its ‘Atmanirbhar Bharat’ scheme.

In addition, the growing sensitivity of varied governments toward a cleaner environment has increased the demand for zero-emission vehicles. Developed nations like the US, Germany, and therefore the UK are actively promoting the utilization of electrical vehicles to scale back emissions, which has resulted within the growth of electrical vehicle sales.
The electric vehicle market is dominated by globally established players like Tesla (US), BYD (China), BMW (Germany), Volkswagen (Germany), and Nissan (Japan). These companies developed new products, adopted expansion strategies, and undertook collaborations, partnerships, and mergers & acquisitions to gain traction in this high-growth electric vehicle market.

The growth and Scope of Electric Vehicle (EV) market

Moreover, EVs have 75-80% less moving components and this ultimately translate to a way lower maintenance bill. Over and above the robust operating expense angle, EVs also possess an inherent advantage when it involves performance and drive ability. In the last few years, trends suggest an increase in interest among the common masses for electric cars as compared to electric two-wheelers and ICE or petrol/diesel cars, as seen on Google Trends. The manufacturing landscape of EVs, which solely won’t be dominated by the worldwide automakers earlier, is additionally now seeing a reign, as numerous Indian automakers now take a deep dive into the electrical vehicle space, tapping the growing potential that the country has future. India’s push toward electric vehicles are creating opportunities for companies in ancillary spaces like battery manufacturing, consistent with an analyst at diversified financial services firm Motilal Oswal. The move toward electric vehicles is, “inevitable” globally also as in India, where higher fuel prices can make owning cars that run on electricity comparatively cheaper, The acceptability will increase once you have the infrastructure There are two basic sorts of electric vehicles: people who believe batteries and therefore, the hybrid vehicles that use both batteries also as plugging into an external source of power, such as a charging station. What is even more interesting is the mindset of the Indian population is additionally slowly evolving, with many now willing to form a switch to EVs soon. A recent study has highlighted that by 2022, most consumers in India would consider buying an electrical vehicle. This in itself may be a key trend which is probably going to trigger the expansion of the EV segment within the country. Definitely, government intervention and policy has a key role to play in promoting electric mobility within the country. Indian policymakers are actively pushing EV adoption over the recent years, and multiple initiatives have also been introduced to develop domestic capabilities across the whole EV value chain. Besides strengthening the EV manufacturing capabilities, renewable energy targets also are being revisited and various measures are being adopted towards effective recycling of raw materials. The battery price also has been expected to fall by quite 30% between 2018 and 2025, which can make electric vehicles (EVs) cheaper over the amount of your time. Besides this, the government of India has announced various tax cuts and subsidies to further encourage more and more peopled to shop for EVs. The bulk of the thrill in India’s electric vehicle sector is in ancillary spaces where companies are working with global players, many of whom are looking to enter the lucrative market You wear a one hand the battery manufacturers, which are looking to develop the battery for the EVs, and on the opposite side, you’ve got companies like Motherson Sumi, who are into the electrical a part of the vehicles, They are becoming increasing shares of business globally from the (electric vehicle) space. Motilal Oswal prefers Motherson Sumi and Exide Industries, which are up roughly 29% and 11% year thus far as of Monday’s close, respectively. Motherson Sumi works with automakers around the globe in areas like wiring harnesses, rear-view mirrors, cockpits, bumpers and more. Exide sells automotive and industrial lead-acid batteries. Hence, moving to using electric vehicles give businesses the chance to become involved in innovative transport developments which are addressing environmental issues. Setting environmental concerns at the heart of your business can be a key part of demonstrating corporate social responsibility.

The initiative taken by companies on EV in India

It seems that Electric Vehicles (EV) as a thought seems to possess finally come to India. There are many positive green signals coming from the government and industry because the number of EVs on the road in India has began to increase. Karnataka are getting to be home to Tesla’s factory in India, following announcements by Chief Minister BS Yediyurappa and Union Minister for Road Transport and Highways Nitin Gadkari. Investment sentiment has picked up for the planet with renewed interest by venture capitalists with over US $300 million reportedly invested in companies that affect EVs and better battery technology this year.
The number of EVs on the road has also been steadily increasing, and in 2019-20, the amount of EVs on the road stood at 155,400 growing at around 20 percent year-on-year. Government policies just like that Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) which give subsidies for EV production and charging infrastructure are a welcome fillip. Phase II Clinical trial of the scheme has an outlay of INR 10,000 crore ending this year for creating more demand for EVs. The 2019-20 budget announcements for tax subsidies for loans on EVs are again aimed toward proliferating new kinds of automobiles. Broadly, there is a renewed interest by the general public in owning an EV considering high fuel prices within the country, which successively makes most goods costlier and contributing to an overall inflation within the country.

With these broad signals to the world, there are, however, some policy issues for decision-makers in government, industry, and academia to think about. Like, the
Ola Electric on revealed its plans to line up the world’s largest electric two-wheeler charging network. SoftBank-backed Ola Electric plans to provide charging solutions to all or any or any its electric two-wheeler customers. It unveiled the Ola Hypercharger Network, the charging network for its upcoming two-wheeler products starting with the Ola Scooter to be launched within the approaching months.
The Ola Hypercharger Network are getting to be the widest and densest electric two-wheeler charging network within the planet, with quite 100,000 charging points across 400 cities. Within the first year alone, Ola is fixing over 5,000 charging points across 100 cities in India, quite double the prevailing charging infrastructure within the country. Ola alongside its partners would set it up at an estimated cost of $2 billion over a period of 5 years.
In India, Ola is now in direct competition with electric two-wheeler makers, like Ather Energy, Hero Electric, and TVS Motor Company. However, the charging network won’t be available to other electric vehicle players and only the purchasers of Ola Electric.
And recently, India is also going to capitalise one of the foremost abundant elements on earth — hydrogen. Minister of Finance Nirmala Sitharman announced the National Hydrogen Mission during the Budget 2021-22 to realize from this universally-available element.
The green energy source could also compile variety of India’s biggest companies like Reliance, Tatas, Mahindras, and Indian Oil, the need of the hour could also be a coalition of stakeholders a bit like the Hydrogen Council or the ecu Hydrogen Coalition. Companies like Indian Oil, the Tatas, the Mahindras, the Eicher — allow them to be an area of the coalition. Then speciality chemicals companies like Reliance are often also a neighbourhood of it. To be more specific With more and more car manufacturers focusing their efforts on making EVs, it is only a matter of time before there is an EV in every segment and by every major company. The year 2021 will witness the launched of the many electric cars and here are five of them The Volvo XC40 was initially introduced within the Indian market with a diesel. Sometime then, the company got obviate the diesel and brought during a petroleum engine in its place. Now, we’ll be getting a third avatar of the XC40 in India and this one are getting to be all-electric.
This one has been eluding us for a couple of time now. First showcased at the 2020 Auto Expo, the eKUV100 could also be totally electric version of the regular KUV100.
Another product that was showcased to us at the 2020 Auto Expo was the electrical version of Altroz. The smart-looking hatchback has proven to be a successful product for the home-grown carmaker. It comes with a choice of three engine options currently – 1.2-litre NA petrol, 1.5-litre diesel and thus the recently launched 1.2-litre turbo-petrol.

The Future of  Electric Vehicles (EV)

EVs and therefore the grid can have gigantic synergy. Not exclusively would EVs be ready to charge at whatever point there’s excess force, they need a battery valuable for engrossing variable environment friendly power. They will significantly offer reinforcement power for the lattice. This is often one explanation to make for EVs, one that comes with forceful season-of-day valuing (modest charging when force is excess).

Nonetheless, EVs are efficient—with regenerative braking capturing energy in any case squandered and furthermore due to the characteristic productivity of engines, particularly at low rates—they pollute less. The EVs were designed to guard the environment but thanks to slowdown within the Indian economy, they need now become a requirement in India. There is an unexpected climb within the costs of petroleum and diesel, and pollution levels are gravely high in practically every city of the country.

In such a scenario, EVs seem to be a hope for cleaner future.

There have been enormous changes, especially in technology, but also in individuals’ attitude towards vehicles’ effects on the environment. Although the electrical vehicle market is at the present a rewarding objective for organizations and new businesses in India, there are a couple of obstructions in its production fabricating electric vehicles locally being one among them. Also, battery manufacturing is essentially an upscale endeavour. The Indian Government should focus its energies on checking out these difficulties.