How Much Investment to go Electric ?

India wants to completely switch-over to Electric Vehicles by 2030

So do many other countries ( ranging from 2030 to 2040 ) – including Germany

But Germans are a very methodical / determined / precision-minded people

They don’t like to leave anything to chance !

So , when it comes to change-over to Electric Cars , here is what the German companies have planned ( source : Economic Times / 16 Sept )

#  The Volkswagen Group

     Investment in excess of 50 BILLION Euros

     It has also declared its intent of becoming the largest electric vehicle maker by 2025

     Matthias Muller , global CEO of the group says :

    “ 2030 is like day after tomorrow . Transformation of our industry is unstoppable

     and we are going to lead this

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#  Mercedes Benz

    Plans to invest 10 Billion Euros

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#  BMW  Group

    Plans to have 25 electric models by 2025

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#  Jaguar Land Rover

     Plans to electrify entire range by 2020

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Indian Car Manufacturers , too are formulating their plans

But how much do they plan to invest ?

Only a few ( like M&M ) have declared figures for their planned investments – totalling less than 1 Billion Euros !

Then there is news of SoftBank’s rumoured investment of $ 100 million in Chetan Maini’s Sun Mobility

In light of this , Shri Amitabh Kant’s following observations ( Eco Times / 21 Sept ) provide interesting framework for Indian Car Manufacturers :

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“ Indian manufacturers should not just try to address domestic demand for zero-emission vehicles , but tap also into global markets to build scale and bring down cost

It cannot be business as usual because vehicle makers in India will be impacted by what is happening globally

They have to think of addressing domestic demand and also think of scaling up in global markets , which will help bring down cost of electric vehicles

By 2025-26 , the cost of owning an electric vehicle will be at par with one running on conventional fuel

With battery cost declining , 2030 will be the tipping point for electric vehicles in the automotive industry

As far as India is concerned, the country should adopt a technology-agnostic approach as the last word on zero-emission vehicles – be it electric , hydrogen fuel or some alternate technology – has not been said

But overall potential is immense . Low per-capita car ownership in India will be advantageous for the country for mass adoption of electric vehicles

At present , car ownership in India is 20 vehicles per 1,000 citizens , in comparison to 800 in the US and 85 in China .

Besides , shorter ride distances – around 80 % of rides in the country are less than 5 km in terms of distance – and emphasis on generation of solar energy will further aid the country in this switch-over to cleaner mobility solutions by 2030  “

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Since Shri Gakariji says :

#  He has already cleared the ELECTRIC VEHICLE POLICY on Wednesday ( 20 Sept )

#  NITI Aayog will send it to the Cabinet in a couple of weeks for its approval ,

the above-mentioned statements of Shri Kant ( who is the architect of the policy document ) can be treated as a PREVIEW / TRAILER , of the MOVIE ( the ROAD MAP ) that gets launched soon !

Dear Auto Industry :

Do not be surprised to find that this POLICY  contains most of what I have suggested in :

Gadkariji  is Angry  [  12  Sept  2017  ]

https://myblogepage.blogspot.com/2017/09/gadkariji-is-angry.html

21  Sept  2017

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