Interview| Telangana, Andhra poised to become central hubs in India’s EV sector: ARACT’s Jagadish

Andhra/Hyderabad: The trend of electric vehicles (EVs) in India is gaining significant momentum. Driven by government policies, environmental concerns, and technological advancements, many companies are offering affordable and efficient models of two-wheelers and three-wheelers. There are still questions among consumers about fire accidents. Few worry about the distance EVs can travel on a single charge or how comfortable EV vehicles are.

Speaking to NewsMeter, M Jagadish, Chief Technology Officer, Amara Raja Advanced Cell Technologies (ARACT), discussed EV and its market trend in both the Telugu states.

Excerpts:

NM: How is the EV market in India, particularly in Andhra Pradesh and Telangana?

A: India's electric vehicle (EV) market is experiencing rapid growth fueled by government incentives, environmental concerns, and technological advancements. The country aims to have 80 million EVs on the road by 2030, as per the estimates of CII. There is an ambitious target for private cars, commercial vehicles, buses, and two-wheelers. As per Fortune Business Insights Market Research Report, the Indian electric vehicle (EV) market size was valued at USD 8.03 billion in 2023. The overall EV market, including passenger cars, 2-wheelers, and 3-wheelers, is projected to grow from USD 23.38 billion in 2024 to USD 117.78 billion by 2032, exhibiting a CAGR of 22.4% during the forecast period. According to the Ministry of Heavy Industries, around 0.52 million EVs were registered in India in the last three years.

South Indian market leads the EV sales in India, with almost half of the country's sales coming from the region. The EV market in Andhra Pradesh and Telangana is also expanding rapidly. In Telangana, significant investments like Amara Raja Energy & Mobility's ₹9,500 crore gigafactory and strategic partnerships with companies like Ather Energy and Piaggio India highlight the state's increasing importance in EV battery production. The proactive support from Telangana's government, including incentives and infrastructure development, further accelerates the sector's growth. Meanwhile, Andhra Pradesh is emerging as a critical player with substantial investments from VinFast of Vietnam, emphasizing the state's strategic role in India's EV landscape. Both states are poised to become central hubs in the country's evolving electric mobility sector.

NM: A recent survey found that 51% of Indian electric vehicle owners want to return to diesel and petrol-powered ICE cars. Can you explain this?

A: Yes, I am aware of the findings by a leading app for car owners, which shows that 51% of Indian electric vehicle (EV) owners are considering a return to internal combustion engine (ICE) vehicles due to some hassles. It highlights the anxiety of the EV owner in finding Accessible, Safe, & Working Charging stations. It is not about the Affordability or Range of the vehicle or Reliability & Safety of the Vehicle, etc. This is a significant advancement in the acceptability of EVs by the larger population. Despite these advancements in EV technology, the current Infrastructure, especially in terms of accessible and reliable charging stations, remains inadequate for the growing user base. Moreover, the complexity of EV maintenance, the lack of established repair networks, and the assessment of used EV prices are still a bit of concern and dissatisfaction among the owners.

As the industry evolves, it is crucial to develop robust charging networks, enhance transparency in maintenance and repair services, and improve resale value perceptions to sustain and grow the EV market in India. These areas of improvement are essential for ensuring long-term customer satisfaction and retaining the trust of EV owners. These are issues for which the ingenuity of the market can find solutions.

NM: Recently, there have been incidents of electric cars and bikes catching fire. Can you tell us what are the leading causes?

A: Although uncommon, electric vehicle (EV) fires can result from various factors. These include battery-related issues such as manufacturing defects or damage, which can lead to malfunctions. The industry is addressing these concerns through stricter quality control and advances in battery design. The selection of good-quality cells and the proper design of the battery pack are critical to avoiding a fire in an EV.

Suppose the cells are of Bad quality, and the Battery Pack needs to be engineered correctly and misused. In that case, a situation like the thermal runaway can arise, where overheating in a battery cell(s) can lead to a fire spreading to other cells and then to the entire Battery Pack.

Further, battery cooling systems and BMS innovations are ongoing, and the situation will improve as days pass. Charging practices also play a crucial role in preventing fires. Using certified chargers and following manufacturer guidelines is essential to avoid overheating caused by improper charging or faulty equipment. Additionally, accidents or impacts can damage the battery, and the industry is enhancing battery enclosures and safety systems to minimize this risk.

Both manufacturers and consumers have a part to play in ensuring EV safety. By adhering to guidelines for charging, storage, and maintenance, consumers can reduce risks while the industry continues to focus on developing safer battery technologies, thermal management solutions, and integrated safety features. These efforts are making electric vehicles increasingly safe and reliable for everyday use.

NM: Top-end cars have also launched EV models. How is the market? Who are people mostly choosing these vehicles?

A: The Indian luxury car market is experiencing significant growth, driven by rising incomes, evolving consumer preferences, and rapid technological advancements. This market's electric vehicle (EV) segment is particularly flourishing, with luxury car buyers increasingly opting for EVs as champion promoters of innovation, sustainability, and status.

Experts note that EV adoption in the luxury segment is notably higher compared to other categories. Many luxury car owners embrace EVs as part of their commitment to a cleaner, more sustainable lifestyle. This trend is expected to accelerate, with projections indicating that EV penetration in the luxury segment could reach 20-25% by 2025-26.

Although India's luxury car market remains minor compared to other Southeast Asian economies, where luxury vehicle penetration can reach up to 20%, its growth is impressive. As the Indian economy expands and consumer preferences shift, the luxury car segment is well-positioned for continued success.

NM: What is the feasibility of EV charging stations in rural areas when commuters go for long drives or off-road journeys?

A: Establishing EV charging stations in rural areas, particularly for long drives or off-road trips, presents some distinct challenges in India and developed countries. These regions often lack the Infrastructure needed for reliable charging, such as consistent power supply and well-maintained roads. Currently, most charging stations are concentrated in urban areas, leaving rural regions underserved. However, expanding the charging network to key rural routes and towns is essential to address this gap. Financial incentives and subsidies can encourage investment in rural charging infrastructure while upgrading the power grid, which will provide the stable electricity needed.

Developing EVs with longer ranges and portable charging options can offer practical solutions for rural commuters. As the EV industry grows and technology advances, these efforts will make EV adoption in rural areas more viable for long-distance and off-road travelers.

NM: What is the disposal method of lithium-ion batteries, and how does it affect the environment?

A: As technology for lithium-ion battery disposal and manufacturing continues to develop, we'll have the chance to implement more advanced and sustainable methods for their disposal. In the future, this will be much like our current approach with lead-acid batteries, where we have already achieved over 98% recycling.

The EV & Battery manufacturers are entirely cautious of this, and there is a lot of effort going into the 3RE's – Reuse, Repurpose, Recycle.

Lithium-ion batteries can be disposed of through various methods, with recycling being the most sustainable option. This process recovers valuable metals, reduces the need for new raw materials, and enhances sustainability. Moreover, repurposing these batteries for secondary applications, such as stationary energy storage, extends their lifespan and lessens environmental impact. Effective disposal, recycling, and repurposing are vital strategies for advancing a more sustainable approach to lithium-ion battery management.

NM: What are your views on EV trends in India?

A: The global push towards electric vehicles (EVs) unlocks new opportunities, and India's electric vehicle (EV) market is experiencing remarkable growth. The current market numbers reflect India's commitment to achieving 80 million EVs on the road by 2030. However, there are challenges, especially in the commercial EV segment, where limited options and high costs slow adoption. Despite this, the rise of electric two-wheelers is a positive signal of India's shift toward sustainable mobility.

The recent launch of the PM E-Drive Scheme is another pivotal development. By focusing on electric two-wheelers, three-wheelers, and buses and supporting public transport vehicles like e-buses and e-ambulances, this initiative is set to drive EV adoption further. The scheme also aims to improve EV charging infrastructure, helping to address range anxiety and encourage wider usage.

With key automakers leading the way and increasing investment in Infrastructure, India is well-positioned to become a global leader in sustainable transportation, reducing oil dependency and fueling economic growth.