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India.com
4 days ago
- Automotive
- India.com
Tesla's India Entry Set To Transform Domestic EV Landscape: Experts
New Delhi: The official launch of Tesla in India has created a buzz in the electric vehicle (EV) industry, with experts on Wednesday calling it a major turning point for the country's clean mobility future. Industry leaders believe Tesla's arrival will not only benefit consumers but also reshape the overall EV ecosystem in India. Nikhil Dhaka, an auto expert from Primus Partners, said Tesla's entry marks a significant moment in India's journey towards sustainable transportation. 'Tesla isn't just another carmaker entering the Indian market -- it brings global ambition, advanced technology and a promise to push innovation across the sector,' he told IANS. While Tesla's cars will likely be priced in the entry-level luxury segment, experts believe that many Indian buyers will still be drawn to the brand. 'Tesla has a strong brand appeal and tech advantage. Many buyers may stretch their budgets by 20 to 25 per cent just to own a Tesla,' Dhaka stated. The US EV giant has announced that it is now preparing to open a new showroom in Delhi. Along with this, the EV company announced that it will soon set up four new charging stations in New Delhi. These will include 16 Superchargers and 15 Destination Chargers for EV users, according to its official statement. Tesla on Tuesday launched its first 'Experience Centre' in Mumbai, where it also introduced its popular electric SUV, the Model Y, to Indian customers. In an official statement, the company said it plans to build a full EV ecosystem in India. This will include showrooms, service centres, delivery hubs, charging points, logistics facilities, and office spaces across the country. In Mumbai, Tesla has already announced four major charging stations in important locations like Lower Parel, Bandra-Kurla Complex (BKC), Navi Mumbai, and Thane.
Mint
03-07-2025
- Automotive
- Mint
Govt to rollout out subsidy for e-trucks—but with a rider and the clock ticking
New Delhi: The ministry of heavy industries is considering a subsidy of ₹5,000 per kWh of battery capacity for electric trucks, two people said, with about nine months left for its flagship electric vehicles incentive scheme to expire. The government was earlier considering two subsidy options for e-trucks— ₹5,000 per kWh and ₹7,500 per kWh, one of them said. Following consultations with stakeholders last month, 'the ₹5,000 per kWh subsidy is being considered at the moment", this person said. That would amount to a ₹12.5-20 lakh subsidy per e-truck. Mint couldn't ascertain what transpired during the stakeholder consultations. Detailed guidelines for availing subsidies for e-trucks under the PM E-Drive scheme will be notified in a few weeks, said the second person. Both of them requested anonymity. The government, however, will provide incentives for e-trucks only against a certificate that establishes the scrapping of a conventional truck of equal or higher tonnage, as notified in the PM E-Drive (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme. The scheme, which was launched in September. is set to lapse in about nine months, at the end of this financial year. Under it, the government has allocated ₹500 crore towards incentives for buyers of e-trucks. The PM E-Drive scheme has a total outlay of ₹10,900 crore. The government has identified electric trucks as a sunrise sector under the PM E-Drive scheme. Mint reported on 6 April that the government was rushing to assess demand for electric trucks in sectors such as ports, cement, steel, and logistics. 'When it comes to the PM E-Drive incentives, it (the incentive) is pivotal in overcoming the biggest hurdle: the high upfront cost of electric trucks, especially in the N2 and N3 categories," said Nikhil Dhaka, vice president–public policy, Primus Partners, a consultancy firm. 'These vehicles need large battery packs (250-400 kWh), which makes them much pricier than their diesel counterparts." N2 category electric trucks refers to goods carriers with a total weight of 3.5-12 tonnes; N3 refers to bigger goods carriers, weighing 12-55 tonnes. While a conventional diesel N2 category truck costs ₹17-18 lakh, an e-truck of similar weight costs ₹60-64 lakh, Dhaka of Primus Partners said. A diesel N3 truck costs ₹22-24 lakh, while an electric truck of the same weight range costs ₹74-78. The ministry of heavy industries did not reply to queries emailed on 1 July. PM E-Drive in slow gear India's e-truck market is nascent, with 5,356 electric goods carriers sold in FY25, lower than 6,158 units in FY24, as per Vahan, the national vehicle registry. Of these, electric medium and heavy goods carriers, or N2 and N3 categories of e-trucks, accounted for 200-230 units in both FY24 and FY25. Consumers can buy electric two- and three-wheelers, buses, trucks, and ambulances at a discount under the PM E-Drive scheme. The government then reimburses manufacturers for the discounts offered to consumers using subsidies or incentives under the scheme. Dhaka of Primus Partners said subsidies under the scheme are essential for speeding up adoption of e-trucks. 'The commercial EV ecosystem in India is still in its infancy, and financial support is critical to bridging the affordability gap," he said. 'These incentives also reduce the risk for logistics operators, who might otherwise hesitate to be early adopters, and they (the incentives) encourage manufacturers to invest in local production and R&D." However, the government is yet to notify the localisation criteria for electric trucks under the PM E-Drive scheme. The localisation criteria would set into motion the testing process for determining the eligibility of electric vehicles under the scheme. Testing agencies will authorise a particular electric vehicle as eligible for PM E-Drive incentives only if it meets the government's phased manufacturing programme criteria of using only a limited number of imported components. The PM E-Drive scheme includes a ₹4,391 crore package for 14,028 electric buses, but notified the localisation criteria for e-buses only in March this year. Mint reported on 5 May that the government had aggregated demand for more than 15,000 e-buses, well over its target.
Mint
13-06-2025
- Business
- Mint
Ola rolls out no-commission model for cabs to weather intensifying competition
Ride-hailing platform Ola has rolled out a zero commission model for its cab drivers, according to persons familiar with the matter. This marks a shift towards a subscription-based structure in response to growing competition. The move follows newer players like Rapido and Namma Yatri, which introduced Software-as-a-Service (SaaS)-style models that allow drivers to retain 100% of their earnings in exchange for a fixed daily or monthly platform fee. Uber and Ola initially adopted this model for auto-rickshaws—Uber rolled it out earlier this year, while Ola did so in April 2024. Ola's decision to extend the model to its cab segment appears aimed at retaining drivers and staying competitive, particularly as Rapido expands its services beyond mobility, venturing into food delivery. 'This is a significant win for drivers, who generally prefer a fixed subscription model that lets them retain 100% of their fares, rather than dealing with unpredictable commissions. It could also help reduce ride cancellations and driver churn. However, the impact on consumers remains to be seen,' said Nikhil Dhaka, vice president at Primus Partners. According to a post on Ola's official Facebook page, the company is now offering a 30-day pass priced at ₹67 per day. This pass allows drivers full access to the platform with no commission cut on rides. Ola did not immediately respond to Mint's queries regarding the rollout and future plans for the new model. Ola's shift to a subscription-based model could affect its GST obligations, particularly the 5% tax levied on aggregator-facilitated rides. While SaaS platforms like Namma Yatri have been exempted from GST by the Karnataka AAR, others like Rapido remain liable, having been classified as e-commerce operators. 'It remains to be seen how this shift will impact Goods and Services Tax (GST) taxation, especially as newer platforms with linkages to workers' associations enjoy exemptions, while other incumbents remain liable to pay GST under current laws. As more platforms pivot to SaaS models, this regulatory disparity could become more pronounced,' said Soujanya Sridharan, a researcher at the Aapti Institute. Last year, Uber challenged this inconsistency before the Karnataka Authority for Advance Rulings and the GST Council, arguing that it creates unfair competition and ambiguity in the interpretation of tax laws.
Mint
26-05-2025
- Automotive
- Mint
EV resale boost? Maharashtra mandates battery health passports for buyers
Seeking to combat consumer hesitancy over resale value and battery longevity, the Maharashtra government has announced a policy that will introduce digital "battery passports" for all new electric vehicles (EVs), a first for the country. As part of the state's recently-released EV policy, the digital battery passport will be used to track the health, usage and manufacturing details of an EV battery, a critical component which accounts for over half of an EV's value. 'The State shall introduce a digital battery passport to track key parameters such as manufacturing details, real-time health status, usage history, and end-of-life diagnostics,' Maharashtra's EV policy, notified on 23 May, said. Currently, customers have to rely on the seller to know the real health of the battery. Based on previous pilots of such a passport in Europe, customers may get to scan the batteries through a QR code to know the health and the relevant manufacturing details of the battery installed in their purchased vehicle. While the Maharashtra government has introduced the battery passport in its policy, the details of how they will be issued and what role will companies play in issuing them remain unclear. To be sure, Maharashtra is the second-largest electric vehicle market in the country, with 241,941 EVs sold in 2024. Uttar Pradesh led the EV market, with 369,102 EVs sold during the year. Deloitte's 2025 Global Automotive Consumer study said that at least one in five car buyers flag uncertain resale value as one of the reasons for holding back on EV purchase. The health of the battery becomes important, as it is responsible for the depreciation in an EV's value. Resellers and insurers also complain that the lack of a standard document to know the health of batteries makes things uncertain about the pricing of a vehicle. Data from used car marketplace players Spinny and Cars24 showed that EVs lose value faster than traditional internal combustion engine (ICE) vehicles. CARS24 noted that three-to-five year-old popular ICE car models can retain more than 50% of their original value, unlike EVs. Spinny's data suggested that on average, EVs resale value lags ICE vehicles' resale value by 3%. This means that the price of a 2023 EV model would have fallen by 23% if sold today, as compared to a 20% depreciation for a similar specification ICE vehicle. The gap can increase to as high as 6% the older the model gets. 'A digital battery passport brings transparency to the EV market, giving consumers clear information about the health and history of their vehicle's battery,' Nikhil Dhaka, policy lead at Primus Partner, said. Dhaka noted that pilot projects in Europe have shown that a battery passport can provide a digital ID for each battery, sharing details about its performance and manufacturing history. Presence of a standard document issued by an authority can help consumers trust the resale value as the exact status of the battery installed in the vehicle would then be known. 'For resellers, a battery passport provides objective data that builds confidence and justifies pricing in the used EV market. It reduces disputes and makes the valuation process more transparent,' Dhaka added. The country's EV insurance industry also expects that the introduction of digital battery passports can help them standardize the process which will be key in deciding premiums for such insurance policies. The country's EV insurance market is projected to reach $8.61 billion by financial year 2032 from $1.02 billion in 2024. 'From an insurance perspective, digital battery passports are a game-changer. They provide insurers with comprehensive data on battery health, lifecycle, and sourcing, enabling more accurate risk assessments and tailored pricing models,' Sandeep Dadia, chief executive and country head at Lockton India, said. 'This transparency reduces uncertainties, ensuring fair premiums for customers while enhancing trust among insurers, OEMs, dealers and end-users,' he added. The introduction of such a document also comes at a time when the overall electric sales in the country are growing at a rapid pace. In 2024, electric two-wheeler, three-wheeler and four-wheeler sales in the country grew 27% to 1.94 million units. Globally, the use of digital battery passports remains limited as of now. However, in 2023, the European Union introduced regulations which require all EV batteries over 2kWh to have the document from 1 February 2027.
Mint
08-05-2025
- Automotive
- Mint
Complexities cloud Delhi's plan to give carbon credits to EV buyers
New Delhi/Mumbai: In a move that has sparked scepticism from industry experts because of complexities involved, the Delhi government is considering awarding carbon credits to buyers of electric vehicles (EV) in the national capital. The proposal, designed to promote the adoption of tail-pipe emission free vehicles, is part of the upcoming Delhi Electric Vehicles Policy 2.0. 'Collaboration shall be explored with development banks, carbon asset management enterprises to identify and evaluate various emission offset mechanisms and facilitate trading of carbon credits for the EV owners in Delhi," read the draft of the upcoming policy, which was shared with automakers for comment last month. Mint has seen a copy of the draft. The thinking is that by avoiding the carbon emissions of traditional vehicles, EVs could accrue credits over their lifespan. These carbon credits could then be sold by EV owners in a secondary market, offering them a potential revenue source that would lower their total cost of ownership for the vehicles. Emailed queries to Delhi's transport department, which is responsible for the EV policy, remained unanswered till press time. Experts, however, warn of several uncertainties involved, including the methodology to be adopted, pricing of the credits, and the availability, or lack, of potential buyers. The price of these credits is also expected to be minuscule compared to the cost of running them, one expert said. Vaibhav Chaturvedi, senior fellow at think-tank Council on Energy, Environment and Water (CEEW), said the move was a smart one by the Delhi government, but questioned how lucrative the incentive would really be. 'Unless there is some certainty or minimum price assurance in this regard, a prospective EV buyer might be left wondering about the cost saving due to carbon credits," he said. Also read | Foreign car firms eye trade deals for EV tariff reduction Estimates from Nikhil Dhaka, policy lead at consultancy Primus Partners, point to as little as ₹ 200-1,600 annual revenue from carbon credits for an electric car. Credit prices in the Indian market currently range from ₹ 100 to ₹ 800 per ton of CO₂, he said, adding that a typical EV offsets about 0.5–2 tons of CO₂ a year. Accurately estimating CO₂ savings per vehicle would also be a challenge, Dhaka said, as it would involve tracking usage patterns, grid emission factors, and vehicle specifications. Implementing such a system would require robust tracking of vehicle usage, clear carbon attribution, and a user-friendly mechanism for consumers to claim, trade, or utilize their credits, he said. 'Without a well-established mechanism, carbon credits alone are unlikely to be a strong buyer incentive yet, but could gain value as India's carbon market matures," Dhaka said. Connecting EV owners to carbon markets is another challenge. According to Deepto Roy, partner at law firm Shardul Amarchand Mangaldas & Co., if credits are given directly to EV owners, it will be difficult for them to access the carbon credit markets, where trading usually happens at a larger scale. 'It would be easier to give the credits to manufacturers or if the government steps in and buys the credits at a floor price, aggregates them and then sells them in secondary markets," Roy said. Read this | Tata Motors considers new ICE models as EV adoption slows, competition intensifies There is no precedent globally for carbon credits being awarded to EV buyers, Primus Partners' Dhaka said. However, similar concepts do exist for other stakeholders in the EV value chain. For example, China's credit system gives automakers carbon credits for selling EVs. Companies must meet credit quotas or buy credits from others, pushing manufacturers to produce more EVs. Then, in California, electricity used for EV charging generates credits for charging companies. More than $2.8 billion flowed to EV charging suppliers in 2023, Dhaka said. 'This is analogous to paying EV drivers (or their utilities) for the carbon reduction from switching fuels. The lesson: well-designed credit programs can channel large funds to accelerate EV adoption, but they require tight regulation to prevent oversupply," he said. I.V. Rao, distinguished fellow of transport and urban governance at research institute Teri, said that the proposed carbon credits policy for EV buyers could act as a boost if seen together with other incentives in the scheme. 'However, for effective policy implementation, you would need guidelines on how the carbon credits trade will work," he said. 'Based on usage of a vehicle and its age, some carbon credit incentives can be thought of." And read | India's clean mobility drive hit as electric two-wheeler subsidies miss target in FY25
