SIAM JAMA Meeting

Pavan SachdevaSr. General Manager, Mahindra & Mahindra

SIAM

Recap of key events under NMEMApr, 2011 – Cabinet Decision• Launch of National Mission on Electric Mobility (NMEM)• Set-up of three tiered apex structure NCEM -> NBEM -> NAB

July, 2011 – 1st NBEM Meeting• Decision on broad directions for the joint Govt. – Industry in-

depth study on E-Mobility by interacting with all stakeholders

Jan, 2012 – 2nd NBEM Meeting• Finalization of broad principles for creation of NEMMP 2020

based on Govt. – Industry joint Study• Constitution of Working Groups (& Sub Groups) for micro

detailing

Aug, 2012 – 1st NCEM Meeting• Recommendations and approval of draft NEMMP 2020

Recap of key events under NMEMOct, 2012 – 3rd NBEM Meeting• Key decisions of NCEM were informed to finalize

NEMMP 2020• Sought delegation of powers to NBEM

Jan, 2013 – Launch of NEMMP 2020 by Hon’ble Prime Minister

Jan, 2013 onwards• Deliberations of Working Groups and Stakeholders

Consultation for Scheme Formulations• Socio-Techno-Commercial modeling for Demand Incentives

June 2014 – 4th NBEM• For approval of the Scheme –FAME India

a) b)

- c)

Potential

xEV Sales by 2020

Decrease in CO2

Fuel Savings Jobs

xEV Sales Till 2020

9500 Mi Liters

24 Mi Ton

250,000~300,000

15 Million

6~7 Million (YoY)

Tenets of Demand Creation

Incentives to consumers based on Life Cycle Analysis (TCO Modeling) , Consumers Acceptance Level and Projected Sales Target. Gradation of incentives levels with phasing out plan.

All segments and range of vehicles (Inclusive) and complete range of electric and hybrid (Mild, Strong, Plug-in, BEV) are covered (Technology Neutral).

Prioritization of vehicle segments based on two broad objectives of maximizing potential for fuel savings and potential for mass adoption.

Unique set of Technology Definitions for xEVs is recommended. While defining technologies, existing vehicular standards are used to ensure consistency with the regulatory framework.

Contd.

Tenets of Demand Creation

Setting-up Qualifying Criteria focusing on Quality (Safety and Emissions), Performance (Fuel Savings) & Value Addition (Localization)

Setting-up an e-Enabled Incentive Delivery Mechanism to create efficient and robust mechanism.

Setting-up an Impact Assessment Mechanism to corroborate benefits to the nation in terms of Return on Investments.

Setting-up a review mechanism to assess desirable levels of demand incentives based on evolving technologies, price levels and market adoption.

Demand Incentives – Methodology Incentives are arrived at using differential acquisition cost of xEVs and

ICE vehicle by applying a percentage factor based on TCO:

Percentage of delta cost between a xEV and its comparable conventional vehicle

2W 3W 4W LCV

Mild Hybrid 30% 20% 20% 20%

Strong Hybrid NA NA 25% 25%

Plug-in Hybrid 35% 25% 25% 25%

BEV 35% 35% 30% 30%

Vehicle Performance Qualifying Targets

(Qualifying Targets) 2W 3W 4W LCV

Mild Hybrid 10% 10% 10% 10%

Strong Hybrid NA NA 20% 16%

Plug-in Hybrid 22% 33% 33% 24%

BEV 55 Km 50 Km 70 Km 50 Km

Proposed Framework for Hybrid Retrofitting in In-use Vehicles

Apart from new sales of xEVs, focus on hybrid retrofitting of In-use Vehicles.

Based on available technologies, currently 4Ws are covered. Around 1 Million in-use 4Ws can be converted. However, the scope would be expanded if need arises.

Upto ~135 Million Liters or ~Rs 850 Crores of fuel savings per annum through retrofitting is estimated.

Incentive are derived in percentage terms of the price of a retrofit kit based on fuel savings improvement.

Upto 100,000 retrofit kits for 2 years.

Tenets of Supply Side Support Focus on promoting xEV vehicles through both “pull” and “push”

factors. Linking demand incentives with phased localization of xEVs.

Encouraging investments by the industry (both OEMs and Auto Component) to set-up domestic manufacturing units.

Fiscal support in terms of tax policies central to supply-side incentives.

Excise duty rebates with an objective to allow full utilization of Cenvat credit at each level of the supply chain (excluding commodities).

Import duty rebates at component / sub-assembly level for limited duration.

Others such as sales tax, corporate tax, accelerated depreciation etc.

Supply Side Incentives - Intent Excise Duty:

Hybrid vehicles to attract 1/3rd of the existing excise duty applicable on conventional vehicles or 2% whichever is higher.

Plug-in Hybrid (including Range Extender EV) and Pure Electric Vehicle (BEV) to attract 1/4th of the existing excise duty applicable on conventional vehicles or 2% whichever is higher.

Rebate on select list of critical xEV components and systems at a nominate rate with an aim to offset full Cenvat credit on raw materials and inputs.

Rebate on hybrid retrofit kits

Import Duty: CKDs and SKDs of xEVs at a concessional Import Duty reduced to 50% of

the existing duty structure – Components, CKD, SKD and CBUs. Full exemption on select list of critical xEV components and systems for

manufacturing of new xEVs. Full exemption on select list of critical xEV components and systems for

after sales services.

Technology Platform for E-Mobility

Methodology:➔ PPP in R&D➔ Cost sharing between Government & Industry➔ Mission based on Technology Readiness Levels (TRL) i.e. a)

Directed Basic Research b) Applied Research, Prototyping, Validation c) Pilot System Demonstration, d) Technology Maturation & Fleet Testing

Four Thrust Areas:➔ Energy, Storage & Charging Infrastructure;➔ Motors, Transmission, Power Electronics;➔ Systems Integration, Pilot Fleets, Novel Transportation

Solutions➔ Light weight structures, body control, recyclability etc.

Tenets of Charging InfrastructureCharging infrastructure is critical to address Consumers’ acceptability

Range anxiety

Optimizing the cost of the vehicles

Integration with renewable energy

Integration with smart grid

Implementation Plan Pilot Projects

Home Charging (90% demand)

Public Places – Judicious mix of normal and fast chargers

Establishing Technical Standards

Business models to encourage PPP mode

Tenets of Pilot Projects

Pilot projects are critical to address

Creating consumer awareness.

Getting real life feedback from consumers for refinement of products and solutions.

Charging infrastructure implementation challenges & analyze use pattern.

Evaluation of various business models.

Fine-tuning of various schemes under NEMMP 2020, based on the pilot feedback.

Pilot Projects : Status

• Government has approved 10 pilot projects to demonstrate and promote e-mobility.

• 10 different cities are targeted for implementation including Delhi, Bangalore, Hyderabad, Pune, Ahmedabad, Chandigarh.

• Salient features of Pilot Projects: – Focus on public transportation, end-mile connectivity and intra-city taxi fleet

will be the focus to build awareness.– SPV (a Govt. entity) will be formed which will purchase commercially available

hybrid and electric vehicles.– These vehicles will be made available to users / user organizations on lease

basis to run these on commercial basis. – The operating expenses minus the revenue earned will be borne by the Central

Govt. to support the viability gap.

• Various IDEAS are invited for taking up as Pilot Projects.

Society of Indian Automobile Manufacturers 16

• The scheme is submitted to Ministry of Finance and thereafter Cabinet for final approval.

• Roll out of the scheme expected soon!

Thank you for your kind attention!

Pavan SachdevaSr. General Manager, Mahindra & Mahindra

Society of Indian Automobile Manufacturers