A BUSINESS DISSERTATION ON “ELECTRIC VEHICLE AND THE IMPACT ON INDIAN AUTOMOTIVE INDUSTRY” Submitted to SCHOOL OF PETROLEUM MANAGEMENT PANDIT DEENDAYAL ENERGY UNIVERSITY GANDHINAGAR IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF Dr. SOMDEB LAHIRI Professor Submitted by BANSI NARENDRABHAI SAVALIYA [Batch: 2020-2022, Enrolment No.: 20201047] MARCH 2022 i DECLARATION I, BANSI NARENDRABHAI SAVALIYA student of MBA Batch 2020-2022 School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar hereby declare that the Business Dissertation entitled “ELECTRIC VEHICLE AND THE IMPACT ON INDIAN AUTOMOTIVE INDUSTRY” is a result of my own research work and any content taken from a any publications be it online or offline or any citations or any other related work has been cited in the bibliography section of the report and credit is given to the respective author of it. I would be responsible for any copied content or any other anomalies attached in this report. I assert that the statements made and conclusions drawn are the outcome of my own research work. I further declare that to the best of my knowledge and belief that this report of business dissertation does not have any content with regards to the award given at a university or any other diploma level course work. Place : Signature Date : BANSI NARENDRBHAI SAVALIYA ii PLAGIARISM DECLARATION I realize that copyright infringement is off-base. Copyright infringement is to utilize another's work and imagine that it is one's own. Thesis has critical new work/information as analyzed currently distributed or is getting looked at to be distributed somewhere else. No se ntence, condition, graph, table, passage or segment has been duplicated word for word from past work except if it is set under quotes and properly referred to. I have involved a perceived show for reference and referring to. Each critical commitment and ci tation from crafted by others has been ascribed, referred to and referred to The postulation has been actually looked at utilizing <Turnitin> (duplicate of inventiveness report joined) and found inside limits according to PDPU Plagiarism Policy and direct ions gave occasionally. I ensure that this accommodation is my own work. I have not permitted and won't permit anybody to duplicate this work determined to make it look like their own work. Place : (Signature) Date : BANSI NARENDRBHAI SAVALIYA iii TURNIT IN REPORT iv CERTIFICATE I certify that the work incorporated in this Business Dissertation titled “ELECTRIC VEHICLE AND THE IMPACT ON INDIAN AUTOMOTIVE INDUSTRY” submitted by BANSI NARENDRABHAI SAVALIYA was carried out by the student under my supervision/guidance. To the best of my knowledge: the student has not submitted the same research work to any other institution for any degree/diploma, Fellowship or othe r similar titles the Business Dissertation submitted is a record of original research work done by the student during the period of study under my supervision, and (iii) the Business Dissertation represents independent research work on the part of the stu dent. Place : (Signature) Date : BANSI NARENDRBHAI SAVALIYA v PREFACE In this venture is a piece of Second Year study, the last advance towards the fruition of the second year of the MBA course. The venture started in July 2020 and closed in April 2021. The investigation of the executives will be insignificant in the event that it isn't combined with such an exploration project, it permits the understudy to gain proficiency with the association among correlation and execution to test and confirm the use of speculations and help in examination of the board hypotheses and practice. It is to be sure a blissful second for me to introduce this report. Appropriate consideration was taken while getting sorted out the report with the goal that it would be straightforward and appreciate. It is without a doubt a cheerful second for me to introduce this report. Appropriate consideration was taken while getting sorted out the report with the goal that it would be straightforward and appreciate. During the arrangement of this undertaking report, various elements are thought about going from the store network issues in the present business rehearses in the car area and from the start to finish conveyance pattern of a business. In this project I have made specific suspicions in light of the normal rationale and the vital patterns in the market of car industry as well as the semiconductors business. The driving grid in this task accentuates on the ROI computation for clients to reception on the EV and the production network issues and furthermore arising organizations like BAAS where battery as an assistance can disturb the present fuel market assuming there is a significant change in outlook. vi ACKNOWLEDGEMENT No extraordinary undertaking is achieved and effective without some assistance. Each assignment needs some direction, support, and help for its fruition and satisfaction. I might want to make a move to thank all who contributed straightforwardly or by implication in anticipation of this exploration and direction during my Business Dissertation. It is my devout obligation to convey the School of Petroleum Management for allowing me an opportunity to embrace my business exposition in learning and troublesome environmental factors. At last, I might want to stretch out a statement of gratitude to my staff coach Dr. Somdeb Lahiri and all the employees who directed me all through the venture. I owe regardless of what I have realized and that I am profoundly compelled by a solemn obligati on to him for giving me the driving force and hence the help of their esoteric data and ability. Best Regards, Bansi Narendrabhai Savaliya vii Table of Contents DECLARATION .............................................................................................................................................. ii PLAGIARISM DECLARATION .................................................................................................................. iii TURNIT IN REPORT .................................................................................................................................... iv CERTIFICATE ................................................................................................................................................ v PREFACE ........................................................................................................................................................ vi ACKNOWLEDGEMENT ............................................................................................................................ vii Table of Figure ................................................................................................................................................. 9 CHAPTER -1 ................................................................................................................................................. 10 I) Introduction ........................................................................................................................................ 11 II) Theoretical Framework and Research .......................................................................................... 15 a) Regression Analysis to determine the impact on demand ....................................................... 15 b) Correlation Analysis top state wise ............................................................................................ 17 CHAPTER – 2 ................................................................................................................................................ 19 I) Literature Review ............................................................................................................................... 20 CHAPTER-3 .................................................................................................................................................. 22 I) II) Auto Industry Supply Chain ............................................................................................................. 23 Challenges in Auto- Supply Chain ................................................................................................ 24 CHAPTER-4 .................................................................................................................................................. 28 I) EV Introduction Framework ............................................................................................................. 29 II) EV Impact on India ........................................................................................................................ 31 III) EV Supply chain India.................................................................................................................... 32 CHAPTER-5 .................................................................................................................................................. 33 I) EV Supply Chain Challenges and Solutions .................................................................................... 34 Conclusion ...................................................................................................................................................... 41 Bibliography ................................................................................................................................................... 43 8 Table of Figure 1.1 EV TRADE-OFFS VALUE CHAIN ............................................................................................................... 13 2.1 EV SUBSIDIES EFFECT .............................................................................................................................. 20 2.1 EV SUBSIDIES EFFECT .............................................................................................................................. 20 3 EV BATTERY REPLACEMENT SURVEY ........................................................................................................ 21 4AUTO INDUSTRY SUPPLY CHAIN .................................................................................................................. 23 9 CHAPTER -1 10 I) Introduction 11 vehicles by 2030. Regardless, the auto business raised stresses over the execution of such a game plan. The public expert in this manner debilitated the plan from 100 percent to 30 percent. Green vehicles, similar to electric vehicles (EVs), are getting indispensable reput ation among buyers all over the planet. The inspiration driving this paper is to spread out EVs as a potential long stretch response for the destiny of development in the vehicle business, which can reduce the current dependence on non-sustainable power sources and moreover decline ozone hurting substance (GHG) outpourings. (Nadia Adnan, 2016) As a piece of long stretch advantages, the gathering of EVs gives innocuous to the environment headway to society. Despite sure natural repercussions, irrefutably the quantity of EVs being used is at this point lacking. One of the critical explanations behind this pathetic gathering of EVs is generally dependent upon the perspective on clients regarding EVs. In any case, this particular assessment focus on offers an extensive plan on the current deterrents for client gathering of EVs as well as a design of the speculative perspectives that were created for the gathering conduct, as well as contemplating buyer assumptions toward EVs. In this particular audit, the expert saw that the composition regarding EV gathering endeavoured to address simply the scattering method for EVs. (Nadia Adnan, 2016) However, this study highlights purchaser improvements, which gives a wide comprehension on customer sentiments to disregard the huge perspective in client EVs' gathering research. The subject of this particular composing can be executed to all the more probable get the clients' sentiments and lead towards the gathering of EVs. The scientists further communicated that there is an expected justification behind later headways inside the mechanical gathering part that can assist with being a standard for approaching new developments. (Nadia Adnan, 2016) All through the past couple of years, data with respect to the issues enveloping the gathering and scattering of EVs has gained less thought. This study develops this line of assessment by focusing in on creating an open door for cultivating the speculative designs similarly as adding 12 sentiments in a psychological perspective where customer lead and ethics are considered. (Nadia Adnan, 2016) 1.1 EV Trade-Offs Value Chain While EV has substantial benefits in global eco system, the current manufacturing trend seems to be more robust than ever with INR 90,174 Crore worth of Capex in the Oil sector and with INR 98,027 Crore worth of Internal Combustion Engine worth of powertra in activity with over 1.6 Lakh in jobs provided across the country in the traditional fuel environment. Due to the launch of EV segment the traditional fuel lines have incurred losses in their business activities which amounts to 1.1 Lakh Crore. Although looking at the bright side there are many ways to capture the forgone market with the implementation of EV and their charging stations across the country. 13 While further recycling activities of batteries and the construction of giga -factories can ensure to employ more human resource and their distribution and sales of electricity measurement can prevent the capex leakages incurred in the traditional fuel businesses. But to ensure this it would take much time to explore this area in the near future. 14 II) Theoretical Framework and Research a) Regression Analysis to determine the impact on demand Following table consists of major cities in India and their population data, average income or per capita income of that particular city and the t otal or number of vehicles in that city. The data is taken with the reference of the year 2020 to serve as the benchmark for future references. City Population In lakhs Average Income In Lakhs Total Vehicle In Lakhs Delhi Mumbai Surat Bangalore 311.81 206.68 69.36 127.64 3.54 1.88 4.57 3.2 120 39 21.88 82.35 Table 1 Table-1 consist the data of major cities and their respective properties. Now in order to determine which factor affects the most for generating the demand in any particular region, regression analysis is performed . Here the regression analysis would benefit to identify which factor has the most impact for any given region to have the upper-hand while driving the demand. Demand related to the region reflects the business probability and factors such as per capita income would help any businesses identify the pricing strategy of the product. Population data on the other hand gives the businesses the idea about the purchasing power parity when combined with the average income. Population data has the significant impact on any given decision making while launching a new product into the market. 15 Following analysis suggest the most impactful factors affecting the total vehicles i.e., the vehicle sales. The interpretation of this data does not include any variables factors like government policies. SUMMARY OUTPUT Regression Statistics Multiple R 0.800924701 R Square 0.641480377 Adjusted R Square -0.07555887 Standard Error 45.83095426 Observations 4 ANOVA df Regression Residual Total Intercept Population In lakhs Average Income In Lakhs 2 1 3 SS 3758.272307 2100.476368 5858.748675 MS F Significance F 1879.136153 0.894623801 0.598765082 2100.476368 Coefficients Standard Error t Stat P-value -40.84960783 117.3756037 -0.348024688 0.78678713 Lower 95% Upper 95% Lower 95.0% Upper 95.0% -1532.248059 1450.548844 -1532.248059 1450.548844 0.368176129 0.275648336 1.335673324 0.409129845 -3.134268061 3.870620319 -3.134268061 3.870620319 12.37316852 26.06823931 0.474645348 0.717876261 -318.8552172 343.6015543 -318.8552172 343.6015543 Table 2 The summary of this data suggests that the R -Square value to be of 0.64 meaning it captures 64% of the factors affecting the total vehicles. The co -efficient of the data “Population in Lakhs” has the least impact on this analysis suggesting that to drive the total vehicle sales the population is least involved whereas the co-efficient “Average Income in Lakhs” is highly relevant with the score of 12.37. 16 b) Correlation Analysis top state wise The current factors are also depended on other factors which has the co -relation with the demand generation. In order to determine the other affecting factors of driving the sales of EV, more data points with respect to the states are taken. Below mentioned data suggest the co-relation factors of with respect to the total vehicles owned in given particular states. The data points taken for this analysis are of the year 2020 in order to have the robustness in the analysis. Currency Rate (INR/USD) Currency Rate (INR/USD) Petrol Vehicle Diesel Vehicle CNG Vehicle Electric Vehicle Diesel Price CNG Price Petrol Price Petrol Vehicle Diesel Vehicle Electric Vehicle Diesel Price CNG Price Petrol Price Number of Charging Station Electricity Price Income Population Total Vehicles 1 #DIV/0! 1 #DIV/0! 0.79015316 #DIV/0! 0.3786064 1 0.5250977 1 #DIV/0! 0.77472089 0.89427469 0.09496533 1 #DIV/0! -0.14631795 0.21430828 -0.56158429 0.49421338 1 #DIV/0! 0.58596976 -0.02511953 0.05526083 0.02252619 -0.63858322 1 #DIV/0! 0.18101245 0.69723002 0.07345917 0.72413785 0.78128748 -0.67191777 Number of #DIV/0! -0.05633878 0.311251 Charging Station Electricity Price Income Population Total Vehicles CNG Vehicle 1 0.88230625 -0.12861053 -0.35351511 -0.37377952 0.20043232 1 #DIV/0! -0.18560328 0.1232546 -0.65369236 0.43971455 0.99326069 -0.5908726 0.70438564 -0.44750089 1 #DIV/0! -0.98154209 -0.71503243 -0.47424385 -0.64396344 0.33270425 -0.67831093 -0.02501493 -0.02040547 0.36952953 1 #DIV/0! 0.9951865 0.72702147 0.32811316 0.73306677 -0.18502203 0.6579513 0.09853256 -0.12468164 -0.21389912 -0.98387269 1 #DIV/0! 0.99521571 0.8462371 0.41484868 0.81492785 -0.09504431 0.50574026 0.2675301 0.00258498 -0.14382204 -0.96759423 0.98093386 1 Table 3 Above shown data suggest that the total vehicle sales of any state are most impacted by Petrol vehicle sales followed by diesel vehicle sales and so forth. This means that majority of the sales driven in the year of 2020 was in fact due to the petrol and diesel where as EV is also impacting strongly but then again, the volume of it seems to be low as compared to other factors included in the analysis 17 The data presented here is impactful only to the region of cities and following data is calculated to ensure the demand generation from major states whose per capita consumption is high or they have the higher number of vehicles per sq. Ft. State Gujarat Mahrashtra Karnataka Uttar Pradesh Gujarat Mahrashtra Karnataka Uttar Pradesh State Gujarat Mahrashtra Karnataka Uttar Pradesh Petrol Vehicle Diesel Vehicle CNG Vehicle Electric Vehicle 10,38,792 17,35,620 12,45,528 23,43,384 9,59,808 14,92,728 9,90,792 21,41,220 1,49,616 3,08,604 1,74,900 3,37,176 1,30,260 2,65,092 1,55,880 2,41,584 Forecast 23,676 27,468 1,802 25,548 44,436 54,636 10,104 40,608 Year 3,432 25,164 31,884 62,760 28,656 98,028 74,088 1,03,020 2020 2020 2020 2020 2021 2021 2021 2021 Petrol Vehicle Diesel Vehicle CNG Vehicle Electric Vehicle Year 8,80,824 12,49,836 7,36,056 19,39,056 1,10,904 2,21,580 1,36,860 1,45,992 65,196 81,804 18,406 55,668 53,880 1,70,892 1,16,292 1,43,280 2022 2022 2022 2022 Table 4 The above data points are to be taken in order to determine the demand of the vehicles in India. The data points taken are of past two years and the forecasting of it is calculated on the same. While the data points show the rise in EV segment it is yet to discover the impact of government policies and regime change to affect the projected demand. The current state wise projection o f EV suggests the almost 90% increment in sales of EV for Gujarat while Maharashtra suggests 73% increment in EV sales, Karnataka suggests 56% increment in EV sales and Uttar Pradesh suggests 40% increase in the EV sales. 18 CHAPTER – 2 19 I) Literature Review The literature review of the topic “ELECTRIC VEHICLE AND THE IMPACT ON INDIAN AUTOMOTIVE INDUSTRY” includes the secondary research based on the consumer’s behaviour towards the EV to map the demand and supply gap for the current year and consumer perception of the adaptability. The review consists of the sample size taken prominently from the one geo-graphical location i.e., Gujarat and it may have biasness towards one prospective. The goal of this review is to determine whether the traditionally fuel vehicles or vehicles running on Internal Combustion Engine has negligence towards the electri c vehicle segment or vice-versa. Following is the data gathered from the secondary research , Sample Size – 62 2.1 EV Subsidies Effect The response here indicates the government policy and its changes with respect to the EV segment. While currently government3.1isEVproviding subsidies to the self -sustaining electricity Subsidies Effect generating equipment and on the Electrically powered vehicles, the change in the policy of it makes a huge in the decision making. 20 While the data indicates that government subsidies play a major role for buying an EV the upcoming projections on the EV from the government’s side seems positive and there is yet to be any plan for removal of such financial benefits. These financial benefits tend to play a strong role, the other factors for capturing the demand. One such challenge in EV is the battery replacement w here it needs to be changed on the span of every 5 years or so. To tackle this scenario first we need to identify whether the market is willing to go for an option where battery is to be replaced and its costing. Following survey shows the part where battery replacement can become an issue. Sample Size – 62 4 EV Battery Replacement Survey 21 CHAPTER-3 22 I) Auto Industry Supply Chain The current supply chain model of traditionally fuelled vehicles is very robust and they are following many supply chain models like Hub and Spoke model t o ensure the integrity of the part as well as speedy delivery, Kaizen to make sure that the product is of highest quality and Poke Yoke to ensure the mistake -proofing. 5Auto Industry Supply Chain The current supply chain consists of procurement of raw material and then validation of that raw material to ensure the quality grade. Then it is further procced in the line haul to ensure the parts are procced carefully and the structure is epitomized. Now this structure goes through various quality checks and then it is further proceeded to distributor. Now this supply chain like every other focus on the demand and supply rule and advance stocking is done based on the market volatility of the availability of the raw materials and forecasting. 23 II) • Challenges in Auto- Supply Chain Appalling Detectable quality and Guiding of Parts Results in Delays to Auto Gathering (Bluemeglobal, n.d.) The standard vehicle has around 30,000 individual parts. Those parts is either conveyed in house or gotten from an unapproachable provider. A deferral in just one piece of the stock affiliation can limit the social event and disseminating of central parts, achieving the creation line getting shut down. (Bluemeglobal, n.d.) As vehicle trained professionals and brands move towards without a second to speak of making, any impact on the smooth turn of events and spread of vehicles suggests stock inadequacies and pay event. Auto supply should chain administrators can work magnificently with colossal number of makers and suppliers to streamline parts social event and advancement. (Bluemeglobal, n.d.) • Work on Vehicle Parts Distinguishable quality, Stock Association and Directing Through the Creation association (Bluemeglobal, n.d.) Coordinate all providers and parts creators onto a typical vehicle referencing and store network stage. This increments recognizable quality for a major issue of view on parts and contemplates the early clear confirmation of delays or different issues. (Bluemeglobal, n.d.) Track truly where vehicle parts are continually utilizing IoT and unde fined advancement. These contraptions can show the area of parts and things and when they are depended on to show up. Smooth out the improvement of parts between vehicle providers, producers and various untouchables. This awards everybody in the auto stock relationship to be ready to get and control parts rapidly. (Bluemeglobal, n.d.) Utilize quick and prescriptive evaluation and mechanized thinking appearing to see the value in the lucid future premium for vehicle parts and vehicles considering purchaser requests, outside wagers and different parts. (Bluemeglobal, n.d.) 24 • Effect OF External Factors (Bluemeglobal, n.d.) The worldwide idea of the auto business makes it exceptionally delicate to outside political, monetary, ecological, commercial centre and different variables. Duties, economic agreements and political moving can essentially modify the expenses to import and commodity parts and vehicles. Ecological debacl es can disturb huge pieces of the auto inventory network. Changing customer requests with a shift to more electrical vehicles and better eco -friendliness imply that purchasing patterns are being disturbed. (Bluemeglobal, n.d.) Auto inventory network directors need early sight of these dangers so they can comprehend the logical effect and plan in like manner. (Bluemeglobal, n.d.) • Present Convincing Put everything at risk for the Most possible and Enorm ous Probably Issues (Bluemeglobal, n.d.) In any case each vehicle creator will organize wagers startlingly, there are a couple of rules store network chiefs can keep to diminish surprising results: (Bluemeglobal, n.d.) Lead an expansive bet undeniable demand and prioritization exercise to glance out all of the potential issues that could hit the auto stock association. Focus in on these dangers by the effect they could have, the probability of them occurring and the straightforwardness with which they can be formed or settled. (Bluemeglobal, n.d.) Get likelihood and risk offset plans set up with key vehicle parts providers and creators. This could merge support conveying, elective made factors suppliers or in any case, moving an endeavor to various nations to exploit appraisals or cash related stunt . (Bluemeglobal, n.d.) Investigate the vehicle business obsession to see unequivocally the way that buyer requests are making. Combine these disclosures into everything considered construction and see unequivocally the way that these openings channel down into the stock connection. (Bluemeglobal, n.d.) 25 • No Plant visibility and High fixed variables Vehicle makers have high fixed and variable costs commonly through the stock affiliation. Costs include: I) Investments in equipment, robotization and creation lines (Bluemeglobal, n.d.) II) High staff pay by honesty of unequivocal endpoints and unionization III) Retirement and annuity charts for arranged specialists (Bluemeglobal, n.d.) IV) Research, improvement and other forward -looking limits (Bluemeglobal, n.d.) V) Utility costs to run stuff and shield a s trong and work area (Bluemeglobal, n.d.) VI) Commodities costs for buying steel, aluminum, flexible, surfaces and other harsh parts VII) Third-party costs from vehicle suppliers, producers and tasks providers (Bluemeglobal, (Bluemeglobal, n.d.) n.d.) • Demand Deep Visibility and Accurate Cost Controls Throughout the Automotive Supply Chain (Bluemeglobal, n.d.) I) Fortunately, with the right approaches, appearing, progress and assessment, it's achievable to absolutely appreciate and control vehicle supply and assembling costs: II) Get liberal procedures and frameworks set up with all internal and outside auto parties that unequivocally depicts costs, gives cost controls and requires investigating meeting those objectives. (Bluemeglobal, n.d.) III) Run monetary appearance and assessment that considers the complete fixed and variable expenses related with building express vehicles. (Bluemeglobal, n.d.) IV) Use sharp assessment to see how vehicle costs will change subject to inside and outside parts. (Bluemeglobal, n.d.) V) Audit surveying and costs if all else fails to guarantee everything is concurred with your appearance, approaches and anticipated cost controls. (Bluemeglobal, n.d.) 26 • Inferior quality manufacturing (Bluemeglobal, n.d.) We in general remember the issues a couple of vehicle associations have had with auto audits all through the long haul. (Bluemeglobal, n.d.) A shortfall of oversight and evaluating in the store organization can incite issues with quality, achieving vehicles not continuing exactly as expected. This hurts reputations, harms pay and results in inadequacy and waste. (Bluemeglobal, n.d.) • Present Stringent Quality Reporting and Visibility for Automobile Suppliers and Manufacturers (Bluemeglobal, n.d.) This is an issue with vehicle stock union obvious quality, and you can use various cycles to deal with the issue: (Bluemeglobal, n.d.) I) Agree with suppliers and makers that they will arrange inside quality association checks and systems on key parts and gathering processes. (Bluemeglobal, n.d.) II) Arrange to no end, external outlines of suppliers and makers to ensure adherence to quality standards. (Bluemeglobal, n.d.) III) Implement broad pack control and following to see the wellspring of potentially broken parts. (Bluemeglobal, n.d.) 27 CHAPTER-4 28 I) EV Introduction Framework An electric vehicle (EV) is one that chips away at an electric motor, rather than an internal combustion engine that produces power by consuming a mix of fuel and gases. In like manner, for instance, vehicle is considered to be an ordinary exchange for stream age auto, to conclude the issue of rising contamination, unnatural atmospheric conditions change, depleting regular resources, etc Regardless the o pportunity of electric vehicles has been around for a long time, it has drawn in a tremendous heap of interest the past decade amidst a rising carbon impression and other common impacts of fuel -based vehicles. (Business Standard Electric Vehicle, n.d.) In India, the major tremendous decision to help electric vehicles was taken in 2010. As displayed by a Rs 95-crore plot kept up with by the Help of New and Harmless to the climate power (MNRE), the public power announced a money r elated nudging force for producers for electric vehicles sold in India. The arrangement, convincing from November 2010, imagined inspirations of up to 20 percent on ex -present day office expenses of vehicles, subject to a most insane limit. Taking everything into account, the sponsorship plot was in this way taken out by the MNRE in Walk 2012. (Business Standard Electric Vehicle, n.d.) In 2013, India uncovered the 'Public Electric Convenientce Mission Plan (NEMMP) 2020' to make a tremendous shift to electric vehicles and to conclude the issues of public energy security, vehicular ruining and improvement of neighboring social occasion limits. At any rate the arrangement was to offer sponsorships and make supporting establishment f or e-vehicles, the procedure regularly remained on papers. While presenting the Affiliation Cash related strategy for 2015-16 in Parliament, then, finance serve Arun Jaitley bare essential faster collecting and assembling of electric vehicles (Reputation), with a mystery cost of Rs 75 crore. The arrangement was announced with a craving to offer inspirations for clean -fuel headway vehicles to help their approaches to up to 7 million vehicles by 2020. (Business Standard Electric Vehicle, n.d.) 29 In 2017, Transport Minister Nitin Gadkari said something showing India's motivation to move to 100% electric vehicles by 2030. Regardless, the vehicle business raised stresses over the execution of such a course of action. The public power thus disabled the plan from 100 percent to 30 percent. (Business Standard Electric Vehicle, n.d.) In February 2019, the Coalition Office cleared a Rs 10,000 -crore program under the Acknowledgment II game-plan. This game-plan came into force from April 1, 2019. The fundamental objective of the arrangement is to interface with a faster collecting of electric and cross variety vehicles by offering direct inspirations on securing of electric vehicles what's more by spreading out immense charging structure for EVs. (Business Standard Electric Vehicle, n.d.) 30 II) EV Impact on India 31 III) EV Supply chain India The Indian Electric Vehicle (EV) Market is Parceled by Lift Type (Battery Electric Vehicle, Module Electric Vehicle, and Power contraption Electric Vehicle), Vehicle Type (Voyager Vehicles, Business Vehicles, Bicycles, and Three -wheelers) and by Relentlessly parts type (Battery Pack, Motor and Controller, Battery The board Structure, Controlling and Suspension, Tires, and Various Parts). The report offers market size and measure for India Electric Vehicle in regard (USD million) for all the above sections. (Mordor Intelligence, n.d.) The Indian Electric Vehicle Market was regarded at USD 1434.04 billion out of 2021 and is depended on to show up at USD 15397.19 billion by 2027 choosing a CAGR of 47.09% during the gauge time span (2022 - 2027). (Mordor Intelligence, n.d.) The Covid pandemic had bound furtively made electric vehicles inferable from finish of get together work spaces and lockdowns. Notwithstanding, as endpoints worked with EV saw sure movement as clients inclined towards sensible eco -obliging transportation stayed aware of by assemblages’ redesigns. (Mordor Intelligence, n.d.) At any rate Covid pandemic achieved lockdowns and stock affiliation impedances growing petrol and diesel costs, government inspirations and development in spending for setting up charging establishment in the country resolved to drive income in the country. For instance, In FY 2020, around 152,000 units of electric bicycles were sold in the country when stood separated from 126,000 units sold in FY 2019. (Mordor Intelligence, n.d.) In the electric bicycle piece, electric cruisers and bicycles are strik ing modes, as like standard bicycles, they are on the whole the more obvious to investigate through impeded roads, similar to a critical piece of the time what's happening in India. As per a speed viewpoint, low speed up (to 25 km/hr.) and medium speed ele ctric bicycles (up to 40 kmph) with standard lead -terrible batteries projected to overpower the market over truly investigate period. (Mordor Intelligence, n.d.) 32 CHAPTER-5 33 I) EV Supply Chain Challenges and Solutions 5.1) Challenge - THE BATTERY CONUNDRUM Supply chains face a short block to getting the energy point of assembly for EVs. Raw parts are mined peculiarly in express area of the planet, making bottlenecks when EV creation is slanted up. (DHL.com, n.d.) Batteries and electronic parts are truly acquired from Asia, generally from countries like China, Japan and Korea. With EV volumes expected to help, we truly need to utilize India’s resources and goliath vehicle modes proposing to move these Dangerous Thing, while at the same time managing the complexities of managing parts for different EV arrangements and rule hindrances. (DHL.com, n.d.) There is furthermore no standard battery size. Lithium -iota batteries, one of the more ordinary sorts, come as battery cells, modules, and packs. More settled organizing through automakers is typical as remarkable equipment producers (OEMs) have different getting s tructures for the entirety of the three. (DHL.com, n.d.) Battery creation is whirled around Asia - and that prescribes various areas might need to place assets into battery get-together to keep their stock chains strong. (DHL.com, n.d.) German automaker Daimler, for example, immediately unique by building new battery manufacturing workplaces in Beijing, China, and Tuscaloosa in Alabama all through the farthest down the line a couple of years to cement what's going on in those business locales. (DHL.com, n.d.) 34 5.1.A) Solution – BAAS (Battery as a Service) The proposed policy will introduce disruptive business models such as Battery as a Service (BaaS) so that Electric 2-Wheeler & 3-Wheeler customers need not own the battery, which will save 50% of Total cost of vehicles & making it much cheaper the ICE engine vehicles. (Roy, 2022) The proposed policy will introduce disruptive busin ess models such as battery as a service (Baas), leasing etc. This policy will provide EV owners flexibility to swap batteries at swap stations within minutes and charge them at home. The pilot phase will initially target LCV with shared mobility & delivery vehicles & have same Battery designs but going forward will be expanded to larger Fleet of vehicles & different Battery manufacturers bringing them all under the same roof. (Roy, 2022) The challenges are many such as1) Creating Swap stations or using existing Infrastructure (GAS/Petrol stations) as Battery Swapping stations. (Roy, 2022) 2) Battery Component alignment as most battery differ in some or other way in terms of Vehicles. (Roy, 2022) 3) Quality of Battery which User will get after Swapping & how many existing players (Sun mobility & Battery Smart) are ready to contribute to such plan. (Roy, 2022) Looking at current challenges & Infras tructure space scarcity specially in metros this looks a viable option if implemented & succeeds in Phase manner as this will not only reduce cost but also save time for charging which will definitely boost Sales of EV's. (Roy, 2022) 35 5.2) Challenge – CHARGING PROBLEM one of the essential hardships of bearing witness to EVs is the difficulty owners have finding charging ports to control their vehicles. Fundamentally in the current conditions, EV charging ports are not as inevitable and actually accessible as petrol or diesel siphons. EV owners will if all else fails live with a steady uneasiness toward running out of battery power on monster distance drives wherein there are no charging centres open nearby. As required, they need to plan their drives reviewing the level of power in their vehicle, charging time and straightforwardness of charging ports where they will loosen up to. (Joshi, n.d.) This is a beast obstruction as it limits the ge neral party of EVs what's more puts various owners off purchasing EVs. Enduring law -making bodies or affiliations can resolve this issue, the get together of EVs can be totally accelerated. To deal with this issue of charging port openness, the opportunity of blockchain-based P2P EV charging can be used. This thought solidifies the use of blockchain for EV charging through power trading. (Joshi, n.d.) EVs are significantly less hazardous in mechanical terms, The electric motors that power EVs contain evidently less parts than a standard ICE. Beyond question, the UBS Get -together isolated the Chevrolet Bolt's engine with a four -chamber internal combustion engine and found that the electric motor had three complex parts, went from the ICE's 113. (Joshi, n.d.) Besides, most EVs have single-speed transmissions and have no requirement for super or superchargers to give additional oxygen to the engine or fumes systems to crash waste gases. (Joshi, n.d.) 36 5.2.A) Solution – POWER TRADING EV owners could have their own private charger that associates with them to drive their vehicles. Blockchain applications license vehicle owners to trade power by giving their private EV chargers to people who need them. Through unequivocal motorized P2P charging stages, owners can make their chargers open to the general individuals during the times when they're not using them. (Joshi, n.d.) The possibility of blockchain for EV charging expands how much charging locale. Besides, P2P EV charging requires no immense really considers being made as the current plan that would have been inert regardless is being utilized. (Joshi, n.d.) EV makers who put assets into building such plans can get a succinct key situation over various carmakers as EVs will be the norm, and not the remarkable case, from here on out, endlessly. (Joshi, n.d.) 37 5.3) Challenge – BATTERY OVERHEATING In the recent events of battery charged vehicles, there are many incidents of overheating of the battery. Particularly this problem happens on the vehicles where load carrying capacity is high and they are high performance engines. This problem seems to be due to the inefficiency of the insulation protection provided to the outer surface area of the battery. The insulation helps the battery to maintain its temperature and to work efficiently. Every 10°C rise in the temperature halves the insulation cover and then the battery is exposed to the heating. These leakages can make the car to be inefficient and ultimately leading to the motor failure of the vehicle. If the battery is subjected to the overheating and it goes beyond its threshold capacity to hold the temperature then it starts to burn. The current EV segment uses Li -ion battery where Lithium is the core component and it is liquidizing via a solution. The anode and cathode of such batteries are to be monitored closely and the result is that if the temperature rises then the chemical instability also rises in the battery, leading to the failures. Now this fire is also tricky to extinguish as it is a chemical fire and normal fire extinguishers are not much efficient due to the chemical rising the spread and it leads to a catastrophe. One such reason of overheating is overcharging of the vehicle, if the vehicle is overcharged then the remaining energy gets converted into heat and causes a thermal runawa y, in the EV is parked at one’s house then it might lead to property damage or worse, harm to human life. 38 5.3.A) Solution – SOLID STATE BATTERY Strong state battery advancement ought to be the knight in sparkling cautious layer for the electric vehicle change, as it steps in to reduce the expense of batteries and make living with a module vehicle particularly like a gas -powered motor (ICE) just better. (Winton, 2021) The difficulty is, the schedule for get-together returns to slip and a mass market -organized thing isn't conceivable these ten years, permitting time for different plans like power modules to make up lost ground. (Winton, 2021) Strong state batteries guarantee fast , inevitable charging, and enough ability to beat ICE vehicles in the city, however making progress toward outcome of expressways too on the basic distance rush to the mid-year sun. (Winton, 2021) Strong state batteries are a work underway right now and the date for a potential fruitful show fades away as one issue is dealt with indisputably to reveal one more in a sort of imaginative whack-a-mole game. From a standard unavoidable show, the show date for mass business regions has subsided beyond 2030 for specific inspectors, and this suggests something horrendous for electric vehicles since they should be truly reasonable by then for normal subject matter experts. (Winton, 2021) Considering everything, by 2030 nations like Britain will have blocked the proposition of new gas and diesel vehicles, and enormous social occasion nations like Germany, France and Italy could well oblige them, no matter what the way that Germany's new association has held off for the time being. 39 Tolerating there are no new electric vehicles costing as much as the most reasonable ICE ones - say €10,000 ($11,200) - by 2030, a titanic number of individuals will be excused from the market causing them much strain as they hang on for the vehicle. Makers will not be cheerful either as their plans are annihilated. (Winton, 2021) 40 Conclusion Electric vehicle is the hot topic in the current automotive industry and while it has its merits it also has some demerits which drags them down. EV is the future in terms of whether a person is thinking about the climate change and its effect or for econo mic reason as it is much cheaper fuel as compared to traditional fuel vehicles. The current automotive scenario has many moving parts like volatility in the fuel prices, raw material shortages, demand shortages and many more. Electric vehicle whilst solvi ng that helps the environment. EV gives you the flexibility to charge your vehicle anywhere and that portability of charging your vehicle at home might seem a convenient and an efficient option but the turn around time taken for this activity is vey high. On an average it takes approximately 7 -8 hours to fully charge a two-wheeled electric vehicle and approximately 15 hours to charge the four -wheeled vehicle. Even though the problems seem to be many in EV their plus factor being that they are ecological and economical are their greatest forte and seems to overwhelm their lagging in other areas. But looking at a broader picture, currently India does not have enough electric charging stations, which causes the likelihood of EV to grow at a very neutral mann er. If the shortcomings of current EV are to be addressed rapidly and are to be worked on precisely then there is no other alternative or no other superlative of traditionally fuel vehicles then electric vehicle. Also the challenge of battery replacement and the risks attached with battery is very high. India being a tropical region it faces many weather changes and if at a higher temperature EV stops to work or even worse harms the human life or does property damage then it would seem that we are many years behind to completely adapt to EV. One of the key success factors for the current growth in the adaptation of the EV is related to the government policies attached to it. While the government is pushing the consumers to buy an electric vehicle is seems like a noble idea, but what if the grant/subsidy is recalled. 41 While the current scenario of rapid growth of EV majorly constitutes to the government policies, another factor is the price benefit that a consumer would get after buying an EV. The cost of charging an EV is way cheaper than filling your petrol tank and in terms of milage, it also constitutes to a healthy margin in favour of EV. In the current supply chain scenario of India where many disruptions happened due to covid, if India wants to push towards a more cleaner, greener and sustainable transportation mode then the shortcomings of the EV is to be addressed on the priority basis. 42 Bibliography 1. Bluemeglobal. (n.d.). Retrieved from bluemeglobal.com: https://www.blumeglobal.com/learning/automotive -supply-chain/ 2. Business Standard Electric Vehicle. (n.d.). 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