India’s EV Revolution: E2W and E3W show the way
We in the media love to spot a revolution. A quick glance at today’s news shows me that we are in the throes of at least three. An OTT (Over-the-Top) revolution, a Khaadi revolution, and a “new green” revolution are all underway as I write. While I have no doubt that all these are trends of great import, I haven’t heard any news about people clashing on the streets over who will get to watch Netflix or wear a Khaadi shirt.
Or perhaps the kind of ‘revolution’ that the media reports refer to are what Merriam-Webster defines as the type of revolution that causes “a changeover in use or preference especially in technology.” Even if so, I wish experts were more diligent about using this term. That they would call an event or a trend a revolution only when it causes a real changeover, or as they say in consultant-speak, a paradigm shift.
Let me give you an example of what I mean from the world of manufacturing. For many years now, analysts have been telling us that the fourth industrial revolution (IR) has arrived in the country. Numbers, however, tell a different story. This year’s NASSCOM’s AI (Artificial Intelligence) Adoption Index, which covers industrial and automotive sectors, files our industry under the category of “enthusiast” on the AI maturity scale. Artificial Intelligence, as you know, is a key 4th IR technology. I’d argue that, while it’s great to be enthusiastic about a technology, we need a far stronger sentiment than that to start a revolution.
There is another one that has been in the news lately. This one concerns the adoption of EV, and I must confess that I have personally championed this one. “India’s EV Revolution. E2W and E3W Lead the Way” is the cover title that we chose for our current issue. And since I have made so much fuss about the use of the R word, I feel I owe an explanation to our readers about the use of the term.
First, let’s see whether the scale and the rate of EV adoption make it a “changeover in use or preference”. As per the recent data shared by the Ministry of Road Transport and Highways with the Parliament, a total of 13,92,265 Electric Vehicles (EVs)[1] were being used on the roads of India in the month of August 2022. During the same period, the total number of registered vehicles in the country was over 28 crore. These figures translate to a less than 0.5 percent EV adoption share. Clearly, this does not indicate a changeover, and certainly not a revolution.
What about the growth rate? Official data shows a threefold increase in annual EV sales in FY22[2]. A closer look, however, reveals that the increase is over a low base – FY21’s EV sales amounted to about 1.34 lakh. Other reports also show a low adoption rate. A recent Arthur D. Little study says that India has currently a low EV adoption rate of 2 percent. The report however points out that the true potential of the Indian market is 50 percent, which can be realized through collaborative stakeholder action.
It, therefore, emerges that our EV story does not make it a revolution. But I still stand by our decision to call it one. Because it has indeed unleashed a big change, one that is different and of a greater potential. This I realized during my recent visits, made after many years, to my native place.
My hometown, situated in the most populous part of the country, has undergone a transformation in a particular aspect. The city’s crowded, dusty streets, which not so long ago bustled with cycle-rickshaws pulled by frail, enervated men, and three-wheelers bellowing soot and smoke, looked and felt much cleaner this time. The reason: electric three wheelers (E3W). E3Ws have become the primary mode of shared transport in the city. And that has improved air quality and reduced noise pollution to a surprising degree. As importantly, it has become a major source of employment for the locals as well as the farmers who come from nearby villages looking for seasonal work. When you witness a transformation of this scale and significance in a region battling historically high levels of air and noise pollution and unemployment, you know that you are witnessing a revolution in the making.
That is why the title. Let us know your feedback.
Stay resolute. Stay safe.
Written by Aanand Pandey – Editor in Chief, Dynamic Manufacturing India
Register for Industry Samurai week conference – https://samuraiawards2022.exposim.io/
Apply for #Samuraiawards2022 – www.industrysamurai.com