Speaker 1: Hello friends, if we talk about the automotive industry, we can say that the era of electric vehicles has arrived. That is, the conventional diesel or petrol-based vehicles are now being replaced by electric vehicles. However, a lot of research and development is taking place in this field. And we often hear about various new technologies. So, if we talk about the current scenario, it seems that the market of electric vehicles is slowly going to replace the conventional diesel or petrol-based vehicles. So, in this program, we will discuss and try to understand that the EV market has become a very large segment in many countries and is also growing a lot in India. So, if we talk from an Indian perspective, how much EV penetration has happened in India so far? What are the big players and what is the government's policy on this? What are the challenges in front of India for the EV market and what can be the solutions for it? So, we will discuss this in this program. So, friends, if we talk about the EV market, there are a lot of big players globally. If we take the name of a big player, Tesla, you must have heard the name. After that, there are Chinese companies like BYD, Ford, Audi, and China's NIO. So, friends, there are hundreds of companies like this that are dominating globally. Now, if we talk about big global players in the EV market, there is no one from India who is coming in the top 10. So, let's move ahead and first we will take some important news coverage. And we will try to know that what is the prediction of the industry and different institutions about the EV market in India. So, friends, the first news is about the Business Standard. It is the news of September 12. So, when I am recording today, it is September 12, 2024. And this is the latest news of today. So, what does the Business Standard say? EV sales in India to grow at 35% annual volume may cross 27 million by 2032. This is what the Business Standard says. So, friends, they believe that India's growth, CAGR, Compounded Annual Growth Rate will grow at 35% and it is expected to reach 27.2 million units, i.e. 2.7 crore units by 2032. And what you are seeing here is also today's news. Nitin Gadkari, our Union Transport Minister, says that India's annual EV sales to hit 1 crore by 2030. He also believes that by 2030, India's EV market alone will produce 1 crore cars. And he also believes that EV will create 5 crore jobs in India. And this market will provide an opportunity of 20 lakh crores in the financial term. Let's take another news, friends. And according to this, India's EV market to grow 66% in 2024. So, for now, only 2024 is going on. So, it is to be said that in 2024, there will be a growth of 66%. And by 2030, one third of the total sales will come from EV sales. That is, all the passenger vehicles that are going to be made by 2030, it is believed that one third of them will be EV vehicles. Now, if there is hope for growth in India in this way, which the Indian government and various institutions are saying, then many players are also thinking of investing in India. And a big name comes out of this is Tesla. So, friends, Tesla had already planned. Some things were not sitting properly. But still, how long will it stay outside? After all, one day or the other, it has to come to India. You cannot neglect India. So, friends, this is also today's news in business. It is the news of 3.40 pm on September 12. They say that Tesla may invest $2 billion for manufacturing in India, but with conditions. So, anyway, these are their conditions. The government will handle it. You don't worry. So, Tesla has to come to India in the morning. And it is planning to invest $2 billion. And they say that when we do manufacturing, then we will do 20% localization in the first two years of Made in India car. That is, Tesla will make as many cars as in India in the first two years. 20% of that will be localization. That is, the parts of different companies in India will be supplied. So, localization will be done within two years. And then it says that later we will increase it to 40%. That is, all the parts that are used in the car will be localized. It will be increased gradually. This is what Tesla says. Now, there is another news from Tesla. Tesla is planning to bring in smaller batteries for its Indian car. That is, what is in India now? They are not planning to launch a big car. So, studying the demand of the Indian population, they feel that we launch small cars first. And for this, small batteries that have fast charging. Friends, as you know, if we are talking about EV, that is, BEV, Battery Electrical Vehicle, then the battery used in it, the battery plays a major role. If you look at the car, the battery covers a lot of space. At the same time, the battery console, the total system of the battery, bears the cost of 25 to 40% of the car. So, such a big cost matters. And if we talk about EV, Tesla is also depending on Chinese battery manufacturers to a large extent. So, if battery manufacturing starts happening in India, if localization starts happening, then manufacturing will also become very cheap in India. So, a lot is being done on it at the moment. And there is hope that some positive trend will be seen in the coming days. So, Tesla believes that we will bring affordable cars to India. For this, we will find a solution for fast charging of small batteries. Now, the same batteries, that is, small batteries, Tesla uses in its small cars, which are manufactured in China. Now, if the battery is small, then it will need to be charged again and again. So, Tesla is also working for this. And there is an Israeli company, StarDot. So, by collaborating with them, they are trying to manufacture such batteries, so that charging is fast. Now, friends, if we talk about charging stations, then this is also a big problem in India. If we do a comparative study, then there are approximately 9,300 public charging units in India at present. There are charging facilities in so many places. If I compare this with the US, then there are 138,000 charging stations in the US. This means that a lot needs to be done in India. However, the penetration of electric vehicles is also happening very fast in India. And the government is also trying a lot on this. A lot of private organizations are also trying a lot on this. So, we will see improvements in this in the coming days. So, the Tesla cars that are available in India at present, Model 3, this is starting at approximately 33 lakhs. Okay? Now, Tesla is planning to launch cars within 20 lakhs in India. So that there is affordability and it gets more volume. Now, friends, if we talk about India's EV manufacturers, then the pie chart you are seeing here, this is of the Indian top 10 EV manufacturers. And here you can see that Tata Motors dominates here. So, out of the total manufacturing, only 28% is of Tata Motors. And next is MG Motors, which is a Chinese company. Third is Mahindra Electric. Next is again Chinese with a 10% contribution. BYD, build your dreams. So, friends, this is also giving a lot of trouble to Tesla globally. And there was a time when Tesla was left behind. So, there is a neck-to-neck fight going on between Tesla and BYD. If we talk about the global manufacturing share. Anyway, if we discuss in India, the top 1 is Tata Motors, then MG Motors, then Mahindra, then BYD, next is Hyundai with a 8% contribution, then Ather Electric with a 7% contribution, then Ola, then Hero Electric, then TVS Motors, and the 10th position is Bajaj Auto. So, these are our top 10 manufacturers in India. Now, friends, out of the total EV sales, if we talk exclusively about four-wheelers, then we can see who is dominating here. So, Tata Motors is dominating in four-wheeler manufacturing. However, if we look at its global share, it will be very negligible. A lot needs to be done now. So, if we talk about India, Tata Motors holds the number 1 position with a market share of 68%. Next is MG Motors with a 14% share, then Mahindra, with a 9% share, then Hyundai, with a 2% share, then BYD, with a 5th position in India. If we talk about four-wheelers, they have a 1.83% share. Then comes BMW, then Mercedes, Volvo, Kia, and PCA. So, these are the top 10 companies. However, if we look here, if we look at the data on January 24th and December 23rd, Tata Motors is in a positive trend. It has grown every month. MG Motors has also grown by 17%. Mahindra has also grown. Hyundai has jumped by 28%. Whereas, BYD's downfall of 15% has dropped. In January 24th, BYD sold 148 cars in India. Whereas, in December, its downfall of 15% has dropped. It has sold only 174 cars in total. If we look at the other three, BMW, Mercedes, and Volvo, they have also seen a downfall. If we compare January 24th to December 23rd, Kia Motors has improved. PCA has also seen a huge downfall. So, this is a comparative study of four-wheelers for your information. Now, if we analyze the market size and share of India's electric vehicles, we can see that in 2024, India's market size is approximately $34.8 billion. The compounded annual growth rate is expected to grow by 23%. By 2030, India's market size is expected to grow by $120 billion. So, India's market size is expected to grow from $34.8 billion to $120 billion by 2030. If we compare 2017 to 2023, India's market size has grown by 126% as per CAGR. If we compare 2024 to 2030, India's compounded annual growth rate is expected to grow by 23%. This is not bad. If we talk about electric vehicles in India, the share of battery electric vehicles is approximately 98%. So, all the electric vehicles in India are battery powered. Now, let's talk about the challenges of EV penetration in India. We have summarized some of the key challenges. Then, we will talk about the solution. The first challenge is limited charging infrastructure. There are very few charging facilities in India. There are around 10,000 charging stations in India. When a person buys a car, he first thinks about where he will go to charge it. There are no charging stations nearby. He will have to travel 10, 15, 20 km. Then, he will have to go to Jaipur. If he gets discharged on the way, he will have to travel 200, 300, 500 km. It depends on which car he is buying, how big the battery is, and how much mileage he is providing. So, there are many factors that do not give people energy. Until you have a facility infrastructure, a person thinks before buying. This is also a challenge for us. The solution is to increase it. The more we increase it, the easier it will be for people. The second challenge is high battery cost. As I told you, the total cost of a vehicle is around 25% to 40%. There are limited manufacturers of batteries. Many companies depend on China. If you want to manufacture in India, you will have to import the battery. You will have to localize it. If you want to manufacture in India, you will have to spend money on R&D. You will have to do technological collaboration with some companies. You will have to localize it in India. You will have to manufacture the battery in India. You will have to invest in R&D. You will have to bring new technology in battery manufacturing. So, this is our problem. We also discussed the solution for this. The lower the manufacturing cost of the battery, the lower the cost of the vehicle. The faster the charging, the more convenient it will be for people. If we compare it with solar panels, 10-15 years ago, solar panels were not affordable. The total operating and commissioning cost was high. If we compare it 10-15 years ago, the manufacturing cost has reduced. The facility has improved so much that people can install it easily. The same thing is applicable here as well. As penetration increases, the volume of manufacturing increases, R&D will be done, the battery will be small, it will give more mileage, charging will be fast, it will be convenient for people as well, and people will change more in EV. Next is the supply chain constraint. If a company is manufacturing, it needs raw materials, parts, etc. Will it get the parts locally in India? For example, a plant is being installed in Chennai, a plant is being installed in Pune, a plant is being installed in Gurgaon. Will it get the parts locally? Will it have to import? If it has to import, the cost increases, plus we have to depend on the supplier. For example, if you are buying from China, if there is a problem with China, and the Chinese government or Indian government makes a policy, then all these things matter. The better the supply chain, the less the constraint, the better the localization of parts, the better it will be for manufacturing, and affordable for the general public. The next point is the lack of skilled workforce. When we go to EV from conventional diesel and petrol vehicles, do our workers or engineers have the skill to work? Is our educational system producing skilled manpower? Is their productivity high? This matters a lot. I have made a separate video on China and India, comparing India's manufacturing competitiveness. You can check that video. In this video, I have compared many factors, where India is lagging behind China, or is good in some points, why is it good, and where it is lagging, what do we need to do? What do you have to say about skilled manpower? Does India have enough skilled manpower for EV? Tell us in the comment section. Next is the government's incentive and policies. The government has made a lot of incentives for EV. It is hoped that there will be a lot of change in the coming days. The government is also promoting a lot in EV, and charging units are being installed, new policies are being made, so that it is easier for people to manufacture. And foreign companies should also invest in EV. So, positive things will be seen in the coming days. The next important point is consumer perception. Of course, the manufacturer will manufacture, but the general public, people like you and me, will buy cars, whether it is a two-wheeler, three-wheeler, or a car. If you are buying a truck, the general public's perception matters a lot. What does the general public of India want? They want cheap cars. They don't want to run to charge again and again. They want charging stations to be nearby, so that charging can be done quickly, and the cost of charging should not be high. The cost of repair and maintenance should be affordable. If all this is done right, then anyone can switch from petrol to diesel in an EV. Problems are emerging in all these things. Until these things are solved, penetration will be slow. As the government and industry work on this, things will be solved slowly, people will also switch to conventional fuel. And the last point is competition from internal combustion engine, which we have already talked about. The internal combustion engine has a strong competition. If you look at it now, the general public is comparing that it will cost Rs 10 lakhs, and for this I will have to spend Rs 15 lakhs, Rs 20 lakhs. The basic level cars are going for Rs 30-40 lakhs. The people of India see that they will have to make a big jump. They want a lot of money. That's why Tesla, BYD, and the home-grown companies of India, like Tata Motors, Mahindra, TBS, Ola, Ather, are all trying to do R&D, to collaborate and reduce the cost. Because if we reduce the cost, plus the other things we talked about, like charging stations should be nearby, charging should be fast, repair and maintenance costs should be reduced, and the majority of cars with IC engines will switch to electric vehicles. What do you have to say about this? Tell us in the comments. If you liked the program, tell us in the comments. If you want to make a video on a new topic, tell us. Don't forget to download the Quality Hub India app from the Google Play Store and Apple Store. There are 100 plus online courses. You can learn at home and take your career to new heights. If there is a requirement for training, consulting or certification, don't forget to contact us. Goodbye. www.mooji.org