How an Electric Vehicle can be a potential threat to CNG. What is Govt Initiative that is a boon to the electric vehicle industry are discussed & how various stakeholders are showing their interest in EV.

1. Electric Vehicles - is it a real threat to CNG
Market of CGD?"
UJJWAL RAO

2. 1
2
3
4
Market with respective to Energy security.
Growing Market Share of CNG & EV
Features Comparison CNG Vs EV
Economic Comparison CNG Vs EV
Government Policies & Initiatives
Government Facilitation
Government EV Policy Framework
EV Growth Drivers
Adoption of EV by Users & OEM
Investment by various Commercial Players
(Conclusion)
CONTENT

3. ENERGY SECURITY
CNG
• Needed to fuel an internal combustion engine (ICE) based
mobility system requires an extensive costly supply chain.
• Prone to disruption from weather, geopolitical events
• India heavily dependent on import oil & gas to cover over 80
percent of transport fuel.
• The import bill of crude oil & Natural Gas is estimated to
increase by 42 per cent from $88 billion in 2017-18 to
$125 billion in 2018-19.
• Current Account Deficit
• Inflation Effect
Higher crude oil price can results in higher Natural gas price.
• Economic Impact
We are highly dependent on crude oil & Natural gas.
Price of fuel are highly volatile and its not within the control of
economy.
EV
• Impact will that shift have on the country's utilities and
the Electric grid.
• Help integrate renewable energy, and significantly
reduce imports of foreign oil & gas.
• A renewable energy-powered grid will reduce pollution
emissions form power plants and electric vehicles, in
return, can help the renewable grid absorb its energy.
IMPORT EXPORT

4. MARKET SHARE
EV
India has seen a sharp 130% increase in EV Sales over
7,59,000 unites sold in year 2019. Reason
implementation of various Govt. Schemes.

5. FEATURES & ECONOMIC COMPARISON
PROS CONS
CNG
CNG Vehicle has Low Emission Preformance Downgrades as the engine ages
CNG Vehicle looks & feels conventional
Vehicle needs more precautions while filling.
Fear of leakage.
Fuel is cheap CNG Station not widely spread
CNG Hybrid cars available Low fuel Range chances of dryout
EV
Eco-Friendly and no Carbon Emission
EV New concept yet to reach stable
technology adaptation. Expensive to buy
Low Maintenance Cost Lack of charging station
Low Noise Pollution Recharging is time consuming
Easy To operate Less range Approx 150km per charge
Lincense & Registration free Not robust built
Vehicle
Mileage of Auto Cost Rs./ Unit
Running Fuel Cost Approx. distance run by
Auto per day (Km.)
Daily Running Fuel Cost
(Rs.)
Monthly Running Fuel Cost in Rs.
(considering 30 days)
Rs. /Km
CNG 35 60 2.06 100 1.71 5130
Vehicle MILAGE (KM) Maximum Unit Consumption
Electric
Usage
Max Cost of unit
(Domestic) Total running cost/km Approx Distance Monthly Fuel Cost
EV 110 16.5 0.15 6.5 0.975 100 2925
Total Savings per Month on EV= Rs.2,205
Total Savings per Year on EV= Rs.26,460

6. GOVERNMENT POLICIES & INCENTIVES TO EV
Government Regulatory support will also play a key role in EV adoption in India. A combination of both fiscal and non-fiscal incenti
ves is critical in the medium term. This includes exemption from value added tax (VAT) and purchase tax, which averages 43% of the
cost of a vehicle. Also, EVs are exempted from road charges, with dedicated bus lanes for EVs, free electricity and free parking at nu
merous charge points as well as municipal spaces across the country.
Below is the snapshot of the government push to EV segment in India:
➢ The draft of National Auto Policy 2018 suggests adopting a long-term roadmap to decide
emission standards after BS-VI and harmonize emission standards with global benchmarks
by 2028
➢ It also recommends Corporate Average Fuel Economy (CAFÉ) standards by 2025. It suggests
that tax exemption will be given to cars based on length and CO2 emissions. The governmen
t plans to bring CO2 emissions down to 110g/km by 2028
➢ The government has announced an outlay of 10,000 crore for FAME 2 to boost the number
of electric vehicles in India
➢ Rs. 1,000 crore has been earmarked for setting up charging stations for electric vehicles in India
➢ It will support 7,090 e-buses with an incentive of up to 50 lakh each having an e-factory price
of up to Rs. 2 crore
➢ To meet the qualifying criteria for demand incentives, hybrid and electric vehicles, including its
variants, should be manufactured in India and have such percentage of localization as
notified by government bodies
National Auto Policy
2019
FAME II Policy

7. GOVERNMENT FACILITATION

8. EV POLICY FRAMEWORK
T
The three value chains
The study evaluates policy strategies on
specific parameters across the thrRe
value chains of electric mobility.
A
Network
R&D
Services
All of the instruments that focus on connecting stakeholders in the EV/infrastructure value chain – for instance, efforts intended to intensify contacts between different stake
holders, in order to improve value-chain alignment and a more efficient functioning of the entire value-chain. In addition to the value chain, this includes other policy measure
s aimed at the e-mobility ecosystem, which are taken into consideration – for instance, policy measures aimed at realizing smart grids, smart economies and smart mobility
Instruments focused on influencing the research and de
sign of the complete charging infrastructureInstruments focused on influencing the research
and design of electric vehicles and EV compone
nts
Instruments focused on influencing service providers for ch
arging and battery-swapping stations. Different service pro
viders are recognized, such as energy suppliers, power pla
nts, grid managers, software developers, etc.
Customers
Instruments focused on influencing customers of charging an
d swapping stations. By “customers”, the study refers both to
users (consumers) and owners (consumers, companies, publi
c authorities and government). The different types of charging
stations (private, public, fast, quick, normal) and battery-swap
ping stations require different types of steering by government
al units
Instruments focused on influencing the production of charging a
nd battery-swapping stations and EV system components such
as the electricity network, energy production, etc.
Instruments focused on influencing service prov
iders for electric vehicles. Different service prov
iders are recognized, such as car dealerships,
mechanics, insurance companies, etc.
Instruments focused on influencing the production
of electric vehicles and vehicle components such
as batteries and other hardware (original equipme
nt manufacturers). This section of the value chain
also recognizes the software used in electric
vehicles
Production
Production
R&D
Customers
Instruments focused on influencing customers of
EVs. The study’s methodology recognizes not only
individual consumers (end users) but also fleet-ow
ners (e.g. authorities and leasing companies) and
public/ governmental agencies (promoting consu
merism)
Services

9. 1. Multiple breakthrough technologies
• Combination of electric battery technology, smartphone and solar technology
• Global and Indian auto OEMs investing in EVs, shared mobility and connected cars
• Technology firms such as Google and Apple and Tier I firms such as Panasonic and Delphi also supporting OEMs
• Falling costs of EV batteries in the last 5 year
2. Smart Cities mission
• 100 smart cities to be developed in India. City buses to be electric
• Will involve transit-oriented development, public transport and last mile connectivity
• Will pave the way for sustainable development, including shared mobility and connected car concepts
• 23% of the world’s GHG emissions come from automobiles
• Need to limit global temperature rise to maximum 2 degree Celsius
• 20% of global automobile population needs to shift to EVs by 2030
3. Fall in battery price
• Battery technology is the biggest area of innovation from an EV standpoint.
• Battery cost is a critical area for disruption as it currently accounts for up to ~35%-50% of an EV’s price
• Makes it a significant barrier to profitability.
Powertrain migration from ICE to electric: Driven by governments’ focus on reducing dependence on oil & gas and adhering to global climate and
emission standards, with technological evolution in battery performance contributing to a reduction in battery prices and making Electric Vehicles (EVs)
affordable
GROWTH DRIVING FACTORS

10. ADOPTION OF ELECTRIC VEHICLES IN
INDIA BY USERS AND OEM SEGMENTS
• A varied pace of electrification is expected across vehicle segments driven by specific user groups.
• In terms of adoption in the country, we believe that two wheeler (2W) fleets and three-wheelers (3Ws) would
be the first off the block, followed by intra-city buses, corporate cabs and government fleet.
• Private cars and commercial vehicles, particularly medium and heavy commercial vehicles (M&HCVs), are
likely to take some time for adoption.

11. EV ECOSYSTEM IN INDIA

12. 2W 3W Cars Buses
• Ather
• Hero
• Ampere
• Electrotherm
• Avon
• Lohia
• Bajaj
• Hero
• Electrotherm
• Kinetic Green
• Hero Electric
• Lohia
• Saera
• Tata Motors
• Mahindra
• Hyundai
• Maruti Suzuki
• Nissan
• Renault
• Morris Garages
• KIA
• Olectra
• Ashok Leyland
• JBM
• VECV
• Tata
EV OEM PLAYERS IN INDIA

13. EV ADOPTION IN USER SEGMENT
EarlyAdopters
Breakevenkilometre
decreased withtime
Transition to EV econo
mically beneficial
Average daily distance travelled (km)
Easeofdevelopinginfrastructure
PrivateUsers
Taxi and RideServices
UrbanLogistics
City Buses
Fleets of taxi and ride hailing companies like OLA, UBER and unban logistics
companies supporting ecommerce companies like Flipkart, Amazon,
Swiggy, Uber Eats etc. will drive the early adoption of EVs. This will for the
cost advantage that EVs will provide over ICE vehicles. City buses is another
segment likely to see early adoption owing to government support. Below
chart demonstrates the factors driving the electric mobility
150 Km

14. INVESTMENTS BY EV COMMERCIAL USERS
Company Plan
Ola • Partnered with Hyundai – Kia for developing India specific electric vehicles and infrastructure.
Uber
• Mahindra deployed 50 of its EVs to Uber which include the e2oPlus hatch and the eVerito sedan.
• Uber and Sun Mobility partnered to deploy E-Autos Across Indian Cities
Flipkart
• Planning to replacing nearly 40% of its existing last mile fleet of delivery vans with EVs by March 2020, starting with nearly 160
E Vans to be deployed across cities by the end of 2019
Zomato
• Zomato has partnered with Mobycy, e-HIRAN, TNT, Yulu and Zoomcar’s PEDL
• Partnered with eBikeGo to enable its delivery fleet to leverage electric vehicles. BikeGo plans to position a minimum of 10,000
electric bikes in every metro city in India by 2020.
Grofers
• Looking to deploy 500 electric vehicles for its last-mile delivery by the end of this year 2019.
• Currently, Grofers has 100 EVs in Delhi and 50 in Jaipur
Shuttl
• Shuttl And BRPL To Join the Climate Group’s EV100 initiative & As part of EV100, Shuttl will add 300 electric buses to their fleet by
2020
• Shuttl will also set up more than 50 EV charging points in prime locations to power their EVs on established routes.
Blowhorn
• Planning for 50% of its fleet to eco-friendly mobility solutions like electric vehicles (EV), hybrid vehicles, CNG by the end of 2021
and 100% by 2025.
• Currently, 10% of Blowhorn fleet already run on EV
Bounce • plan to build a distributed infrastructure for EVs using kirana stores and to deploy battery swapping stations across cities
Smart e
• Planning to expand the electric three-wheeler fleet to 10,000 units and expand operations to two cities in south India and three
in the northern region in the next two years

15. CONCLUSION
• CNG Business in near (5-10 years) future seems to have better tomorrow.
• Major Metropolitan cities have adopted CNG effectively and with PNGRB allocating to near 136 GA CNG will be in
demand with the growth of CGD business.
• CNG Car sales for has been growing YoY and is excepted to make up 50% vehicle sales volume by 2030.
• With more Upcoming CNG Station and Govt backing of a gas based economy to reduce pollution & implement
cleaner form of fuel makes CNG an attractive option for Govt to solve current environment issues in India.
• The domination of India’s power sector by coal-fired generation brings into question the environmental gains of
electric mobility versus CNG.
• EV still seems futuristic and its technology is still evolving.
• Govt has taken keen interest in EV to boost infrastructure and incentives manufactures/Investors by giving tax relief
and subsidy (FAME POLICY).
• With Govt backing EV sales has zoomed in 2018-19.
• NITI Aayog initiative to push EV will change Auto sector scenario in India. OEM and Auto manufactures are ramping
up R&D and production to meet the demand of customers & commercial users like OLA, UBER, Swiggy have s
hown great interest & invested to operate as early adaptors to new technology owing to its economic viability
CNG is a established Business where as EV is in its initial stage. Proper EV implementation & policies needs to be
drafted by Govt to make it accessible and create awareness among people in India which will take sometime. Though
people have positive sentiments towards EV but if not rightly structured (Electric demand assessment/ Infrastructure/
Pricing per unit for co mmercial vehicle/ Load on Power grid) things may not fall in place.
Currently EV doesn’t pose threat to CNG, but soon with adaptation of EV Oriented Govt Policy and infrastructure
development it has the potential to turn itself a threat to CNG Business in India.