Impact of Paris
Agreement on India’s
Automobile industry
Prashant Tiwari (M1818)
Praveen (M1819)
Neeraj Yadav (M1816)
Pranjul Gupta (M1817)

CLIMATE CHANGE:
 Global warming is the observed
and projected increases in the
average temperature of Earth's
atmosphere and oceans.
 The causes of global warming are
manifold and caused by nature as
well as mankind.
 One important contributor to rising
temperatures on our planet is the
emission of man-made CO2.

 Different contributors to these CO2 emissions. The biggest three are
electricity and heat production with 25%, agriculture, forestry and other land
use with 24%, and industry with 21%.
 The transportation sector contributes with 14% to the total global CO2
emissions. It encompasses road, rail, air and marine transportation.fuels,
largely gasoline and diesel.
 The road emissions make roughly 50% of the transport sector,
resulting in 7% of the global CO2 emissions. Although this is a relatively low
number there is a lot of focus to restrict emissions of this sector.

PARIS CLIMATE AGREEMENT

Key Points of the Paris Agreement :
 The historic Paris Agreement of 12 December 2015 at COP21 is the first international
agreement committing 195 Parties, developing and industrial countries alike, to combat
climate change and to kick-start action and investment towards the goal of limiting global
temperature increase to “well below 2°C” .
 The climate objectives and measures contained in the countries’ climate action plans, or
(intended) nationally determined contributions, (I)NDCs, are voluntary in nature, but a
number of legal requirements are contained in the new climate deal:
 Signatories will have to enhance ambition every five years starting in 2020, with updated
plans that tighten their emission cuts
 Starting in 2023, signatories shall take stock every five years to publicly report on their
progress in curbing emissions compared to their plans. This means that they are legally
required to monitor and report on their emission levels and reductions, using a universal
accounting system.

 . An international review process will provide suggestions to each country for raising
ambition. 2023 will mark the year for the first global stocktake to assess the
collective achievements towards the 2°C goal, with subsequent stocktaking every
five years .

INDIA AND PARIS AGREEMENT:
Under the Paris Agreement, India has made following commitments.
 India’s greenhouse gas emission intensity of its GDP will be reduced by 33-35% below
2005 levels by 2030.
 40% of India’s power capacity would be based on non-fossil fuel sources.
 At the same time, India will create an additional ‘carbon sink’ of 2.5 to 3 billion tonnes of
Co2 equivalent through additional forest and tree cover by 2030.
 On transport, the Faster Adoption and Manufacturing of Electric Vehicles in India
scheme came into effect in April 2019, and provides incentives to purchase electric
vehicles, while also including provisions to ensure adequate charging infrastructure.
 India’s charging infrastructure has been a point of contention, with many civil servants
expressing concern at the lack of charging stations when the government announced
that 500,000 civil service cars would be electric.

India ranks 177 out of 180 in Environmental
Performance Index in 2018
Environmental Performance Index (EPI)
 The biennial report, brought out by
the Yale and Columbia
Universities in collaboration with
the WEF, noted that the low
ranking of the emerging economic
like India and China (120th)
reflects the strain population
pressure and economic growth
impose on environment.

How EVs will disrupt the automotive
ecosystem?
• Electric cars are disrupting the heart and soul of the automotive. Batteries and drive units will now occupy
the space of IC engines and associated accessories. On the one hand, it is going to disrupt some industry
suppliers significantly, forcing them to redefine their entire product portfolio to be relevant in the changing
landscape. On the other hand, it is going to be an internal challenge for the OEMs as some of their most
important teams will lose their position of influence to the electric divisions
• The automotive business model is expected to transform with the emergence of the electric vehicle.
Profitability from service operations is expected to come down as electric vehicles will require less
maintenance

Automakers
 Automobile manufacturers are making huge investments in electric car
divisions as they realize that electric vehicles are disrupting the industry
 Significant internal changes will take place as teams fight for their share
of budgets in R&D activities and existing powertrain heavyweights will
refuse to step aside gracefully to electric divisions
 Many new supply chain partnerships need to be created.
 The focus will move to new technologies as the automobile becomes a
true computer on wheels

Dealers & suppliers
 Dealers will have to unlearn and learn to sell both electric
vehicles and conventional vehicles
 Dealers should equip their personnel with a diversified skillset
to sell electric vehicles
 Suppliers will be significantly affected as automobile
manufacturers switch to the electric powertrain.
 Only a few suppliers who take appropriate initiatives will
survive and succeed, such as Bosch that has a separate
division to focus on batteries

End Customers
 Incentives and subsidies will turn the tide in favor of electric vehicles.
 The rapidly growing charging stations network combined with
supercharging facilities will make adoption of electric vehicles easier
for the end customer.
 Superior driving experience with packed innovative features will
make it difficult for customers to resist the experience of owning an
electric vehicle. Once they drive an electric vehicle, they will find it
difficult to go back.

Government regulations
 Governments will take the Electric Vehicles Initiative (EVI) seriously
as adoption of electric vehicles can reduce the carbon footprint.
 Governments will play a key role in resolving subsidy-related issues
to promote and make electric vehicles affordable.
 Governments will have to consider providing special privileges such
as removal of tolls on expressways and providing priority parking
spots to encourage adoption of electric vehicles

Automakers are making huge investments in electric cars:
US$ 4.5 billion
investment in EV technologyand
13new electricmodelswillbe
added by 2020
In2015,Fordannounceda
Source: Ford Annual Report -2015
In 2014, Mercedes
approvedaninvestment
billion for purpose- built
electric vehicles
of over US$2
Source: fool.com
Volkswagen is launching
over twenty
plug-in hybrid
electric and
v ehicles, ranging
electric
from small-sizedcars to largeSUVs
inChina,its
largest market
Source : forbes.com
In2014,General Motors
announced an investment
millionfor the next generationof
electric
vehiclesandadvanced battery
technologies
of US$ 449
Source: gm.com

ISSUES:
In order to achieve a considerable penetration of electric vehicles there remain
several major issues to be tackled and solved. Those are:
 Range of electric vehicles (EV’s) must grow into the order of today’s
combustion engines, i.e. up to 1,000 km of real range to deliver customer
acceptable ranges.
 Charging infrastructure (“gas stations for EV’s”) must grow into the same order
of magnitude as today’s fuel gas stations.
 Cost of the battery and fuel cell systems must come down drastically, so that
the overall cost and therefore price to pay comes close to today’s combustion
engine vehicles.
 Hydrogen needs to be produced using ecology friendly production techniques.
Less CO2 and less energy consuming.

Impact of BS-4 and BS-6 in Indian
Automotive Industry
 India has the most polluted cities in
the world. 30 Indian cities figure in
the Top 100 Most Polluted Global
Cities (in terms of particulate
matter PM10) as per data
published by World Health
Organization .
 Air pollution is the fifth leading
cause of death in India.

 For instance in the capital city of Delhi, vehicles contribute 59%, 50% and 18%
of the overall emissions of carbon monoxide, hydrocarbons and nitrous oxides
respectively.
 Bharat Stage emission norms (equivalent to Euro norms for four-wheeled
vehicles) were first introduced in 2000. These norms specify the maximum
permissible emission limit for carbon monoxide (CO), hydrocarbons (HC),
nitrous oxides (NOx) and particulate matter (PM).

 Transitioning to BS-VI norms will require significant engine technology
changes including improvements in engine combustion and calibration,
increased injection and cylinder pressures, NOx and PM after-treatment
solutions and transitioning to electronic controls.
 New emission norms will also have to be met in all conditions and not just the
ideal testing conditions. Two engine fitments will be typically required for up-
gradation of passenger cars to BS-VI norms from BS-IV norms.
 Diesel Particulate Filter (DPF)- For reduction of PM in diesel vehicles
 Selective Catalytic Reduction (SCR) Module - For reduction in NOx
emissions
 Due to this technology upgrade, price of petrol cars are expected to go up by
Rs 20,000- 30,000 while diesel passenger vehicles’ prices may go up
substantially by Rs 75,000-1,00,000.

 It is estimated that auto & auto parts industry in India will have to invest over
USD 10 billion to be able to manufacture BS-VI compliant cars.
 Testing, optimisation and fitment of DPF and SCR technology to Indian
conditions will take a few years. It is not possible to simply plug and play with
the European technology (compliant with Euro 6 norms) here in India.
 For example, fitting of DPF into bonnets of small Indian diesel cars will
require major design and engineering work. Making bonnets longer may lead
to the car exceeding the 4 metre mark, hence losing excise benefits.
 Due to low driving speeds in India, it is difficult to achieve temperature (for
burning the soot in DPF) of 600 degree Celsius prevalent in European
conditions and the Indian manufacturers will have to make do with
temperatures around 400 degree Celsius.

Thank
You