Kapil Baidya, the Vice President at Energy In Motion, a Pune-based mobility and charging infrastructure company, thinks that the proliferation of electric heavy commercial vehicles in India would be successful only when the right infrastructure, financing and policy frameworks fall in place. With the country looking to cut down its reliance on diesel-powered trucks, Baidya feels that even as technology becomes ready, several factors need to be considered before such vehicles can be scaled across long-haul, port and industrial corridors.
Energy In Motion has been working towards building an ecosystem around electric commercial vehicles, one that will make them commercially viable. Recently, it opened a manufacturing facility near Pune that makes vehicles, batteries and also undertakes testing procedures. The company plans to ramp up production to 5,000 units per year. Apart from manufacturing, Energy In Motion is also setting up megawatt level charging and battery swapping infrastructure on highways, port locations and logistics parks. The battery swapping infrastructure can facilitate swapping in under 7 minutes with fast chargers being available for other users as well. This is a compelling proposition for long-haul trucking and other high utilisation commercial vehicle segments wherein the loss of time on the road due to refuelling or charging is a huge impediment. Baidya estimates that for such segments, the promise of assured energy availability can drive down the total cost of ownership of electric trucks versus their diesel counterparts.
Meanwhile, the higher initial cost of EVs continues to be a challenge, which restricts their uptake despite benefits on the back end. Baidya thinks that innovative financing models such as battery subscription or battery-as-a-service can help offset a chunk of the initial outlay, making the economics of electric trucks more appealing. However, such a model requires banks and non-banking financial institutions to become comfortable with the risk profile of such a business model wherein residual value of batteries and their utilisation becomes important to calculate the loan quantum. Until then, and until financing becomes easily available at reasonable rates, adoption of electric trucks, particularly in the heavy commercial segment will be limited to early adopters and a few large logistics players.
Meanwhile, supportive policies at the national and state levels can accelerate the creation of infrastructure and also help drive demand. Policy clarity around incentives and infrastructure development, such as standardised guidelines for swapping and charging infrastructure can allow for faster build-out of much-needed energy infrastructure in the country. Baidya thinks that targeted support for corridors and at ports can help generate the required buzz and momentum in the market to ensure that buyers are assured of long-term viability of their investment. This is critical for capital-intensive infrastructure creators as well as commercial vehicle makers who will be able to scale only when the ecosystem builds around electric trucks.
With the right enablers in place, the future of electric heavy commercial vehicles in India looks bright. The country already has the manufacturing and infrastructure capabilities in place, and with the right momentum, batteries and vehicle manufacturers can scale their footprint nationwide. However, at this juncture, it is critical to have consistent and clear policies that enable the creation of reliable charging and swapping infrastructure while also enabling accessible financing solutions. With these pillars in place, Baidya is confident that India can truly leverage the potential of electric commercial vehicles to drive sustainable growth in the years to come, both in terms of the economy and the environment.