The global mobility landscape stands on the brink of disruptive change, in the wake of rapid urbanization. Cities across the globe are marked by increasing levels of air pollution, and the automotive sector is a significant and growing contributor to this problem. Rising greenhouse gas emissions from conventional vehicles powered by internal combustion engines (ICEs) is largely responsible for global warming and climate change. According to the Environmental Protection Agency, automotive emissions are responsible for anywhere between 50 and 90 percent of air pollution in urban areas. In 2015, diseases caused by pollution were responsible for an estimated 9 million premature deaths — 16 percent of all deaths worldwide, according to a report published by the Lancet Commission on Pollution and Health. The burgeoning automotive sector is also impacting the sustainability of the Earth’s non-renewable resources, especially fossil fuels, which are declining at a rapid pace. With UN projections indicating that close to 70% of the world’s population will live, work and commute in cities by 2050, it is clear that today’s mobility systems will need to undergo transformational change to create sustainable living conditions in the coming urban age. The move from ICE vehicles to zero emission electric vehicles (EVs) represents one such significant change in the emerging mobility ecosystem.
In light of alarming pollution levels and the negative impact of climate change due to the proliferation of ICE vehicles, the global EV market is primed for explosive growth over the next few decades. Many governments have long incentivized EV purchases and are also establishing regulations on carbon emissions to counter environmental challenges, and to eliminate dependence on fossil fuels, that are mostly imported to meet the deficit within a country. China, India, UK, France and Norway, among many other countries, have set aggressive targets for EV sales, with some of them even pledging to ban or severely curtail the sale of ICE vehicles over the next couple of decades. The EV market is estimated to witness growth at a CAGR of 28.3% over the period of 2017 to 2026, according to a report by BIS Research. The same report indicates a meteoric rise in EV sales over the last five years, with over 2 million electric vehicles on the road at present, as compared to a few thousands back in 2012. Global financial services company UBS predicts that one out of every six cars sold in the world will be electric by 2025.
In India, the EV market is still in its nascent stage, comprising less than 1% of total vehicle sales at present. However, the transition to environmental-friendly electric mobility is the need of the hour, and the EV market is expected to gain steady traction over the next few years. India’s greenhouse gas emissions have been growing steadily, with an average growth rate over the past decade of 6%. It is estimated that 1.2 million deaths occur in the country every year as a result of air pollution (Source: Greenpeace Report). Dwindling reserves of domestic fossil fuels due to an ever-increasing demand means that the country is also increasingly dependent on imported fossil fuels. At present, 80% of the country’s oil needs are served by imports. As part of its commitment to reduce greenhouse gas emissions under the global climate change agreement, curb pollution levels and bring down spends on oil imports, the Government has rolled out a slew of initiatives to accelerate the adoption of electric mobility, pointing the sector towards growth momentum over the next 3-5 years. In January 2017, the central government said it would bear up to 60% of the research and development (R&D) cost of developing indigenous, low-cost electric technology. As part of another initiative, India’s state-owned Energy Efficiency Services Ltd (EESL) awarded INR 1,120 crores to leading auto manufacturers in September 2017, to supply 10,000 electric cars. These vehicles are intended to replace petrol and diesel cars used by the government and its agencies. As per the Government’s plan, by 2030, most of the vehicles will be powered by electricity, resulting in savings of US $60 billion in fuel costs, while also cutting down 1 gigatonne of carbon emissions.
The growth of the Indian EV market, in line with the Government’s vision, will depend on a number of factors such as the ease of access to charging infrastructure, ease of charging for unhindered transportation, battery technology advancements that potentially improve driving range and reduce battery costs, and the upfront acquisition cost of EVs. At present, India has as few as 350 charging points across the country. A joint study by ASSOCHAM and global advisory services firm EY noted that the lack of EV charging infrastructure is potentially the biggest challenge to EV adoption in India, and stressed on the urgent need for creating charging infrastructure at a rapid pace. To this end, the EESL has started rolling out initiatives to set up charging stations across the country.
Rane t4u Private Limited brings to the EV sector, two decades of experience in telematics and IoT platforms that enable innovative and collaborative business models. Rane t4u’s technology competencies and extensive experience can be harnessed to create a comprehensive technology platform for a sustainable EV mobility ecosystem that comprises multiple stakeholders such as EV Manufacturers, Technology Enablers, Charging Station Maintenance Companies, Charging Unit Manufacturers, Fintech Companies, Driver well-being and Recruitment Agencies, the Government, Corporates and Citizens. These stakeholders form part of three ecosystems within the EV sector, which include the EV mobility infrastructure ecosystem, end user ecosystem and EV charging point infrastructure ecosystem. Rane t4u provides technology solutions for each of these ecosystems.
Rane t4u’s EV Mobility Infrastructure Solutions include a fleet management system, on-board diagnostics module, and vehicle health analytics, while Rane t4u’s EV Charging Station Infrastructure Solutions include an EV Charger Management System to help operators have a completely unmanned solution with user authorization and automatic charge dispensing, and User Management System to simplify access to charging infrastructure. Through these technology solutions, Rane t4u plays a pivotal role in enabling a digitally connected EV mobility ecosystem.