Latest news with #NikhilDhaka
Mint
26-05-2025
- Automotive
- Mint
EV resale boost? Maharashtra mandates battery health passports for buyers
Seeking to combat consumer hesitancy over resale value and battery longevity, the Maharashtra government has announced a policy that will introduce digital "battery passports" for all new electric vehicles (EVs), a first for the country. As part of the state's recently-released EV policy, the digital battery passport will be used to track the health, usage and manufacturing details of an EV battery, a critical component which accounts for over half of an EV's value. 'The State shall introduce a digital battery passport to track key parameters such as manufacturing details, real-time health status, usage history, and end-of-life diagnostics,' Maharashtra's EV policy, notified on 23 May, said. Currently, customers have to rely on the seller to know the real health of the battery. Based on previous pilots of such a passport in Europe, customers may get to scan the batteries through a QR code to know the health and the relevant manufacturing details of the battery installed in their purchased vehicle. While the Maharashtra government has introduced the battery passport in its policy, the details of how they will be issued and what role will companies play in issuing them remain unclear. To be sure, Maharashtra is the second-largest electric vehicle market in the country, with 241,941 EVs sold in 2024. Uttar Pradesh led the EV market, with 369,102 EVs sold during the year. Deloitte's 2025 Global Automotive Consumer study said that at least one in five car buyers flag uncertain resale value as one of the reasons for holding back on EV purchase. The health of the battery becomes important, as it is responsible for the depreciation in an EV's value. Resellers and insurers also complain that the lack of a standard document to know the health of batteries makes things uncertain about the pricing of a vehicle. Data from used car marketplace players Spinny and Cars24 showed that EVs lose value faster than traditional internal combustion engine (ICE) vehicles. CARS24 noted that three-to-five year-old popular ICE car models can retain more than 50% of their original value, unlike EVs. Spinny's data suggested that on average, EVs resale value lags ICE vehicles' resale value by 3%. This means that the price of a 2023 EV model would have fallen by 23% if sold today, as compared to a 20% depreciation for a similar specification ICE vehicle. The gap can increase to as high as 6% the older the model gets. 'A digital battery passport brings transparency to the EV market, giving consumers clear information about the health and history of their vehicle's battery,' Nikhil Dhaka, policy lead at Primus Partner, said. Dhaka noted that pilot projects in Europe have shown that a battery passport can provide a digital ID for each battery, sharing details about its performance and manufacturing history. Presence of a standard document issued by an authority can help consumers trust the resale value as the exact status of the battery installed in the vehicle would then be known. 'For resellers, a battery passport provides objective data that builds confidence and justifies pricing in the used EV market. It reduces disputes and makes the valuation process more transparent,' Dhaka added. The country's EV insurance industry also expects that the introduction of digital battery passports can help them standardize the process which will be key in deciding premiums for such insurance policies. The country's EV insurance market is projected to reach $8.61 billion by financial year 2032 from $1.02 billion in 2024. 'From an insurance perspective, digital battery passports are a game-changer. They provide insurers with comprehensive data on battery health, lifecycle, and sourcing, enabling more accurate risk assessments and tailored pricing models,' Sandeep Dadia, chief executive and country head at Lockton India, said. 'This transparency reduces uncertainties, ensuring fair premiums for customers while enhancing trust among insurers, OEMs, dealers and end-users,' he added. The introduction of such a document also comes at a time when the overall electric sales in the country are growing at a rapid pace. In 2024, electric two-wheeler, three-wheeler and four-wheeler sales in the country grew 27% to 1.94 million units. Globally, the use of digital battery passports remains limited as of now. However, in 2023, the European Union introduced regulations which require all EV batteries over 2kWh to have the document from 1 February 2027.
Mint
08-05-2025
- Automotive
- Mint
Complexities cloud Delhi's plan to give carbon credits to EV buyers
New Delhi/Mumbai: In a move that has sparked scepticism from industry experts because of complexities involved, the Delhi government is considering awarding carbon credits to buyers of electric vehicles (EV) in the national capital. The proposal, designed to promote the adoption of tail-pipe emission free vehicles, is part of the upcoming Delhi Electric Vehicles Policy 2.0. 'Collaboration shall be explored with development banks, carbon asset management enterprises to identify and evaluate various emission offset mechanisms and facilitate trading of carbon credits for the EV owners in Delhi," read the draft of the upcoming policy, which was shared with automakers for comment last month. Mint has seen a copy of the draft. The thinking is that by avoiding the carbon emissions of traditional vehicles, EVs could accrue credits over their lifespan. These carbon credits could then be sold by EV owners in a secondary market, offering them a potential revenue source that would lower their total cost of ownership for the vehicles. Emailed queries to Delhi's transport department, which is responsible for the EV policy, remained unanswered till press time. Experts, however, warn of several uncertainties involved, including the methodology to be adopted, pricing of the credits, and the availability, or lack, of potential buyers. The price of these credits is also expected to be minuscule compared to the cost of running them, one expert said. Vaibhav Chaturvedi, senior fellow at think-tank Council on Energy, Environment and Water (CEEW), said the move was a smart one by the Delhi government, but questioned how lucrative the incentive would really be. 'Unless there is some certainty or minimum price assurance in this regard, a prospective EV buyer might be left wondering about the cost saving due to carbon credits," he said. Also read | Foreign car firms eye trade deals for EV tariff reduction Estimates from Nikhil Dhaka, policy lead at consultancy Primus Partners, point to as little as ₹ 200-1,600 annual revenue from carbon credits for an electric car. Credit prices in the Indian market currently range from ₹ 100 to ₹ 800 per ton of CO₂, he said, adding that a typical EV offsets about 0.5–2 tons of CO₂ a year. Accurately estimating CO₂ savings per vehicle would also be a challenge, Dhaka said, as it would involve tracking usage patterns, grid emission factors, and vehicle specifications. Implementing such a system would require robust tracking of vehicle usage, clear carbon attribution, and a user-friendly mechanism for consumers to claim, trade, or utilize their credits, he said. 'Without a well-established mechanism, carbon credits alone are unlikely to be a strong buyer incentive yet, but could gain value as India's carbon market matures," Dhaka said. Connecting EV owners to carbon markets is another challenge. According to Deepto Roy, partner at law firm Shardul Amarchand Mangaldas & Co., if credits are given directly to EV owners, it will be difficult for them to access the carbon credit markets, where trading usually happens at a larger scale. 'It would be easier to give the credits to manufacturers or if the government steps in and buys the credits at a floor price, aggregates them and then sells them in secondary markets," Roy said. Read this | Tata Motors considers new ICE models as EV adoption slows, competition intensifies There is no precedent globally for carbon credits being awarded to EV buyers, Primus Partners' Dhaka said. However, similar concepts do exist for other stakeholders in the EV value chain. For example, China's credit system gives automakers carbon credits for selling EVs. Companies must meet credit quotas or buy credits from others, pushing manufacturers to produce more EVs. Then, in California, electricity used for EV charging generates credits for charging companies. More than $2.8 billion flowed to EV charging suppliers in 2023, Dhaka said. 'This is analogous to paying EV drivers (or their utilities) for the carbon reduction from switching fuels. The lesson: well-designed credit programs can channel large funds to accelerate EV adoption, but they require tight regulation to prevent oversupply," he said. I.V. Rao, distinguished fellow of transport and urban governance at research institute Teri, said that the proposed carbon credits policy for EV buyers could act as a boost if seen together with other incentives in the scheme. 'However, for effective policy implementation, you would need guidelines on how the carbon credits trade will work," he said. 'Based on usage of a vehicle and its age, some carbon credit incentives can be thought of." And read | India's clean mobility drive hit as electric two-wheeler subsidies miss target in FY25
India Today
24-04-2025
- Automotive
- India Today
Two-wheeler segment moves towards pre-Covid high, robust show expected in FY26
After a strong performance in FY25 on the back of recovery in rural demand, rising consumer confidence and relatively easier access to financing, the domestic two-wheeler segment is expected to fare even better in FY26, moving closer towards the pre-Covid high of to data from the industry body Society of Indian Automobile Manufacturers (SIAM), two-wheeler volumes in the domestic market grew 9.1% year-on-year (y-o-y) to 1,96,07,332 units in FY25. While motorcycles pushed the wholesales forward, scooters registered a handsome the electric models contributed over 6% to the two-wheeler wholesales in FY25. "Improved rural demand and resurgence in consumer confidence is helping the segment to recover. Growth is led by scooter segment due to improved rural and semi-urban connectivity and availability of newer models with enhanced features," SIAM two-wheeler volumes: FY25 vs FY24CategoryFY25FY24GrowthScooters68,53,214 units58,39,325 units17.4%Motorcycles1,22,52,305 units1,16,53,237 units5.1%Mopeds5,01,813 units4,81,803 units4.2%Total1,96,07,332 units1,79,74,365 units9.1%Source - SIAMThe two-wheeler segment clocked record domestic wholesales of 2,11,79,847 units in FY19Domestic two-wheeler volumes: Since FY19YearSalesFY251,96,07,332 unitsFY241,79,74,365 unitsFY231,58,62,771 unitsFY221,35,70,008 unitsFY211,51,20,783 unitsFY201,74,17,616 unitsFY192,11,79,847 unitsSource - SIAM"We expect FY26 to build on the momentum of FY25. New and emerging categories may see double-digit growth, but the entire two-wheeler segment may see similar growth. It may vary based on a few important factors. Latest tax reforms are likely to increase disposable incomes in urban areas, stimulating demand for premium two-wheelers in the middle class of India. The IMD forecast of an above normal monsoon will likely have a positive impact on the rural economy, and hence two-wheeler sales," Rajat Mahajan, Partner and Automotive Sector Leader, Deloitte India, told India Partners Vice President Nikhil Dhaka observed that the two-wheeler segment might grow in the range of 6-10%, in line with broader industry forecasts. "Some original equipment manufacturers (OEMs) are aiming to cross the pre-Covid peak of FY19, banking on continued rural demand, a strong festive and wedding season, and macroeconomic stability. The electric two-wheeler space is likely to gain further ground, supported by government incentives and improving charging infrastructure," he established OEMs entering the electric and CNG spaces, more products are expected from them in FY26. The deliveries of Honda's electric scooters, Activa e: and QC1, have started. Suzuki will soon launch its maiden electric scooter, the e-Access, in India. More electric models are expected from Hero, TVS and Bajaj as startups like Ola, Ather and Ultraviolette will bolster their portfolio with new electric motorcycle and electric scooter models."The electric two-wheeler space is likely to gain further ground, supported by government incentives and improving charging infrastructure. A pipeline of new product launches spanning various price points, will help sustain consumer interest," Dhaka the two-wheeler segment is expected to be in green in FY26, certain challenges need to be factored in, as per the experts. Among them are high fuel prices and even supply chain disruptions due to geopolitical will need to keep a tab on factors which can hurt growth in the short term like regulatory changes, consumer sentiments or supply chain disruptions," Mahajan opined that the urban demand continues to face pressure from high fuel prices, and a shift towards premium and electric models may slow volume growth in the mass to Auto Today MagazineMust Watch
