TATA Pixel - TATA motor's answer to futuristic urban transportation

TATA motor’s newly showcased “PIXEL” looks as cool as its name itself. True to the name the car looks really made for the urban transport. The showcase of the concept came as surprise as Nano was pitted as TATA’s answer for global small car hunt. The car developed in its European Technology Centre looks elegant and seems to possess best engineering.

The car comes with a 1.2ltr, 3 cylinder turbocharged engine and offers just 3 meter turning radius. The engine is claimed to be highly fuel efficient and environment friendly.  True to its claim for urban usage, the concept car offers the scissor styled door. Not sure in the commercial vehicle it would really be viable from commercial cost perspective.  An electric variant also is on cards, however TATA is more keen to start its Indica EV running on European roads.

TATA as a car maker, has a lot of woes for its ambitions in India to capture the market share. However it seems to be making every good move to show its presence in European market. Undoubtedly TATA has made significant investments in its R&D/Engineering for PV segment from setting up an European Tech centre in suburbs of London, having seasoned Automotive professionals in engineering, management including its top management, collaborations. The much hyped Nano, really did not let TATA help realize it in terms of commercial success. TATA does not have enough models to fill the narrow segments on Indian road that is filled with best of the models from global car makers. Its Indica is by far the most popular model that helped TATA stand on its feet in PV segment following a series failed models. Like TATA, all pundits felt Nano would be a run away success due to its perceived low cost that was not there. Even if TATA tried to sell it at its hyped below $2500 price tag, it knows it can’t make money by selling at that price. 

India is a tricky market, as majority of the middle class the whole world is looking at is cost sensitive but has very high aspirations. Adding about 100,000 or so more for a bigger car is not an issue for the people whom Nano was targeted. TATA tried various marketing campaigns to pitch its value for money theme but has not shown in the sales yet.

But all its investments and visions might payoff in Europe in next 4-5 years. As the European market is matured and has one need – Small and electric.









Pictures copy righted by TATA Motors.

Indian Union budget 2011 cheers Automotive sector - National mission for EV, Hybrid vehicles

The Union Budget 2011 brought lots of cheer for automotive sector and for EV/Hybrid vehicles in general.

The industry that has hit by high input cost, interest rates and higher fuel cost in recent past was nervous anticipating an increase in excise duty from present 10%.  The industry has passed most of this cost to consumer and the last thing that it wanted is another hike that has to be passed on or get hit on margins.  Due to the painful inflation India is reeling through an increase in excise was expected.

The biggest relief the Auto sector got is NOT in hike in excise tax. All Auto sector stocks cheered to be back in green.  

The biggest reform that has been proposed is for a green transportation. The budget has proposed a National mission for EV and hybrid vehicles, that is expected to elaborate the investment and road maps. In Dec 2010, government had proposed incentive program for Electric vehicles.  

Below are some highlights of the union budget 2011

(Courtesy: Indian union budget website)

• Central Excise Duty to be maintained at standard rate of 10 per cent.
• National Mission for hybrid and electric vehicle to be launched
• Basic Custom Duty reduced for various items to encourage domestic value addition vis-à-vis imports, to remove duty inversion and anomalies and to provide a level playing field to the domestic industry.  (To be know yet what are the items that would benefit)
• Full exemption from basic Customs Duty and a concessional rate of Central
• Excise Duty extended to batteries imported by manufacturers of electrical vehicles.
• Concessional Excise Duty of 10 per cent to vehicles based on Fuel cell technology.
• Exemption granted from basic custom duty and special CVD to critical parts/assemblies needed for Hybrid vehicles.
• Reduction in Excise Duty on kits used for conversion of fossil fuel vehicles into Hybrid vehicles from 10% to 5%
• Excise Duty on LEDs reduced to 5 per cent and special CVD being fully exempted.
• Out right concession to factory-built ambulances from Excise Duty.

Incentive for EV makers - Will really charge the India EV market?

The New and Renewable Ministry, of Indian Govt announced an incentive scheme for EV manufacturers in India amounting to INR4000, 5000 and 100,000 for low speed 2 wheeler, high speed 2 wheeler and EV car respectively. This could amount to 20-25% of prevailing ex-factory prices. The incentive comes with a tag of filling 30% of supply chain through locally developed parts. 

SMEV (Society for Manufacturers of Electrical Vehicle) a consortium of EV, technology and aggregators announced, through the incentive they receive the EV makers might plan to pass on this further to the buyer that could fuel the sales of EV market in India.

However the optimism of officials at SMEV that this move could even double sales of EV in next year seems far fetched considering the ground realities in India that could support this growth.

The incentive program in itself may not serve much purpose without a proper roadmap since India does not have any policy framework related to EV growth yet. The incentive program itself is a halfhearted attempt that came so late compared to its global peers and

here are some fallacies why the Electrical Vehicles may not gain momentum in India.

1. A major benefit of EV is to Reduce dependency on Petroleum products – However India is fast becoming dumping ground for all OEMs in the world for the ICE based vehicles with companies churning their capacities like there is no Tomorrow.  According to some statistics, around 100,000 electric vehicles exist in India, majority of them are two wheelers compared to car maker Maruti suzuki selling over 100,000 car per month. Emission taxes are predominantly imposed in Western countries now to curb the driving of cars where as in India the Petrol and Diesel are subsidized. The recent outburst from Environment Minister Jairam Ramesh to ban SUVs that are heavy on fuel consumption or asking them to sell the Diesel at un-subsidized price is the first vocal protest heard on this issue.

2. Need for Power - The basic challenge for India to promote EVs at this point is not the infrastructure or demand but the availability of Power itself. According to Expert committee at planning commission, for its target of 8-10% GDP growth until 2030 to eradicate poverty, Indian power growth has to be at least 6% on annual basis. So the primary focus for India now is to meet its power requirement. Govt of India setup this expert committee to draft a comprehensive energy policy to meet the challenge through Planning commission that sets plans for India covering 5 years span (presently India is in 11^th five year plan). All the energy demand recorded in the policy are for the Industrial, house hold, agriculture, rural electrification etc., and not for transportation need like charging EVs.

3. Another basic benefit of EV is for the Green cause to control emission – This makes it even trickier for India since around 70% of Power is generated using thermal power plant where coal is the primary source of energy. Since India has large Coal reserves, coal would continue to be the primary source till 2031-32 according to the energy report. So it may not make much sense to promote EVs on greener cause where they are charged by electricity that is generated by burning coal. Govt is putting enough thrust on investing in technology to reduce the carbonization due to burning coal.

There are some incentives offered by the Govt. like for 2 wheelers there is no registration required from the road transport authority, there by avoiding road tax. But from common person’s perspective EV is not fully ready to lure the customers due to its own challenges of cost/reliability and infrastructure like anywhere else in the world.

The present EV market scenario in India where there are around 15 players in 2 wheeler segment, however most of the parts sourced from the Chinese imports and assembled and sold in India. There are some isolated battery operated 3 wheelers (Auto rickshaws) which use Liquid batteries that are under the radar from environmentalists. The erstwhile Reva is now a Mahindra group company. But Reva was never a successful EV company with around 600 cars sold last year, about 300 in India despite of its 10 years of existence. But its capital is the IP that Mahindra would be interested to use for its small LCVs (sub ton category) mainly for export market. GM India had partnered with Reva for technology collaboration for Chevy Spark, but since the Mahindra took the control of Reva, the relationship ended. The Auto Major TATA has good amount of thrust on EVs with some of its models like Indica EV is scheduled to hit UK/Scandinavian market by 2011.

So the EVs to gain grounds on Indian Road seems quite far, may be as far as 2030, however one trend could be seen in near term is that, with some localized promotion by private industries/institutes who are investing in RE sources could use the vehicles for their organizational use within their premises. Even local Municipalities could take initiatives to tie up with private players to own some fleet..

GM India now makes its own plan for Electric cars

On the brink of Mahindra buying the stake in REVA electric vehicle company, GM India announced its own plan to work on Electric cars from US. Last year GM India had come to an agreement to work with REVA for technology alliance for its Spark version.

The new move came as a set back for GM India as Mahindra a leading auto maker in India.

Mahindra enters in to Electric space with a stake in REVA

Indian leading utility vehicle maker Mahindra is in news again, this time by acquiring 55.2% stake. The new entity would be called Mahindra Reva Electric vehicle Company.

Mahindra, clearly the a great success story in Indian automotive scenario in recent times had been putting all the right foundations towards reaching the global markets. Mahindra is the leading utility and tractor market in India has a partnership with Navistar for M&HCV sector, has recently put maxximo, a sub ton category utility vehicle. Mahindra’s attempt to enter in to passenger car segment was not so successful with its divorce with Renault with a failed model Logan. The pickup version of Scorpio is all set to be launched in US market by the end of 2010.

Having stake in Reva, puts Mahindra in to the league of Indian auto markers

attempt to enter the attractive global electric vehicle market. TATA motors the Indian auto giant has made its preparation by acquiring the Norwegian electric car marker. It is planning to launch the EV Indica in UK and Scandinavia by the end of this year and the EV Nano in US by next year.

Mahindra’s proposition is to use the REVA technology, especially it’s drive-train technology. The Maxximo might soon be coming in EV version as REVA it self not a very successful in selling its cars in spite of its presence since 1994 as Electric ca company. REVA also has been in news since last year after it came with an agreement with GM India to help GM with EV technology for GM India’s plan for spark electric version. By then it was quite evident that REVA started looking for different options to position it self in the market, either as a technology company or ready to be acquired. The present stake sale has put the agreement with GM India in to side ways. However Mr Anand Mahindra has expressed that Mahndra is ready honor the agreement to offer the technology.

Sale of REVA also marks the end of an era for REVA that started its initiative in EV domain in 1994 and was one of the early movers in this area to bring in cars on road. Presently REVA mentions it has presence in 24 countries and around 3000 cars on Road.

It clearly mentions that REVA was never a successful car company (in growth) however the persistence to continue in the field over this period in it self is an achievement and its Name being taken amongst very few EV companies in the world can’t be denied.

Electric Nano to run on British and Scandinavian roads

The electric version of the much publicized Nano by TATA motors is expected to hit British and Scandinavian roads in next 3 years.

The electric version was unveiled at Geneva Autoshow 2010 along with displaying Aria, Xenon, Indica EV. TATA had displayed the electric version of Indica in Delhi Autoexpo 2010.

TATA is making serious bid to gain early mover advantage to take the slice of lucrative European green car market where the EU is committed to reduce the emission by 20% in 5 years. TATA is running initiatives through its subsidiary TMETC in UK for all its EV vision. It had acquired 50.3% in Norwegian electric technology company Miljo. The TMETC, TATA motors European technology centre based at Coventry in West Midlands is an effort to bring in the best of talent from European OEM in vehicle technology, engineering and R&D.
TATA motors recently had Carl-Peter Foster, ex-GM Europe Head as group CEO including India.

TATA cars are expected to take Chevy Volt and GM Ampera head-on as the Volt/Ampera have created enough buzz about their launch this year in Europe.

The Indica EV version is expected to be launched by September this year in Norway and by end of this year in UK. The Indica is expected to run 200kms for full charge.

TATA motors laying greener roadmap

TATA motors announced that it is testing its fuel cell powered busses and LCV developed by their London technology centre. TATA motors has been working on greener technologies for their vehicle base. TATA acquired 50.3% share from Miljo Grenland, a electric vehicle technology supplier in 2008 through it’s European Technology centre in London. Miljo is helping TATA in building electric car on its popular Indica platform and also developing polymer based lithium ion battery technology.

The hydrogen fuel cell technology is going to be used for its bus and LCV fleet. Presently most of the buses in the rapid transit systems across the world are CNG driven.

GM e-spark batteries to be sourced from India

The e-spark, electric version of the spark model by GM will have the batteries from Indian battery vendor now. Initially GM had announced the batteries would be sourced from China and Japan.

GM in a recent note announced that they will be finalizing the battery vendor for Acid lead batteries and further provide the Lithium ion batteries. The e-spark is expected to be launched at INR700,000.

Earlier GM had announced a EV technical collaboration with Reva. Reva, the electric car company based out of Bangalore has been in EV car business since over a decade and has now commercially available car variants in India and some export exposure.

The leading Indian battery makers include Amar raja battery, the market leader, Exide Industries, Amco, TATA green.

GM to build its own Electric car motors

GM announced to build electric car motors on its own and anticipates this helps to control cost, quality and manufacturability. The GM motors are expected to debut in 2013 through their hybrid cars.

source - economic times