Electric Vehicle Market is expected to grow at 26.8% CAGR BY 2030.
The projected size for the electric vehicle market worldwide is 35 Mn units by 2030. The Passenger vehicle Segment is expected to be the largest market in the vehicle segment in the forecast.
The availability of a wide range of models, upgraded technology, increasing customer awareness, and availability of subsidies and tax rebates are the major factors driving the market.
In this article, we have explained different business models for private sector participation that are prevalent across Asia and globally, as evident from the various case studies provided herein.
Broadly, six (6) business models have been introduced to propel the share of electric vehicles in the transportation industry, moving towards sustainable growth through energy transition.
1) Bulk Aggregation for Fleets
Any entity (whether public, private or PPP) which procures electric vehicles or related infrastructure in large quantities can be identified as an EV aggregator. Bulk procurement provides an impetus for vehicle manufacturers, charging infrastructure companies, fleet operators, service providers, and the industry to gain efficiencies of scale and drive down costs.
Case Study - West Bengal Transport Corporation (WBTC)
World Bank Supported the West Bengal Transport Corporation (WBTC), India by providing the grant of US$ 250,000.
WBTC chose to carry out the electrification of public transportation and procured 80 electric buses from Tata Motors. Nine bus depots and nine bus terminals were identified to cater to the operation of the electric buses.
A private-sector operator is also being chosen to procure 100 more electric buses through a transparent bidding process.
2) E-Car Sharing
In this business model, the electric car is used by subscriber for his daily commute while during the rest of the day, it is available for regular carsharing customers. Customers avoid the risk of vehicle ownership and cost of the car is distributed among multiple users. Subscription fee is based on the daily driving distance of subscriber.
Case Study - Spark Electric Car Sharing
Spark launched electric car-sharing service in Romania with deployment of 50 cars in Bucharest. The fleet consists of Nissan Leafs and Renault Zoes electric cars.
Each ride is charged per minute or per day and costs are all inclusive of insurance, technical maintenance, and charging.
The minimum rental time is 12 minutes. As of now the service area is Bucharest. So, anybody outside the city’s vicinity must bring the car back or else pay extra.
The service is easy-to-use and electric cars can be located and reserved via the SPARK mobile application on the user’s smartphone. Using this, the user can see the walking route to selected vehicle, reserve, unlock and lock the car while also receiving an invoice for usage.
3) Battery Swapping
Some of the common concerns of the electric vehicle buyers are:
High cost of EV’s
High Battery replacement cost
Range Anxiety
Long Changing time for batteries
Charged Battery are leased from the outlet of an Energy operator – when the battery drains the user can visit any outlet, Swap the discharged battery with the charged battery. There is a refundable security deposit to be paid by the user.
This business model compensates the high-cost component of the electric battery compared to the vehicle price, and charging times are also reduced by a substantial amount. In addition, due to controlled charging conditions, batteries last for longer charging cycles.
Case Study - Gogoro Global
Gogoro is a Taiwan-based company that develops and sells electric scooters and battery swapping infrastructure
It has set-up GoStations, ATM-sized vending machines where depleted batteries can be readily swapped for fully charged batteries
The Gogoro Network is now the largest battery swapping network in the world. With 2,186 GoStations in Taiwan alone
Compared to one or two tethered charging points that can only charge one vehicle at a time, a single GoStation can support 400 vehicles in the same space
4) Second Life of Battery
Subjected to extreme operating temperatures, hundreds of partial cycles a year, and changing discharge rates, lithium-ion batteries in EV applications degrade strongly during the first five years of operation. An EV is required to be replaced when the battery capacity reduces to 70-80%.
However, these batteries can still be utilized for energy storage systems or can be refurbished and be used in the places with less capacity requirement of batteries which extends the useful life of the battery by another 10 years before they need to be disposed.
Case Study - Renault & Nissan
Second-life batteries from Renault electric vehicles will be used to store the fluctuating supply of energy produced by Porto Santo’s solar and wind farms
Nissan formalized a partnership with Sumitomo Corporation to reuse battery packs from the Nissan Leaf for stationary distributed and utility-scale storage systems
5) Electricity Charging Infrastructure
With the evolvement of EV, multiple governments have started introducing PPP Model to build electric vehicle charging infrastructure. Under this model, the concessionaire will build the infrastructure for EV charging station and would exit after the end of term as agreed in the concession agreement.
Case Study - Greenspot EV Charging
Greenspot, an award-winning startup that specializes in the implementation of electric vehicle (EV) charging projects and e-Mobility Hubs, announces the launch of its state-of-the-art e-Mobility Hubs in four cities: Columbus, Ohio; Newton, Massachusetts; Brookline, Massachusetts; and Asbury Park, New Jersey Under the Public – Private partnership with the state.
The partners in the project aim to make electric transportation more accessible, feasible and visible — helping normalize emissions-free options as part of the transportation mix.
6) EV fleet operations
With deployment of EVs across fleets procured for the use by public and government agencies, private sector can operate such large fleets to bring efficiency in operation & maintenance and reduce downtime. The private sector can either have the option to optimize second-life of such EV batteries or hand-over back to the agency after concession period.
Case Study - Jaipur City Electric Bus Fleet
Jaipur City Transport Services Limited (JCTSL) invited tenders for supply-cum-operation of 100 electric buses for a period of 10 years.
The operator had to account for all expenses such as purchase cost of buses, cost of operation, electricity, drivers, management of fleet, charging infrastructure, replacement of batteries, maintenance of vehicles etc. required to run the buses for the contract.
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