Date: 17th Jan 2011

Electric Vehicles: coming in to the main road

Can electric cars mature in 2011? If not in 2011 but it's possible in 2012 because the electric vehicles started matching the expectation of car buyers by cost-wise as well as performance wise. The main drivers are- use of advanced light weight batteries (Lithium-ion cells and nickel metal hydride cells) whose cost is dropping and the gasoline price is going up. More importantly the hybrid technology is maturing.

However 2011 going to be another year for electric vehicle to step forward in entering mainstream. In the present scenario, it can be estimated the shipment of electric and hybrid cars worldwide crosses 2 million by 2012 and its possible of a sudden jump in sales exceeding this estimation provided some innovations happen in battery technology (mainly the cost) and also any sudden increase in gas prices.

Some of the popular brands making name in electric car market are Nissan Leaf, Chevrolet Volt. Nissan Leaf costs in the range of US$32 plus and can travel 100 miles in single charge, fairly good specs to make it a preferred car. Cars with price range and mileage range matching typical global middle class family budget and their travel requirement will be a hit. Chevy Volt, being a hybrid car can travel 375 miles (with 35 miles gas free) with support of built in gas powered generator. It says "commute gas-free on electric for an average of $1.50 a day". The price of Chevy Volt is $32,780. Leading electric carmaker Tesla target car addicts with its finely designer Roadster. Roadster is an electric powered road beauty.

Pure electric car maker Coda is planning to deliver 14,000 of the electric cars in California by the end of 2011. Its fully electric sedan deliver a range of up to 120 miles per charge and is priced in the low $30,000s.

Ford Motor invested into a facility called "center of excellence" for electric vehicles (EVs). Through new investment ford aims to produce the majority of components needed for EVs in-house. Ford plans to launch five new hybrid or electric vehicles in North America within the next two years.

China, the world's biggest auto market is also in the front line of research and production of electric vehicle. There are reports estimating 1 million electric car productions by 2015 in China.

India is also fairly ahead in electric vehicle technology. India's REVA is sold worldwide, at a cost of approx US$7000 it delivers a range of 80 KM. Now REVA is owned by India's leading auto maker Mahindra. Government is offering subsidy to electric car buyers. REVA's technology is very basic, fairly rugged, common sense features, worth its money for Indian office goers. In the Indian two wheeler segment, there is EKO Vehicles which offers ranges of electric scooters.

When solar power achieves grid parity and electric car achieve performance and cost parity with gas driven cars, its going to be a big market opportunity for semiconductor and electronic industry, mainly the industrial electronics experts.

It's possible both solar and electric vehicle may come into main stream at same time and can create big opportunity worldwide with its major impact on global economics. Is Indian industry prepared for this opportunity?