Saturday, January 16, 2010

Automobile: Seeing the ELECTRIC forces of change

The auto expo 2010 was a wonderful experience for me, this was mainly because of two reasons: one that I am a mechanical engineer(with interest in automobiles), second I am studying business.

While I was moving through the stalls, Apart from enjoying I was observing the changing face of automobiles in India.

We all know about Reva, one electric vehicle which has been commercially viable. But why do you think, this has not hit the market like nano did. Well the reasons what experts provide: people are not appreciating the mileage that it provides, also people are not concerned for emissions of there vehicle. But are there any other reasons to it....yes, you see that car, it doesn't look more than a box, its top speed is limited, also it is overvalued for the benefits it provides this is mainly because of the low level of production, this I say because total electric vehicle sold in 2008-09 were just 1,10,000.

So why am I saying that face of automobiles is changing, let's first digest the fact that the same industry is growing around at around 45-50%. And if you take my opinion, this industry by 2012-13 would have a growth rate of 100-150%. This would be possible because of increased attention to pollution and mileage as well as better products available at better prices because of increased participation of big giants of automobile industry into this category. This is exactly what I observed there at auto expo, almost all of them have something in stores for this category.

And lemme now explain how some of them are going about it, most of the major companies are using motor assisted engines. Here they would have a battery connected to a motor, the motor would assist the engine during the start of the vehicle as more torque is required at the initial stage. And while easy cruising the alternator would charge the battery, this would increase the efficiency of car by around 20%. With advancement in the field of batteries this concept holds future.

There is one more way, which we have in Reva: you have a battery that provides drive to wheels, here you have fixed charging life of battery after which you recharge the battery and keep moving and since there is no engine so believe there is no emission. But take this, in India we produce 70% of electricity by coal, so you have only changed the place of emission and also we don't have an Electric infrastructure that can support mass commercialisation of this type of model. So my final words would be that "for the time being we should reap in the benefits of first type, and consider the second model only after we have strong and clean electricity infrastructure".

NOTE: This is my first blog, so please do write comments to help me write better, and if you want me to write in the same way for HMV/CV do tell.

7 comments:

  1. This is my first comment for Ur Ryting, And yaa must say Itz sumthing hatke.. And Yaaa Plzzz keep writing on Vehicles related, spcly One Question, which is one of Ur fav, and for which U always take a stand, I guess pata toh lag gaya hoga, "Is Nano a truly efficient car?" If yes, then Y havent many of the previous car makers which always tend to be in RnD failed to use this new tech.

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  2. In the 1900's, battery and steam vehicles were preferred over gasoline cars.
    A study noted that we have 800 million vehicles in the world today and we could end up with 3 billion cars on the planet by 2035..And if they use gasoline engines where will the fuel from?
    Not stating the various other benefits, i think it is the single most reason why we could soon be back to the future..

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  3. Do you see any impact on margins of cars makers in India considering the competition that is intensifying and upward metal prices?

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  4. Electric cars according to me are just a way to transfer the consumption of fossil fuel from individual level to society level. Electricity that we get today is being generated by burning the fossil fuels like coal(highest contributor). But to the extent electric cars be considered as a solution is that the plants as a whole are more efficient than each individual burning a small unit of fossil fuel. India still has a huge crunch in power sector a gap of 20-30%.

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  5. Sir, the rising metal prices are a global phenomenon.

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  6. Taking the example of Reva, one of the problems consumer has is that it is a twin seated. This poses problem since people who are buying cars want a bigger space. Moreover, only a model is present in the market. Obviously lastly, when you go to a market to buy a car, you see that whether it will give right mileage or is the design good or is it fuel efficient; you just keep relaxed about emission norms since they are certified to be met. To buy a Reva, extra efforts of thinking to the future is required where a trade off is required with the size of the car. This doesnt happen.
    But however, Reva has been a better success in Bangalore than in the NCR region. The company is also set to launch a number of Sporty models in both India and abroad which may increase the sales.

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  7. @ Shailendra sir, Pressure is always there and companies are sustaining because of growing top line...but as we know technology always beat inflation...you see that for computer, mobile handsets, television,refrigerator etc....the main reason to this is raw material is not the major cost component...for eg at 50 Rs/kg our average car of 1000 kg would have steel cost around 45,000..so by improving the processing techniques, companies overcome the impact of inflation...also most companies go into contractual agreement with there suppliers to reduce the cost of supplied components by few percentages every year...i.e they are expected to use better technology and improved operations...

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