2019 was the year that the sale of battery-electric as well as plug-in-battery cars first crossed the two million mark according to a report by Deloitte. This very significant milestone of the automotive industry lost its sheen, however on account of the Covid-19 pandemic.
Among the important trends that are likely to emerge with regard to the demand for electrical vehicles are their falling prices in keeping with an accompanying drop in battery prices. This is borne out by the fact that the average price of an EV battery pack fell from $1,160 per kWh in 2010 to $176 per kWh in 2018. Going ahead this could fall to about $94 per kWh in 2024 and $62 per kWh by 2030 according to BloombergNEF. Furthermore they estimate that there will be price parity between electric vehicles and internal combustion engine vehicles as early as 2024.
Electrification of Vehicles to Extend to Heavy Vehicles
Better Access to Public Charging
Increased access to efficient public charging is going to drive the move to electric vehicles to a very large extent. Things like super fast chargers, wireless charging, as well as battery swapping are going to cause a paradigm shift in the way the whole battery charging business is viewed. They will increasingly be viewed no more inconvenient than the time it takes to fuel up an internal combustion engine vehicle.
The year 2020 is proving to be worse than the worst annus horribilis, one could imagine. With the Covid-19 pandemic raging unchecked, the economy has decelerated massively and people have more or less stopped spending money on anything other than the bare necessities.
That is bad news for the economy, as the people need to spend a fair amount on goods and services to get the engines of the economy to rev up and gather speed. Can the three-week-long IPL 2020 which kicks off in Dubai on September 19th, enthuse the audience to shed their reticence and go ahead and splurge on all kinds of consumer goods and services?
For as much as the IPL is an annual sports and entertainment extravaganza, it is also the definitive annual advertising and marketing event. Certainly, the advertising industry can look at much-enhanced revenue on account of a months’ long pent-up demand due to the long lock-down and the continuing restrictions afterwards.
For brands, most of whom have as good as lost two quarters of the year, on account of the pandemic, the IPL coinciding with the festival season gives them a huge opportunity to work towards regaining their market share.
On the other hand industries like food essentials, healthcare, education and insurance that fared quite well during the months of pandemic induced inactivity would also like to leverage the huge reach of the IPL amongst a captive audience.
That apart, there will be whole new categories of advertisers, who have emerged thanks to the times that we live in comprising of ed-tech companies, hygiene products like hand washes and hand sanitizers, as well as dishwashers. Also a lot of the advertisers this year will be indigenous startups who have made it big in the recent past and established themselves as brands to reckon with that are more in tune with the demands of the contemporary world.
They would be able to more than makeup for those legacy brands who might no longer have the wherewithal to be a part of the IPL extravaganza this year. Sponsors and advertisers like Dream11, Unacademy and Cred, who are part of this brave new world of tech entrepreneurs are the front-runners in this year’s IPL giving everyone a foretaste of things to come.
That is not to say that the legacy players are going to miss the bus, in so far as capitalizing on the advertising and marketing opportunity presented by IPL 2020 is concerned. Telecom major Vodafone Idea who re-branded themselves as VI recently, thought that the IPL was the best platform to announce the fact to the world.
They did this by becoming the co-presenting sponsor of IPL 2020. Clearly, the fun is just beginning. Let’s hope that by the time this edition of the IPL ends on November 9th the mojo will be back in the Indian consumer markets.
Electric cars are the favor of the times and are often touted as the definitive solution to curbing pollution in the towns and cities of the world. But are electric cars really as gentle on the environment as they are made out to be?
After all, as many would tell you, the electricity used to charge electric car batteries may not have come from a clean source at all!
As is usually the case, there is merit in both the arguments in favor of electric cars and those against them.
Let’s take a look at both the sides-
Surprisingly, it’s the battery, which is really the heart of an electric automobile that is a source of environmental pollution. That is on account of the fact that there are a number of rare earth metals that make up a car battery whose extraction as well as handling can lead to carbon emissions.
However, there is evidence that by using the right kind of technology, one can cause considerably less environmental pollution in the manufacturing of electric automobile batteries. American and European manufacturing techniques, for instance, are known to cause as much as 60% less environmental pollution than Chinese ones.
When it comes to emission during the lifetime of an automobile, an electrically powered one with its zero tail emissions is a clear winner over one that uses an internal combustion engine. That does seem to tip the scales in favor of electric cars, but there are other factors to consider before one arrives at a definitive answer about whether replacing fossil fuel-powered cars with electric ones will prove to be better for the environment or not.
Judging by the way that governments around the world are actively promoting electric cars at the expense of the conventional internal combustion engine-based ones, it does seem that there is some kind of consensus about the former’s environment-friendly credentials. In fact, the International Energy Agency reckons that there will be more than 300 million electric vehicles worldwide at the end of 2040.
At the same time, it has to be understood that the electricity used to charge the batteries of these large numbers of electric vehicles will have to be generated with the help of clean non-fossil fuel for there to be any real environmental gains. All the same, it is important to note that the process of creating electric cars is quite polluting in itself and needs to be improved as we go along.
It is expected that increasingly efficient technologies will make it possible to substantially reduce the pollution caused by the manufacturing of electric car batteries. Advances in technology that enable efficient reusing and recycling of batteries will also contribute towards reducing the overall pollution caused by the manufacturing of car batteries.
All things being considered, even after taking into account the negative environmental fallout of generating the electricity required to power electric cars, they create considerably less carbon emission than petrol or diesel-run cars do. According to research carried out by the European Energy Agency , this difference in the level of carbon emission is as high as 17 to 30%.
Delhi with more cars than Mumbai, Chennai and Kolkata put together naturally grapples with immense pollution and its consequent ill effects. It had almost 11 million vehicles on its roads two years back in 2018. Mumbai, in comparison came in a distinct second at nearly three and a half million vehicles in the beginning of 2019.
If there is any city in India, indeed the world, where a case can be made out for an en masse migration to electric vehicles, it’s Delhi.
A study by IIT, Kanpur found that vehicular pollution contributes as much as between 20 to 25% of the PM10 and PM2.5 particulate matter found in Delhi’s air. It therefore makes eminent sense for a concerted and immediate move to zero emission electric vehicles to help make the air that the people in the National Capital Territory of Delhi (NCT) breathe actually breathable.
That Delhi’s vehicular traffic is a conglomeration of buses, cars, two-wheelers and three wheelers (including human powered rickshaws), means that the authorities have their task cut-out for them.
Electric Scooter-Bjorsa / CC BY-SA (https://creativecommons.org/licenses/by-sa/3.0)
The first thing that strikes one is that cars, though an important components of Delhi’s vehicular traffic lag behind two-wheelers in terms of sheer numbers. Of the 10.9 million vehicles on Delhi’s roads 7,078,428 were two-wheelers in comparison to 3,246,637 four-wheelers(cars and jeeps) . In addition there were 1,13,074 three wheel auto-rickshaws plying on Delhi’s roads.
Therefore, any talk of making Delhi vehicles go fully electric has to factor in two wheel and three wheel vehicles comprising as much as 65 % of the traffic in the NCT of Delhi.
So, it follows that a major part of the electrification of vehicular traffic in Delhi would have to focus on electric two wheelers and the already ubiquitous three wheel electric rickshaws.
Not surprising in a country where car ownership stands at a modest 20 cars per thousand people. To put this in perspective, the corresponding figure for the United States is 800 cars per thousand people.
One would not be wrong is assuming that this is an idea whose time has come, in light of the growing popularity of e rickshaws as a “last mile connectivity” option.In fact, there are already an impressive 1.5 million e rickshaws on India’s streets.
Considering that the largest number of petrol powered vehicles in the Delhi region are two-wheelers, the newly announced EV (Electric Vehicles) policy of the Delhi government is looking at incentivising the adoption of electric two-wheelers by the vast number of people who use these petrol driven vehicles to get around the city.
The idea is to wean off as many as 50% of such people from using their conventional two wheel vehicles and make them opt for electric ones by March 2023. A generous purchase incentive of Rs.30,000 ($403)for changing over to electric two-wheelers is expected to provide the much needed fillip to the drive.
The purchase of electric cars too has been incentivised by way of a Rs.5000 ($67) per k/Wh or Rs.150,000 ($2,020)on the purchase of a four wheeler. Besides, the road tax and registration fee waiver extended to all electric vehicles, too makes choosing electric mobility over conventionally powered vehicles very attractive.
All in all the Delhi government is looking at registering an ambitious 500,000 electric vehicles in the coming five years.
How far Delhi is able to successfully implement the ambitious, but well-intentioned EV policy will in many ways decide the fate of the electrification of vehicular traffic in the rest of the way. Delhi had shown the way in the past with the launch and astounding success of the Delhi Metro rail network, under seemingly impossible conditions.
This led to a veritable revolution across the Indian urban landscape, what with the Delhi Metro model being replicated across most of the major cities and towns in the country.
If Delhi could go fully electric with regard to its vehicular traffic in the next ten years, it would be a trail blazer amongst the megapolises of the world, with a cascading impact on cleansing the major population centers of the world of a major source of air pollution.
This would set in motion a virtuous cycle comprising of a healthy workforce contributing more to the world economy, which in turn further improves their lifestyle. Besides, the industries supporting the new clean energy based transportation system would have created a whole new ecosystem of growth and prosperity minus much of the ill- effects associated with the old fossil fuel based one.
Of course, a lot would depend upon how clean the source of the electric power consumed by the largely electric transportation system would itself be, but that is the subject of another article.
The unchecked use of fossil fuels has brought the world to its knees. Make no mistake about it. The world is facing an existential crisis that doesn’t brook any delay in its solving. The cars we drive have unfortunately become a symbol of all that is wrong with the way we have been interacting with our environment for more than a century. When the automotive industry was in its infancy there were all kinds of technologies being relied upon to power the vehicles being manufactured- steam-based, petroleum fuel based and electric. That all automobiles came to run on petroleum by-products was the outcome of a lot of reasons.
Steam had in fact been a reliable energy source for some form of self-propelled vehicles since the late 1700s. Steam run cars made an appearance by the 1870s. But the unduly long start-up time, sometimes as long as 45 minutes, and the need to refill them with water at short intervals made them more than a little impractical to use. Post improvements in the internal combustion engine, gasoline or petrol-powered cars made their first appearance. These weren’t without their share of problems either, what with one having to crank start them and change gears in order to drive them.
Electric cars of the time were quite easy to drive and didn’t reek of the smell of the pollutants emitted by a gasoline car. So to start with, it were the electric cars that were quite the rage. In fact Ferdinand Porsche, the founder of the legendary Porsche car company came out with an electric car as early as 1898. He also went ahead and rolled out a hybrid car that ran on both electric power and gasoline. Even Henry Ford had at one point thought of partnering with the famous inventor Thomas Edison to manufacture an electric car.
Ironically, it was Henry Ford, who sounded the death knell of the hitherto very popular electric car with the introduction of his mass-produced and highly affordable Model T in 1908. The incorporation of the electric starter invented by Charles Kettering, made crank starting unnecessary, thereby giving a boost to the sales of gasoline-powered cars. Moreover, the discovery of plentiful cheap Texas crude oil and the proliferation of gas stations throughout America made gasoline-powered cars the norm. By the mid-1930s there were hardly any electric cars visible on American roads.
The domination of the internal combustion engine has continued right into the second decade of the 21st century. The overwhelming majority of cars running on the roads around the world continue to use that tried and tested automotive technology. Electric cars, however, made a reappearance in the 1970’s during the 1970’s OPEC oil embargo. The perceived shortage of the hitherto abundantly available oil made people look to electric cars to bail them out.
Though technology had improved substantially since electric cars had first been introduced in the 1800’s, the old problems of limited speed and range meant that the revival was short-lived. Electric cars saw a true revival in the beginning of the 21st century when environmental concerns over the polluting nature of internal combustion engines sparked an interest in alternative technologies to power cars, of which electric power seemed to be the most viable.
Cars like Chevy Bolt, Nissan Leaf and Tesla Roadster redefined what the electric car could do. The last one was the first of the three to come out in 2008 while the other two were launched in 2010 causing nothing short of a mass-produced electric vehicles revolution. That Bolt and Chevy were mainstream cars from legendary automakers added to their allure. With decent power, driving range and spaciousness, these cars were able to change people’s views about electric vehicles.
Tesla Inc the Elon Musk funded electric car company turned in an electrifying(pun intended!) performance managing to go 394 kilometers on a single charge. With its ability to match a sports car kind of acceleration ( 0 to 96 kilometers an hour in less than 4 seconds) and a top speed of 200 kilometers per hour, electric cars were finally serious competition to conventional gasoline-powered cars.
Why the Internal Combustion Engine Needs to Go
While the internal combustion engine shows no signs of going away, there are growing reasons reasons why it needs to be jettisoned for good. The age of the internal combustion engine, glorious while it lasted needs to end. It is not just due to the fact that internal combustion engines use fossil fuels contributing to the devastating phenomenon of global warming and climate change leading to dire environmental and economic consequences for the planet. There are other very compelling reasons in the eyes of the consumers that will cause a groundswell of change in favor of electric cars in the near future.
The fact that oil is finite and will run out one day is not something that is likely to have an impact on an average person’s decision to buy a gasoline/petrol-powered car. As long as he or she knows that there will be enough supply available in the near future, they are not going to worry about what’s going to happen years later. What will make them cross over is the fact that electric cars finally seem to make more sense than the gasoline-driven ones both from the city driving and long-distance driving perspective.
What do Electric Cars Offer
Both from an every day driving perspective and a road trip one, a modern electric car offers a host of benefits over a conventional internal combustion-powered one. Let’s look at what these might be-
– Electric cars, also known as plug-in electric vehicles, offer substantially lower fuel costs than conventional gasoline or petrol ones. This happens on account of two factors- electricity costs less than gasoline does and the fact that electric cars are more efficient than those that have an internal combustion engine.
-The long-term economics of owning and driving an electric vehicle, undoubtedly, work out way better than an internal combustion one.
-With an electric car you don’t need to queue up at the gas station/petrol pump as you can plug in at home, work or wherever opportunity presents itself. Why you could even install solar panels to generate the electricity required to charge your vehicle!
– Electric cars are quieter both inside and outside making for a much smoother rider. Imagine a world where there is no traffic. Just the sound of nature to serenade you while you drive!
-Electric cars provide better performance than conventional cars on account of the high torque and acceleration they generate. It is no surprise really that Formula E racing is fast catching up with motorsport aficionados.
– Advancements in battery technology like electric regenerative braking systems have meant that the driving range of electric cars is quite comfortable and no longer a reason for not choosing one to own.
– An electric car has practically negligible maintenance headaches as it has fewer movable parts. There is no need to get these cars regularly serviced or their oil changed like in the case of gasoline-powered cars. You may have to get the brakes serviced, but not as frequently, as on conventional gasoline-powered vehicles. You do need to change the battery eventually, but with car manufacturers providing an 8 year or 160,000 kilometer warranty, that is not something that would unduly worry anyone.
Besides, with battery costs expected to fall further in the coming time thanks to government subsidies, one can expect more variation in the prices of electric cars in the future. One can expect several types of models being sold at different price points to suit every budget.
-Electric cars need to undergo safety tests of the same stringent standards as conventional cars and are therefore as safe as they come.
– The fact that electric cars are zero-emission vehicles makes them ideal for city driving what with many large cities of the world adopting measures like zero-emissions zones and congestion tax.
The expected crackdown on conventional vehicles is expected to get increasingly stringent in the times ahead and it might make eminent sense to switch to an electric car already.
An Open Business Establishment
COVID-19 has changed the world as we knew it. Every stratum of our society has been hit hard by its ferocity. A looming health emergency on the one hand and a shuttered economy on the other make it a two-pronged attack upon us. Re-opening of a stalled economy is not exactly a walk in the park. It’s tough! But the economy has to be revved up to re-generate it. Let’s dive right in and see for ourselves what the different ways and possibilities of reviving our economy are.
Since the lockdown is being lifted in phases, we can see some industries gearing up to re-open. The government on its part is offering a massive stimulus by way of loans and packages. But, the more they do the less it seems. Such is the magnitude of the disaster caused by the pandemic.
Given the enormity of the health crisis and the extreme measures taken by the government to contain it, we cannot expect the economy to come back to its original shape anytime soon.
Come out of the situation we have to, but first, we have to make a beginning of sorts.
Let’s look at a few steps for the re-opening of the economy-
- Killing the Confusion
The cloud of gloom hovering on the business horizon can clutter our minds with despair.
We scramble for solutions, options and alternatives and with no rule book to follow that is easier said than done.
So, what do we do?
Become your own teacher. Contemplate. Yes!
Take advantage of this quiet time to re-assess your life. This way you can prioritize things concerning the changed scenario. Chalk out a plan.
With high costs, dwindling demand and the challenges of maintaining hygiene and social distancing to deal with, companies will need to re-model their businesses to keep them alive.
This requires planning and you would do well to keep a few things in mind-
- Hygiene and Social Distancing
- WFH and Digitization
- Diversifying and Cost Cutting
- Hygiene and Social Distancing
With the opening of establishments/offices, the highest level of hygiene protocols has to be maintained.
The same goes for social distancing which is to be practiced in totality. Offices can call to work those employees who are required for the functioning of the office. Social distancing can also be practiced by calling people to work in shifts if it is a viable option.
A lot of emphasis needs to be laid on hygiene and social distancing. An occurrence of a single infection can lead to your office being shuttered. That too for weeks, possibly! So, take care of these two things and make them your top priority.
If these two things are taken care of, you can move forward with the operations part of your business.
- WFH and Digitization
Work from home (WFH) is becoming increasingly popular because it’s your savior in these uncertain times. It delivers!
Frankly, what better option do we have in these times of lockdown and social distancing? WFH is just what the doctor ordered for coronavirus situation and the pun is intended!
On the one hand, the employees don’t have to worry about the commute and the traffic issues and on the other, the employers don’t have to be concerned about sanitizing the workplace and put in place the necessary hygiene protocols. Talking of social distancing, WFH is social distancing at its best.
So, WFH becomes a cool option!
The companies with no WFH in place can seek help from professionals and find ways of enforcing it. It can help you revive your business in these times.
The internet ecosystem is tested and proven, hands down!
Smart businesses have thrived in the digital world. People who had dismissed digitization as a fad are at a disadvantage now.
Having said that, there is no room for resistance to digitization in the times of everything remote. These uncertain times call for digitization in a big way.
Microsoft CEO Satya Nadella recently said that 2 years worth of digital transformation has taken place in 2 months.
People are quickly pivoting to digitization.
Depending on the needs of your product/service one can visualize-
- i)Complete digitization of the supply chain
- ii)Adoption of cloud-based systems
iii) Leveraging data, IoT, AI to develop new business models
As Digitization, WFH takes the center stage, Engagement has become the new buzzword.
With the increased use of video-conferencing (Zoom and Microsoft Teams), things are becoming easier and manageable. From morning huddles to meetings with bosses and clients, a new way of doing business has come into play. Since all this is happening online, interconnectivity amongst the different layers in an organization becomes a necessity. This gap requires some form of engagement.
Video Conferencing is Quite the Rage
Now that more and more people prefer to work from home, the need for engagement management is on the rise.
Companies are using social media as an engagement platform more than ever before.
With digitization and WFH, we can expect some changes in the way companies conduct themselves.
All these changes shall lead to a crisper, more efficient and secure workflow.
Two Circles, a London-based sports marketing agency has estimated that the sports industry may lose the US $61.6 billion of revenue this year.
These are mind-boggling figures!
The Sports industry is already experimenting with holding big-ticket events remotely.
It can work like this- the broadcasters can work from their homes, while the sporting event takes place outdoors. There shall be no live spectators watching the proceedings. They can instead enjoy the game in the comfort of their home.
All this is quite challenging! I hope they pull it off!
Digitization is already a thing! It’s our future so invest in it.
- Diversifying and Cost Cutting
E-tailers, healthcare and life-science professionals are working overtime. The demand for their products and services has seen a major upsurge in recent times. These sectors are contributing enormously towards the economy.
What about other sectors?
While some sectors have partially opened others will require more time to start again. For instance, travel & tourism, entertainment and other such sectors shall have to wait for some semblance of normalcy to return, before they can pitch for business again.
This waiting for normal times can take a toll on us for sure!
One of the solutions could be innovation and diversifying.
Since the re-opening of the economy is in the interest of everybody, people can surely find ways of staying productive.
You must think out of the box to keep your business afloat. Innovation in these times can be your savior!
Smart entrepreneurs have already diversified into products and services which are witnessing huge demand. For example, companies who have no track record of manufacturing masks, sanitizers, PPE’s, face shields, ventilators are eying their share in the new market.
Some brick and mortar establishments can start taking orders online by investing in an app.
People are coming up with unique business ideas to contribute positively to people’s needs.
Since the demand for WFH and virtualization is an all-time high, some people are busy catering to that. They are for example providing background screens for video-conferencing calls and meetings and renting out laptops and furniture.
The demand for such products can only grow in these times!
One can take a cue from these smart business ideas and start something of their own.
Investing time and resources in some niches promising high growth can be a gamechanger for you! Look around and see what the consumers of today are looking for.
Our economy needs innovators and thinkers.
A by-product of digitization can be cost-cutting.
With more and more meetings happening online, there will be less business travel happening.
With uncertainty around us, business houses shall certainly be cutting corners in whatever way they can. This is no time for frills and superfluous spending. These are the times of maintaining caution and restraint.
If all these measures are taken up, they can surely help in giving our economy the required boost.
Different economic sectors have their own stories of fear and insecurity. With the supply chains having gone for a complete toss and layoffs and furloughs coming in force, there is a kind of hush descended on them.
Then there are some industries whose survival depends on normalcy. Take for example the entertainment, travel and tourism and construction sectors. These are all waiting for some good news to help them pick up where they left off.
They will surely start whenever the time is right but they will have to maintain those strict protocols.
There is no escaping the fact that a new-normal has set in, in our lives and we will have to live with that.
People want oodles and oodles of positive signs and assurances to gear up and participate in the re-opening of the economy.
All these fears and scares have to vanish!
Till then we can contribute to the economy by opening some sectors with caution.
Tenacity and resilience will make us stand tall amidst these chaotic times.
In short, there are no quick fixes in the offing, no ready answers for every sector. The crisis has impacted all of us differently.
It is a process which shall require all of us to contribute in whatever way one can by
- Staying Safe
- Opening some sectors
- Adopting Digital Solutions and WFH
- Innovation and Diversifying
Stay healthy! Stay productive!
Though some IT companies have already prepared or are preparing for this new setup, it is not hunky-dory everywhere.
Companies have their reservations and insecurities. Some companies are facing issues because they are not used to too many connections over virtual private networks (VPNs). Then there are companies who are already frowning upon the whole scenario as an increase in overhead costs.
· Slack, which makes business chat software are holding free consultations for companies who want to shift to remote working.
· Allowing conversations to exceed 40 minutes on its own free tier is a gesture by Zoom, the videoconferencing service.
· Microsoft has offered a service plan cloud “Productivity Suite” free for 6 months to small businesses.
· No long commutes
· Work flexibility hours
· No nosy colleague to waste your time
· A much-needed break from the office scenario
- Just sit back and relax.
- Read a book.
- Chat with your friends on social media.
- Catch up on some movie that you always wanted to watch.
- Pursue some hobby-maybe you can draw, paint or anything else.
- Practice Yoga and Meditation.
You can always try working on an online gig. Maybe you will end up making an app or acquire some new online skills.