F1: Integration of Formula E

Hybrids and Electric Cars

Conventional gasoline engines are finding no major takers in most parts of the World due to a variety of reasons. Of those people who have picked an Electric/Hybrid vehicle over the conventional engine, we are not sure if these people have understood the environmental impact of gasoline engines or if they are finding the non-conventional vehicles as cost effective on the long run. Nevertheless, the sale of the cars with conventional engines are on the decline while the non conventional cars are on the rise.

Globally, we might be talking about the 0.2% of the people who are buying these non conventional vehicles, but the penetration of the electric cars is significantly on the rise in countries like Japan, USA, France, and Norway. Japan has registered a 28% market share of these globally sold electric vehicles, while US leads the hybrid vehicles band as they have registered a 70% share of these vehicles sold around the globe. Many Countries have started to push for the sale of these electric vehicles by offering incentives, which has led to many automobile brands to seriously consider this phenomenon.

This is seriously an amazing phenomenon, but this was partly led by the global recession which pushed the people to think beyond the conventional cars. The major problem of the lackluster sales of these vehicles prior to the 2000 recession is the high upfront cost which is still seen as the hurdle by many people across the World. All the major countries have to push for the sales of these vehicles by offering incentives.

The superpowers of the future World, India and China, have been largely silent until recently, when they understood this phenomenon. As always, the Chinese Government made its first move in 2012 when they announced their plans to make their country a true leader of Electric/Hybrid Vehicles. Meanwhile, India, as always, is playing the waiting game by not announcing any major subsidy for electric vehicles just yet. However, various State Governments have issued a subsidy on these products.

Citizens of Delhi were one of the few to enjoy dual subsidies, as they were eligible to the subsidies both from the State Government as well as one from the Ministry of New and Renewable Energy (MNRE), before it was withdrawn by the new minister in charge of MNRE earlier this year. Delhi was a true leader of electric vehicles, and had a maximum user base as compared to the rest of the cities in India. But the withdrawal of subsidies will certainly hurt the sales of these vehicles, which will in turn hurt the proposed expansion plans of the manufacturers.

Novel concepts, troubled execution!

One of the major talking point of the Electric vehicles is the working range. Most of the vehicles that is currently on sale is limited to be used in the city only, which is significantly reducing the targeted audience. In countries like India, where traffic is a major woe, charging points are the need of the hour, or an option for a range extender, which in turn significantly increases the ownership cost.

Recently launched BMW i3 comes with the option of a range extender, and also an option of additional mobility. The range extender is an option provided via the gasoline engine, which is used for the generation of electricity, which in turn increases the working range to 320 Kms from the normal range of 130 to 160 km, or even up to 200 kms in the most efficient driving mode option. The additional mobility option is provided purely to convince those buyers who travel long. In this option, a conventional vehicle will be provided for certain days over the course of the year.

In India, Mahindra launched their first EV after acquiring REVA in May 2010. The product, Mahindra E2O, was pulled off from its scheduled launch over the course of the last one year, mainly due to the lack of openness from the Indian Government on the subsidies of these vehicles. However, Mahindra decided to unveil the vehicle in March 2013 with varying price tag, depending on the place of purchase.