Latest news with #FAME-II
Time of India
11-06-2025
- Automotive
- Time of India
EVs offer 15–20% cost advantage over diesel in logistics: Report
Electric vehicles used in India's logistics sector offer a 15–20 per cent lower total cost of ownership (TCO) compared to internal combustion engine (ICE) vehicles, according to a new report by management consultancy Praxis Global Alliance. The report titled Decoding the Economics of EV Fleets in Indian Logistics finds that this cost advantage is driving electric vehicle (EV) adoption, particularly in urban logistics and last-mile delivery. 'EV TCO is 15–20 per cent lower than ICE in 3W and small 4W fleets due to lower fuel and maintenance costs,' the report said. For electric three-wheelers used in logistics, the TCO is estimated between ₹2.5 and ₹3.1 per km, whereas diesel three-wheelers cost ₹3.5–₹4.2 per km to operate. In the case of four-wheelers, EVs incur a TCO of ₹7.5–₹9 per km, compared to ₹9.5–₹10.5 for diesel-powered vehicles. EV penetration in the e-commerce logistics segment stands at 14 per cent and is expected to rise to 35 per cent by 2027. According to the report, 'This is supported by economic parity achieved in multiple use cases and a favourable regulatory environment.' The study highlights that logistics EV adoption is highest in predictable, return-to-base applications with daily usage above 60–80 km, such as intra-city delivery and hyperlocal segments. However, the report notes that uptake remains limited in heavy commercial vehicles (HCVs) due to 'unfavourable TCO and payload constraints.' Electric HCVs are currently being piloted in mining and port logistics applications, but widespread adoption is not yet viable, the study adds. Battery-as-a-service (BaaS) and leasing are emerging models that improve affordability. BaaS can reduce monthly outflows for a 3W operator by up to 25 per cent. The model enables operators to switch to EVs with lower upfront investment. The study emphasises the role of fleet operators and logistics integrators in EV adoption. 'They enable route optimisation, bulk procurement, and charging downtime management,' it stated. Financing and charging infrastructure were identified as key constraints. 'Access to institutional financing is still limited for small fleet operators, and urban charging infra remains sparse in Tier II and III cities,' the report notes. Policy measures such as FAME-II subsidies, battery swapping draft guidelines, and state-level incentives have helped improve EV viability. The study recommends accelerating deployment of public charging networks and announcing a roadmap for zero-emission zones. India's logistics sector, currently valued at $250 billion, is expected to double by 2030. 'Integrating EVs across logistics use cases will be essential to decarbonise this growth,' the report said.
Time of India
11-06-2025
- Automotive
- Time of India
EVs offer 15–20% cost advantage over diesel in logistics: Report
New Delhi: Electric vehicles used in India's logistics sector offer a 15–20 per cent lower total cost of ownership (TCO) compared to internal combustion engine (ICE) vehicles, according to a new report by management consultancy Praxis Global Alliance. The report titled Decoding the Economics of EV Fleets in Indian Logistics finds that this cost advantage is driving electric vehicle (EV) adoption, particularly in urban logistics and last-mile delivery. 'EV TCO is 15–20 per cent lower than ICE in 3W and small 4W fleets due to lower fuel and maintenance costs,' the report said. For electric three-wheelers used in logistics, the TCO is estimated between ₹2.5 and ₹3.1 per km, whereas diesel three-wheelers cost ₹3.5–₹4.2 per km to operate. In the case of four-wheelers, EVs incur a TCO of ₹7.5–₹9 per km, compared to ₹9.5–₹10.5 for diesel-powered vehicles. EV penetration in the e-commerce logistics segment stands at 14 per cent and is expected to rise to 35 per cent by 2027. According to the report, 'This is supported by economic parity achieved in multiple use cases and a favourable regulatory environment.' The study highlights that logistics EV adoption is highest in predictable, return-to-base applications with daily usage above 60–80 km, such as intra-city delivery and hyperlocal segments. However, the report notes that uptake remains limited in heavy commercial vehicles (HCVs) due to 'unfavourable TCO and payload constraints.' Electric HCVs are currently being piloted in mining and port logistics applications, but widespread adoption is not yet viable, the study adds. Battery-as-a-service (BaaS) and leasing are emerging models that improve affordability. BaaS can reduce monthly outflows for a 3W operator by up to 25 per cent. The model enables operators to switch to EVs with lower upfront investment. The study emphasises the role of fleet operators and logistics integrators in EV adoption. 'They enable route optimisation, bulk procurement, and charging downtime management,' it stated. Financing and charging infrastructure were identified as key constraints. 'Access to institutional financing is still limited for small fleet operators, and urban charging infra remains sparse in Tier II and III cities,' the report notes. Policy measures such as FAME-II subsidies, battery swapping draft guidelines, and state-level incentives have helped improve EV viability. The study recommends accelerating deployment of public charging networks and announcing a roadmap for zero-emission zones. India's logistics sector, currently valued at $250 billion, is expected to double by 2030. 'Integrating EVs across logistics use cases will be essential to decarbonise this growth,' the report said.
Time of India
10-06-2025
- Automotive
- Time of India
Vecmocon Technologies raises $18 million in series A funding
Vecmocon Technologies has announced the closure of its Series A funding round, raising a total of $18 million. The second phase of the round includes $8 million led by Ecosystem Integrity Fund (EIF), with additional participation from Aavishkaar Capital . This follows the first phase in November 2024, which brought in $10 million from EIF, British International Investment (BII), and existing investor Blume Ventures. Blume Ventures had also supported the company during its pre-Series A stage. Peeyush Asati, CEO and Co-Founder of Vecmocon, said, 'This infusion of capital will be used to further accelerate our Research and Development endeavours, with a goal of building the most robust and advanced platforms for connected electric vehicles and energy storage ecosystems. We are committed to designing, developing, and manufacturing entirely within India to address both Indian and global market demands effectively. In doing so, we are preparing to become a significant contributor to the global transition efforts towards sustainable electric mobility and clean energy.' Focus on EV intelligence and localisation Vecmocon is building an EV intelligence stack that includes Battery Management Systems (BMS), smart chargers, Vehicle Intelligence Modules (VIMs), OTA infrastructure, and analytics platforms. These technologies are aimed at supporting OEMs, fleet operators, and infrastructure companies in both Indian and international markets. Devin Whatley, Managing Partner at EIF, commented, 'At EIF, we're thrilled to support Vecmocon as it builds the technical backbone for India's rapidly expanding EV ecosystem. Its cutting-edge solutions unlock smarter, safer, and more reliable EVs – accelerating the shift to sustainable transportation . With its customer-centric approach, demonstrated performance, and passionate team, we believe Vecmocon is well-positioned to lead the EV intelligence movement in the country.' Aligned with government initiatives such as Make in India, FAME-II, and the Production Linked Incentive (PLI) scheme, Vecmocon's products are entirely designed and manufactured in India. Shashvat Rai, Partner at Aavishkaar Capital, said, 'We are delighted to support Vecmocon in their mission to revolutionise sustainable and clean mobility. This investment aligns perfectly with our commitment towards fostering innovative solutions that drive positive environmental impact. The Vecmocon team has made great strides in developing the right solutions for marquee Indian OEMs, and we believe Vecmocon's cutting-edge technology will play a critical role in shaping the future of the global electric vehicle industry.' The company is also preparing for international expansion by integrating new technologies such as zonal ECU-compliant architectures, 5G-enabled V2X communication, secure boot systems, and automotive cybersecurity protocols.
Time of India
09-06-2025
- Automotive
- Time of India
Power shift: How Tesla's turmoil is steering global capital towards India
In the high-stakes arena of global business and politics, few collisions make markets tremble like the fallout between a tech titan and a political juggernaut. This is exactly what unfolded in early June 2025 when Elon Musk , the CEO of Tesla and SpaceX, clashed publicly with former U.S. President Donald Trump . The result? This was a devastating blow to Tesla's stock, which plunged by over 14% in a single day, wiping out an estimated $150 billion in market capitalisation. This was not just a stock market blip; it was the most severe single-day loss for Tesla since its listing and one of the most dramatic wealth erasures in corporate history. The catalyst? Trump's verbal attacks on Musk during a campaign rally, accusing him of being "disloyal" and threatening to cut off federal contracts and regulatory support for Tesla and SpaceX if he regains the presidency, were also included. Investors responded with a swift selloff, and Tesla's valuation fell below the trillion-dollar mark. Global markets watched in shock as this political-personal feud spilled over into financial chaos. However, amid this volatility lies a powerful truth: in global disruption, emerging markets like India often find their greatest opportunities. As the U.S. grapples with political instability and tech industry turbulence, India stands poised to benefit from capital reallocation, tech realignment, and supply chain diversification. While damaging to U.S. markets, the Tesla shockwave could become a springboard for India's clean-tech and high-growth sectors. India's EV Ecosystem: Charging Ahead as Tesla Slows Down India has been on an accelerated path toward electrification, and Tesla's current struggles have only sharpened the global spotlight on India's domestic electric vehicle (EV) ecosystem. As Tesla faces regulatory headwinds and reduced investor confidence, India's homegrown EV sector is booming, powered by market demand and policy incentives. In the fiscal year 2024–25, India's EV market crossed a new milestone with over 1.7 million electric vehicles sold, reflecting a 96% year-on-year increase. Leading the charge are Indian companies such as Tata Motors, Mahindra Electric, and Ola Electric, which have committed billions of rupees to expand their EV product lines, charging infrastructure, and battery assembly capabilities. The Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles(FAME-II) scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage worth ₹18,100 crore have further catalysed industry momentum. States such as Tamil Nadu, Gujarat, and Maharashtra have introduced EV-specific policies offering land, tax exemptions, and power subsidies to manufacturers. As global investors rethink high-risk bets in politically volatile environments such as the U.S., they are increasingly drawn to India's policy stability, market scale, and rising consumer demand. Analysts at Morgan Stanley and Goldman Sachs recently highlighted India's EV sector as a 'structural investment theme' for the next decade. Tesla's hiccups may prompt global auto majors to partner with or invest in Indian EV startups as a hedge against Western uncertainty, creating an entirely new lane for India's industrial growth. Supply Chain and Clean-Tech Investment: India as the Next Global Pivot Tesla's valuation collapse was not just a corporate crisis; it exposed the deeper fragility of global supply chains tethered to geopolitical risks. Tesla's core supply lines depend heavily on rare earth elements (REEs), lithium, and semiconductors, many of which are sourced from China, South America, or politically sensitive regions. With U.S.–China tensions rising and Trump threatening tighter trade policies, the world's clean energy future needs new anchors—and India is stepping into that vacuum. In response to the rising global demand and strategic concerns, India unveiled its Critical Minerals Strategy (2023), identifying 30 minerals, including lithium, cobalt, and nickel, as essential for national security and industrial development. The Geological Survey of India discovered a significant 5.9-million-ton lithium reserve in Jammu and Kashmir—India's first—and auction processes are already underway for its commercial extraction. Meanwhile, India's semiconductor manufacturing mission—backed by a ₹76,000 crore incentive package—has begun bearing fruit. Micron Technology, in collaboration with Tata Group, is establishing chip assembly and testing units in Gujarat. These developments are being closely monitored by global players looking to diversify away from China and the U.S. India's proven IT prowess, skilled workforce, and competitive cost structures provide it with a unique advantage in scaling both battery and semiconductor supply chains. According to BloombergNEF, global clean energy investments are expected to cross $2 trillion in 2025, and India is projected to attract nearly $60 billion, up from $45 billion in 2024. The Tesla–Trump debacle added urgency to this diversification. Indian companies working in battery storage, solar inverters, EV components, and green hydrogen can now tap into redirected global capital that would have otherwise flown into American companies. Moreover, India's space technology sector, often overlooked, is quietly booming. As Trump's remarks also targeted SpaceX and its satellite network Starlink, Indian startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are seizing the moment to attract international investments. With 30 private satellite launches scheduled for 2025 and a supportive government ecosystem, India's space economy could grow to $13 billion by 2026, up from $7 billion in 2022, according to the EY-ISpA. Disruption for Some, Direction for Others The Musk–Trump standoff may have caused a ripple of fear in U.S. markets, but for India, it is a signal to act. As Western investors reassess the risks of politicised corporate battles, India offers a pragmatic alternative rooted in stable policy, scalable infrastructure, and strategic clarity. The Tesla fallout, while costly for America's most iconic EV brand, might accelerate India's emergence as a global industrial and investment powerhouse. In the wreckage of a $150 billion loss lies the blueprint for India's trillion-dollar leap.
Economic Times
09-06-2025
- Automotive
- Economic Times
Power shift: How Tesla's turmoil is steering global capital towards India
Getty Images (Image for representation) The Musk–Trump standoff may have caused a ripple of fear in US markets, but for India, it is a signal to act. In the high-stakes arena of global business and politics, few collisions make markets tremble like the fallout between a tech titan and a political juggernaut. This is exactly what unfolded in early June 2025 when Elon Musk, the CEO of Tesla and SpaceX, clashed publicly with former U.S. President Donald Trump. The result? This was a devastating blow to Tesla's stock, which plunged by over 14% in a single day, wiping out an estimated $150 billion in market capitalisation. This was not just a stock market blip; it was the most severe single-day loss for Tesla since its listing and one of the most dramatic wealth erasures in corporate catalyst? Trump's verbal attacks on Musk during a campaign rally, accusing him of being "disloyal" and threatening to cut off federal contracts and regulatory support for Tesla and SpaceX if he regains the presidency, were also included. Investors responded with a swift selloff, and Tesla's valuation fell below the trillion-dollar mark. Global markets watched in shock as this political-personal feud spilled over into financial amid this volatility lies a powerful truth: in global disruption, emerging markets like India often find their greatest opportunities. As the U.S. grapples with political instability and tech industry turbulence, India stands poised to benefit from capital reallocation, tech realignment, and supply chain diversification. While damaging to U.S. markets, the Tesla shockwave could become a springboard for India's clean-tech and high-growth sectors. India has been on an accelerated path toward electrification, and Tesla's current struggles have only sharpened the global spotlight on India's domestic electric vehicle (EV) ecosystem. As Tesla faces regulatory headwinds and reduced investor confidence, India's homegrown EV sector is booming, powered by market demand and policy incentives. In the fiscal year 2024–25, India's EV market crossed a new milestone with over 1.7 million electric vehicles sold, reflecting a 96% year-on-year increase. Leading the charge are Indian companies such as Tata Motors, Mahindra Electric, and Ola Electric, which have committed billions of rupees to expand their EV product lines, charging infrastructure, and battery assembly capabilities. The Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles(FAME-II) scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage worth ₹18,100 crore have further catalysed industry momentum. States such as Tamil Nadu, Gujarat, and Maharashtra have introduced EV-specific policies offering land, tax exemptions, and power subsidies to manufacturers. As global investors rethink high-risk bets in politically volatile environments such as the U.S., they are increasingly drawn to India's policy stability, market scale, and rising consumer at Morgan Stanley and Goldman Sachs recently highlighted India's EV sector as a 'structural investment theme' for the next decade. Tesla's hiccups may prompt global auto majors to partner with or invest in Indian EV startups as a hedge against Western uncertainty, creating an entirely new lane for India's industrial valuation collapse was not just a corporate crisis; it exposed the deeper fragility of global supply chains tethered to geopolitical risks. Tesla's core supply lines depend heavily on rare earth elements (REEs), lithium, and semiconductors, many of which are sourced from China, South America, or politically sensitive U.S.–China tensions rising and Trump threatening tighter trade policies, the world's clean energy future needs new anchors—and India is stepping into that vacuum. In response to the rising global demand and strategic concerns, India unveiled its Critical Minerals Strategy (2023), identifying 30 minerals, including lithium, cobalt, and nickel, as essential for national security and industrial Geological Survey of India discovered a significant 5.9-million-ton lithium reserve in Jammu and Kashmir—India's first—and auction processes are already underway for its commercial extraction. Meanwhile, India's semiconductor manufacturing mission—backed by a ₹76,000 crore incentive package—has begun bearing fruit. Micron Technology, in collaboration with Tata Group, is establishing chip assembly and testing units in Gujarat. These developments are being closely monitored by global players looking to diversify away from China and the U.S. India's proven IT prowess, skilled workforce, and competitive cost structures provide it with a unique advantage in scaling both battery and semiconductor supply to BloombergNEF, global clean energy investments are expected to cross $2 trillion in 2025, and India is projected to attract nearly $60 billion, up from $45 billion in 2024. The Tesla–Trump debacle added urgency to this diversification. Indian companies working in battery storage, solar inverters, EV components, and green hydrogen can now tap into redirected global capital that would have otherwise flown into American India's space technology sector, often overlooked, is quietly booming. As Trump's remarks also targeted SpaceX and its satellite network Starlink, Indian startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are seizing the moment to attract international investments. With 30 private satellite launches scheduled for 2025 and a supportive government ecosystem, India's space economy could grow to $13 billion by 2026, up from $7 billion in 2022, according to the Musk–Trump standoff may have caused a ripple of fear in U.S. markets, but for India, it is a signal to act. As Western investors reassess the risks of politicised corporate battles, India offers a pragmatic alternative rooted in stable policy, scalable infrastructure, and strategic clarity. The Tesla fallout, while costly for America's most iconic EV brand, might accelerate India's emergence as a global industrial and investment powerhouse. In the wreckage of a $150 billion loss lies the blueprint for India's trillion-dollar leap. The contributors is Assistant Professor and Research Supervisor, St. Thomas College (Autonomous), Thrissur – Kerala.
