Project Report

Project Management
OTM-454

Hybrid Cars compared to Electric Vehicles,

Future in Pakistan and Global context

Group Members CMS ID

Mian Ahsan Bari 287977

Aqsa Amir 292106

Muhammad Saleh 290747

Neeha Baig 291376

Muhammad Salman 289716

Submitted To

Dr. Amir Azam Khan

Table of Contents
Introduction 3
Background 4
Invention 4
Electric Vehicles 4
Key Data of Modern EVs 5
Hybrid Electric Vehicles 5
Series Hybrid System, 5
Parallel Hybrid System 6
Developed Countries 7
Germany 8
Current Situation 8
Government Efforts 8
Environment Factors 8
Economic Factors 8
Challenges 9
Encouraging the public 9
Infrastructure 9
Shorter Life 9
CO2 Emissions 9
Increased Energy Demand 9
Effect on Electric Grid 9
Japan 11
Transition to EV 11
History 11
Economic Benefits (Electric Vehicles) 12
Benefits (Hybrid Cars) 12
Power Assist 13
Regenerative Braking 13
Environmental Effects 13
Excellent Gas Mileage 13
Safer Environment 13
Uses Electricity 14
Developing Countries 15
India 15
Challenging Infrastructure 15

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 The Indian Advantage 16
India's current status and future aspirations 16
Government Initiatives and Achievements 17
Impact of Electric Vehicle Transition on Indian Economy 18
Revenue received by state governments in India (₹ Crore) 18
Conclusion 19
Indonesia 20
History 20
Current Situation 20
Government Efforts 21
Environmental Factors 21
Economic Factors 22
Challenges 22
Incentivizing the public 22
Infrastructure 22
Charging Space 22
High upfront costs 23
Recommendations 23
Existing policy and strategic plans for EV uptake 23
Future of EV and Hybrid Vehicles in Pakistan 24
EV Opportunities in Pakistan 24
EV Challenges in Pakistan 25
Car Mafia 25
Price 25
How will I charge my car during load-shedding? 25
Consumer Purchase Intention 25
Need of EVs in Pakistan 26
EVs Impact on Oil Import Bill 26
Environmental Factors 27
Summary 28
Conclusion 29
References 30

Introduction

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Background
A vehicle that uses electric propulsion is called an electric vehicle (EV). Battery
electric vehicles (BEVs) are mostly ideal for short-range, low-speed community
transportation and just need a
smaller battery size. EVs can
also comprise hybrid electric
vehicles (HEVs). HEV can satisfy
consumers, but the price is the
main barrier. Future mainstream
automobiles could use it in the
long run. The technology is still in
its early stages of development
due to substantial worries about
its cost and recharging
mechanism.

Let's start by looking at the population and vehicle growth over the next 50 years in
order to develop sustainable road transportation for the twenty-first century. The
development of EV technology has hastened to meet these objectives in a world
where environmental preservation and energy conservation are significant concerns.
EVs can provide emission-free urban transportation, which is good for the
environment. Even accounting for the emissions from the power plants required to
drive the world's population growth from 6 billion to 10 billion and the rise from 700
million to 2.5 billion cars.

Where will the oil come from if all of these cars are powered by internal combustion
engines (ICEs)? Where are the emissions supposed to be released? The gloomy
answers to these questions compel people to strive the vehicles; EVs can still
significantly reduce global air pollution. From the energy aspect, EVs can offer a
secure and potentially have a great impact on energy, environment, and
transportation, as well as hi-tech promotion, new industry creation, and economic
development.

Invention
In 1834, EV was created. Many businesses in America, Britain, and France
developed EVs in the latter decade of the 19th century. Since 1930, EVs have all but
disappeared off the road due to battery-related restrictions and the rapid
development of internal combustion engine vehicles (ICEVs). Some nations began to
revive interest in EVs in the early 1970s due to the energy crisis. The Electric and
Hybrid Vehicle Research, Development, and Demonstration Act was introduced in
the USA in 1976. EVs and HEVs are predicted to be commercialized and have their
respective market shares during the next few decades.

Electric Vehicles
Most of the energy in an EV is transferred using flexible electrical cables. Second,
the system configuration varies significantly between various EV propulsion
configurations. Third, various EV energy sources (such as batteries and FCs) have

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various properties and refueling methods. The EV has three main subsystems: an
electric propulsion system, an energy supply, and an Auxiliary. The electric
propulsion subsystem comprises the electronic controller, power converter, electric
motor, mechanical transmission, and driving wheels. The energy source, energy
management unit, and energy refueling unit are components of the energy source
subsystem.

The power steering and temperature control units comprise the auxiliary subsystem.
Many cutting-edge technologies are used to increase the driving range and lower the
price. For example, the use of advanced IM drives and PM brushless motor drives to
improve the electric propulsion system, the employment of advanced valve-regulated
lead-acid (VRLA) batteries, Ni-MH batteries, Li-Ion batteries, FCs, and
ultracapacitors to improve the EV energy source, application of light body technology
with light, but rigid material, low-drag coefficient body to reduce the aerodynamic
resistance and low rolling resistance tires to reducing running resistance at low and
medium driving speed, as well as the adoption of advanced charging, power
steering, or variable temperature seats to enhance the EV auxiliaries.

Key Data of Modern EVs

Hybrid Electric Vehicles

When it comes to HEVs, propulsion energy is provided by two or more different
energy storage sources and converters. At least one of which can provide electrical
energy. Based on this broad definition, there are numerous types of HEVs, including
those with a gasoline combustion engine and battery and those with a diesel
combustion engine and battery.

Managing numerous energy sources, which are highly reliant on driving cycles,
battery sizing, and battery management, is one of the biggest issues for HEV design.
HEV can satisfy client needs. However, price is the main barrier. Therefore, with
certain government incentives to lessen the initial cost burden, HEV may have a
substantial part in the production of popular automobiles. HEVs were previously
classified as a series hybrid or parallel hybrid.

Series Hybrid System,

The simplest type of HEV is the series hybrid. It first uses a generator to turn the
mechanical output of an internal combustion engine into electricity. The converted

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electricity can either bypass the battery to directly drive the wheels using the same
electric motor and mechanical transmission, or it can be used to charge the battery.
Conceptually, an Internal Combustion Engine-Assisted Electric Vehicle (EV) seeks to
increase the driving range to a level comparable to that of a simple ICEV.

It has the undeniable advantage of flexibility for positioning the ICE generator set
because of the decoupling between the engine and the driving wheels. The
generator and the electric motor are two of the three necessary propulsion systems. .
It needs three propulsion devices the generator and the electric motor. Therefore,
the efficiency of series HEV is generally lower. Another disadvantage is that all these
propulsion devices need to be sized for maximum sustained power if the series HEV
is designed for climbing a long grade, making series HEV expensive.

Parallel Hybrid System

In contrast to the series hybrid, the parallel HEV enables the ICE and electric motor
to supply power in tandem to move the wheels. The propulsion power may be
provided by the ICE alone, by the electric motor alone, or by both since both the ICE
and electric motor are typically linked to the drive shaft of the wheels via two
clutches. In terms of concept, it is an electric-assisted ICEV for reducing emissions
and fuel consumption. It is inherently an electric-assisted ICEV for achieving lower
emissions and fuel consumption.

The electric motor can be used as a generator to charge the battery by regenerative
braking or absorbing power from the ICE when its output is greater than that required
to drive the wheels. Better than the series HEV, the parallel hybrid needs only two
propulsion devices—the ICE and the electric motor. Another advantage over the
series case is that a smaller ICE and a smaller electric motor can be used to get the
same performance until the battery is depleted.

Types Electric Vehicles Hybrid Electric Vehicles

● Electric Motor ● Electric Motor Drives

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 Propulsion Drives
● Internal Combustion
Engine (ICE)

● Battery ● Internal Combustion

Energy System Engine Unit

● Battery

● Electric Grid ● Gasoline Station

Energy Source and Charging Facilities
Infrastructure ● Electric Grid Charging
Facilities

● Zero Emissions ● Low Emissions

● Independence on ● Long Driving Range

Crude Oil
Characteristics
● Dependence on
● 100-300 short Crude Oil
range
● Medium Cost
● High Cost

● Battery ● Managing Multiple

Management Energy Sources

● High-Performance ● Dependence on
Major issues Propulsion Driving Cycle

● Charging Issues ● Battery Sizing and

Management

Now we are going to discuss electric vehicles and hybrid vehicles in a global context.
We will cover different aspects of electric and hybrid vehicles in developed countries
like Japan and Germany. Developing countries i.e, India and Indonesia.

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 Developed Countries

Germany
Current Situation
The German Federal Government supported the use of plug-in electric automobiles
in Germany. Chancellor Angela Merkel established a preliminary objective in 2010 to
put one million electric vehicles on German roads by 2020 under its National
Platform for Electric Mobility, which was accomplished with a six-month delay in July
2021. At first, the government refrained from offering incentives to encourage the
sale of plug-in electric vehicles, but by the end of 2014, it had become clear that the
nation was falling far short of its predetermined sales goals. In 2016, a program for
purchase bonuses was enacted, although premium cars were not qualified for the
incentive. The government in 2016, established the objective to have 7 to 10 million
Electric vehicles by 2030 to satisfy the transportation sector's climate targets.

Government Efforts
For Germany, electric vehicles dominate the hybrid option because the government's
efforts reinforce all-electric vehicles over hybrid. The government provides more
incentives for all-electric plug-in vehicles. A purchase grant, known as the
environmental bonus, is paid towards new vehicles – €4,000 for non-hybrid electric
cars and €3,000 for plug-in hybrids. The grant is paid towards purchases of cars with
a list price of up to €60,000 (Regulatory environment and incentives for using electric
vehicles and developing charging infrastructure, 2022).

Environment Factors
The major instigator of the energy transition efforts is the environmental factor. To
reduce the CO2 emission and achieve the 1.5°C targets by 2030, as set by the Paris
agreement. Germany has been one of the most prominent countries to have taken
regressive actions to ensure the fossil fuel to electric transition. Fuel cell vehicles
now do less well financially and environmentally than electric automobiles (kai Bekel,
2019).

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Economic Factors
As compared to conventional fuel cell vehicles, electric vehicles do well. however
major infrastructure changes and initial government investments are required.
Elaborating on the cost-to-benefit analysis of the policies, the potential for EVs is
fairly limited while there is more room for intermediate technologies like Plug-in
Hybrid Vehicles and Range Extenders. (Massiani, 2015)

Challenges
Encouraging the public

At first, the government refrained from offering incentives to encourage the sale of
plug-in electric vehicles, but by the end of 2014, it had become clear that the nation
was falling far short of its predetermined sales goals. In 2016, a program for
purchase bonuses was enacted, although premium cars were not qualified for the
incentive.

Infrastructure

The transition from conventional cars to

electric vehicles requires a massive
infrastructure change. Gas stations
would need to be replaced by electric
stations. By November 2014, Germany
had 4,800 public charging stations. As
of March 2020, the country had 27,730
charging stations. Moreover, not only
the charging infrastructure change is
required, but the overall energy grid
infrastructure change would also be
required.

Shorter Life

Fuel cell vehicles now do less well financially and environmentally than electric
automobiles. The Electric vehicles range,
however, is shorter than the Fuel cell
vehicles (200 vs. 530 km), and both
technologies are at different stages of
development (kai Bekel, 2019).

CO2 Emissions

Electric vehicles may not directly emit CO 2

however, the electricity is generated through
different sources. So, the energy mix would
also need to be taken into account.

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Increased Energy Demand

In order to meet the increasing demand to fuel hybrid and electric cars, more energy
would need to be produced while ensuring that the energy mix is dominated by
renewables.

Effect on Electric Grid

For optimal power consumption and

pricing managed to charge is required.
This means that the customer energy
demand pattern would need to be
studied and analyzed to see the hours
with the highest and lowest demand.
After the analysis, strategic planning
would be required to even out the
demand curve. This would result in a
better energy distribution through the
hours and more optimal energy
consumption.

With the right managed-charging infrastructure in place and incentives to charge

during off-peak hours, a large portion of single- and multi-unit home charging can be
relocated from 10:00 p.m. to 4:00 a.m. (such as delayed charging and varied power
price). This scenario greatly reduces the impact of the user on the electricity. In other
managed settings, the peak load curve flattens by about 80% as a result, but the
details can be changed grid-by-grid.

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 Japan

World history has witnessed Japan accomplish a high level of modernization within
an exceptionally short period of time. Infrastructure, which provides the foundation of
our growth, consists of unique creativity rooted in Japanese sensitivity, such as the
resilience to accept harsh environmental changes and ideas to make effective use of
limited (natural) resources, paired with the technological strength to convert the
ideas into tangible forms. From railroads, airports, and power plants to
communication technology, infrastructures of different categories support people’s
lives from all aspects. Japan, being one of the developed countries, has played a
part in helping build quality infrastructure for sustainable development, hand in hand
with local partners.

Transition to EV
The Government of Japan (GOJ) recently set a target: by 2035, all new cars sold will
be environmentally friendly. In Japan, eco-friendly cars are called Clean Energy
Vehicles, or CEVs, to differentiate them from fossil fuel-based vehicles. The GOJ is
offering to subsidize part of the cost of purchasing CEVs, such as Battery Electric
Vehicles (BEVs), Plug-in Hybrid Electric vehicles (PHEVs), and Fuel Cell Electric
Vehicles (FCEVs). The maximum amount of the CEV subsidies given per vehicle in
2021 is 800,000 Japanese Yen, which is about 7,200 US Dollars. Although Hybrid
Electric Vehicles (HEVs) are considered eco-friendly cars, these are not eligible for
the CEV subsidy program.
According to the Japan Automobile Dealers Association (JADA), sales of new
electric vehicles in 2020 reached close to 1.4 million. New electric vehicles
accounted for 36.2% of total new car sales, up from 35.2% in 2019 and 32.9% in
2017. Japanese market demand for HEVs has been strong since the Toyota Prius
was first introduced here in 1997. In fact, 97.8% of the new electric vehicle sold in
2020 were HEVs, followed by PHEVs 1.1%, BEVs 1.1%, and FECVs 0.1%. Japan is
transitioning to 100% electric car sales by 2035, and the Japanese electric vehicle
market is growing.

History
The first mass-produced hybrid vehicle was the Toyota Prius, launched in Japan in
1997, followed by the Honda Insight, launched in 1999 in the United States and
Japan. The Prius was launched in Europe, North America, and the rest of the world
in 2000. Japan has the world's largest hybrid electric vehicle fleet; as of March 2018,
a total of 7.51 million hybrids were registered in the country, excluding Kei cars. By
2016, it represented around 45% of cumulative global hybrid sales since its inception
in 1997. After 18 years since their introduction in the Japanese market, annual hybrid
sales surpassed the 1 million mark for the first time in 2014. With cumulative sales of
over 4 million hybrids through December 2014, Japan surpassed the United States
as the world's largest hybrid market. It was also the first time that all eight major
Japanese manufacturers offered hybrid vehicles in their lineup.

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Economic Benefits (Electric Vehicles)
The next-generation vehicle would have an economic, social, and environmental
impact in many areas. In developed and developing countries, there are many
discussions on the impacts of the environmentally friendly vehicle production and
utilization stage.
The benefits are the
following. EVs provide
economic benefits to the
state by reducing fuel costs
and shifting consumption
away from imported oil to
more locally produced
electricity sources. These
fuel savings become
additional disposable
income that will be spent
mostly in the local
economy, creating
additional jobs in the state. At higher levels of market penetration, the fuel savings
from EVs could produce thousands of jobs in future years.
Figure 1, then, shows the sectors experiencing a positive impact from the production
of electric vehicles. The vertical
axis in Figure 1 represents the
difference between the HEV and
Base cases (i.e., the value-
induced outputs in the EV case-
induced outputs in the Base
Case). From this figure, the
"Plastic products", "Nonferrous
metals smelting and refinement,"
and "Research" sectors of Japan
are positively affected by the
production of electric vehicles.
These are regarded as sectors
that produce parts for electric
motors and rechargeable
batteries.
Figure 2 shows the sectors experiencing a negative impact from the production of
electric vehicles: the "Commerce", "Steel materials," and "Cast products" sectors of
Japan. These are regarded as sectors involved in the production process of internal
combustion engines and related transmission parts.

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Benefits (Hybrid Cars)
The addition of a secondary electric motor provides a number of benefits to the
vehicle. For instance, hybrid cars can enter a mode called “idle-off” when stopped, in
which the main engine will turn off to save on fuel whilst air conditioning, radio, and
other features in the car are powered solely by the batteries. In addition, the electric
motor also assists in helping the car to start accelerating again. Whilst most hybrid
cars can be powered entirely with just the electric motor, the onboard computer may
decide to re-engage the main engine if more power is required to accelerate (this is
particularly useful on hills).

Power Assist
One of the most important benefits of using an electric motor is the ability to
downsize the primary engine and, in turn, achieve superior fuel economy. This type
of engine design enables cars to maintain or even exceed the power of the original
model whilst simultaneously using less fuel without compromising on acceleration or
torque. Certain hybrid vehicles use their electric motor exclusively during start-up
and initial stages of acceleration until they reach higher speeds, whereas gasoline
engines are typically more fuel efficient.

Regenerative Braking
Regenerative braking is another energy-saving feature in many hybrid cars. When a
driver brakes or coasts their vehicle, energy is lost in the form of heat. However, with
hybrid cars, some of this energy can be retained and used again to accelerate the
car itself or power other features inside the vehicle. The forward movement of the
car’s wheels is used to run the engine in reverse, which helps reduce the vehicle’s
speed and recharge the battery simultaneously.

Environmental Effects
Hybrid cars are the innovation of the time with great consequences for the
environment. One reason it’s not showing a huge impact on the environment is that
many people are still stuck on traditional vehicles. Hybrid cars come with both
electric and gas-powered motors. The electric engine turns on when more power is
needed, and the gas engine works when necessary. Investing in hybrid cars can turn
out to be the best decision of your life, so make the decision today!

Excellent Gas Mileage

The best benefit of hybrid cars is that they offer incredible fuel consumption and
improve fuel economy. Due to this, you get excellent gas mileage as well. The
electric motor in the car is responsible for providing high power, which reduces fuel
consumption throughout the day. It’s beneficial for the environment as well.

Safer Environment
The gases emitted from cars contribute to global warming, leading to climate change
and new natural disasters. Carbon monoxide harms the air and increases

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environmental pollution. Due to the presence of electric motors, hybrid cars reduce
the number of gases emitted into the air. Using these cars is the best way to reduce
your carbon footprint. When fewer gases are emitted into the air, the number of
pollutants and toxins in the air also reduces. Hybrid cars do not emit a lot of gases
like gas-powered cars. Furthermore, it does not require frequent oil changes as well.

Uses Electricity
Hybrid cars use electricity to work, which reduces the use of gas engines. The car
produces its electricity, which is why it’s not harmful. Also, it does not harm the
environment like gas-powered cars.
Traditional cars make more noise as well, thus increasing noise pollution. Hybrid
cars are small and make less noise as compared to traditional cars. Apart from it,
hybrid cars are fuel-efficient and offer great mileage due to their engine-idle
technology. Hybrid vehicles conserve resources, making them the best option to play
your role in saving the environment.
Although these cars offer a great benefit to the environment, there are some
negative impacts as well.
As compared to traditional cars, hybrid vehicles use nickel-metal hydride batteries in
place of lead batteries. These batteries do not cause many problems, but they are
highly toxic as compared to lead batteries. The toxicity creates an issue for recycling
or remanufacturing. Disposing of these batteries contributes to environmental
pollution. Hybrid cars also require great energy during their building process as they
are more complex.
In addition, hybrid cars come with a combusting engine, which is responsible for
producing some number of gases. Although the number of gases is not as much as
a traditional car, still some amount is released into the air.
If you purchase plug-in hybrid, then they also harm the environment. They are
charged through a power grid that runs on coal or oil. Several other reasons hybrid
technology might not be the final answer to save the environment.

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 Developing Countries

India

India countries have tremendous potential to transition from petroleum-run two-

wheeler vehicles to electric scooters, and China-led supply chains can help them
achieve that vision soon. With the increase in global warming, making
environmentally friendly choices and preventing climate change are essential.
Electric vehicle (EVs) is one such ecologically friendly choice. A paradigm change is
currently taking place in the global automotive sector as it attempts to transition to
alternative, less energy-intensive options. One of the primary drivers behind India's
recent measures to accelerate the transition to e-mobility is the increase in prices for
oil imports, rising pollution, and international pledges to battle global climate change.
As a result, India committed to an aspirational goal of having at least 30% of private
automobiles as EVs by 2030 at the Conference of the Parties 26 (COP26) Summit.
Contrary to Europe, which is well-equipped to sustain electric-fired transportation
because of the availability of nuclear and other clean power projects, the developing
countries will have to ensure that they harness their wind and thermal energy
projects in order to support electric vehicles (EVs) and scooters.

Challenging Infrastructure
Over the last few years, experts and analysts have highlighted the poor infrastructure
supporting EVs in India as the primary reason behind the lower penetration of EVs in
the country. The lack of adequate charging infrastructure, leading to consumers’
range anxiety, is often cited as India’s key roadblock to boosting EV uptake. While
the FAME scheme is expected to set up 2,877 charging stations in 68 cities across
25 states by 2024, India only has 934 charging stations to cater to all types of vehicle
classes as of June 2021. In comparison, China has approximately 900,000

Charging batteries, and range anxiety is the top concern when buying an EV in India
and worldwide. Car makers are trying to increase the range (mileage) by reducing
weight and optimizing energy-draining onboard technology. The battery pack weighs
1000kg, and a typical SUV weighs 2000kg—Tesla model-Y, for example. The
heavier the car, the lesser will be the range/mileage. Designers are researching
weight reduction through alternative materials, manufacturing processes, and
creating optimized car interiors.

Besides widely known concerns like range anxiety, high cost, and charging
infrastructure, one of the lesser-known challenges for today’s EVs is the ‘perceived
high quality of the interiors. EV drivers expect the car to be very high-tech. But, most
of the cost goes towards the batteries – which are expensive. Any hi-tech features
we provide on the interior drain the battery and can also add to the price. As
automotive designers, how can we improve the perceived quality yet keep the costs
and weight down? Some food for thought there.

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The Indian Advantage
Manufacture process needs drastic change to make them affordable to make and to
drive. India is well known for creating great products for much cheaper compared to
most countries. Take the ISRO spaceship launch, for example – that cost less than a
Hollywood movie and launched four other foreign satellites in orbit. India has a vast
potential to make EVs with a higher range at cheaper costs.

Having the youngest population in the world, talent in technology is abundant. The
government is promoting start-ups, and campaigns like ‘make in India’ seem to make
a difference. The two-wheeler EV market also has enormous growth potential, and
many start-ups in India are already tapping into it. Additionally, India has abundant
natural resources to harvest and generate other renewable energy. The future of
EVs in India looks very bright.

The World Bank is also currently working with the government of India to support its
efforts to purchase 50,000 electric buses over the next decade. And in Bogota,
Colombia, we explored the use of electric cargo bikes for last-mile delivery. The six-
month pilot project, called Bici Carga, generated encouraging results, with positive
customer satisfaction and increased efficiency in terms of deliveries.

India's current status and future aspirations

● The Indian automobile sector ranks fifth globally and is expected to rise to
third by 2030. India is the world's largest producer of two and three-wheelers,
the second-largest manufacturer of buses, and the biggest producer of
vehicles like tractors
● Currently, the automobile industry contributes 7.1% of India's Gross Domestic
Product (GDP) and 49% of its manufacturing GDP. This means that this
significantly impacts the nation's economy. This suggests that, as they follow
the trends, numerous auto ancillaries and associated sectors will grow along
with the EV industry in the upcoming years.
● India's automotive industry is worth around %222 Bn, while the EV market in
India is estimated to be valued at $2 Bn by 2023 and $7.09 Bn by 2025.
Further, the automotive industry accounts for 8% of all national exports. This
sector accounts for 40% of the total $31 Bn of global research and
development spend [Research and Development (R&D wing)]
● There is a total of 13, 92,265 EVs on Indian roads as of August 2022 (data by
Ministry of Road Transport and Highways, India). By 2030, this will likely
increase by 45–50 Mn EVs on the road.
● Currently, the automotive sector employs around 37 Mn people, and by 2030,
it aspires to generate 50 Mn direct and indirect jobs.
● By 2030, the EV market is anticipated to reach 10 Mn annual sales, growing
at a Compound Annual Growth Rate (CAGR) of 49% between 2022 and 2030
● Between April 2000 and March 2022, the sector attracted equity inflows from
Foreign Direct Investment (FDI) of $ 32.84 Bn, or 6% of all FDI in equities
during that time.

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Government Initiatives and Achievements
Following are a few steps taken to boost the growth of the EV sector in India.
● Firstly, many conventional automotive players and oil companies are investing
heavily to boost EV demand to reach the aspirational goal. To name a few,
Skoda revealed its plan to produce EVs locally in India in 2021, and Indian Oil
Corporation stated its plans to create 22,000 EV charging stations over three
to five years.
● Secondly, the Indian government has also been implementing several
programs to encourage the growth of electric mobility, including 100 percent
FDI through the automotive route in the EV space, incubator programs,
shared facilities for prototyping and small-scale manufacturing, financial
support through the Credit Guarantee Scheme for Start-ups (CGSS), tax
breaks, and subsidies for consumers.
● Thirdly, in 2021, investment into EV startups reached a record high, rising by
about 255 percent to reach $ 444 Mn. For example, Ola Electric ($ 253 Mn),
Blusmart ($ 25 Mn), Simple Energy ($ 21 Mn), Revolt ($ 20 Mn), and Detel ($
20 Mn) were the EV firms that received the most financing in 2021. About 500
startups spanning the whole EV value chain make up the Indian EV
ecosystem, with 63 percent of those startups solely dedicated to
manufacturing.
● Fourthly, the Production linked incentive (PLI) scheme (with a $ 3.5 Bn
budget) for the automotive industry suggests financial incentives of up to 18
percent to encourage domestic production of high-tech automotive products
and draw capital to the industry's value chain. The PLI scheme promotes the
domestic manufacture of EV batteries and less reliance on imports. This will
considerably lower the cost of EVs and provide the necessary infrastructure to
support the EV sector.

The penetration of Electric Vehicles (EVs) in India has been increasing but still
stands at approximately 1.66% of total sales in the country. Ownership is particularly
low for four-wheelers, which only constitute 0.1% of total car sales. To increase the
uptake of EVs across all vehicle classes, the Government of India needs to iron out
roadblocks such as high EV component costs and ensure that local manufacturing
and infrastructure deployment happens in a sustainable manner.

17
Impact of Electric Vehicle Transition on Indian Economy

18
Revenue received by state governments in India (₹ Crore)

Conclusion
Large-scale transition to EVs would facilitate the accomplishment of multiple SDGs,
and thus EVs are being promoted worldwide. The transition to EVs and consequent
reduction in the consumption of petroleum fuels in India is going to have a significant
impact on its economy. The shift would: a) reduce revenue receipts and increase the
expenditure of central and state governments; b) decrease revenue generation and
employment opportunities in the petroleum sector; c) open a new business and
employment opportunities in the electricity sector; d) force revamping of automobile
sector to accommodate the shift to EVs; and e) encourage customers to adopt EVs.
Central and state governments can raise funds to promote EVs and revamp for loss
in revenue receipts through the introduction of green/pollution taxes on the
consumption of fossil fuels, construction activities, plastic manufacturing, transport
services by ICE-based vehicles, etc. Cash-rich petroleum sector companies can
diversify their risks by investing in new business opportunities in the electricity
sector. The automobile industry of India can leverage its large domestic market size
to establish partnerships and joint ventures with leaders in EV manufacturing
capabilities, eventually learning and developing its own EV capabilities.

19
 Indonesia

History
Indonesia is a country in Southeast Asia and Oceania between the Indian and
Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi,
and parts of Borneo and New Guinea. Indonesia is the world's largest archipelagic
state and the 14th-largest country by area, at 1,904,569 square kilometers. With over
275 million people, Indonesia is the world's fourth-most populous country and the
most populous Muslim-majority country. Java, the world's most populous island, is
home to more than half of the country's population.
Indonesia's transport system has been shaped over time by the economic resource
base of an archipelago and the distribution of its 275 million people highly
concentrated on Java. All transport modes play a role in the country's transport
system and are generally complementary rather than competitive. In 2016, the
transport sector generated about 5.2% of the GDP. The road transport system is
predominant, with a total length of 542,310 kilometers as of 2018. Jakarta has the
most extended bus rapid transit system globally, boasting 251.2 kilometers in 13
corridors and ten cross-corridor routes. Rickshaws such as bajaj and becak and
shared taxis such as Angkot and Metromini are a regular sight in the country.

Current Situation
Since the early 1990s, Toyota has introduced hybrid technology in Indonesia through
the Prius Sedan, which was marketed separately spot. Then Toyota technologists
through TAM continued to introduce and market their hybrid cars, starting from the
Camry sedan, then the CH-R
SUV and Corolla Cross.
However, these hybrid vehicles
do not have the DNA of vehicles
built with Indonesian tastes and
are not even produced in
Indonesia, even though the
demand for hybrid vehicles
continues to grow.
It is not uncommon to find a
photo of the Toyota Avanza in an
area or crowded on social media,
which has the logo “Avanza
Hybrid” on the back, even though
hybrid technology has not yet been embedded in the vehicle, which is known as “the
car of a million people” because of the large population of Avanza since its
production. and marketed in 2004.

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Government Efforts
The government of Indonesia has set a goal for Electric and Hybrid vehicles to make
up 20 percent of all domestic cars to be manufactured, equal to around 400,000
Electric and Hybrid vehicles, by 2025. With motorbikes preferred over cars
nationally, the government also seeks to have e-motorbikes make up 20 percent of
the total domestic production of motorbikes. According to the Ministry of Industry,
there are 15 domestic e-motorbike companies (manufacturers) with a production
capacity of near about 877000 e-motorbikes per year.
Based on Presidential Regulation No. 55 of 2019 concerning the Acceleration of the
Battery Electric Vehicle Program for Road Transportation, the government
encourages the development of the electric car technology industry. Indonesia is one
of the countries with the
most significant
automotive development
in ASEAN. The
government has also
built 148 quality public
electric vehicle charging
stations (PEVCS) and 39
standards related to
electric cars. Sales of
electric cars in Indonesia
increased 74,18% in
2020 and 52,61% in mid-
2021.
The government also provides incentives for the manufacture of Public Electric
Vehicle Charging Station (PEVCS) equipment, export financing incentives, fiscal
incentives for research and development, parking rates, charging cost, installation of
PEVCS, competency certification for BEV human resources, and products
certification and technical standards for BEV industrial companies.

Environmental Factors
The major benefit of electric cars is their contribution to improving air quality in towns
and cities. Pure electric cars produce no carbon dioxide emissions when driving with
no tailpipe. This reduces air pollution considerably. Put simply, electric cars give us
cleaner streets, improving our towns and cities for pedestrians and cyclists. In over a
year, just one electric car on the roads can save an average of 1.5 million grams of
CO2. That’s the equivalent of four return flights from London to Barcelona.
Making electric cars does use a lot of energy. Even after considering battery
manufacture, electric cars are still a greener option. This is because of the reduction
in emissions created over the car’s lifetime The emissions created during the
production of an electric car tend to be higher than a conventional car. This is due to
the manufacture of lithium-ion batteries, which are an essential part of an electric
car. More than a third of the lifetime CO2 emissions from an electric car come from

21
the energy used to make the car itself. As technology advances, this is changing for
the better.

Economic Factors
EVs provide economic benefits to the country by reducing fuel costs and shifting
consumption away from imported oil to more locally produced electricity sources.
These fuel savings become additional disposable income that will be spent mostly in
the local economy, creating additional jobs in the state. Compared to conventional
fuel cell vehicles, electric vehicles do well. However, major infrastructure changes
and initial government investments are required. Elaborating on the cost-to-benefit
analysis of the policies, the potential for EVs is fairly limited while there is more room
for intermediate technologies like Plug-in Hybrid Vehicles and Range Extenders.

Challenges
Incentivizing the public
Consumer concerns over upfront costs, convenience, and functionality are some of
Indonesia's biggest barriers to EV adoption. High upfront costs for e-cars are
preventing nationwide adoption, despite generous incentives from the government.
The lowest price for an e-car is more than twice the price of most internal
combustion engine (ICE) cars – even with incentives that can reduce upfront costs
by 40 percent – making EVs uncompetitive. For e-motorbikes, it is functionality that
concerns consumers. The price range for an e-motorbike is relatively close to the
standard combustion motorbike, but uncertainties in the vehicle’s endurance have
made customers reluctant to purchase. Lack of awareness of how e-motorbikes
work, and low availability, also impact sales.

Infrastructure
The development of Indonesian EV technology will be carried out from 2020 to 2030.
The development of EV battery technology includes battery pack assembly, battery
cell production, battery management system, and battery material. Indonesia will
produce two types of cell batteries Li-ion & NiMH in cylindrical form and Li-ion in
prismatic & pouch form. Indonesia will also develop converter/inverter technology
with two types, including > 95% inverter efficiency, low parasitic impedance, high
power density, and > 96% inverter efficiency (HFET). The state-owned electricity
enterprise PLN has installed 57 charging stations centralized in 35 locations across
Java-Bali to date.

Charging Space
Currently, the competition in EV Charging Space in Indonesia is monopolistic, with
PLN designated responsible for constructing and monitoring SPKLUs throughout the
country. Private players are looking forward to expanding their operations in
Indonesia but are not doing so due to unaddressed concerns regarding the
profitability of EV charging operations, tightly regulated electricity tariffs, etc.

22
High upfront costs
An electric car tends to cost higher than most common internal combustion engine
cars. Price is a major factor in determining the success of a car variant in the
Indonesian market, as Indonesia is still classified as a lower-middle-income economy
according to World Bank standards. Meanwhile, hybrid cars are already available in
regular dealers in Indonesia. Hence, purchasing one is relatively easier compared to
purchasing an electric car, although its variants are nowhere as diverse as internal
combustion engine cars.

Recommendations
1. Coordination in making a binding commitment to achieve electrification targets
2. Development of regulatory and fiscal policies and guidelines that spur
demand for and supply of electric vehicles and technologies
3. Research and development that builds up domestic manufacturing and
service capacity
4. Strengthen charging infrastructure
5. Increase consumer awareness to support EV uptake
6. Accelerate EV deployment in public and private fleets
7. Establish pilot projects in cities and replicate success cases in other cities

Existing policy and strategic plans for EV uptake

1. National Master Plan for Industry 2015–2035
2. Presidential Regulation No. 55/2019 on Battery Electric Vehicle
3. Government Regulation No. 73/2019 on Luxury Tax for Automotive Products
4. Ministry of Energy and Mineral Regulation No. 13/2020 on Provision of
Charging Infrastructure for BEVs
5. Strategic Plans of Line Ministries & Government Work Plans
6. Local government regulations

23
 Future of EV and Hybrid Vehicles in Pakistan

Rising demand and scale economies would bring the cost down in the short- to mid-
term. In reality, the initial capital expenditure or buying cost is higher (150 percent
and occasionally 200 percent), but fuel/electricity expenditures are extremely low,
often only a third of the price of gasoline.
However, the same is not true in developing countries like Pakistan, where gas
prices are lower than in Europe, and there are far fewer incentives to switch to EVs.
For instance, in Pakistan, the cost of EV energy is just three-fourths that of gasoline
pricing. Particularly for cars, Europe has a significant economic advantage over
Pakistan in terms of fuel. Since capital expenditures make up a smaller portion of the
total cost of ownership (TCO) for motorbikes, switchover incentives might be higher.
4% of the used automobiles in Pakistan that are currently listed on pakwheels.com
are hybrid vehicles. Of course, pakwheels.com does not accurately represent the
entire Pakistani auto market, where a large number of vehicles are not listed online
for sale. However, the data does indicate that Pakistan is following the global trend
toward more fuel-efficient electric and hydrocarbon cars.
The purchase cost of EVs is almost 150 percent higher. EV motorcycles cost $600-
1000 in Pakistan, whilst traditional motorcycles are priced around $350-400. This
upfront expense is a significant barrier for underdeveloped cultures or individuals.
High interest or leasing rates could raise the price. On the other hand, reductions in
electricity rates or incentives for customs charges may boost the economy as a
whole. Eventually, as the market grew and economies of scale took hold, EV prices
would decrease.
With time, EV economics will become more appealing as the EV market and vehicle
efficiency rise. Pakistan has till 2030 to make domestic improvements. The EV policy
should prioritize the EV bus and motorbike segments, which seem to have more
favorable economics. Additionally, switching from conventional to electric vehicles
may be encouraged because it makes use of existing investments and lowers initial
expenses. We should take part in these initiatives as long as they make sense given
our economic and social circumstances because they are part of our shared destiny
in terms of climate challenges.

EV Opportunities in Pakistan
Regardless of how superior electric vehicles are to conventional automobiles,
Pakistan's electric vehicle market won't grow unless the nation's electricity outages
are reduced and the government creates a long-term plan to address air pollution.
Although several new projects centered on Chinese firms producing electric vehicles
in Pakistan have been made public thanks to the China-Pakistan Economic Corridor
(CPEC), they won't likely be finished for another four to five years or even longer.
Given the CPEC's energy-based projects' predicted reduction in future electric

24
outages, there is a good chance that Pakistan may start to loosen its regulations in
order to increase the potential for growth in the electric vehicle market.

EV Challenges in Pakistan

Car Mafia
The automotive industry's behemoths will simply not allow Pakistan's Electric-Car
Boom to take hold, as none of Pakistan's three most well-known automakers, Honda,
Toyota, and Suzuki, have made significant investments in electric vehicles. If electric
car demand rises in Pakistan, it will impact the sales of these three manufacturers,
which does not appear to be the case given their current stakes in the country's auto
sector.

Price

EVs due to the initial stages of technological development, the cost of buying an
electric car is higher than the comparable cars. However, the cost of maintaining and
running an electric vehicle is cheaper than fuel cars. EVs are usually low-
maintenance cars as they don’t require oil replacement or spark plug and have fewer
mechanical parts compared to Internal Combustion engine (ICE) vehicles.

How will I charge my car during load-shedding?

While urban load-shedding may have become a bit distant in recent years, it is still
very much real in rural areas. This, in turn, ties in with what has been mentioned
earlier (How far will it go?) In addition, our power grids are still rickety, outdated,
fragile, and hence unreliable. An EV Revolution in Pakistan would mean an EV
charger station at every existing petrol station, shopping mall, university,
government, and private office; you name it.

And this doesn’t require a degree in electrical engineering to figure out it would add
pressure on the existing electric infrastructure. Although electric vehicles are a good
bet, the question of the availability of electricity and electric infrastructure in Pakistan
makes things uncertain.

While EVs can help reduce the oil import bill, people believe these vehicles will add
an additional burden on power consumption. In Pakistan, where the industries are
not provided sufficient power supply and where people face continuous load-
shedding issues, would EVs add to the challenges of the power pandemic in the
country? For example: if a person travels from point A to point B Rs 100 in his/her
oil-operated vehicle, the same distance will be covered in Rs 30 in an electric
vehicle.

Consumer Purchase Intention

Pakistan's government has been pushing for electric vehicle adoption to decrease
energy consumption and pollution. Accepting large numbers of electric vehicles will
undoubtedly help ease important issues such as carbon pollution and fuel reliance
and improve economic success. The charging time required by electric vehicles and

25
the driving range they provide is regarded as negative characteristics that deter local
people from purchasing.
The popularity of electric automobiles has only increased in countries that provide
consumers with amenities such as a vast network of low-cost charging stations for
electric vehicles. EV charging facilities are even free in some countries, such as the
United Arab Emirates. Unless such services are available in Pakistan. Consumers
are not interested in electric vehicles. Bringing electric cars to Pakistan. Pakistan
should wait for the technology to mature globally before electric vehicles can only be
a feasible alternative in Pakistan if they provide a driving range of 700 kilometers per
charge, the same as a conventional vehicle's fuel

Need of EVs in Pakistan

Electric Vehicles (EVs) have already caught the interest of large populations of the
developed countries, and the Pakistani public as well awaits with excitement the
road to achieving full conversion to EVs from conventional petrol-based vehicles is
going to be a long one. The main limitations of EVs are their high cost and limited
range (distance traveled between charges). As Pakistan considers the adoption of
EVs on a large scale, there is a need to learn some useful lessons from the
experience of other countries.
When Tesla came out with its first series of EVs, its success was largely due to a
lucrative cash subsidy that the governments of the USA and Canada directly gave to
the consumer, which made a very expensive car more affordable for the
buyer. Another factor is cheap electricity due to a sharp drop in the price of solar and
wind turbines. Tesla built its own free-of-cost charging stations in many locations
making its products even more attractive.

EVs Impact on Oil Import Bill

While EVs can play a major role in climate change; they also have the capacity to
contribute economically by replacing conventional vehicles with EVs. Pakistan’s fuel
import bill will be reduced as most of the finished petroleum products used in
transport are imported. Speaking to Geo TV, Arif Habib Limited Head of Research
Tahir Abbas said that the auto industry has been growing at a rapid pace. “Keeping
in view the fact that almost all the vehicles are fueled via oil-based products —which
makes up around 25% of the total import bill — therefore, any potential shift towards
hybrid/electric vehicles is expected to ease significant pressure off the import bill,” he
said.

According to the electric vehicle policy,

the demand for oil products will drop by
millions of tons by the year 2030.
Meanwhile, industry players highlighted
that plants for conventional cars are more
expensive to establish as they cost
around ten times more than an electric
vehicle car plant. EVs can be a turning

26
point for the industry and would also help alleviate pressure on the country’s current
account deficit by reducing the oil import bill.

In 2020, Adviser to Prime Minister on Climate Change Malik Amin Aslam said that
the PTI-led government plans to convert 100,000 cars and 500,000 two and three-
wheelers to electric vehicles in four years. He had said that the initiative would lead
to a saving of 70% in running costs, cutting almost $2 billion in oil imports by 2030.

Environmental Factors

However, it will not contribute much to a

reduction in global Greenhouse Gases
(GHGs) because Pakistan has a
negligible GHG footprint. Furthermore,
EVs will not cause a major reduction in
GHGs if they are charged with grid-based
power because most of our electricity
generation continues to be based on
fossil fuels. To have any meaningful GHG
reduction, commercial charging stations
will need to be fully based on their own
solar and wind power sources.

27
Summary
A vehicle that uses electric propulsion is called an electric vehicle (EV). EVs can also
comprise hybrid electric vehicles (HEVs) that can have alternate fuels. In the report
both developed countries, such as Germany and Japan, and developing countries
such as India and Indonesia, are discussed in terms of their advancement towards
energy transition. Germany has made regressive progress towards EV adoption with
major infrastructure changes. On the other hand, Plug-in Hybrids are more popular in
Japan. India has a major automobile market and the shift in this market is expected
to incline towards EV in the coming years. Indonesia is facing major challenges for
the EV transition; however, Hybrid vehicles hold more popularity. By analyzing the
trends in developed and developing countries and keeping in mind Pakistan’s
resources it can be concluded that EV might be the future in Pakistan. But for this
Pakistan would have to overcome great challenges including infrastructure changes,
scarce resources, inflation, and economic reforms.

28
Conclusion
By analyzing the economic data and respective challenges in the energy transition
efforts of the developed and developing countries, and studying Pakistan’s own
energy and economic state, it can be concluded that leaping towards EV would be
beneficial to Pakistan, but it would require great effort and time.

29
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