New York to Ban New Gas Vehicles by 2035, Gradually Tighten Emissions Standards for ICE Vehicles: All Details

New York advanced a plan Thursday to require that all new vehicles sold in the state by 2035 be zero emissions, state Governor Kathy Hochul said.

After signing legislation last year, Hochul announced officials were putting their “foot down on the accelerator” after having been required due to a federal law to wait for California to pass its own legislation.

California ruled in August that an ever-increasing percentage of new cars sold to the state’s 40 million inhabitants must produce no tailpipe pollutants, until their total ban in 2035.

Following that decision, Hochul directed New York authorities to move on regulatory steps to ensure all new passenger cars, pickup trucks and SUVs sold in the state are zero emissions by 2035.

The directive sets interim targets of 35 percent of sales by 2026 and 68 percent by 2030.

“We actually have benchmarks to achieve to show we’re on the path to get there,” Hochul said in a speech in the city of White Plains.

The regulations will also gradually tighten emissions standards for vehicles with internal combustion engines.

To offset costs of EVs, Hochul announced further funding for a rebate program for purchasers and touted advances in the state’s charging infrastructure.

The state is also due to receive $175 million (roughly Rs, 1,430 crore) from the federal government for its charging network.

California and New York join jurisdictions around the world that have set their sights on the polluting automobile sector to combat climate change in recent years.

Britain, Singapore and Israel are eyeing 2030, while the European Union wants to end the sale of new petrol and diesel cars by 2035.

Last year, the Associated Press reported that US President Joe Biden had announced a commitment from the auto industry to produce electric vehicles for as much as half of US sales by the end of the decade, while declaring the US must “move fast” to win the world’s carmaking future.


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Fisker to Sell Electric SUV in India Starting July Next Year, Plans to Manufacture Locally

US startup Fisker will begin selling its Ocean electric sport-utility vehicle (SUV) in India next July and could begin manufacturing its cars locally within a few years, the company’s Chief Executive Officer told Reuters.

Sales of electric cars in India will gather pace by 2025-26, Henrik Fisker said in an interview in New Delhi, adding that the company wants to secure a first-mover advantage.

“Ultimately, India will go full electric. It may not go as fast as the US, China or Europe, but we want to be one of the first ones to come in here,” Fisker said.

Electric cars currently make up just 1 percent of India’s roughly 3 million annual car sales, with insufficient charging infrastructure and high battery costs partly to blame for the slow shift.

The government, which wants to increase this share to 30 percent by 2030, is offering companies billions of dollars in incentives to build their EVs and associated parts locally.

Fisker rival Tesla put its India entry plans on hold after failing to secure a lower import tariff for its cars. Like Fisker, it first wanted to import vehicles to test the market before committing to local manufacturing.

While Fisker admitted it is “very expensive” to import vehicles into India, the company wants to use the Ocean to build its brand, with its premium pricing likely to limit numbers, he said.

The Ocean retails at around $37,500 (nearly Rs. 30,41,600) in the United States but importing it to India would add logistics costs and a 100 percent import tax. That would put it out of reach of most buyers in a market where the bulk of cars sold are priced under $15,000 (nearly Rs. 12,16,600).

“Ultimately, if you want to have somewhat of a larger volume in India, you almost have to start building a vehicle here or at least do some assembly,” Fisker said.

The company’s next EV — the smaller, five-seater PEAR — is being considered for production in India but not before 2026, he said.

“If we can get that vehicle just below $20,000 (nearly Rs. 16,22,700) locally in India, that would be ideal. Then I think we’ll get to a certain volume and market share,” he said, adding that if they find the right local partner the timeline could be shorter.

To set up a plant in India would require volume of at least 30,000 to 40,000 cars a year, Fisker said.

He did not directly comment on the size of investment the company considered necessary, but said that to set up a plant with an annual production capacity of 50,000 cars would likely cost $800 million (nearly Rs. 6,500 crore) in India.

Fisker has a contract manufacturing agreement with Magna International which will produce the Ocean at its Austrian unit and ship it to India. It also has an agreement with Foxconn to build the PEAR.

The company is scouting for real estate space to open a New Delhi showroom and is meeting auto component suppliers to source parts for its global production, he said.

“Already we are starting to build some relationships,” he said.


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Mercedes-Benz to Launch Three EVs in 2022, Aims to Capture Indian Luxury EV Segment: Report

Mercedes-Benz is reportedly set to launch three new electric vehicle (EV) models in the country this year, as the company aims to capture the luxury EV segment. The firm also has plans to set up a network of fast-charging stations for EVs across the country and wants to be the first to assemble a luxury EV in India according to a report. The company is poised to take advantage of rival Tesla, whose CEO Elon Musk is currently at loggerheads with the government over high import taxes for its vehicles. 

The Stuttgart-based carmaker aims to increase its sales of EVs in India to 25 percent, according to a report by Reuters. Mercedes-Benz plans to launch three new EV models in the country this year, starting with an electric version of its new AMG EQS 53, and the S-Class EQS sedan, as per the report. While the former will be imported, the latter will be assembled in the country, as per the report, which states that the form will also import a people carrier. 

Mercedes-Benz will also set up 140 charging stations across the country with fast charging claimed to charge the battery up to 80 peercent in 40 minutes, company head Martin Schwenk told Reuters, adding the firm could consider locally manufacturing EV batteries in the country if sales increased to the ‘thousands’. 

The Mercedes-Benz AMG EQS 53 is India’s most expensive EV priced at Rs. 2.45 crore, and offers a range of 580 kms per charge, as per the report. However, the company’s locally assembled EV could be launched at a lower price, thanks to the 5 percent tax on EVs made in the country.

Tesla, which has halted its plans to launch its EVs in the country due to an CEO Elon Musk’s impasse with the government over the 100 percent tax on imported EVs, may have a long road ahead to catch up with Mercedes-Benz, according to the report.


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Delhi Announces New EV Action Plan, Aims to Install One Public Charging Point for 15 EVs by 2024

The Delhi government has updated its agenda for the electric vehicles by announcing that it will install at least one public charging point for every 15 EVs by 2024. These charging points will be accessible within 3 km travel from anywhere in Delhi. The government released its new three-year ‘action plan’ for electric vehicles till 2025, as it celebrates two years of its EV Policy that was first launched in 2020. The plans are in accordance with Delhi government’s aim to turn the country’s capital into one of the world’s most ‘Light EV’-friendly cities.

According to the new plans announced by the Delhi government under its ‘Charging/Swapping Infrastructure Action Plan for 2022-25′, the union territory will install around 18,000 public and semi-public EV charging points by 2024.

At present, Delhi has around 2,452 charging points and 234 operational swapping stations. While 594 charging points have been installed using the single window mechanism, 896 charging points are under the process of installation.

The document also mentions that the government is planning to target 25 percent of all new vehicle registrations under the EV policy by 2024. The accelerated adoption of EVs in Delhi is expected to lead to an increase in the number of charging points across the union territory.

According to the document shared by the government, battery swapping is considered to be a feasible solution for electric two and three-wheeled vehicles, which allows a customer to purchase an EV without a battery, substantially reducing the EV’s cost.


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Automakers Struggle to Understand Whether New US Bill Allows EV Tax Credits for Customers

US automakers and dealers are scrambling to figure out if they can still offer $7,500 (roughly Rs. 5,97,000) tax credits to would-be buyers of electric vehicles (EVs), as the US Congress prepares for final votes today on a bill that includes a top-to-bottom overhaul of Washington’s clean vehicle policies.

Under the $430 billion (roughly Rs. 34,23,000 crore) climate, health care and tax bill that the US House of Representatives was set to vote on Friday, rules governing the current $7,500 (roughly Rs. 5,97,000) EV tax credit aimed at persuading consumers to buy the vehicles would be replaced by incentives designed to bring more battery and EV manufacturing into the US.

Manufacturers, dealers and consumers do not have answers to many basic questions about how the new rules will affect the way clean vehicles aimed at consumers – including fully electric and hybrid models – will be bought, sold and built, automakers, consultants and lobbyists said.

However, industry executives were more positive about proposed incentives of up to $40,000 (roughly Rs. 31,84,176) per vehicle for larger commercial electric vehicles, such as Tesla’s Semi or electric commercial vans developed by several manufacturers.

The provisions in the Inflation Reduction Act are “a powerful tail wind in the commercial space,” said RJ Scaringe, chief executive of Rivian which has an agreement to deliver up to 100,000 large vans to shareholder Amazon.

The legislation brings “a significant change in value chain requirements, in a very short period of time, that affects an industry where supply chain development … is measured in years,” said John Loehr, a managing director with consulting firm AlixPartners.

No longer eligible

The most immediate effect of the Inflation Reduction Act would be a ban on tax credits for vehicles assembled outside North America. That would mean about 70 percent of the 72 current EV and plug-in hybrids on the US market would no longer be eligible, said the Alliance for Automotive Innovation, which warned the change “will surprise and disappoint customers in the market for a new vehicle” and “jeopardize” EV sales goals.

However, US Transportation Secretary Pete Buttigieg told Reuters in an interview this week: “This is … going to be a very important long-term transformational policy to accelerate the EV revolution and to make sure it is a ‘Made in America’ EV revolution.”

“Industry is capable of sometimes more than they will at first see,” Buttigieg added.

The Biden administration must still write and finalize implementing regulations to handle some of the complex questions raised by the quick rewrite of the tax credit.

New restrictions on battery sourcing and critical minerals, along with price caps and income caps, take effect on January 1, which will potentially make all current EVs ineligible for the full $7,500 (roughly Rs. 5,97,000) credit.

A Congressional Budget Office forecast estimated as few as 11,000 EVs may qualify for the tax credit in 2023.

The domestic content requirements ratchet up over the next six years.

Volvo Car North America said just one of its models that currently qualify for EV tax credits will still qualify after the bill is signed. The only one in the short term that will qualify is the S60 Recharge, that is assembled in South Carolina, and even that may not qualify after January 1.

Several automakers, including startups Rivian and Fisker, this week began urging would-be customers to get off the fence and commit to buying vehicles before the current rules are replaced.

Binding contract

The bill does allow consumers to still get the credit if they buy before Biden signs the bill into law, but must have a “written binding contract” to purchase.

Rivian encouraged would-be buyers in a letter to make $100 (roughly Rs. 7,900) of their deposits non-refundable in order to qualify for the credit. Rivian executives said Thursday customers are ordering R1 trucks and SUVs with average prices of $93,000 (roughly Rs. 74,03,200) – well above the cut-offs in the proposal before the House.

“We cannot guarantee that the IRS (Internal Revenue Service) will approve tax credit eligibility as we interpret the terms of the Inflation Reduction Act,” Rivian cautioned in its letter.

Mercedes-Benz said it is “reviewing the proposal in anticipation of the new provisions becoming final in the coming week.”

European Union and South Korean government officials on Thursday said they were concerned the domestic content and manufacturing requirements in the Inflation Reduction Act could violate World Trade Organization rules.

US electric vehicle market leader Tesla and General Motors already sell their EVs without a federal tax credit, because they hit the 200,000 vehicle cap under the current law.

Tesla and GM may not become eligible to offer tax credits under the new law until Jan. 1. And even then, it is not clear which models – if any – will get the full $7,500 (roughly Rs. 5,97,000) by meeting requirements that 40 percent of battery minerals come only from North America, or countries with which the US has free trade agreements.

The proposed subsidy limits would hit hardest on automakers and battery makers with corporate parents in China.

Starting in 2024, rules will take effect that make vehicles ineligible for any credit if they have content from a “foreign entity of concern,” a term that could include Chinese firms.

© Thomson Reuters 2022


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Switch Mobility Partners With Chalo to Deploy 5,000 Electric Buses Across India: Details

Switch Mobility, the electric vehicle division of Hinduja Group flagship Ashok Leyland, on Thursday said it has joined hands with transport technology company Chalo to deploy 5,000 electric buses across the country. The Memorandum of Understanding (MoU) in this regard has been inked for an initial period of three years.

Under the partnership, Switch and Chalo will jointly invest to deploy electric buses in cities where Chalo is present.

Chalo will deploy its consumer technology solutions offering conveniences such as live bus tracking, digital tickets, and travel plans; and also determine routes, frequency, schedules, and fares.

Switch’s responsibilities include the supply and maintenance of the electric buses.

“This significant partnership of 5,000 electric buses, will certainly open up access to affordable, comfortable, hassle-free and environmentally-friendly transport solutions…,” Switch Mobility India CEO Mahesh Babu said in a statement.

Chalo co-founder and CEO Mohit Dubey said, “Last year, we finalised a project to add 1,000 new buses in three of our cities. Today, we are glad to partner with Switch on a scale that is 5 times larger.”

Last month, Tata Motors announced it had bagged an order for 1,500 electric buses from Delhi Transport Corporation (DTC) as part of a tender by Convergence Energy Services.

The auto major will supply, operate and maintain air-conditioned, low-floor, 12-metre fully-built electric buses for 12 years, as per the contract, it said in a statement.

The Mumbai-based company has already supplied more than 650 electric buses across multiple cities in India, which have cumulatively clocked more than 39 million kilometres.

Delhi Transport Corporation MD Neeraj Semwal said the induction of the environment-friendly buses will help largely in reducing air pollution and benefit millions of citizens.

Convergence Energy Services (CESL) MD and CEO Mahua Acharya said that the Delhi Government has shown exemplary leadership in transitioning over to electric buses. “We are fortunate to have benefited from this and are thankful to Tata Motors in their generous collaboration,” she added.

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Chhattisgarh Government Approves Electric Vehicle Policy, Aims to Generate Employment

The Chhattisgarh government on Thursday approved its electric vehicle (EV) policy, which aims to develop the state as a manufacturing hub, protect environment and create employment opportunities. The policy in which road tax and registration fee waivers are provisioned will also encourage the use of EVs, thereby ensuring relief to people bearing the brunt of rising fuel prices, an official said.

The nod to Chhattisgarh EV Policy 2022 was granted during a cabinet meeting chaired by Chief Minister Bhupesh Baghel at his official residence here, he said.

“Chhattisgarh will become a manufacturing hub for electric vehicles and their accessories in the coming years. The policy will create unlimited employment opportunities for the youth. The decision will also benefit buyers and manufacturers of electric vehicles and people engaged in research and development work in the sector,” a release quoted Baghel as saying.

The policy aims to ensure a healthy environment for a sustainable future for citizens, reduce carbon footprint and minimise the causes of rising concerns of rapidly increasing toxic gas emissions from vehicles, etc, the statement said.

The operations of both commercial and non-commercial vehicles will be encouraged under the policy, it said.

“Under the policy, the government has set a target of five years and aims to have 15 percent of new registrations of vehicles, either under individual use or commercial use as EVs till 2027,” it said.

The state government has announced waiver in the registration fees on the sale of EVs registered in the state during the policy period. Besides, there will be a complete road tax exemption on all EVs purchased during the first two years from the date of commencement of this policy, it was stated.

After two years, there will be a 50 percent road tax exemption on EVs purchased in the next two years, while in the fifth year, there will be 25 percent rebate, the release said.

To develop the manufacturing of EVs, the state government will give a grant of 25 percent of the cost of plant and machinery. It will allot 500-1,000 acres of land to develop an EV park to attract manufacturers, it said.

“The state government will provide capital subsidy of 25 percent to the selected energy operators on charging equipment/machinery to the first 300 fast charging stations commissioned in the state up to a maximum of Rs. 10 lakh per station,” it said.

The state has provisioned SGST reimbursement for manufacturers of EVs in the state during the policy period (till 2027), it said.

The government will also provide complete SGST reimbursement to energy operators for purchase of batteries to be used in switching / swapping stations, while 100 percent SGST will be reimbursed on the sale of electric buses and electric freight vehicles sold and registered in the state, it said.

Charging stations will be built in the government and private buildings, the release said.


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Hyderabad Plans to Set Up 330 EV Charging Centres Based on Feasibility of Locations

As part of the policies of the Centre and the State government to cut down carbon emission and encourage the use of electric vehicles, the Greater Hyderabad Municipal Corporation (GHMC) proposes to set up 230 EV-charging centres.

Also, the Hyderabad Metropolitan Development Authority would be setting up another 100 stations within its limits, an official release said on Friday.

As nodal agency of the State, the Telangana State Renewable Energy Development Corporation (TSREDCO) entered into an agreement with GHMC to set up the charging centres at different locations in the city.

“GHMC submitted 230 and HMDA submitted 100 locations to (TSREDCO) for installation of electric vehicle-charging centres. Each location has high-speed charging with DC-001(15KW) capacity and low charging with C (122-150 KW ) capacity facilities. These charging centres will be set up accordingly at the feasibility of locations and further the petroleum corporations also install charging stations according to their convenience,” the release said.

The charging centres would be installed as per the survey reports and recommended locations given by the civic body.

TSREDCO decided to set up 14 centres on an experimental basis and to see the revenue generated from them, it added.

A few days back, MG Motor India said it has inaugurated the first two residential community SMART electric vehicle chargers in Jaipur as part of its plans to set up more such charging stations in the Rajasthan capital.

Under the company’s MG Charge initiative, the automaker will install 1,000 AC fast chargers at residential localities across India in 1,000 days, it said in a statement.

MG Motor said it is taking conscious steps towards green mobility and strengthening the EV charging infrastructure in the country.

It provides 6-way charging ecosystem with a plug-and-charge cable onboard, AC fast chargers (installed at the customer’s home/office), DC superfast chargers at MG dealerships, public charging network, charge-on-the-go with RSA (Roadside Assistance) and community charger.


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Toyota Recalls 2,700 Electric Cars Produced Between March and June for Faulty Wheel That May Detach

Toyota is recalling 2,700 bZ4X crossover vehicles globally for wheel bolts that could become loose, in a major setback for the Japanese automaker’s ambitions to roll out electric cars.

Toyota Motor said on Friday the cause is still under investigation, but the whole wheel could come off, risking a crash.

“Until the remedy is available, no one should drive these vehicles,” the company said in a statement.

Among the vehicles subject to the latest recall, about 2,200 were destined for Europe, 270 for North America, 112 for Japan, and 60 for the rest of Asia, according to Toyota. They were produced between March and June.

The bZ4X, which went on sale about two months ago, is a key model in Toyota’s plans to strengthen its electric lineup.

Toyota is planning to have 30 EV models by 2030, selling 3.5 million electric vehicles globally that year. Toyota is also investing 2 trillion yen ($17.6 billion or nearly Rs. 130 crore)) in battery research and development to achieve such goals.

The “bz” in the recalled model’s name, as well as others in the works, stands for a “beyond zero” series, including sport-utility vehicles of all sizes, pickup trucks and sportscars, according to Toyota.

The maker of the Prius hybrid and Lexus luxury models has been seen by some critics as a straggler in pushing electric vehicles, partly because it has been so bullish, and successful, in other green technology, such as hybrids and fuel cells, as well as efficient gas engines.

Demand for electric cars is expected to continue growing, especially with gas prices soaring recently, amid worries about inflation and the war in Ukraine, and people around the world become more conscious about climate change and the environment.


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Government Reportedly Orders Probe Into Nexon EV Fire Incident, Report to Be Submitted This Month

The government has ordered an independent enquiry into a Nexon electric vehicle catching fire in Mumbai, a senior Road Transport and Highways ministry official said on Thursday.

“We have ordered an independent enquiry to investigate the Nexon EV fire incident,” the official told PTI. The Centre for Fire Explosive and Environment Safety (CFEES), Indian Institute of Science (IISc) and Naval Science & Technological Laboratory (NSTL), Visakhapatnam have been asked to probe the circumstances that led to the incident and also suggest remedial measures, the official added.

Tata Motors said it is also investigating the incident of its Nexon EV catching fire in Mumbai.

Responding to the incident that has been widely shared on social media, Tata Motors in a statement on Thursday said, “A detailed investigation is currently being conducted to ascertain the facts of the recent isolated thermal incident that is doing the rounds on social media.” Further, it said, “We will share a detailed response after our complete investigation. We remain committed to the safety of our vehicles and their users.”

The company asserted, “This is a first incident after more than 30,000 EVs have cumulatively covered over 100 million km across the country in nearly 4 years.” In the electric two-wheeler segment there have been many incidents of vehicles catching fire in the recent past. Electric two-wheeler makers such as Ola Electric, Okinawa Autotech and PureEV had recalled their scooters in the wake of separate fire incidents.

The fire incidents had prompted the government to form a panel to examine and had warned companies of penalties if they were found to be negligent.

The government-appointed panel is expected to submit its report on electric two-wheeler fire incidents this month, according to a road ministry official.

Road Transport and Highways Minister Nitin Gadkari had recently said companies found negligent will be penalised and a recall of all defective vehicles will be ordered after the expert panel submits its report.

The government had earlier ordered a probe in April after an e-scooter launched by ride-hailing operator Ola’s electric mobility arm engulfed in fire in Pune.

The Centre for Fire Explosive and Environment Safety (CFEES) had been asked to probe the circumstances that led to the incident and also suggest remedial measures, according to the road transport ministry.


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