The demand for electric vehicles (EVs) is rapidly increasing, especially due to environmental concerns and the rising costs of petrol and diesel. In this scenario, the business of EV kits and services presents a significant opportunity for entrepreneurs. The government offers various incentives to promote electric vehicles, such as tax deductions, subsidies, and infrastructure support for EVs. This provides financial benefits to entrepreneurs and reduces the investment cost.
Converting IC vehicles to electric vehicles costs less than manufacturing new vehicles. Moreover, reusing old vehicles results in less environmental impact compared to new vehicles. This provides a sustainable and cost-effective solution for businesses. New business models are emerging in the industry in the form of EV kits, battery retrofitting, charging stations, and other related services. This offers businesses expanded opportunities and new sources of profit.
Sivasankari TP, Founder and Managing Director of AR4 Tech, said that we primarily convert existing IC vehicles into electric vehicles. IC vehicles refer to petrol and diesel-based vehicles. What others are doing is building new electric vehicles, which increases traffic on the roads. But what happens to the existing IC vehicles? We focus on these vehicles to prevent them from being scrapped in the market.
Indian people often have an emotional attachment to their old vehicles, and they want to preserve them. Therefore, instead of sending these vehicles to scrap, we are giving them a new life. We convert these old petrol-diesel vehicles into electric vehicles so they can be used again, and their value is maintained.
Instead of importing kits, we design them in such a way that they work properly in the market, based on the region where they will be used. We have the capability to design the motor and battery. Therefore, we design the kits ourselves.
We have received approval from the Automotive Research Association of India (ARAI), which is located in Pune. Additionally, we have obtained permits from the Tamil Nadu and Karnataka state governments. We plan to introduce this technology in more states in the future. This way, we can make electric vehicles more affordable and quicker to adopt for people.
Battery Technology Development
Sivasankari TP mentioned the development of battery technologies. Initially, lead-acid batteries were used, but they have now evolved into lithium batteries. Lithium batteries consist of two major chemicals: NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate). NMC batteries are often associated with fire incidents due to the reactive materials like nickel, manganese, and cobalt. Cobalt is considered a reactive material that can cause explosions.
The safest battery is the LFP (Lithium Iron Phosphate) battery. While it is the safest, it may sometimes emit light smoke. We support two types of batteries in our kits: LFP and Sodium-Ion batteries. We prioritize Sodium-Ion batteries based on four main factors. The first is the lifecycle. Sodium-Ion batteries have a lifecycle of 8 to 12 years. The second is temperature resistance. These batteries can withstand heat up to 90°C and still function properly at temperatures as low as 20°C. The third advantage is that they are also resistant to water. You may be familiar with the flooding problems in Chennai and other areas. So, even if the battery is submerged in water, we can recover the cells and reuse the battery. This battery is resistant to water and impact.
When a vehicle is damaged in an accident, the battery continues to function properly. These four key reasons are why we prefer Sodium-Ion batteries. Of course, people may raise concerns about energy density, which is a difference between LFP and Sodium-Ion batteries. However, with the new chemical development in Sodium-Ion batteries, we can achieve a better solution where the energy density difference is only 10%. While Sodium-Ion batteries are the most cost-effective, they come with an additional cost per kilowatt. Currently, compared to LFP, it costs approximately ₹6000 extra.
Solar Power Charging: A Solution to Range and Grid Issues
When you charge with solar power, you don't have to worry about range and grid supply issues. This means that anyone can charge the vehicle in places where they are stationary or even while in transit. This is why our LCVs (Light Commercial Vehicles) come with solar panels, so a minimum power supply can be obtained from the solar panels. The Sodium-Ion batteries we mentioned have the capacity to store power from both AC and DC supplies. This power can be stored and later used for both commercial and domestic purposes.
Conclusion
Amid the growing impact of electric vehicles (EVs) and environmental concerns, the business of converting IC vehicles to electric has become a significant opportunity. This not only offers a profitable deal for entrepreneurs but also provides a more sustainable solution from an environmental perspective. Government incentives, such as tax cuts and subsidies, make it even more attractive. The battery technologies suggested by Sivasankari TP, such as sodium-ion batteries and solar power charging, offer better performance and safety for vehicles. Thus, this business is not only economically beneficial but also promotes a sustainable and eco-friendly transportation system in the future.
