Recap 2020: Electric vehicles demand in India witnessed massive growth; COVID-19 hit aviation industry

2020 witnessed a massive growth in electric vehicles, whereas the aviation industry affected due to coronavirus pandemic. The Electric vehicle sales in India recorded a growth of 20 per cent to 156,000 units in the financial year 2019-20, largely driven by the sales of electric two-wheelers that form bulk of the nascent industry. Of 156,000 units, electric two-wheelers sales accounted for 152,000 units, up 20.7 per cent from the last year, while electric cars accounted for 3,400 units. Electric bus sales were 600 units compared to 400 units in the financial year 2018-19.

Following a plunge of 42 per cent in the first quarter of 2020, China’s auto sales registered growth for a seventh month in a row in October as the country recovered from the COVID-19 pandemic. Sales of electric vehicles climbed 115.4% year on year to 133,000 units in October.

In the electrical sector, the year saw numerous aluminium capacitors launches, collaborations, development of new facility for aluminium wire and many more.  Let’s explore:

Indian companies’ plans to bring mass-market electric vehicles 

Nitin Gadkari, Indian Union road transport minister announced that he expects India will be a manufacturing hub for electric vehicles (EV) and too within the next five year. In 2020, leading companies announced their plans to launch electric vehicles in the Indian market.

Hyundai Motor India Limited (HMIL) planned to launch a mass electric vehicle in the Indian market to further strengthen its product line. HMIL will invest over $40 billion into innovation, new models, and technologies for electrified and autonomous vehicles. By 2025, the company aims at releasing 44 electrified models, with sales projected to touch a total of 1.67 million marks annually.

The Government of Telangana launched the 10-year 'Telangana Electric Vehicle & Energy Storage Policy' with a vision to make the state a hub for electric vehicles (EVs) and energy storage systems (ESS). ETO Motors inked a memorandum of understanding (MoU) with government for the establishment of manufacturing facility for its range of electric vehicles. The plant will be built under its subsidiary Keto Motors with an investment of INR150 crore.

Ola Electric may build India's largest electric scooter manufacturing plant. The company was in talks with various state governments, including Karnataka, Tamil Nadu, Andhra Pradesh and Maharashtra, for this project.

North Karnataka gave its approval for an electric vehicle manufacturing unit in Bagalkot district. The plant will be the first-of-its-kind in North Karnataka. The electric vehicle manufacturing unit will be set up across more than 140 acres. The construction of the plant will start in January 2021.

Uber planned to add 3,000 electric vehicles and e-rickshaws to its fleet by the end of 2021. For this, the company may enter into agreement with original equipment manufacturers (OEMs) for charging and battery swapping, and fleets and financiers.

“The EV industry is taking shape and we believe that despite the COVID19, the FY 20-21 will be a defining year for all the EV segments. While the EV industry is surely going to face the brunt of COVID19 like any other automotive business, the clearer skies and the cleaner air even in the worst polluting cities is certainly leaving a permanent impression in the minds of the customers about how they can breathe easy and remain healthy if the society moves towards e-mobility," said Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles.

COVID-19 hit aviation industry

The COVID-19 breakout created a huge drop in international travel and forced the aerospace organisations to go out for radical restructure. Airbus announced that it would drop aircraft production of its core three aircraft models by roughly a third. The aircraft manufacturer said it would steeply cut production from the bestselling A320 single-aisle jet to 40 per month from 60 per month previously, assembled in Toulouse and Hamburg.

Boeing halted its operations indefinitely due to the spread of the coronavirus, as per the government’s advice and supply chain reliability.

The aerospace sector is a key consumer of aluminium. The worldwide light metal demand was choked, with the COVID-19 epidemic spawning the utmost turmoil to supply chains.

Some major highlights of 2020

• The plan for rolling out the first batch of aluminium coaches of Indian Railways suffers delay due to the Covid-19 outbreak causing obstruct in production. The lightweight aluminium coaches will position Indian Railways with the benefit of running trains to speed up to 160 kmph, reduce energy consumption and give a more pleasant ride.

• Indian Oil Corporation planned to offer a more cost-effective alternative to lithium-ion batteries for electric vehicles and stationary applications by launching the first-of-its-kind aluminium-air batteries. Aluminium-air batteries are one-fourth of the weight of Lithium-ion batteries and run more than double on a single charge.
• Hydro collaborated with Norway to develop the world’s first fully electrical passenger ferry. One ferry can contain 25-30 tonnes of aluminium. Hydro will use low-carbon aluminium extrusion ingot and sheet ingot products like Hydro CIRCAL and Hydro REDUXA, which improve the environmental performance even further. 
• Kolkata-based firm Titagarh Firema became India’s first company to manufacture aluminium-bodied coaches. The first fleet of these coaches are supposed to be supplied to Pune Metro for use in its rail-based transit system.
• Arksen announced its plan to build a cutting edge eco-friendly superyacht – the first explorer vessel ‘Project Ocean’ under Arksen 85 series. The Arksen 85’s hull will contain recycled aluminium, sourced via Norwegian company Hydro, to enable the hull easily recycled by the end of the yacht’s life. 
• LEVC (London Electric Vehicle Company) started the production of its second product line - electric van VN5. VN5 features lightweight aluminium construction, bold and distinctive designs, and eCity technology.
• Constellium SE delivered Auto Body Sheet for the new Toyota Corolla produced at Toyota’s European manufacturing plants.
• South Africa’s first aircraft since the Apartheid era, AHRLAC, was back in production and ready for deliveries after a separation between the programme’s two shareholders threatened its future last year. The aluminium-bodied, high-winged, tandem-seat AHRLAC is powered by a single rear-facing Pratt & Whitney Canada PT-6.

Outlook

Aluminium consumption in China’s automotive industry is expected to grow at a compounded annual growth rate (CAGR) of 8.9 per cent to 10.7 million tonnes by 2030, said Tao Zhimin, auto sheet project manager at Nanshan Aluminium.

By 2030, electric vehicles, including passenger vehicles, buses and e-bikes, are estimated to account for 34 per cent of China’s aluminium consumption in automobiles, said Tao.

Separately, a recent study - Roadmap for Electrification of Urban Freight in India found that there could be a 14 per cent reduction in CO2 emissions in India’s small commercial vehicle segment with higher electric vehicle sales by 2030. Higher penetration and sales of electric vehicles in India’s commercial vehicle segments will expectedly boost the consumption of aluminium components as well. 

Top newsmakers from Electrical sector

RUSAL signed a cooperation agreement with DKS for the supply of raw materials and the joint development of new products. The project covers the establishment of the production of high-tech import-substituting products in Russia. DKS intends to manufacture cable support systems for the distribution of electricity and communications from aluminium alloy by 2025.

RUSAL will deliver about 2,000 tons per annum of aluminium to DKS, including about 700 tons of low-carbon aluminium from the ALLOW brand and alloys based on it.

Natia Turnava, Minister of Economy and Sustainable Development of Georgia, opened a Koc Kablo’s new plant for aluminium and copper wires in Tbilisi. Its production capacity per year shall reach 12000 tons of copper and aluminium.

Ducab Group succeeded to maintain gross profitability in H1 2020 as compared to the same period of the previous year, due to the pliability of its diversified cables and metals business with all manufacturing based in the UAE. Overall sales of AED 2.2 billion reported for the period.

Ducab Aluminium Company (DAC) posted an impressive performance, having increased its supply of aluminium rods and overhead conductors to global customers by more than 2%, compared to the same period last year.

Winterthur electricity network in Switzerland replaced its copper lines with aluminium, which will support the city to save 80,000 francs a year. The Winterthur electricity will no longer flow through copper cables in the future, whereas it will be conducted over aluminium cables. However, aluminium has a strikingly lower conductivity than copper.

Announcement of new aluminium capacitors

• Vishay Intertechnology launched new series of low impedance, automotive grade miniature aluminium electrolytic capacitors. It offers high ripple currents up to 3.8A with high-temperature operation to +105C.
• TDK Corporation announced the launch of a axial hybrid-polymer aluminium electrolytic capacitors. The B40600* / B40700* series has a capacitance range from 780 µF to 2200 µF and is designed for rated voltages of 25 V and 35 V.
• KEMET introduced three hybrid aluminium polymer capacitor series. The three series include the A780, PHA225, and PHH225. These aluminium capacitors are best suited for automotive and industrial applications.
• Vishay Intertechnology introduced two new series of miniature axial aluminium electrolytic capacitors. It is best suited for smoothing, filtering, and buffering in power supplies for automotive, industrial, and telecommunications applications.
• Cornell Dubilier Electronics, Inc. (CDE) unveiled new Flat Aluminium Electrolytic Capacitors. The NHR Series are designed to operate at operating temperatures of–55 °C to 150 °C.
• New Yorker Electronics expanded its products poryfolio with the launch of new Exxelia Sic Safco Long-Life Aluminium Electrolytic Capacitor. It offers low ESR and high ripple current. It provides high energy loads and great performances in energy density.
• Vishay Intertechnology introduced miniature snap-in power aluminium electrolytic capacitors. The Vishay BCcomponents 193 PUR-SI series offers up to 30 % higher ripple current than standard solutions in similar case sizes.