Retrofitting internal combustion engine cars to electric vehicles offers a variety of obstacles, according to a joint analysis by ETB (European Business and Technology Centre) and management consulting firm Primus Partners.
According to a report published on Thursday, the government may consider offering incentives or sponsoring programs to convert outdated cars into electric ones rather than having them scrapped. Retrofitting internal combustion engine cars to electric vehicles offers a variety of obstacles, according to a joint analysis by ETB (European Business and Technology Centre) and management consulting firm Primus Partners.
Nonetheless, it stated that these difficulties may be successfully addressed and surmounted with a concerted strategy combining corporate cooperation, government efforts, and public involvement.
The goal of India's Vehicle Scrappage Policy is to gradually replace outdated and unsafe cars with more modern, environmentally friendly models.
This policy is not just based on the age of the cars; it also takes into account the fitness and emission levels of the vehicles.
Under this strategy, passenger cars over 20 years old and commercial vehicles over 15 years old may be scrapped or have their re-registration fees doubled.
"The government should assist efforts to convert outdated cars to run on electricity or offer incentives in place of discarding them. In this manner, the life of current automobiles is prolonged," the collaborative paper stated.
The report titled 'Retrofit for a greener future: Accelerating electric vehicle adoption' also stated that retrofitting could provide a way to modernize the current fleet of vehicles while also cutting emissions and supporting the wider sustainability objectives of a circular economy.
The research stressed that retrofitting is a major step towards sustainable transportation and demonstrates a commitment to environmental stewardship, stressing that it is not just a stopgap measure.
According to the analysis, the worldwide market for retrofit vehicles is expected to be valued at USD 65.94 billion in 2023 and rise at a compound yearly growth rate of 7.40% to reach USD 125.37 billion by 2032.
According to the report, medium-duty truck retrofitting typically achieves a break-even point in five years, while new electric vehicle purchases take approximately eight years. This is despite the fact that retrofitting generally offers a quicker ROI (return on investment) across all vehicle types than buying new EVs.
It said that the noticeable yearly fuel savings, which play a major role in recovering the retrofitting expenses, have an impact on this quicker reach of break-even.
In a similar vein, the study states that the break-even point for buses using modified electric cars is achieved in around four years, significantly less time than that needed for brand-new electric vehicles.
Building a strong environment for EV retrofitting becomes essential as India advances in its adherence to the Paris Agreement and its own nationally determined contributions (NDCs). According to market research, the retrofitting industry is still very young. The assessment stated that because it is easily accessible and has minimal technical complexity, it shows a great deal of potential for growth.