Why government and industry need to rethink the electric vehicle business model

You’re likely a fan of Formula 1 but how about Formula E? Launched in 2014, the cars may be slower but mercifully much quieter than the F1 hot rods. They are, after all, electric vehicles (EVs). Formula E has 12 races in 10 cities – from Hong Kong to Montreal – and 20 drivers in 10 teams of some of the leading automakers such as Audi, BMW, DS (the new upmarket brand from PSA Peugeot Citroen), Renault. And, yes, there’s also India’s Mahindra Racing, along with Chinese labels like NextEV and Techeetah. Mahindra’s acquisition of Chetan Maini’s Reva Electric in 2010, and subsequent investments in product development of some Rs 65 crore, helped the Indian utility vehicle major put together a multinational racing team. Mahindra Racing is currently third in the 2016-17 championship, behind Renault and Audi. “This is our most successful season in Formula E so far,” says Mahindra Racing team principle Dilbagh Gill. Back home, Anand Mahindra is eyeing success of a different kind in a slightly longer race – one that seems to set go on for at least the next 13 years. After all, the government has a vision to move entirely to battery powered vehicles by 2030, and the chairman of the Mahindra group is easily the earliest mover among the big Indian corporations in this field.