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Penetration Of Electric Vehicles To Remain Low In Medium-Term In PVs, CVs: ICRA

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Penetration Of Electric Vehicles To Remain Low In Medium-Term In PVs, CVs: ICRA

Rating agency ICRA said domestic entry on Monday said electric vehicles (EVs) would remain low in the medium term in segments such as passenger vehicles and commercial vehicles due to high prices and lack of financial incentives from the government.

ICRA said in a statement that until the specifications of the batteries are standardized, standardization of battery specifications, including charger specifications at original equipment manufacturers (OEMs), is not successful.

While rejecting any meaningful domestic penetration of EVs in major automotive segments such as PV (passenger vehicles) and CV (commercial vehicles), the ICRA cited high prices from the government to encourage and the absence of strong direct and indirect financial incentives. gave. Adopt EV.

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“Currently, the FAME II incentive for electric passenger vehicles (PVs) is limited to the commercial taxi segment only, highlighting GoI’s (Government of India) awareness of EVs for individual car buyers in the near-medium Will stay away Term, ”ICRA said.

The rating agency further noted that the modernity of vehicle financing in the battery-swappable model, where core batteries are owned by third parties and financiers only have control over the residual vehicle, is another challenge.

In addition, it stated that EV vendor systems require substantial investment to keep costs under investigation and reduce reliance on imported electronic systems.
ICRA believes that automobile swapping will cause automobile OEMs to face strong resistance due to the potential impact of their product differentiation capabilities, as well as pricing flexibility.

Its acceptance will therefore be limited to some less complex automotive sub-segments, like three-wheelers.

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The rating agency stated, “Given the importance of battery hardware and software in the overall performance of the EV, battery swapping will face strong resistance in technically complex products.”

ICRA Vice President and Co-Head Ashish Modani said, “The price sensitive nature of the Indian market means that EVs need to be competitively priced, which in turn calls for ‘economies of scale’.”

He added that EV prices are currently higher than internal combustion engine (ICE) vehicles. This combination coupled with the lack of public charging infrastructure has resulted in minimal EV penetration into the country.

Modani said, “Government support in the form of direct / indirect financial incentives and supportive regulation will be important to gain traction in the Indian market.”

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Automotive sub-segments such as three-wheeler (3W), two-wheeler (2W), intra-city bus and small commercial vehicle (SCV) are likely to emerge as early adopters due to the comparable total cost of ownership of their ICE counterparts, He added.

“EV penetration in passenger vehicle (PV) and heavy trucks segment is likely to remain low. Over the next five years, EVs will account for 8–10 per cent of new vehicle sales in 2W and intra-city buses, while its Modani said the PV segment will hold around 3-5 per cent.

He said the three-wheeler segment could see a rapid transition in new vehicle sales with EV penetration by 2025.

News Source: EconomicTimes

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Pahalgam Attack

Pachigam attack aftermath: International airlines avoid Pakistani airspace amid tensions with India

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Pachigam attack aftermath: International airlines avoid Pakistani airspace amid tensions with India

Due to a lengthier path, Lufthansa Flight LH760 from Frankfurt to New Delhi had to fly for over an hour longer on Sunday. Major foreign airlines, including Air France and Lufthansa, are avoiding Pakistani airspace as tensions between India and Pakistan remain high after a deadly terrorist assault in Pahalgam, Jammu and Kashmir, according to airlines and flight trackers on.

Monday. Air France agreed, stating that it had decided to halt flights over Pakistan due to the “recent evolution of tensions” between the two South Asian foes. “The airline has decided to suspend overflight of Pakistan until further notice,” Air France said in a statement, referring to the “recent evolution of tensions” between India and Pakistan The airline currently changing.

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In the wake of the recent Pachigam terror attack, a significant shift in international aviation routes has occurred. Following an uptick in security concerns and rising geopolitical tensions between India and Pakistan, several international airlines have opted to avoid Pakistani airspace, rerouting their flights to ensure passenger safety. The decision comes nations.

The Pahagam Terror Attack: A Trigger for Renewed Tensions

On the night of the attack in Pachigam, a popular tourist destination in Jammu and Kashmir, militants carried out a series of strikes on civilian and military targets. The assault left a number of casualties, both military personnel and civilians, sparking widespread condemnation. The attack, attributed to militant groups operating from across the border.

Airlines’ Concerns Over Safety and Security

In response to the escalating threat in the region, several international airlines, including prominent carriers from Europe, the Middle East, and Asia, have started to reroute their flights to avoid crossing Pakistani airspace. These precautionary measures, while not unprecedented, are a direct reflection of the security situation that has worsened in the wake of the attack.

Airlines typically rely on international aviation corridors for the fastest and most efficient flight paths, and Pakistani airspace has historically been a critical component of many international routes connecting Europe and Asia. However, in light of the heightened risk of military conflict, commercial carriers have begun to take proactive steps to avoid the region.

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European carriers, such as Lufthansa and Air France, have adjusted their flight paths over the past few weeks, choosing to bypass Pakistan altogether. Similarly, Middle Eastern giants, like Emirates and Qatar Airways, have rerouted certain flights to avoid potential risks associated with flying in close proximity to the disputed borders. These changes have led to longer flight.

The International Air Transport Association (IATA) has noted that these changes, while necessary, come with considerable logistical and financial consequences. Airlines must navigate alternative routes, which may lead to higher fuel consumption and longer durations of travel. Nevertheless, passenger safety is the highest priority, and the industry remains.

Diplomatic Implications and Regional Stability

The rerouting of international flights has far-reaching implications, not only in terms of aviation logistics but also for regional diplomacy. The decision to avoid Pakistani airspace can be seen as a subtle but clear indication of the international community’s concerns regarding with the growing uncertainty in the region, underscores the volatile nature of South the security situation between India and Pakistan. Such moves may further isolate Pakistan.

The Future of Aviation in the Region

As the situation unfolds, the aviation industry is closely monitoring developments. For international carriers, navigating the delicate balance between commercial operations and national security concerns is no small task. In the coming weeks, further changes in flight patterns are expected, depending on how the diplomatic and military tensions between India.

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