Page 93 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE

According to the International Energy Agency, BEVs sold globally have a range, on average, of about
250km versus FCEVs’ ~400km (e.g. Toyota Mirai). However, this extra range comes at a price in terms
of higher vehicle cost. In the long run though, reduction in costs of fuel cells and storage tanks, and high
utilisation of fuel stations shall render FCEVs more competitive than BEVs. In fact, various countries
have rolled out subsidies for FCEVs to promote their adoption.
Rising BEV raw material cost: Makes FCEVs more attractive
Costs of raw materials (namely, lithium and cobalt) is critical to EV manufacturing. Lithium has surged
by 637% and cobalt by 52% over the past three years. In comparison, silicon, which is a key input
for solar photovoltaic cell manufacturing, has shot up 65%. Notably, the cost of silicon has started
COUNTRY SUBSIDY PRICE Exhibit 13:
USA • USD4,500 rebate each on Honda Clarity Fuel Cell, For fuel cell vehicles, the FCEV subsidy
Hyundai Nexo and Toyota Mirai FCEVs manufacturer suggested schemes in
various countries
• Tax credit of up to USD8,000 at the federal level retail price may not exceed
for the purchase of qualified light-duty fuel cell (USD60,000)
vehicles.
Japan • Subsidy of JPY1,173,000 on Toyota Mirai Fuel cell Purchasing price Mirai (Toyota)
vehicles varies between JPY7,100,000 and
• Subsidy of JPY2,100,000 on Honda Clarity Fuel cell JPY8,100,000.
vehicles Clarity Fuel Cell (Honda)
purchasing price of JPY7,800,000
Spain • Subsidy of EUR6,000 Price around EUR72,000
Italy • Eco bonus in the range of EUR 6,000–10,000 Maximum price of new cars not
exceed EUR61,000
France • Financial incentives in the range of EUR6,000– Maximum allowed purchase
7,000 price is EUR60,000 for private
individuals and companies based
on gross list price
Austria • Private individuals receive subsidy of EUR3,000 Purchase price corresponds to
(federal funding) and EUR2,000 (car importer) EUR60,000 (private individuals
and companies)
• For companies and organisations, subsidy is
EUR2,000, with transporters of up to two tonnes
Denmark • Hydrogen cars are exempt from initial registration Toyota Mirai available
taxes (DKK499,990–589,990)
Switzerland • Exempt from performance related heavy vehicle NA
charges and petroleum taxes (CHF0.0228 tkm for
Euro VI vehicles)
Canada • Federal incentive of CAD5,000, applying to Prices fuel cell vehicles
FCEVs; in Quebec, incentives vary from (CAD73,000 Hyundai Nexo)
(CAD3,000–8,000 CAD73,800 (Toyota Mirai)
• In British Columbia, incentives amount to
CAD3,000 to a maximum vehicle MSRP
• Incentives of CAD5,000 in Yukon
Germany • EUR9,000 incentives for purchase of new vehicles Toyota Mirai starting price
costing EUR40,000 (EUR63,900) Retail price Hyundai
• Incentives ranging from EUR1,500–6,000 on Nexo (EUR77,290)
leased basis
Source: AFC TCP, Nuvama Research
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