Exclusive: EV makers may have sent Grade-A cells for testing and used lower quality in two-wheelers

Some of India’s top electric two-wheeler makers may have worked around the loosely-framed rules, and that could have played a big role in the recent spate of fires.

A source in the testing agency Automotive Research Association of India (ARAI) told CNBC-TV18.com that while almost all companies submit grade-A cells for testing, many may not be necessarily using the same in all the vehicles produced and sold. He refused to identify any firm that might be doing so.

Without adequate information, it is unfair to say or assume that all companies show one set of cells for testing and use others during production. However, a lack of clear rules and monitoring may have allowed some of the smaller players to be engaged in this practice.

A government source said that the possibility of companies indulging in such practices could not be ruled out. "Can't rule out the possibility of different cells being submitted for testing and actual usage. There is a need to strongly enforce surprise checks to prevent companies from using B grade cells. All data regarding the cells, their quality, price and place of purchase is available with companies,” the government source said.

Another source, when asked if companies were using lower quality cells, said, “The probe team is looking at different possibilities leading to recent fires. Companies need to ensure that the cells that are used are the best. Electric vehicle (EV) players have been strongly sounded off to ensure thorough testing and quality controls. They have been told clearly that even small slip-ups can lead to fires."

Queries sent by CNBCTV18.com to companies including Okinawa, Ola, Jitendra and Pure EV remained unanswered.

Speaking to CNBC-TV18 on May 2, Road Transport Secretary Giridhar Aramane confirmed that the probe has revealed that major functional safety improvements are needed in the cells used and their packaging, battery design, thermal management systems and battery management systems.

A battery consists of many cells converting energy required to run the vehicle. The cells are graded in a descending order, starting with A and followed by B,C and so on, depending on their quality.

India has no domestic mass production of lithium-ion cells. Hence, companies are heavily dependent on imports, like many other countries. Almost 86 percent of the world’s lithium comes from just Australia, Chile, and China.

However, in India, almost all companies send batteries with grade-A cells for testing and approval by the ARAI. “If the cells pass the test, they get approved,” said the ARAI source, adding that A grade cells have about 100 percent chance of being approved. However, the approval odds fall to 60-70 percent if the battery has grade-B cells. The ones with grade-C cells have 30-40 percent chance of approval.

"Coming to the question of whether rule book specifies quality, it becomes brand restrictive. As a national policy, usually, the tech standards are quite open for any technology to be brought in. Therefore, it cannot specify that such and such cells should only be used as long as the safety and performance requirements are met. The designer has the freedom to use different combinations and sources also, for that matter," said Rashmi Urdhwareshe, the former director-general of ARAI.