Global Perspective:The electric vehicle market has witnessed rapid evolution with the ongoing developments in automotive sector. Favourable government policies and support in terms of subsidies and grants, tax rebates and other non-financial benefits in the form of car pool lane access, and new car registration the increasing vehicle range, better availability of charging infrastructure and proactive participation by automotive OEMs would drive the global electric vehicle sales.
Indian Scenario:The EV market in India has gained significant momentum after the implementation of FAME India scheme. The total EV sales expected to grow at a CAGR of 36% till 2026.To give a push to the electric vehicle manufacturing and adoption in the country, the government has allocated Rs. 10,000 crores to be spent over three years starting from April 1, 2019. The allocation is under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (or FAME II).Electric vehicle sales in the country increased by 20% to 156,000 units in the last financial year. This growth of 20% has largely come from two-wheelers. This figure does not include E Rickshaws which is still largely with the unorganized sector with a reported sale of around 90,000 unit. EV battery market is forecasted to grow at 30% CAGR, registering a growth of 28.0 GWh till 2026. The public charging infrastructure shall grow at a CAGR of 60% and the total charger sales shall grow by up to 50,000 units till 2026. However, all of this relies on indispensable factors such as creating robust charging infrastructure and reducing India’s over-dependency on battery imports. Both these issues can be managed when we start manufacturing rechargeable batteries indigenously and augment our electricity generation potential.
Of the electric two-wheelers sold last fiscal, 97% were electric scooters and a very small volume of motorcycles and electric cycles accounted for the remaining 3%. Low-speed scooters that have a max speed of 25km/hr and do not need registration with the transport authorities constituted a whopping 90% of all electric two-wheelers sold. In the electric four-wheeler segment, 3400 units in the previous fiscal year. The decrease in numbers is attributed mainly due to lack of bulk purchase of E-cars in FY 19-20 and discontinuation of one of the leading car models.
per Electric Vehicle (EV) Market Overview, India's vehicle market has been undergoing seismic shifts where the growth has been catapulted by buyers moving from lower segment vehicles to subluxury segment vehicles. Another push in the automobile sector has been the introduction of alternate fuel running vehicles or Electric Vehicles (EVs) in the country. With rising concerns around climate change, severe health hazards arising out of pollution, carbon emissions from fossil fuels, and the dire need for environmentally sustainable solutions; all these are pushing the vehicle market to adopt EVs in a big way.
E-mobility has arrived in India with new players coming in… In the Indian context, any discourse around Electric Vehicles cannot be disjointed from pollution and its impact, dependence on oil imports, dire need to have more renewable sources of energy. The automotive industry could benefit by viewing it not as a threat, but an opportunity. The good news is that policymakers are trying to seriously consider it and the social circle across the nation is making EV a buzzword.
India has great expectations of achieving a high level of penetration in e-mobility by 2030. The reason is not very surprising; the alarming levels of pollution indices which keep on rising and the colossal dollars the country must pay for annual crude oil imports.
An integrated policy on future of mobility with a focus on zero-emission mobility is the call of the hour. However, such a policy should also consider financial health of the industry, revenue to the government and employment opportunities to millions and millions. The future of electric mobility is here and is here to stay, evolve and widen its reach.
This significant increase in the outlay, according to automobile industry players, shows that electric and hybrid vehicles are gaining much-needed momentum in the country.