One important motivator for the Electric Vehicles (EVs) in India has been the 2015 introduction of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program. With an investment of INR 895 crore, FAME I sought to lower the cost of EVs and provide demand incentives for 278.000 EVs. FAME II, which cost INR 10,000 crore to commence in 2019, extended the program’s duration to 2024. It authorized hundreds of charge outlets across the nation in addition to 6.315 electric buses. Because of its all-encompassing EV policy, which supports both production and research and development (R&D), Tier-1 cities have emerged as a pioneer in the EV industry. In 2023, India accomplished a noteworthy milestone by selling over one million electric vehicles in less than nine months, a feat that required a full year in 2022. These EV registrations made up 6.4% of all car sales in the nation, according to data from the Ministry of Road Transport and Highways. Five-six percent of all electric vehicles (EVs) sold in 2023 were two-wheelers, closely followed by three-wheelers and passenger cars. Interestingly, CY2022 was the first time that EV sales in India had exceeded one million units. Since fleet operators accounted for almost 25% of all EVs sold in 2022, they made a significant contribution to this milestone.
Sales and Manufacturing of EVs Growth
Sales and manufacturing of EVs continued to rise in spite of the COVID-19 difficulties. According to the International Energy Agency (IEA), over 10 million EVs will be sold worldwide in 2022, with battery electric vehicles (BEVs) accounting for around 70% of those sales. Positive government initiatives and shifting consumer tastes are to blame for this increase.
By 2030, Deloitte projects that annual global EV sales would reach 31,1 million, of which 81% (or around 25,3 million) will be BEVs. It is projected that by FY25, EV sales in India would reach 1.644.000 units, and by 2030, they will climb to 15.331.000 units. Electric two- and three-wheelers will propel growth, particularly in the B2B market for last-mile delivery.
Where to Charge My EV?
The absence of infrastructure for charging EVs in India is a significant barrier to their adoption. India will require 5,6–5,8 million public charging stations in order to reach the objective of 30% EV sales by 2030. To accommodate varying demands, they will have both slow and rapid chargers. In India, all charging outlets are currently one-way. Bi-directional chargers will become more popular as the EV industry expands, allowing utilities to actively control charging and let EVs compete in the power market.
Vulnerable to International Hazards and Faces Higher Expenses
Due to its reliance on imported lithium-ion batteries and parts, India’s industry is more vulnerable to international hazards and faces higher expenses. In India, EVs are now about twice as expensive as conventional cars. Limited driving range, a small selection of products, grid problems, and a poor infrastructure for charging are further difficulties. The adoption process has also been hampered by car fire incidents brought on by inadequate battery testing.
Notwithstanding these difficulties, there are plenty of chances. 42% of Indian customers are worried about the scarcity of public charging stations, while 43% are worried about charging times, according to Deloitte’s 2024 Global Automotive Consumer Study. Aiming for a 30% penetration rate in EV sales by 2030, 5.6–5.8 million public charging units will be required. In order to run these stations and encourage on-site power generation, renewable energy will be essential.
Technology Adoption Behaviour
Significant technological advancements are expected to propel the automotive business in light of the changing nature of transportation and a number of enduring issues. The goal is to create a durable and stable infrastructure and to provide home charging as a trustworthy and cost-effective choice. Businesses are monitoring real-time data mapping, and the biggest automakers are trying to integrate this function into their cars.
Battery Swapping Policy
India wants to decarbonize highly greenhouse gas (GHG) heavy industries including energy and transportation in order to reach net-zero emissions by 2070. In order to promote interoperability of two- and three-wheeler EVs, NITI Aayog presented the first draft of the Battery Swapping Policy 2022 in April 2022. Two stages of implementation are planned: Phase I will concentrate on big cities with populations above four million, while Phase II would address smaller cities of significance. It would be mandatory for the state authorities to expedite the paperwork procedure through a single-window clearance portal within five days of application. This will greatly accelerate the otherwise sluggish process of allocating land and establishing capital infrastructure.
The Vrooming EV Two Wheelers on Indian Roads
According to a Bain & Co. analysis, by 2030, electric two-wheelers would account for 40–45% of all EVs sold in India, while electric passenger cars might make up 15%–20%. Nonetheless, by that time, the Indian government wants to see 40% of buses, 30% of private automobiles, 70% of commercial vehicles, and 80% of two-wheelers adopting electric vehicles, according to a Niti Aayog study.
Data from VAHAN indicates that there was a significant 34.42 percent rise in sales of electric two-wheelers in India during the third quarter of FY 2023–24 (Q3 FY 24) as compared to the previous quarter (Q2 FY 24). The strong sales in the current fiscal year’s fourth quarter also demonstrate this upswing with Q4 FY 24 – with 76,301 units sold.
What Will Drive the Growth of Electric Cars?
The demand for electric cars is predicted to soar due to population growth, propelling the Indian automobile industry, which currently stands as the fifth largest in the world, to become the third largest by 2030. As a result, relying only on traditional energy sources is inappropriate given that approximately 80% of India’s crude oil needs are imported. In addition, NITI Aayog wants to see 70% of all EVs on the road by 2030, with a goal of net zero carbon emissions by 2070. In the previous three years, almost 0.52 million EVs have been registered in India, according to the Ministry of Heavy Industries.
Rising Demand for Electric Micro-mobility
An ongoing trend in the market is the growing demand and uptake of electric micro-mobility vehicles, such as electric three-wheelers and two-wheelers. The Indian market is extremely price-sensitive, and because of the country’s ever-increasing traffic congestion, most Indians prefer two-wheelers for daily transportation. Because electric two- and three-wheelers are less expensive in India than four-wheelers, and because two-wheelers are better suited to the country’s road traffic, it is thus expected that the adoption of electric two- and three-wheelers would increase throughout the course of the projection period.
For example, electric two-wheelers cost between USD 600 and USD 3,755 in India, which is a lot less than the price of electric four-wheelers. Revolt RV 400, Tork Kratos, and other popular two-wheeler models are among those sold in India.
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