India’s EV ride will be driven by govt for next 10 years: Study

Our Bureau New Delhi | Updated on July 06, 2018 Published on July 06, 2018

Based on the procurement trends, annual passenger electric vehicle sales may reach 30,000 units by 2022

Indian passenger electric vehicles will be primarily driven by government and corporate procurements only over the next four years, a study report has said.

“India’s car market is driven by very affordable (below $10,000) small vehicles, and the Indian government has not shown any appetite to provide subsidies that would be required to make electric passenger vehicles affordable for private citizens in the short term,” it said.

Based on the procurement trends, annual passenger electric vehicle (EV) sales may reach 30,000 units by 2022, compared to only 2,000 units in 2017, Bloomberg New Energy Finance said in its ‘Long-term electric vehicle outlook 2018’ report on Friday.

And, low average vehicle prices will inhibit EV uptake for the next 10 years before adoption rises in the 2020s, the study said. “Progress on e-bikes, rickshaws and e-buses looks promising over the next 10 years. But, we expect EVs to represent just 10 per cent of India’s total passenger vehicle fleet in 2040,” the report said.

It also said that instead of following China, India has different opportunities for the electrification in transport sector. Electric two-wheelers and three-wheelers look much promising for the next 10 years.

“India is a priority country for Bloomberg globally, and one whose power and transport sectors are expected to fundamentally change by mid-century with its economic transformation,” Jon Moore, Chief Executive Officer, Bloomberg NEF, said here. India is often touted as the next big electric vehicle market set to follow China’s lead. However, low average vehicle prices will inhibit EV uptake for the next 10 years, Ashish Sethia, Head of Research, Asia Pacific for Bloomberg NEF, said.

“After 2030, we expect EV sales in India to accelerate with increased affordability, as well as the government’s efforts to ensure universal access to electricity which lower challenges with charging infrastructure,” he said.

Published on July 06, 2018

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.

In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.

Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor