More than 30 per cent of new vehicle sales in India will be electric by 2030, the International Energy Agency said in its global EV outlook that was released on Thursday.

Under the outlook’s stated policies scenario, which takes into account the FAME II policy of the central government, EV deployment in India will mainly be achieved through the electrification of two/three-wheelers, which will reach a sales share of almost 50 per cent, IEA said.

“The rate of electrification of buses and light-duty vehicles is lower, below 15 per cent sales share in 2030,” it added. In 2020, India increased electric bus registrations by 34 per cent to 600.

The lack of government spending under the FAME II policy has hindered EV deployment along with a pressure on domestic automakers to focus on BS-VI innovation instead of EVs, IEA said.

“More than halfway to the April 2022 end- date only 3 per cent of the allocated funds under FAME II have been used for a total of just 30 000 vehicles. Significant acceleration will be required to reach both the programme targets and national targets of 30 per cent EV sales by 2030,” IEA said.

“Investment by some Indian OEMs focus on ICE models meeting BS-VI standards, thereby delaying investment in battery electric vehicle deployment. These OEMs have indicated that they are facing losses due to slumps in auto sales from reduced demand during the pandemic,” it added.

In the scenario of more aggressive sustainable development policies, the share of EVs in sales in India could scale up to almost 50 per cent in 2030 across all road vehicle modes (30 per cent excluding two/three-wheelers). By 2030 almost 60 per cent of all two/three- wheelers sold are electric, as are about 30 per cent of LCVs and buses.

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