With growing climate change issues, extreme health risks arising from deforestation, carbon emissions from fossil fuels, and the desperate need for environmentally friendly alternatives, all of these are driving the vehicle industry to consider EVs to a significant degree.
The Indian EV industry is in its early stages, with some manufacturers of electric cars, two to three manufacturers of passenger vehicles and buses, and a dozen or so manufacturers of two/three-wheeler. It is obvious that India's rise in EVs will initially concentrate on requirements for public transport: electric buses, two and three-wheelers, and fleet vehicles. By contrast, personal vehicle choices for EVs would entail further growth, guarantee and availability of a stable infrastructure and a wider ecosystem. This particular two/three-wheeler segment represents the highest potential for achieving the proliferation of EVs in the region, including remote areas, with minimum simple charging configurations, given their comparatively lower and restricted inter-city range requirements.
As per the Electric Vehicle (EV) Market Overview Report submitted by the India Energy Storage Alliance (IESA), India's leading energy storage alliance, the overall sales of EVs in 2018 reached 365,920 units and are projected to rise at a CAGR of 36 percent by 2026. Due to the introduction of the FAME India Program, which was launched in 2015 to encourage the production of electric and hybrid car technologies, this has gained more traction.
As the world shifts its axis towards EVs, the transition to EVs is necessary for the Indian automotive industry to continue to maintain its foothold and gain additional ground. As far as the country is concerned, we assume that two-wheel (2W) and three-wheel (3W) fleets will be the first off, the block, followed by intra-city buses, business cabs and government fleets. 2W is the largest division of the Indian automotive industry, accounting for ~80 of Indian automotive revenue in FY17 (17.6m units). Due to the scale of this market, we believe that there is a huge opportunity to encourage emissions-free mobility in the region. Utilization of a shared vehicle is 25%-30% as compared to only 4%-5% of a private use vehicle. The adoption of private vehicles and commercial vehicles, particularly medium and heavy commercial vehicles (M&HCVs), is likely to take some time. In terms of charging facilities, a combination of plug-in charging and battery switching models must be strategically deployed depending on the dynamics of different vehicle segments. Regulatory support will have a vital role to play in the implementation of EV. A mix of both fiscal and non-fiscal benefits is important in the medium term.
With more and more countries looking at feasible alliances with OEMs or dealerships that can give them an end-to-end option for introducing an all-encompassing EV system, the demand for these alternative fuel-running vehicles or hybrid vehicles has grown exponentially. On the other hand, the pickup was dismal in India, leading to many difficulties.
In order to raise revenue that can then be re-invested to further improve user engagement, the EVs division has to build a whole ecosystem by linking EVs to providers and then connecting those specialized services to potential consumers.
Emphasis should be on the delivery of service and the sale of experience. In order to come up with an environment that prioritizes customer loyalty by timely, streamlined, value-based offerings and the distribution of solutions, the industry needs to work in tandem.
Published Date: 25th Jan, 2021