EVS ENTER THE FAST LANE IN INDIA

Hemal Thakkar, Director and Ritika Changia, Associate Director, Consulting, CRISIL Market Intelligence and Analytics talk about the expectation that electric vehicle adoption will zoom in India and the reasons for this.

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THE TRANSITION FROM internal combustion engine (ICE) to electric drivetrain in India has gained speed this fiscal, driven by pivotal actions of players in the value chain, government policies, and adoption by consumers. The electric vehicle (EV) space in the country has 95 twowheeler (2W), 110 three-wheeler (3W), eight bus, and 15 passenger vehicle (PV) manufacturers. Compared with last fiscal, the share of EVs across segments has logged impressive growth this fiscal — to 4.5 percent from 1.7 percent in the two-wheeler segment, to 7.6 percent from 4.3 percent in the three-wheeler segment, and to 1.3 percent from 0.6 percent in the PV segment.

Growth in EV segments

Policies at the national level such as the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) and the Auto and Advanced Chemistry Cell (ACC) and Production Linked Incentive (PLI) schemes, as well as demand incentives and capital subsidies at the state level, have acted as catalysts for EV production and adoption. A sizeable chunk of consumers is considering purchasing electric options for personal use. The increased incentive under FAME II has considerably reduced two wheeler prices. Further, the availability of a sub-Rs 10 lakh electric PV and launch of EVs with better range have piqued consumer interest.