EV targets remain steep; pickup for 3-wheelers

Only three-wheelers likely to meet NITI Aayog's FY26 volume target

- SURAJEET DAS GUPTA

India's electric vehicle (EV) journey has so far been a mixed bag. Electric two-wheelers (E2Ws) are faltering and the penetration of electric buses is slowing down, while the jury is still out on whether the target for passenger cars can be met. But three-wheelers (excluding e-rickshaws) are likely to meet NITI Aayog's target for FY26 both in terms of penetration and volume.

For the industry, the key factor in future growth is the new subsidy regime that is expected to replace the second phase of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II), which ends in April 2024.

Three years ago, it was E2Ws, which kicked off the EV revolution. But they have a penetration of only 5 per cent in FY24 so far, up marginally from 4.4 per cent in FY23 (electric as a percentage of overall two-wheelers).

This is a long way from NITI Aayog's FY26 target of 13-15 per cent penetration and sales of 2.5-3 million.