While E2W and E3W, both saw a decline in sales primarily due to macroeconomic sentiments hurt by Covid-19, E4W (Electric 4-wheeler) segment registered 52.9 per cent growth in sales over FY 19-20
In its first report on Electric Vehicles (EVs) for India market, techARC today said that the promotion of EVs in India will lead to a double positive impact on the Trade Deficit of India. The report highlighted that India imports crude oil over $100 billion a year, of which 47 per cent is used for passenger cars and trucks alone.
“EVs are uniquely positioned which can impact the Balance of Trade in two ways where it not only can reduce the imports of electronics used for manufacturing EVs through domestic production but more importantly help reduce the oil imports making India AtmaNirbhar in energy (fuel),” notes Faisal Kawoosa, Founder, techARC.
He adds, “The government of India must reprioritise focus areas in Make in India as local sourcing of other electronics products like Smartphones, Smart TVs, Laptops, etc., would only impact the electronics imports against the EVs where it also helps to reduce the oil imports.”
India is the 3rd largest importer of crude oil, importing over 84per cent of its total crude oil requirements. EV adoption, as per Kawoosa, will help reduce reliance on fossil fuels hence positively impact the Balance of Trade by reducing the trade deficit.
India sold 2,36,803 Electric Vehicles in FY 20-21
India sold 2,36,803 Electric Vehicles in FY 20-21, which is 1.3 per cent of the total vehicles sold during the period. E2W (Electric 2-wheeler) segment contributed 60.7 per cent of the sales. While E2W and E3W, both saw a decline in sales primarily due to macroeconomic sentiments hurt by Covid-19, E4W (Electric 4-wheeler) segment registered 52.9 per cent growth in sales over FY 19-20. During the period, 4,588 E4Ws were sold in India. The growth in E4W was also registered due to Fame-II scheme which provisions for electric buses for various states.
There are over 10 models of EV passenger cars available in India for consumers to buy in the price range of Rs 9.5 Lakh to Rs 25 Lakh. To substantially see the growth of EVs in passenger car segment (E4W), car OEMs need to bring in affordable offerings in the range of Rs 5-10 Lakh. At present there are estimated 1,300 plus charging stations in India.
However, for mass adoption of EVs this needs to exponentially grow. Private real estate developers can play a key role in expediting growth of charging stations. To give further impetus to the growth of EV manufacturing in India, Fame-II scheme requires certain interventions / relaxations especially after the pandemic (covid-19) challenge. For instance, achieving 50% localisation is a challenge.
“Besides the economic benefits EVs accrue, they contribute significantly in containing the air pollution. 27% of the air pollution is due to vehicular pollution,” said Garvita Madan, analyst AutoTech at techARC.
