In India, the electric vehicle market expects to almost 63 lakh+ unit mark per year by 2027. This was according to a report by India Energy Storage Alliance (IESA). Also, the information has forecast exponential growth for the Indian EV market. Even so, battery capacity sets to recommend vehicles with more extended driving range.
It provides estimates for EV, EV batteries and the public charging infrastructure market size. That too in India for the period between 2012 and 2020. With the government announcing various incentives and schemes for promoting electric vehicles (EVs), there is an upsurge in demand from the residential sector.
Growth scope of Electric vehicles market
By 2020-2027 the Electric Vehicle market expects to grow 44% at CAGR. Electric vehicle sales also expects to go up 44 percent by 2020 to a record 6.34 million units. And with strong demand for lithium-ion batteries pushing total battery demand to 50 giga watt hours (GWh) by 2027, an industry report said on Friday.
A total of 4.1 lakh electric two-wheelers sold in India in 2019-20, and the market for batteries was 5.4GWh. India is also among the leading countries in electric mobility with over 3.8 lakh sales in FY 2020-21. The demand for electric two wheelers expects to reach a volume of 89,000 units by 2020 across the world. There is a discussion on the potential electric vehicle that covers the overall competitive scenario in the report.
The two-wheeler segment expects to witness a high adoption of lithium ion battery technology. That is driven by the government’s focus on reducing crude oil imports and reducing carbon dioxide emissions.
There is no subsidy issue with electric two-wheelers, as the total cost is low. The high upfront cost of battery technology and electric mobility is the reason for slow demand in the last few years.
Although the cost of purchasing EVs is still relatively higher than owning ordinary vehicles. And, low-cost financing is a crucial constraint hindering the growth of this segment. This will change in the coming years as many state governments plan to convert their existing fleet of cars into electric under their EV policies.
The expected growth of the Electric vehicles market in India is a very positive thing. It is surely going to reduce the problems of pollution and will be great for the country. What are your thoughts on the same? Do let us know in the comments below. Also, if you found our content detailed do like and share it with your friends.