Electric Vehicle ecosystem post COVID-19 in India

Posted by Global technology interface on January 04, 2021


During the lockdown people have witnessed Cleaner skies, Crisper air – Air Quality Index  (AQI) levels at best over many decades, leading to a higher appreciation for the environment. A segment of environment-conscious people will like to move to Electric vehicles in addition to their Internal Combustion Engine (ICE) vehicles.

 

The Union, Nitin Gadkari mentioned that India will become one of the biggest  hub for Electric vehicle manufacturing in next five years. Amid the uncertainties due to the corona virus pandemic, there is still a glimmer of hope for electric vehicle manufacturers in accelerating the growth of the electric vehicles market.The Indian electric vehicle revolution has also been slowed down by the Covid-19 lockdowns and restrictions on imports. The mobility sector, which is a big customer base for EV makers, is impacted heavily.  The global Electric Vehicle(EV) and EV infrastructure market is projected to reach 4.18 million units by 2021 from an estimated 3.42 million units in 2020, at a CAGR of 22.1%. The projection for 2021 is estimated to be down by 34% as compared to pre-COVID estimation.

 

At the same time, it must also be acknowledged that the pace of electric vehicle adoption is also not uniform across various vehicle segments and usage patterns. Vehicle segments like three-wheelers, two-wheelers and buses, where lower operation costs can offset the higher acquisition costs of electric vehicles, are likely to witness a faster pace of adoption. It is the same for shared mobility applications.

 

As mentioned by Toyota’s India head that the Original Equipment Manufacturer and the Government is helping hand to rebuild the EV ecosystem again and paving ways to adopt new technologies in electric vehicle. Of course, post lockdown it will be a huge challenge to maintain physical distancing in overcrowded public transport. A majority of the low-income commuters might prefer personal mobility – as it will be safer & convenient to travel.

 

According to global management consulting firm Kearney, with steps such as adequate infrastructure and appropriate business models, electric vehicle (EV) adoption can reach 25 to 30% of new sales across segments by 2030. India’s first wave of electric mobility adoption has penetrated the two- and three-wheeler segments with a variety of new products.In the next wave, vehicle segments such as buses and passenger cars in commercial applications will see a faster pace of electrification, driven by the improving total cost of ownership, environmental awareness, and a policy push, according to the whitepaper ‘Electric mobility 2.0: tracking the next wave in India’.

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