Fueling a Green Future In 2021: The Growth Of EVs
COVID-19-induced mobility challenges have given a big push towards eco-friendly transportation, which now translates into a mass acceptance of EV vehicles across the country
The electric 2-wheeler and 3-wheeler business in India is now a very high-volume game. The primary variants of EVs offered may be small in terms of ticket sizes, but they are high-volume in terms of overall units. These EVs have come forward quite aggressively in the last 6-12 months due to pro-EV state-level policies in places such as Maharashtra, Karnataka, as well as Hyderabad, and Delhi in particular. COVID-19-induced mobility challenges also gave a big push towards eco-friendly transportation, which now translates into a mass acceptance of EV vehicles across the country.
In the meantime, the proposed policy to scrape older vehicles for the new fiscal year in favor of new mobility models is certainly the much-needed tailwind EVs require for making headway. With the scrappage policy in place, consumers will have to consider new options. In effect, they will have to upgrade their options by buying a new vehicle or subscribing to one for short-term usage. This re-orientation simply means there will be new consumer behavior.
The dominance of electric two-wheelers and three-wheelers in the Indian markets
Two-wheelers and three-wheelers variants are set to achieve exponential growth. There is the prerequisite infrastructure to pave the way for the same, and, in fact, there is no constraint or barrier that may hinder this growth. In the meantime, two-wheelers and three-wheelers share the same odds at becoming ubiquitous since the two electric automobile variants showcase cost parity when the interposition of subsidy is considered. As a matter of fact, we are talking about something which is already there and proven to be efficient and effective today. That is to say that there are substantial favorable factors that can give rise to the production and adoption of two-wheelers and 3 wheelers on a greater scale.
As for electric cars, the rules of the game seem to be dragged and taken a tad further. For instance, there is the factor of ranges and price points. To that end, top industry players such as Tata, Mahindra, and so forth appear to have superior leverage to enter the mainstream arena. In my view those are just a couple of 2-3 lacs away from being a major mass market car. In the meantime, by the third quarter of the year when Tesla enters the market it will create an even greater halo effect for electric cars. So, to say, the present year and the next will witness the establishment of the electric automobiles business.
Zoomcar’s enterprise model ZMSis providing a technology empowered platform for powering the subscription businesses andpowering the connectivityIoT as a service for several electric 2-wheeler and 3-wheeler manufactures thereby empowering the broader electric ecosystem.
What do statistics have to show for EVs in the Indian markets?
The EVs market in India is expected to cross a 63-lakh unit threshold per annum by the year 2027. That said, between 2019 and 2020, EVs sales in India reached 3.8 lakhs units, the electric two-wheelers being the highest-selling variant in the segment. In the meantime, low and medium-speed two-wheelers with a speed capability of 40kmph and running on lead-acid batteries were the dominant market offerings. In what may appear to be a favorable development for players in the two-wheelers segment, it is becoming easier for companies to acquire FAME-II certification, which means the production of high-speed electric two-wheelers will continue to achieve new heights.
Furthermore, the electric e-rickshaw market is also set for an unprecedented boom as many new markets have come out to distribute the said model to the masses. In fact, at this point, many state governments are either contemplating or already implementing plans to convert the existing fleet of three-wheelers into electric models thanks to their new EV policies.
So, to conclude, as far as the Indian mobility ecosystem is concerned, a green future is no longer a far cry. There are already substantial initiatives from both state governments and private sectors to go green and adopt eco-friendly solutions. As such, the question now is no longer about the feasibility of EVs but about building sufficient infrastructure to push forward the green momentum already achieved.