NEW DELHI: India might witness a 25-30% two-wheeler EV penetration and around 65-75% penetration in terms of electric three-wheelers, says a new report published by KPMG and CII on Tuesday.
The report titled ‘Shifting gears: the evolving electric vehicle landscape in India’ gives a clear view of how the EV segment is emerging as a disruptive force and exploring new and innovative business models.
EVs have a significantly lower running cost compared to the conventional modes of transport and this could shape up the upcoming B2B ecosystem that has managed to evolve with help of EVs in domains like e-commerce, grocery, courier services and many more. Some of the big B2B players are in the advanced stages of deployment, which has more or less, accelerated EV adoption in recent times.
Many innovative business models like battery swapping, energy as a service and many more are being deployed to reduce upfront investment, improve vehicle uptime and eliminate range anxiety while simultaneously boosting EV ownership too. The report also suggests that the four-wheeler passenger vehicle electrification will soon accelerate resulting in 10-15% penetration in personal segment and 20-30% penetration in commercial segment by 2030.
Both Original Equipment Manufacturers (OEMs) and the government can be a driving force to accelerate EV adoption if they collaborate on both state and central levels creating a conducive ecosystem for India’s EV chapter. According to the report, only a few state EV policies provide guidelines on battery recycling and a coherent recycling policy is the need of the hour.
“EVs are on course to fulfil their promise as a game changer for the automobile industry. Two-wheeler and three-wheeler auto segments are likely to lead the adoption curve followed by e-buses and passenger taxis. The government has launched a Phased Manufacturing Programme under FAME-II through which it is pushing the indigenization of parts. The government has also outlined plans to set up a battery manufacturing plants in India Overall, there seems to be great promise in India’s EV story, as all the above factors come together to drive long-term growth,” said Rohan Rao, KPMG India.