Abstract:

India’s automotive industry had been grappling with a slowdown long before the COVID-19 pandemic took hold, yet it remains one of the largest automotive markets globally in terms of sales volumes. India recorded domestic sales of 21.5 million vehicles in FY20compared with 26.2 million a year earlier.5 Policymakers in India have been actively pushing EV adoption in recent years. Government think-tank NITI Aayog has specified that Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) and other policies supporting electric mobility are expected to push EV sales penetration to 30 per cent for private cars, 70 per cent for commercial cars, 40 per cent for buses and 80 per cent for two wheelers (2Ws) and three wheelers (3Ws) by 2030. In India, 2Ws dominate EV sales, given their economic viability, both in terms of price and fuel economy. Parallels can be drawn between India’s electric light mobility story and the emergence of China’s EV market, where electric bikes and scooters laid the foundation for growth. Intracity transport buses are also ripe for EV adoption. These segments are likely to be followed by fleet cabs, and then others. To drive EV adoption, Original Equipment Manufacturers (OEMs) and the government, both at state and central levels, need to work collaboratively towards an integrated policy, creating a conducive ecosystem for India’s electric mobility vision.