(MENAFN- Market Press Release)July 23, 2021 12:18 pm - India Electric Car Market to Record CAGR of 34.5% and Increase in Revenue by 2025
“21 of the world's 30 cities with the worst air pollution are in India”, says the headline of a February 2020 article published on the website of CNN. This is not an exaggeration, as an air quality index (AQI) in the mid-200s is common in Delhi, Mumbai, Bangalore, and other metropolises in the country. Considering that the transportation industry plays a major role in the emission of carbon dioxide (CO2) and other greenhouse gases (GHG), the government is now promoting electric vehicles (EV), by offering purchase subsidies and bearing a major part of the research and development (R&D) expenditure.
As per P&S Intelligence, government support will propel the Indian electric car market from $71.1 million in 2017 to $707.4 million by 2025, at a massive 34.5% CAGR between 2018 and 2025. In this regard, the FAME India scheme, launched in 2014 with an initial investment of INR 795 crore, which was later revised to INR 895 crore, is the most-important step. In 2019, the second phase of the scheme was launched with a funding of INR 10,000 crore, which will be spent on subsidizing electric vehicles and helping companies with R&D for cost-effective electric propulsion.
Request to Get the Sample Report: from directly promoting EVs, the Indian thinktank has also implemented the Bharat Stage VI (BSVI) emission norms, which mandate a cleaner fuel and accordingly modified internal combustion engine (ICE). This has made conventional cars costlier for the masses, which is why many are expected to buy electric cars in the years to come. In addition, though EVs are currently more expensive than conventional automobiles on account of the high battery cost, the latter is coming down now, rapidly. Between 2010 and 2017, it dropped by almost 80%, from $1,000 per kilowatt-hour (kWh) to $160 per kWh, which, by 2025, might reach merely $100 per kWh.
Already, electric cars in India are being used by government organizations, shared mobility providers, private car fleet owners, personal users, and corporate transportation service providers. Among these, such vehicles have found the widest usage among individuals till now, on account of their declining prices and increasing disposable income of residents. In the coming years, the penetration of electric cars is expected to increase the fastest among Indian shared mobility providers, as a result of the extensive usage of public transportation services, which leads to enormous amounts of GHG emissions.
Thus, shared mobility companies are signing contracts with automakers to induct electric cars into their fleet. For instance, Ola and Mahindra & Mahindra entered into a partnership in 2017 to create an electric mobility system in Nagpur, for which 100 e20 plus cars of Mahindra have already been purchased by Ola. Apart from e20 pluses, Ola will induct electric cars of BYD Automobile Company Limited and Tata Motors Limited. Similarly, Mahindra & Mahindra has also received a contract from Uber India, wherein the latter will add the former's electric cars in its shared mobility fleets, beginning from Delhi and Hyderabad.
Make Enquiry Before Buying the Report: Maharashtra leads the Indian electric car market, as its government is offering strong support for such vehicles and installing charging stations. Apart from a $1,550 (INR 100,000) purchase subsidy on each electric car, the Maharashtra government also offers exemption from registration fee, road tax, service tax, and the Goods and Services Tax (GST)to these automobiles, as well as a 20% incentive for EV manufacturing and R&D.
Hence, with the continuous support of the government for EV adoption and manufacturing and EVSE installation, the demand for electric cars is expected to grow steadily in India in the coming years.
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