Tata Power’s electric vehicle charging stations are installed on 350 of India’s 600 highways.
Puneet Vikram Singh, nature and concept photographer | Moments | Getty Images
When most people think of electric vehicles, they think of cars.
from brands such as Tesla When Rivian in the United States, Nio When XPeng Global sales of electric vehicles are booming in China. In the first quarter of 2022 alone, he sold 2 million EVs. This is a significant increase from his decade ago, when sales reached just 120,000 units worldwide. Reported by the International Energy Agency.
India is different. The United States and China are focusing on adopting EV vehicles. However, in India, the world’s fifth largest economy, two-wheeled vehicles such as scooters, mopeds and motorcycles dominate the market.
James Hong, head of mobility research at Macquarie Group, said it’s not surprising that demand for two-wheelers is higher than for cars in India.
Poor road infrastructure and low personal incomes have made it more convenient and affordable for people to own scooters, motorbikes and mopeds than cars, Hong said.
Yet, adoption remains low.
EVs account for only about 2% of total vehicle sales, but the Indian government has set ambitious targets to increase EV adoption over the next decade, with a focus on increasing purchases of two-wheelers. increase.
Sales in India are expected to grow by 40% to 45% by 2030, at which point 13 million new vehicles will be sold annually, according to the report. Forecast by Bain & Company Published in December.
India’s four-wheeler sector will only grow by 15% to 20% by 2030, with 1 million new vehicles sold annually, a consulting firm said.
According to Arun Agarwal, vice president of equity research at Kotak Securities, growth in the four-wheel EV segment in India is expected to be modest.
Bain & Co. forecasts that by 2030, the total revenue across the Indian EV industry supply chain will be between $76 billion and $100 billion.
Cost savings to increase adoption
Indians have long preferred two wheels to four, and the country has more than a dozen startups serving this market, Agarwal said.
For India to buy more motorcycles, it needs to make them cheaper and needs to build charging infrastructure, Jinesh Gandhi, an equity research analyst at Motilal Oswal Securities, told CNBC.
Gandhi said that 90% of the two-wheeled vehicles with internal combustion engines are priced between 70,000 rupees ($845) and 140,000 rupees ($1,690). The lowest price for an electric motorcycle is as high as Rs 160,000 for him.
Kotak’s Agarwal said the cost of EVs will drop as battery prices drop.
According to Bain & Co., high inflation and disrupted supply chains have pushed batter prices higher in 2022. EVs need another 20% to 30% cost reduction to compete with internal combustion engines.
Arun Kumar, chief financial officer of two-wheel EV maker Ola Electric, said it was a “myth” that EVs were more expensive than internal combustion engines. A vehicle on wheels that runs on fuel.
Ola Electric’s two-wheeled scooters and upcoming motorcycles and four-wheeled vehicles are all in the $1,000 to $50,000 range.
In other words, the amount of money EV owners save in fuel and maintenance costs can offset the increased initial purchase price.
Ola’s two-wheeled scooter, upcoming motorcycle, and four-wheeled passenger car are said to cost between $1,000 and $50,000.
“There is no going back [internal combustion engine] vehicle. It’s one way,” Kumar added.
Kotak’s Agarwal said India’s central and state governments are offering incentives to encourage Indian consumers to switch to EVs.
by International Energy Agencya government program increased production of EV public buses and taxis and provided funding for more charging stations across India.
EV owners are also exempt from road tax and deductible from income tax at the time of purchase. India’s transport e-mobility revolution accelerates Said.
Including taxes, owners of two-wheel internal combustion engine vehicles in India typically pay 3,000 rupees a month for their vehicles, Kumar said. So, he said, government initiatives combined with fuel savings mean that monthly installments for vehicles will be largely free for customers.
As the adoption of electric vehicles increases, so will the charging infrastructure across the country. Kotak’s Agarwal says this is still discouraging people from switching from carbon-intensive cars.
“If you get stuck on the road, you have no choice but to tow your vehicle to the nearest charging station, which is time consuming and costly,” said Gandhi.
A report from Bain & Co. said India’s charging infrastructure will need to expand significantly to support the number of EV companies slated to hit the roads, with several firms making early investments. , notes that it is working to increase the availability of chargers.
Tata Power claims to have built around 2,500 charging stations in 300 cities and towns in India.
one of them is tata power, India’s largest private power generation company.
Tata Power claims to have built around 2,500 charging stations in 300 cities and towns in India. They are found on 350 of the country’s 600 highways, according to Virendra Goyal, the company’s head of business development.
Many EV owners suffer from “range anxiety” when the distance between charging stations is too far. Closing this gap will encourage more drivers to move to e-mobility, he said.
Goyal said the company aims to have 25,000 chargers installed across India by 2028.
Correction: This article has been updated to accurately report where India ranks among the world’s largest economies. Previous versions incorrectly listed rankings.
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