past few years the Indian EV industry has witnessed decent growth. The EV
industry sold 236,802 electric vehicles, including electric two-, three- and
four- wheelers in FY 2020-21. The rise of electric three-wheeler sales impacted
while the electric four-wheeler sales went up. These may be accounted to
launches by OEMs. SMEV also believes there is a need to bring policy reforms,
improve financing, nation-wide awareness campaign, state government policy adoptions
and building charging infrastructure in order to scale up EV ecosystem in India.
sales of 143,837 units of electric two-wheelers, including 40,836 high-speed
and 103,000 low-speed, registering a decline of 6 per cent in FY 21. The 2020
saw sale of 152,000 electric two-wheelers.
units of electric three-wheelers - known as a booming segment among the
electric vehicles in India – were sold as against 140,683 units sold in 2020.
the electric four-wheeler segment saw a staunch rise with 4588 units sold
compared to 3000 units sold in the year ended 2020. The growth can also be
attributed to various OEM launches in the segment and rise of charging
infrastructure in the metros. Also, government has asked petrol pumps to
install atleast one charging station per petrol pump.
Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV) says,
“We were anticipating a good growth before the start of FY 21, but sales
remained stagnant due to various reasons. The sales in electric three-wheeler
and two-wheeler segment stood low as compared to the last year. A good thing
has happened that people started moving towards advanced batteries i.e.
lithium. The city speed and high speed category in the two- wheelers segment
have witnessed growth.”
more needs to be done to achieve the target under the FAME II scheme. Timely intervention
by the government in a form of policy change is required to fuel the growth and
achieve the target by the end of FY 22, Gill believes.
finance: A strong
bank finance mechanism is still missing in the country. Only a few banks like SBI
and Axis, to name a few, are offering loans on selected models. The government
should ask banks to offer loans on electric vehicles, which will augment sales.
Currently, EV OEMs are spearheading finance for its customers by collaborating
with banks for easy monthly instalments.
factor that would transform the industry is creating awareness about green
vehicles. The Central and State governments can play a crucial role to motivate
and encourage citizens to adopt e-vehicles. State government of Delhi is encouraging
people ti buy EVs creating tremendous awareness.
ecommerce sector has shown a steep growth curve of growing over 200 per cent
y-o-y. Thus, dependence on logistics increases proportionately. One major
reason for EV adoption by B2B players is cash factor – electric vehicles are
cheaper to maintain compared to ICE vehicles. Corporates in India are also
proactively transitioning towards EVs. Amazon and Flipkart have already announced
of deploying EV fleet of delivery vehicles. In future, logistics and ecommerce
will see lot of traction in terms of last mile delivery moving towards EV.
such as Maharashtra, Delhi, Andhra Pradesh, Bihar, Chandigarh, Haryana, Karnataka,
Kerala, Madhya Pradesh, Odisha, Meghalaya, Punjab, Tamil Nadu, Telangana, Uttar
Pradesh, and Uttarakhand have rolled out their EV Policy. However, some states
are yet to implement the policy. The early implementation of state-level policy
could assist in creating larger ecosystem in the country that would help the
industry to grow at a much faster pace. Additionally, the state government
policy should be focussed on demand
generation for the initial period that would help in getting more volumes on