EV Uptake Faster than Expected and Repose Confidence in a Strong EV Outlook for 2022 and Beyond

Gurugram, India – According to Amit Kumar, Executive Director & CEO, Benling India, which manufactures electric two-wheelers in both high and low speeds, asserts that EV adoption is faster than expected and that there is a strong EV outlook for 2022 and beyond.

Electric vehicles, or EVs, as they are more generally known, are an essential resource for combating pollution and enhancing individuals’ lives and landscapes. As a result, it is encouraging to see the Union Budget 2022 place a significant and visible emphasis on increasing the use and operational availability of EVs in the country. While India’s electric vehicle market is expected to grow at a compounded annual growth rate (CAGR) of 90 percent to reach US$ 150 billion by 2030, it is reasonable to state that this sector is still in its infancy. With EV sales accounting for only 1.3 percent of total vehicle sales in India last year, favorable policy inputs such as those in the current budget, as well as a transition to shared, electric, and connected mobility, might help the country significantly in decreasing harmful polluting emissions.

The Union budget 2022 proposes some bold initiatives to boost the market for electric vehicles in small towns and cities. There is a significant push toward renewable energy incentives, with an increased focus on reducing infrastructural waste for a greener tomorrow. This will happen on the back of measures designed to overcome the hesitancy most buyers have about EVs. Proposals for the advancement of clean energy, for example, and the ‘Gati Shakti’ initiatives are crucial areas for the commercial EV segment. Indeed, the demand incentives provided by FAME II, the launch of various state policies, the occurrence of runaway and consistently rising fuel prices, tightening emissions laws, and increased awareness about the environment and its sustainability are just a few of the factors that make the EV sector appealing to larger automobile players and financial investors.

In addition, the sector is witnessing some clear tech-led trends which will define its contours in the coming years. Smart charging infrastructure that can handle need-based charging as well as charging itself will be a boon for countries like India. Autonomy and self-driving cars have seen remarkable progress in recent years, and some movement can be expected in India as well. Increased bets on heavy-duty fuel cell vehicles should see this technology’s adoption take off soon too. Another trend is the introduction of EVs in various segments to fit customer lifestyles. Along with the EV trend, there is a rising reliance on technology to improve the user experience and drivability. The transition away from analog indicators, switches, and dials has been gradual: flat panel displays have replaced the various analog indicators, and touch screens have replaced knobs, switches, dials, and buttons. There is currently a need to integrate all these individual displays and touch panels into a contiguous surface. Solutions from innovative companies that do things differently and better will be critical to moving forward. Customers want more, and there is a strong motivation in the industry to deliver on that promise.

Following the unveiling of the FAME India plan, which intends to transition to e-mobility in view of rising international policy commitments and environmental difficulties, India’s EV market has gained substantial traction. Furthermore, India offers the greatest untapped market in the world, notably for electric two-wheelers. The automatic route industry is expected to gain impetus in the coming years, owing to the fact that 100 percent foreign direct investment is permitted in this sector.

With increased demand and investment, the need for a skilled workforce in the EV sector is only going to grow. Early government identification and investment can assure timely readiness and assist in grasping the opportunity of green jobs that come with the EV transition. At this stage, facilitating public and private investments in skilling, re-skilling, and upskilling; research and development, particularly for batteries; and innovation hubs will help achieve the desired levels of preparedness for a just EV transition while ensuring local innovation and technology development.

The government has provided a strong first push, and the shift from ICE vehicles to EVs is only getting started. As the government continues to push and support through enabling policies and financial outlays, it may be necessary to declare some severe measures such as an ICE phaseout timeline, stricter taxation on ICE/ICE fuels, and supply-side mandates.

As of now, many customers are apprehensive about the use and operation of EVs, mainly about battery issues and mileage concerns. Higher EV costs due to battery pricing will have an influence on future efforts to attract buyers of lower-cost vehicles to switch from ICE to EV offers.

The Auto PLI Scheme has laid the groundwork for investments in the EV supply chain and production, yet it has excluded players who do not fulfill the high company turnover criteria. There is a need to create interventions that encourage small and medium-sized businesses and give all participants an equal opportunity to gain from government schemes. The government will provide USD 6 billion in incentives to companies that make both vehicles domestically, and the batteries will be an additional boost to EVs’ gaining a large proportion of the Indian automobile industry. Overall, a great step forward and a contribution to the cause of clean mobility in India.

Image Source: Benling India