Making EVs Cost Efficient Important For Increasing Adoption in India: P&S

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The EV sales in India stood at only 3.8 lakh units in 2019-20. Electric two wheelers were the largest selling segment in EVs

The global electric scooter and motorcycle market size, as per a report by P&S Intelligence, will increase from $5,913.9 million in 2019 to $10,529.7 million by 2025. These numbers represent 14.4 per cent CAGR between 2020 and 2025. Since these automobiles do not have an internal combustion engine (ICE), they are gaining widespread public support.

“Supportive measures are key for the growth of the electric scooter and motorcycle market, as these vehicles are presently more expensive than their gasoline counterparts. Therefore, making them cost-effective is imperative to increase their adoption among the masses, especially in developing countries, such as India and China,” read the report.

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EV sales in India stood at only 3.8 lakh units in 2019-20

Asia-Pacific (APAC) is the most-productive electric scooter and motorcycle market, as per the report, on account of the rising per capita income, rapid urbanization, and strong government support for EVs. In the years to come, the fastest growth in the market is projected to be witnessed by Europe, due to the rising environmental concerns forcing the regional governments to focus on a carbon-free economy.

“Supportive measures are key for the growth of the electric scooter and motorcycle market, as these vehicles are presently more expensive than their gasoline counterparts. Therefore, making them cost-effective is imperative to increase their adoption among the masses, especially in developing countries, such as India and China,” continued the report.

The EV sales in India stood at only 3.8 lakh units in 2019-20. Electric two wheelers were the largest selling segment in EVs. The current EVs (cars) being sold in India are only a handful and most of these cost upwards of Rs 1.2 million in the country. The government of Delhi (India’s capital) has suspended subsidy on Tata Nexon EV for sub-standard driving range.

“The Delhi government has decided to suspend subsidy on a EV car model, pending final report of a Committee, due to complaints by multiple users of sub-standard range performance,” Delhi Transport minister Kailash Gahlot had tweeted recently.

Higher value CAGR in the electric scooter and motorcycle market

The report by P&S Intelligence notes that the lithium-ion (Li-ion) bifurcation will witness the higher value CAGR in the electric scooter and motorcycle market, of 23.2 per cent, based on battery type, in the near future.

It read “Compared to a sealed lead–acid (SLA) battery, Li-ion variants can carry more charge, therefore offer a longer driving range. In addition, these batteries are lightweight, smaller, and safe to dispose of, and they are also witnessing a fall in their prices.”

The 48 V category has held the largest share in the electric scooter and motorcycle market, under segmentation by voltage. Compared to two-wheelers with batteries of other voltage ratings, those with 48-V batteries offer the highest benefit relative to their cost, which leads to the strongest preference for them. Accordingly, the EV battery markey in India stood at 5.4GWh during 2019-20 (India Energy Storage Alliance).

Plug-in, as per the report, has been the larger category under the technology segment of the electric scooter and motorcycle market till now. Such two-wheelers are cost-effective and easy to charge, requiring to be simply plugged into a domestic electricity socket.

The government of India had approved setting up 2,636 electric vehicle charging stations across 62 cities in 24 states and union territories of India in 2020. This had been done under the second phase of Faster Adoption and Manufacturing of Electric Vehicles (FAME) India scheme.

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Mukul Yudhveer Singh
Mukul Yudhveer Singh
Mukul Yudhveer Singh is an Editor at EFY. He’s an experienced business journalist who is both an enthusiast and a cynic of technology. Believes in data, as well as hunch-based journalism. He defines journalism as- reporting facts which help the audience take their own decisions, not ones that influence them!

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