80% Of The 2-Wheeler Market Will Be Electric By 2030

80% Of The 2-Wheeler Market Will Be Electric By 2030

Featured Stories by Team Drivio | 9 May 2023

The major problem for electric vehicles in India for now is the sub-standard EV infrastructure.

  • The Ola S1 Pro has been the electric two-wheeler getting the most registrations each month. 
  • In terms of pure sales, it’s the TVS iQube that’s been taking the cake every month. 
  • The Ather 450X isn’t too far behind the iQube as well. 

Customers actively moving to electric two-wheelers because of all the advantages they provide has increased significantly. The government's emphasis on encouraging electric vehicles, the recognition of climate change as a significant concern, and most importantly, growing consumer awareness, have all contributed to the recent fast expansion of the Indian EV ecosystem. 

The Centre declared in this year's Budget that imports of capital goods and equipment needed for the production of lithium-ion cells for batteries would now be exempt from customs tariffs.

This action will accelerate the adoption of e-mobility. Additionally, crucial actions like various programmes and policies, tax breaks, encouragement of domestic production, establishment of sustainability goals like achieving net zero by 2070 and electrifying 30% of the nation's vehicle fleet by 2030, among other things, have produced outstanding achievements.

The Economic Survey 2023, which projects that India's domestic electric vehicle market will see a 49 percent compound annual growth rate (CAGR) between 2022 and 2030, with 1 crore annual sales by 2030, reflects the strong attitudes towards EVs. This prediction is quite encouraging and hopeful. According to retail statistics provided by the Federation of Automobile Dealers Associations (FADA), sales of electric two-wheelers increased to 65,702 units in January 2023, nearly double the 35,709 units sold in February 2022 and up 2 percent month over month.

Will It Be Possible?

Other problems that need to be addressed include the high cost of both the initial purchase and replacement batteries. The majority of batteries are currently imported, largely from China. Local battery production could significantly reduce these prices. On this front, there have been some encouraging improvements. Recently, plans to jointly construct lithium-ion battery packs in India were revealed by Suzuki, Toshiba, and Denso. However, Indian automakers are still not quite as enthusiastic about EVs as their counterparts in developed nations.

For instance, Japan accomplished the accomplishment of having more charging stations last year (over 40,000) than gas stations (around 35,00). China had approximately 50,000 public charging stations as of 2016, compared to 42,000 in the US. One reason why EVs have not been widely adopted in India is a lack of suitable charging infrastructure.

Increased funding under the FAME (Faster Adoption and Industrial of Hybrid and Electric Vehicles) programme, which supports the production of hybrid and electric vehicles, together with the creation of the necessary industrial ecosystem, may be the first step. The Heavy Industries Ministry predicted that approximately Rs 14,000 crore would be needed to complete the programme. For FY2018, the government only allotted Rs 175 crore.

All interested parties will need to make a significant commitment in order to reach the government's electrification goal. India, which is years behind the curve in EV adoption, will be at a disadvantage from the outset. Additionally, there are now a number of unanswered questions. Will automakers find that the significant expenditure required to concentrate on EVs is justifiable considering the cottage industry level of EV operations at the moment? Shouldn't the government emphasise hybrids as a bridge between present and upcoming technologies? And what is the strategy for producing and distributing energy?

What is required is a well-planned roadmap created with input from all parties. Already, time is running out.

Benefits Of Electric Two-wheelers

Electric vehicles (EVs) are becoming more popular in India as a result of their lower operating costs as compared to four-wheelers powered by internal combustion engines (ICEs). But do EVs provide more than just a reduction in operating costs? Discover the benefits of electric automobiles over their gasoline-powered counterparts: 

1- Much Lesser Running Costs

You save a lot of money on gasoline because you are not paying for petrol or diesel to keep your EV operating. When compared to the cost of petrol or diesel, the cost to charge an electric car is far lower. Utilising alternative energy sources, such as solar, will help you lower your electricity costs even more.

2- Maintenance Is Cheaper

Since they have several moving parts, vehicles fuelled by petrol or diesel need routine maintenance. With electric vehicles, that isn't the case because they have significantly less moving parts. This implies that over time, the maintenance costs for your electric automobile will probably be reduced.

3- More Excitement

Over time, manufacturers have made attractive, well-designed EVs. Compared to vehicles fueled by fuel, electric vehicles are lighter and accelerate flawlessly.

4- No Exhaust Emissions

Zero tailpipe emissions from EVs contribute to a smaller carbon impact. By using renewable energy to charge your EV, you can cut your carbon footprint even more.

5- Convenience Factor Is Here

To fill up with fuel, there is no need to locate the closest petrol station. Start moving and charge your EV at home.