India Being the One of the World’s
Biggest Market for Automobile Sector with Annual Domestic Sales of 24
Million to Drive the Electric Vehicle Market Mainly in 2&3w Segment
Owing to the Ambitious Plans and Initiatives of the Government.
Global automobile industry landscape is on the verge of disruption due
to adoption of new business model, digitization given the government
thrust in the industry. Similarly, India is not behind to revolutionize
its own automobile sector where electrification is the prime agenda of
the government. Electrification of the automobile sector is one of the
reason to curb pollution as the government is planning towards building a
green economy. With the help of thrust from government’s policies and
subsidies schemes like FAME, the business preposition in the electric
vehicle market has grown specially in 2W and 3W market in India.
Considering the great potential in 2W & 3W segment, the government
targets 30% Electric Vehicles (EV) on the roads by 2030. Going by the
current rate of 7-8% CAGR growth in automobile sales, over 46,000,000
vehicles (two-, three-, and four-wheelers)could be sold in 2030. This
annual market size would present an opportunity for Indian companies to
become leaders in EV technology on a global scale.
BUSINESS CASE FOR 2 & 3 WHEELER ELECTRIC VEHICLE MARKET IN INDIA
- Currently, a 12% GST applies on EVs, as against a 28%-plus GST on petrol and diesel cars and hybrid vehicles.
- 11,000 electric rickshaws are sold in India every month and sales are expected to increase around 9% by 2021.
tied up with Three Wheels United to promote Treo range in Bangalore and
Hyderabad with an aim to sell another 10,000 units.
- SmartE, an Uber-style app using 800-plus e-rickshaws around New Delhi.
- The potential market for e-rickshaws could be sales of 20 million vehicles a year.
Electric plans to sell 40,000 electric two-wheelers during the current
financial year. Hoping to double its volume every year and reach the
100,000 mark by fiscal 2020 or 2021.
- SmartE plans to deploy a total of 10,000 Mahindra electric three-wheelers across India by 2020