Indian Economy News

EV adoption levels in India to see exponential growth: Report

As per a jointly prepared report by KPMG and Confederation of Indian Industry (CII), for the rest of the decade, the growth in electric vehicle (EV) sales in India is expected to be continued where two and three-wheelers will probably be dominating the EV sales. In addition, EV adoption is also expected to see growth in the country once all vehicle segments demonstrate considerable ownership savings over those powered by internal combustion engines (ICE). With the launch of new EV models, developing infrastructure, and government incentives, the adoption levels will increase.

The report mentioned that the shift from ICE to EV has increased the electronics content to 55% from 16% in a vehicle with the addition of new features and controls. The addition of newer features and the development of new technology will be ongoing processes, and many of these technologies will eventually become standard offerings.

The Indian government has developed policies and plans over the past few years, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme, with the goal of achieving 30% EV sales penetration for cars, 70% for commercial vehicles, 40% for buses, and 80% for two and three-wheelers by 2030, the report said.

With the emergence of electric vehicles, a lot of technological transformation has taken place like replacement of traditional ICEs with battery, which accompanies a Battery Management System (BMS). On the other hand, transmission has been replaced by a motor and a controller.

Next-generation technologies such as advanced chemistry cells are being explored for the development of batteries using alternative raw materials that are abundant in nature, cost-effective, and less impacted due to market volatility, it stated.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.