Six Trends That Will Shape the Sector in the Coming Years

[mouakter13]

India’s electric vehicle (EV) revolution is here. With the Indian government urging local automotive manufacturers to switch to EVs – and subsidies and growing competition making them increasingly affordable – these vehicles are swiftly becoming the country’s favourite mode of transportation.

In the 12 months that ended in March 2022, Indian automakers sold 430,000 electric vehicles – more than three times as many as the previous year. Meanwhile recent – and likely future – surges in the price of oil are making EVs significantly more cost-effective than combustion-engine vehicles. Combined with their environmental benefits, which are particularly relevant in a country whose congested urban areas experience oppressive smog, EVs’ future is bright.

Below, I’ll explore six trends that are likely to shape the electric vehicle sector’s ongoing growth in India in the coming years.



India Rides on Two- and Three-Wheeled Vehicles
India’s transportation sector is very unique. Unlike most Western countries, Indian drivers predominantly ride on two-wheeled and three-wheeled vehicles like motorcycles, mopeds and auto rickshaws. With over 80% of the vehicles on Indian roads consisting of two-wheelers and three-wheelers, from an ecosystem perspective, these vehicles constitute the most promising path to widespread electric vehicle adoption. And the EV market is gaining substantial traction in this area: Though only 2.6% of the brazil whatsapp number data cars sold by Indian automakers from March 2021-2022 were electric, over 45% of the three-wheeled vehicles sold in this period were EVs.



There are Significant Shifts in Battery Capacity, Technology and Safety
The capacity of the battery packs used by Indian EVs is determined by various factors, including range anxiety, the time it takes to charge and the subsidy element – since government subsidies that incentivize the purchase of electric vehicles are linked to their battery capacity. Growing government subsidies encouraging higher-capacity batteries have helped push capacity from about 1.5 kilowatt-hours to 2-3 kilowatt-hours for two-wheelers, and from 4-5 kilowatt-hours to 8-10 kilowatt-hours for three-wheelers, as battery manufacturers aim to gain access to the higher subsidies that are available for these batteries. And more battery capacity leads to greater range for EVs, making them more appealing to a larger segment of the driving population.