Like the rest of the businesses, the automobile industry, including the EV segment, has been hit hard by the dreaded pandemic. But once things get back on track, hopefully soon enough, electric mobility is sure to witness a huge boom. There are plenty of reasons for people preferring EVs for personal mobility and the Government, too, is giving the requisite push to the segment.
The COVID-19 pandemic has brought forth unprecedented economic, humanitarian and healthcare challenges before the world. Governments all around are trying their best to fight the spread of the epidemic with various measures, including lockdowns, which have taken a huge toll on the world GDP. According to various data, the GDP of India will shrink between 1.5 and 5 per cent in 2021.
The pandemic-related curbs have hit a lot of industries and one of the hardest hit is the automobile industry. The sales of vehicles across segments have gone down drastically in the country. Electric mobility market, which had just started to pick up and was witnessing a steady rise in sales, has also become a victim of the pandemic. Overall, the automobile sector had just started to recover from the first wave of coronavirus when the second, more potent, wave struck earlier this year adding to the misery of the vehicle manufacturers.
- Electric mobility market, which had just started to pick up and was witnessing increased sales, has become a victim of the pandemic.
- An average Indian consumer likes his/her vehicle to be economical and easy on the pocket and the operating cost of an EV is a mere 80 paise per kilometer, far less than what a an ICE-based vehicle costs.
- Moreover, with battery prices declining since 2010, electric vehicles are expected to become almost as cheap as the fuel-powered cars in the foreseeable future.
But once the things get back to normal, hopefully soon, electric mobility is sure to witness a huge boom. With a population of more than 1.3 billion, the market potential of India is second only to China. The world’s most populous country has the largest share in the EV market and it contributes to more than 30 pc of the total EV sales around the globe. The EV market in India, too, has huge potential. One of the reasons for that is an average Indian consumer likes his/her vehicle to be economical and easy on the pocket and the operating cost of an EV is a mere 80 paisa per kilometer, far less than what a an ICE-based vehicle costs.
The Government with its various policies, post-ratification of the Paris Climate agreement, like the National Electric Mobility Mission Plan 2020 and FAME-II (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) scheme, is envisioning an electric-only future for automobiles by the year 2030.
Moreover, with battery prices declining since 2010, electric vehicles are expected to become almost as cheap as the fuel-powered cars in the foreseeable future. India, as a country, also has a lot to gain from the widespread adoption of e-mobility. Under the umbrella of ‘Make-In-India’ programme, the manufacturing of e-vehicles and their associated components is expected to increase the share of manufacturing in the country’s GDP to 25 per cent by 2022.
The recent upscale in electric vehicle sales throughout the country points towards a rising preference for personal electric vehicles. There is no doubt that the future belongs to EVs with fast-charging batteries and extended driving range.