Tata Power electric vehicle charging stations can be found on 350 of the 600 highways in India.
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When most people think of electric cars, they think of cars.
From brands like Tesla and Rivian in the United States, to Nio and XPeng In China, global electric vehicle sales have surged. Two million electric vehicles were sold in the first quarter of 2022 alone — a significant jump from a decade ago when sales reached just 120,000 units worldwide. The International Energy Agency reports.
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India is different. The United States and China have focused on EV automotive adoption. But in India, the world’s fifth-largest economy, two-wheelers such as scooters, mopeds and mopeds, dominate the market.
James Hong, head of mobility research at Macquarie Group, said two-wheelers are in higher demand than cars in India and that’s not surprising.
Hong said that underdeveloped road infrastructure and low personal income make it more convenient and affordable for people to own scooters, motorbikes or mopeds than cars.
However, adoption is still low.
Electric vehicles account for only about 2% of total car sales, but the Indian government has an ambitious goal of increasing use of electric vehicles over the next decade, with a focus on increasing purchases of two-wheelers.
Sales in India are expected to grow between 40% and 45% by 2030, when 13 million new vehicles will be sold annually, according to the report. Forecast from Bain & Company published in December.
The consulting firm says India’s four-wheel drive sector will only grow between 15% and 20% by 2030, with 1 million new vehicles sold annually.
Arun Agarwal, vice president of equity research at Kotak Securities, said the growth of the four-wheel electric vehicle segment in India is expected to be smaller as these vehicles are mostly owned solely by drivers go out of the city on longer routes.
Bain & Co. predicts that the total revenue across the entire supply chain of India’s electric vehicle industry will generate between $76 billion and $100 billion by 2030.
Reduce costs to increase adoption
Indians have long favored two-wheelers over four-wheelers, Agarwal said, and the country is home to more than 10 startups serving the market.
Jinesh Gandhi, equity research analyst at Motilal Oswal Securities, told CNBC that for India to increase purchases of two-wheelers, they need to be cheaper and require more charging infrastructure.
Gandhi said 90% of two-wheelers with internal combustion engines cost between 70,000 rupees ($845) and 140,000 rupees ($1,690). The starting price of an electric two-wheeler can go up to Rs 160,000.
Kotak’s Agarwal says the cost of electric vehicles will drop if battery prices drop.
Bain & Co. said high inflation and supply chain disruptions have driven polishing powder prices higher in 2022. Costs will have to fall another 20% to 30% for electric vehicles to compete with internal combustion engine vehicles.
Arun Kumar, chief financial officer of two-wheeler electric vehicle maker Ola Electric, says there is a “myth” that electric vehicles are more expensive than internal combustion vehicles because of the “lower lifecycle cost of ownership of electric vehicles” compared to electric vehicles. two or four wheelers. fuel-powered wheeled vehicle.
Ola Electric’s two-wheeled scooters, motorcycles, and four-wheelers are coming soon, all priced between $1,000 and $50,000.
Ola Electronics
That means the money EV owners can save on fuel and maintenance costs could make up for the higher initial purchase price, he said.
He said Ola’s two-wheeled scooters, an upcoming motorcycle and four-wheel-drive touring cars cost between $1,000 and $50,000.
“No return [internal combustion engine] vehicle. It’s a single direction,” added Kumar.
government help
Kotak’s Agarwal said that the central and state governments in India have been offering incentives to encourage consumers in India to switch to electric vehicles.
According to the International Energy AgencyGovernment programs have provided funding to ramp up production of EV public buses and taxis, as well as strengthen charging stations across India.
Electric vehicle owners are also exempt from road tax at the time of purchase and will receive income tax deductions. Accelerating India’s e-mobility revolution for transport speak.
Including taxes, two-wheeler vehicle owners in India typically pay 3,000 rupees a month for their vehicle, Kumar said. As a result, government initiatives along with savings on gas mean that the monthly installment for a vehicle becomes largely free for customers, he said.
‘Scale anxiety’
As the use of electric vehicles is set to increase, so is the charging infrastructure across the country. That’s still a factor preventing people from switching to carbon-intensive vehicles, says Kotak’s Agarwal.
Gandhi said: “If you are stuck on the road, you have no choice but to take the vehicle to the nearest charging station, which is very time consuming as well as costly.
Report by Bain & Co. India’s charging infrastructure will need to expand significantly to support the number of EV companies coming up, noted that some companies have invested early and are committed to increasing capacity, said India’s charging infrastructure. use of chargers.
Tata Power claims that it has built around 2,500 charging stations across 300 cities and towns in India.
tata power
one of all electric tata, India’s largest privately owned power generation company.
Tata Power claims it has built around 2,500 charging stations in 300 cities and towns in India. They can be found on 350 of the 600 highways in the country, said Virendra Goyal, the company’s head of business development.
Many electric vehicle owners, he said, suffer from “range anxiety” when the distances between charging stations are too long, and closing the gap will encourage more drivers to switch to e-mobility. .
The company aims to have 25,000 chargers across India by 2028, Goyal said.
Correction: This article has been updated to accurately report India’s place among the world’s largest economies. An earlier version misjudged its rank.
