Electric Mobility: The Way Forward

This article was published on : May 20, 2019

The Indian electric car market size was valued at $71.1 million in 2017 and is projected to reach $707.4 million by 2025, witnessing a CAGR of 34.5% during the forecast period. Government schemes and subsidies are playing a major role in the growth of the market. In addition, the growing environmental concerns owing to high pollution levels in major cities of the country are also positively affecting the market growth.

Realising the urgent need to re-think and revisit transport infrastructure and fuel dependency as well as the potential of EVs, the Indian government announced its plans to make the country a 100% EV nation by 2030. In line with this, in Union Budget 2018, the government allocated $40.5 million towards the development of electric and hybrid vehicles in the country.

The Indian electric vehicle market size was valued at $71.1 million in 2017 and is projected to reach $707.4 million by 2025, witnessing a CAGR of 34.5% during the forecast period. Government schemes and subsidies are playing a major role in the growth of the market. In addition, the growing environmental concerns owing to high pollution levels in major cities of the country are also positively affecting the market growth.

India aims to have at least 15 percent of the vehicles on its roads to be electric in five years. States like Karnataka, Delhi, Maharashtra, Uttar Pradesh, Telangana, Andhra Pradesh, Kerala, and Uttarakhand are set to drive the change by putting in place electric vehicle policies. Karnataka was the first state in the country to introduce a policy dedicated to electric vehicles. The Government of Karnataka intends to make Bengaluru the Electrical Vehicle Capital of India.

Maharashtra continue being the leading market in the country for electric cars, owing to the state government’s Electric Vehicle Policy 2018 to help electric vehicle market grow by supporting electric vehicle manufacturing, developing charging infrastructure, and offering subsidies to customers on the purchase of these vehicles. The state government announced subsidies for electric cars, amounting up to $1,550 (INR 100,000) per vehicle.

Lucknow, the capital of Uttar Pradesh, is one among the 10 cities identified for pilot project of Multi-Modal Electric Public Transport, under the FAME scheme. Keeping this in mind, the state government came out with the Uttar Pradesh Electric Vehicles Policy, 2018.

The Government of Andhra Pradesh has the ambitious plan of putting 10 lakh EVs on the road in the next five years, which will be aided by fiscal incentives to become one of the important hubs for this segment in the country. The state launched its Electric Mobility Policy in 2018.

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