Overview

India is finally realising its EV dream! The year 2021 can be termed as the year of electric vehicles as not only did they achieve the highest ever sales, but also saw a rapid month-on-month growth rate despite the pandemic's effect on the supply chain.

India's robust electric vehicle sales are currently driven by strong central and state government incentive policies. Apart from this, rising fuel prices, new product launches and the rapid expansion of charging infrastructure are also electrifying EV sales in India.

While the macroeconomic conditions play a vital role, new-age startups, e-commerce, food-tech and logistics companies provide sustainable business for electric two-wheeler and three-wheeler players. But, it will also enable India to achieve the larger goal of climate-conscious delivery and reduce oil import bills.

So far India’s focus has been to generate mass-scale demand for EVs through the FAME scheme along with the PLI scheme which will enhance the domestic output and scale up EV production in India. This approach has been able to bring down the cost of EVs but hasn’t influenced the long term viability of the segment as the infrastructure has not evolved fully.

Moreover, lack of financing, battery safety and low resale value due to no secondary market for EVs are some key concerns for long-term sustained growth of EVs in India.

On the other hand, the design and development of electric vehicles and their allied components in India will be the only thread, in the long run, to bring down the overall cost of electric vehicles and make India - AtmaNirbhar in electric vehicle manufacturing.

Financial Express' First & Last Mile Mobility Conclave 2022 - Electrifying Two & Three Wheelers of India will bring together all the important stakeholders, policymakers, and top industry leaders from the electric two-wheeler and three-wheeler value chain to connect, communicate, and collaborate to develop sustainable mobility solutions for the future.