By: Anmol Bohre, Co-founder & Managing Director of Enigma Automobiles
The global automobile industry, including India, is undergoing a paradigm shift. The United Nations Convention on Climate Change 2015 has placed high expectations on all nations to reduce their carbon footprint in order to preserve the planet. The transport sector in itself gobbles up 70% of the world’s fossil energy. To address climate change, India has undertaken policy initiatives recommended by NITI AYOG, India’s think tank, to switch to 100% electric vehicles by 2030. As two-wheelers dominate the Indian automobile market, capturing nearly 80% of the total market for vehicles in the country, the electric revolution has begun with and is guided by the two-wheeler sector. Here’s why:
Huge Market
The two-wheeler market in India holds the key to the future of EVs given the volume and size of the auto market it can cover. Electric two-wheelers were first introduced in India in 2015, and sales have steadily increased since then, owing primarily to increased awareness among the growing middle class and young population. Electric two-wheelers are also becoming more popular, as many low-speed category models are exempt from RTO registration and driving licence requirements. In India, nearly 20 million two-wheelers are sold each year, providing a platform for the EV two-wheeler segment to gear up and drive green.
Endorsed by Government
The Indian government has acknowledged the magnitude and opportunity of the EV market and has mandated that all automakers upgrade to manufacturing and selling all two-wheelers as electric vehicles by 2030. The Indian government implemented the FAME-I & FAME-II schemes, which improved the charging ecosystem, reduced Goods & Services Tax (GST) on EV sales, and offered Rs. 10,000 crores in incentives, giving EVs a kick start. These policies, in conjunction with the Production Linked Incentive (PLI) schemes, scrappage policy, and the Make in India
More Promising for Electrification
The adoption of electric vehicles is heavily reliant on the accessibility of applicable charging networks, which differs significantly from the infrastructure requirements of existing IC engine vehicles. In terms of vehicle classifications, the two-wheeler segment is more favourable for electrification because the prices of electric two-wheelers have recently become competitive with those of IC engine counterparts due to Government of India support policies. Since such vehicles can also be served by comparatively low-power chargers, the industry’s economic outlook appears to be upward.
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Clean Energy
The possibility of shifting to an all-electric world, with zero exhaust emission and long-term economic feasibility, is more appealing than ever. Over the years, the EV and clean energy industries have been developing a carbon-neutral and fuel-efficient transportation mode to combat pollution which endangers all life on Earth. While EVs may take longer to become mainstream in the four-wheeler segment due to a variety of roadblocks, EV two-wheeler players have been largely successful in educating customers, spreading awareness, and dispelling myths that have thwarted wider adoption.
Conclusion
As one of the world’s fastest-growing economies, India will almost certainly see a surge in the number of electric two-wheelers in the coming years. Two-wheelers will serve as an essential bridge between smaller villages and towns and cities, while also improving quality of life by promoting environmental sustainability. The future appears bright, but it can be even brighter as there is still plenty of room to strengthen comprehensive regulations and technical standards related to electric two-wheelers, charging infrastructure, battery swapping systems, vehicle disposal, and battery recycling.
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