Domestic EV segment may see sales of 10 million by 2030: Study
A study conducted recently showed sales in the domestic electric vehicle (EV) segment may increase by more than 10 million by 2030. The study also suggested that there are chances of an overall adoption of more than 30 per cent across different categories of electric vehicles. The study has been conducted by Arthur D Little, a management consulting company.
The study showed that the adoption of electric vehicles in the passenger vehicle segment is likely to be at 10 per cent by the end of the decade, amounting to a small increment of five per cent in the total sales of EVs. The study highlighted the point that for the country to have more than 30 per cent of the EV adoption, the country will need approximately 800 GWh of batteries by 2030.
India is focusing on its plans to produce lithium-ion cells within the country. It is also expecting $2.3 billion in government subsidies and more than $7.5 billion in investment potential. According to the study, India received Foreign Direct Investment (FDI) of around $6 billion last year and it is being expected that it can attract around $20 billion by 2030 which will help in pushing the country's economic growth and achieve the required scale in this segment.
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Managing Partner and CEO, India & South Asia at Arthur D Little Barnik Chitran Maitra said the country can build a strong EV segment by engaging in innovation and reliable charging infrastructure. “We can build on this position by acting to support product innovation, create reliable charging infrastructure, and provide subsidies to buyers and additional incentives to startups involved in battery R&D, among others," Maitra said. He further added if India achieves its true EV potential of 50 per cent electrification, every 10th EV sold globally could be manufactured in India, making India a global EV powerhouse.
Given the massive size of the Indian market, there is a huge opportunity for EV demand, shared the study. It also added that by increasing awareness of environmental benefits and support from the government in the form of its flagship FAME-II policy, aimed to boost EV adoption, this segment will push the Indian market towards many positives.
(With inputs from PTI)