Greener vehicles' share in total auto sales to reach 30% in five years: Study
With the increasing penetration of electrified and greener vehicles in the Indian automobile market, the combined share of CNG, EVs and hybrid vehicles may reach 30 per cent in the next five years, claims a study by rating agency ICRA. It also claims that petrol cars will likely dominate the passenger vehicle sales chart in the medium term.
The study also points out that increased demand for electric vehicles will fuel this growth. It stated that in the last two years, with the new vehicle launches, the government's push and increasing positive consumer sentiment towards electric vehicles, the share of these green vehicles have increased exponentially. However, the share of electric vehicles in the overall passenger vehicle industry still remains low at just one per cent, claims the study.
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Speaking about CNG vehicles, the market share of these greener vehicles has increased in recent years, claimed the study. This growth in market share for CNG vehicles has been aided by sky-high costs of petrol and diesel, favourable running costs of CNG vehicles, improved penetration of CNG pumps across India and enhanced product offerings by the vehicle manufacturers. The study further stated that lower emissions from the CNg vehicles would also help the OEMs comply with the impending Corporate Average Fuel Economy (CAFE) norms.
Flex fuel engine technology has been making headlines for quite some time in India. Ethanol-blended petrol that offers lower emissions as compared to conventional petrol is being pushed by the government, propelling the automakers to shift to that technology. The research claims that the manufacturers will face major challenges in complying with the proposed ethanol blending norms. However, it also stated that ethanol blending would reduce vehicular emissions, strengthen energy security and help reduce oil imports and conserve forex reserves.
The study also said that ethanol blending in petrol has gradually increased in recent years, and India achieved 10 per cent ethanol blending in 2022a. Incidentally, the central government has advanced its target for E20 implementation to 2025 from 2030 earlier.