Electric two, three-wheelers to majorly contribute to sales pie by 2030: Report

Electric two- and three-wheeler sales in India are expected to grow at a fast pace with them accounting for 50 and 70 per cent, respectively of the total sales by 2030, as per a report. The report is jointly prepared by the Automotive Component Manufacturers Association (ACMA) and McKinsey. As per the report, the total cost of ownership for electric two- and three-wheelers in India, is likely to be more attractive than for passenger or heavy commercial vehicles.

The report was released on the sidelines of the 62nd annual session of ACMA here, and it noted that "sales of new electric two- and three-wheelers could grow to 50 and 70 per cent, respectively by 2030. It also stated that the internal combustion engine (ICE) models will continue to dominate the Indian passenger and heavy commercial vehicle landscape, with slower electrification.

Both electric passenger vehicles and heavy commercial vehicles are expected to account for 10-15 per cent and 5-10 per cent of new vehicle sales, respectively by 2030. As per early estimates, a transition to EVs could impact up to 50 per cent of ICE bill of material (BOM) components.

However, the report noted that this disruption could also be an opportunity to create multiple whitespaces for companies to cater to the new EV BOM needs and generate avenues to serve markets outside India in both ICE and EV component categories.

Regions like Europe and China are expected to be front runners in the shift towards electric vehicles with the rest of the world following suit eventually, it stated. Further, emerging markets like India and China are likely to lead the overall automotive space with sales of passenger vehicles.

The domestic auto component industry needs to expand exports by diversifying beyond traditional geographies in order to benefit from the changing industry landscape, the report said.