another decade or so, by 2030, while buses and 4-wheeled passenger vehicles
will have the least level of electric adoption, it will be two and three
wheelers that will see a large adoption of electric vehicles. Two-wheeler (2W)
and Three-wheeler (3W) auto segments are likely to lead the adoption curve
followed by e-buses and passenger taxis.
4W passenger vehicle (PV) electrification is expected to follow, with 10 to 15
per cent penetration in the personal segment and 20 to 30 per cent in the
commercial one by 2030, about 10 to 12 per cent of the overall market for buses
is expected to be electrified by 2030.
projections were revealed in a report by KPMG and CII. The report is titled,
“Shifting gears: the evolving electric vehicle landscape in India.” This report
offers a holistic view of how EVs are emerging as a disruptive force, with OEMs
making investments in product development, players across the ecosystem testing
and discovering new innovative business models and use cases.
KPMG in India expects 25 to 35 per cent 2W
penetration, and 65 to 75 per cent in 3Ws by 2030. Since the running cost of
EVs is much lower than ICE vehicles (one-tenth for 2W and 3W), a strong case
emerges for a shift to EVs in B2B. Many large B2B players in e-commerce,
grocery, food, courier delivery have been piloting EVs and some have moved into
advanced stages of deployment.
swapping, Energy as a Service etc. are being deployed to reduce upfront
investment, improve vehicle uptime, eliminate range anxiety etc. Thus, we see
the entire EV ecosystem come together and make EV ownership with accelerated
timelines a reality, the report noted.
further observed that to drive EV adoption, Original Equipment Manufacturers
(OEMs) and the government, both at state and central levels, need to work
collaboratively towards an integrated policy, creating a conducive ecosystem
for India’s electric mobility vision
only a few state EV policies provide guidelines and incentives on battery
recycling. Given this, a coherent recycling policy is the need of the hour.
Rohan Rao, Partner – Industrials and Automotive,
KPMG in India said, “ Electric Vehicles (EVs) are on course to fulfil their
promise as a game changer for the automobile industry. Two-wheeler (2W) and
Three-wheeler (3W) auto segments are likely to lead the adoption curve followed
by e-buses and passenger taxis.
Directionally several factors, including availability of charging
infrastructure, robust financing ecosystem, reduced battery prices and
increased customer awareness, are paving the way for new era of EV adoption.
government is also pushing EV policy to address some of the adoption
barriers. EV is, thus, emerging as a
disruptive force, with several players experimenting with and discovering new
innovative business models and use cases. Since the running cost of EVs is much
lower than Internal Combustion Engine (ICE) vehicles (one-tenth for 2W and 3W),
a strong case emerges for a shift to EVs in B2B segment. Ecosystem creation is
the key. A widespread network of charging stations is vital for ensuring the
fast adoption of EVs. Moreover, the local component ecosystem needs to be
established. The government has launched a Phased Manufacturing Programme under
FAME-II through which it is pushing the indigenisation of parts. The government
has also outlined plans to set up a battery manufacturing plants in India
Overall, there seems to be great promise in India’s EV story, as all the above
factors come together to drive long-term growth.”
Jacob, Partner, Management Consulting - Industrials and Automotive, KPMG in
India said, “ EVs are undoubtedly the way forward for sustainable mobility and
is increasingly gaining traction across the world. In India, the charge is
being led by 2W and 3W segments, followed by public transport and non-public
passenger fleet. One of the biggest hurdles India currently faces is our
limited ecosystem for EVs. Significant number of critical components still
continues to be largely imported and the charging infrastructure is largely
inadequate. However the industry and Government are proactively working to address
these constraints and are taking steps in the right direction.
leading states have released EV policies with clear focus on driving increased
adoption through both demand and supply led incentives. Subsidies are being
linked to higher level of localization to promote ‘Make in India’ and establish
a strong EV ecosystem in India. India has already achieved global excellence in
the automotive industry and is a major exporter of vehicles and critical
components globally. With the right focus, collaborative approach by all
stakeholders and a pragmatic policy we can help drive clean mobility and be on
the forefront in transitioning to a fossil free future as well.”
KPMG report has suggested certain recommendations that include:
EV policies could lay a greater focus on demand incentives that shall bring
down the upfront cost differential
EV polices could have certain targets for conversion of EVs, at a segment level
or for a particular industry/use case
up of adequate charging infrastructure is key to encourage users to consider
could be promoted by encouraging users to purchase/use EVs over ICE vehicles
with measures such as increasing road tax/registration fees on ICE vehicles,
levying cess on the sale of petrol/diesel or surcharge on parking, providing
incentives on scrapping and deregistering of ICE vehicles
vehicle scrappage policy is expected to spur the adoption of EVs.
more EVs enter the market, there is a need to formulate clear policies on
sustainable end-of-life and disposal practices for the EV industry. Corporate
average fuel economy (CAFE) norms will mandate automakers to have a certain
percentage of their vehicle sales as electric
The report also highlights the Total cost of
ownership (TCO) analysis for different vehicle segments, few models that have
been introduced in the Indian market to boost the adoption of EVs, and how the
B2B segment is likely to lead growth in the next few years on account of
established use cases, fixed/ pre-defined routes and cost savings due to higher
Uno Minda, a leading Tier 1 supplier of proprietary automotive solutions to original equipment manufacturers, has launched its new premium range of alloy wheels in the Indian aftermarket in collaborat...
Greaves Retail, India's leading fuel-agnostic mobility solutions provider and a unit of Greaves Cotton Limited, has announced the launch of its complete range of e-rickshaw batteries under the brand '...
Kia India is now offering an electric sunroof in its Sonet Smartstream G1.2 HTK+ variant. The model will be available at Rs 9.76 lakh. Sonet has already more than 3.3 lakh customers in last three year...