India transitioning to electric vehicles quicker than anticipated

Until a couple of years ago, owning any kind of an EV was considered strictly experimental. There were hardly any consumers who depended on an EV as a primary vehicle. Now, the tables have turned completely. To get an idea about how popular EVs have become, we can take a look at the 2-wheeler segment in the country.

Federation of Automobile Dealers Association (FADA) published its report for the month of December 2021. Among the top ten two-wheeler OEMs, three are electric vehicle manufacturers. Okinawa Autotech, Hero Electric, and Ampere Vehicles are the three manufacturers that have made a place in the top 10 two-wheeler manufacturers for the month of December 2021.

When compared to last year’s sales, the same companies have managed to outshine themselves with a huge margin. Okinawa Autotech sold 613 units in December 2020, whereas in December 2021, the company achieved sales of 6,098 units. Hero Electric sold 1,545 units in the month of December 2020 and 6,058 in December 2021. Ampere Vehicles sold 872 units in December 2020 and 3,343 units in the month of December 2021. Even Ather Energy and Pure Energy have managed to squeeze into the top 15 players in the 2-wheeler segment.

Why are Indians moving to EVs?

Let’s look at the factors influencing a buyer’s decision:

Price

Coming straight to the main pain point, conventional fossil fuel-powered vehicles are facing an acute price hike. This price hike is factoring into the daily expenses of vehicle owners. The two-wheeler market is very price sensitive and that is leading to buyers switching to more affordable daily runners.

Electric vehicles have been pricier than their ICE counterparts for the most part of automobile history. In terms of electric cars, the price gap is still pretty substantial but it is gradually narrowing down. However, in terms of electric scooters, the prices have become quite comparable.

Govt Schemes

The price is impacted by various incentives provided by the govt on both the national and state levels. Phase two of the FAME scheme is impacting overall EV prices. Additionally, many states are offering substantial subsidies in order to inculcate demand for the relatively new segment. The climate change targets set by the govt at COP 26 are only going to enhance these incentives further.

Infrastructure

More and more players are entering the EV segment. This is also leading to a spurt in electric charging stations. While the range anxiety is still not going anywhere, the EV industry has finally started to stretch its legs and is quickly expanding charging options for buyers. Moreover, the driving range of most scooters has increased to a point where there’s not much need to use public chargers,  at least in Tier II and Tier III cities. Considering that it’s all uphill from here, the charging infrastructure will most likely expand exponentially in the coming years.

A lot of distance to cover

While the reports are promising, the top players in the automobile industry continue to have a substantial lead from their EV counterparts. For reference, the best-seller in the market Hero Motocorp sold 3,96,278 units in the month of December 2021 alone. It owns almost 35 percent of the market share.

Despite the massive sales numbers, the ICE 2-wheeler brands are witnessing a drop in sales across the board. This gives the EV players wiggle room to expand further.

The post India transitioning to electric vehicles quicker than anticipated appeared first on BGR India.

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