Electric Vehicles uses an electric motor for propulsion which includes a huge range of vehicles from electric two-wheelers, electric rickshaws, cars and buses. Electric vehicles emit zero tailpipe emissions. The carbon impression of electric vehicles is around 30% superior to anything that of ordinary vehicles, even at the point when the power utilized is created by a coal-fired power station.

Fuel Savings in Electric Vehicles:

According to the Society of Manufacturers of Electric Vehicles (SMEV), the electric vehicles industry at a beginning stage in India. At present, there are more than 4 lakh electric two wheelers and few thousand-electric car on Indian roads. More than 95 percent of the electric vehicles are low power electric scooters.

The Gujarat government has already signed an agreement with a Chinese manufacturer for setting up a factory for electric bikes from Gujarat. The plant will have a capacity of 50,000 electric bikes annually. The manufacturing of electric vehicles in the country will reduce the cost of vehicles and this will drive the Indian Electric vehicle market.

Ministry of New and Renewable Energy (MNRE), has declared that they would present to 20% money related incentive on the ex-production line cost of electric cars and bikes sold in the country. The plan has set a greatest cut off on the measure of the motivating force at Rs. 4000 for low speed electric bikes, Rs. 5000 for fast electric bikes and Rs.1 lakh for an electric car.

Perceiving the developing interest for cleaner vehicles, many automobile are working proactively on vehicle and battery advancements to remain focused in the developing markets.

India Electric Vehicle Market Overview:

According to society of Manufacturers of Electric Vehicles, EV sales in India grew by 37.5% to 22,000 units in the year ended 31 March 2016 out of these 2,000 units were four-wheelers. The government’s plan is to have all electric vehicles in India by 2030 and 1 million electric three-wheelers and 10,000 electric city buses on Indian roads by mid-2019.

Moreover, India's push to supplant more than 700 million road and family unit lights with vitality sparing and enduring LEDs, taking power to many poor towns interestingly.

Government of India launched the National Electric Mobility Mission Plan (NEMMP) 2020 in 2013. It aims to achieve national fuel security by promoting hybrid and electric vehicles in the country. Through this plan, it is expected to save 9500 Million Litres of crude oil. India Electric Vehicle Market is expected to grow at a CAGR of over 100% during the forecast period. 

Some of the major players operating in India Electric Vehicle Market are Mahindra and Mahindra, TVS, Heroelectric, BSA Motors, Ashok Leyland, Tata Motors, Toyota, Honda, Maruti Suzuki, Volvo etc.

According to FAME scheme of India, the total savings are as follows:

OEM’s are forming strategic alliances:

Ashok Leyland and SUN Mobility, in 2017, formed a strategic alliance with SUN mobility to develop electric mobility solutions. The companies are looking for creating an integrated ecosystem by deploying Ashok Leyland's electric vehicles and supporting them with smart batteries.

Suzuki, Toshiba and Denso: India’s largest car maker Maruti Suzuki India Ltd., will form a joint venture with two Japanese firms, Denso Corp. and Toshiba Corp., to produce lithium-ion batteries for electric vehicles in India. The joint venture company will be controlled by Suzuki with a 50% share while Toshiba and Denso will have 40% and 10% share, respectively.

This step will reduce the battery prices in India which will further decrease the electric vehicle prices. This will boost the demand for electric vehicles in India over the next five years.

Factors affecting growth of Electric Vehicles:

Increasing CO2 Emissions: As per the recent World Bank Data published for India, the CO2 Emission are increasing every year’s due to increasing pollution. Using electric vehicles in the country will reduce the pollution. This drives the demand for electric vehicles in India.

                                                                                                                                                              Source: World Bank Data

Improving Infrastructure:

Energy Efficiency Services Ltd (EESL) has invited global bids for 10,000 electric sedans, on a single charge that will run up to 150 km. The company has also released tenders for 3,000 alternating current (AC) charging points and 1,000 direct current (DC).

In 2017, ACME launch its first electric vehicle charging station. The company has provided battery swapping and charging station to taxi aggregator Ola for its pilot project in Nagpur, which includes all vehicles such as auto, car and buses will run on electricity.

India Oil Corp. Ltd, in its annual report, mentioned that it is also exploring opportunities for setting up battery charging stations and battery replacement facility for electric vehicles in the country. The company is also planning to set up lithium ion battery manufacturing plant.

Declining Battery Prices:

The average battery pack price is price go down from about $1,000/kWh to roughly $227/kWh since 2010.

Conclusion: India Electric Vehicle Market is expected to grow at a CAGR of over 100% during the forecast period. India Electric Vehicle market is expected to grow on the back of growing vehicle emissions, declining Li-ion battery prices, growing consumer preferences for advance technology systems and government regulations for electric vehicles in India. Moreover, state governments in India are focusing on environment-friendly electric vehicles and are developing new industrial policies which will further boost the demand of electric vehicles across the country during the forecast period.