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Electric Vehicles Can Create $100 Bln Revenue Opportunity In India By 2030, Says Bain & Co Report

EV Adoption In India

By 2030, about 40-45% of all two-wheelers and 15-20% of all four-wheelers (passenger vehicles) sold in India will be electric, it said.

The adoption will be a result of 12-13 million new two-wheelers and a million new 4-wheelers passenger electric vehicles being sold in India annually by 2030, the report released on Thursday added.

“Companies are going to need to make moves across the value chain backward and forward, to deliver this end-to-end EV solution and it doesn't mean that everyone that makes cars needs to make batteries or needs to set up their own charging stations but they will need to at least have partnerships or tie-ups in the space,” Mihir Sampat, partner, Bain & Co’s advanced manufacturing and services practice, said, as per ET report.

What Will Drive EV Adopting In India?

The predicted adoption will primarily be driven by five factors – electric vehicles are becoming more price competitive on a capital cost basis, growing infrastructure to support EVs with charging and battery swapping, materials or product investments going into the market, government-backed incentives, vehicles getting more suited to the market and consumers’ understanding of economic benefits of owning EVs.

It also mentioned that gaps in capital costs for EVs in India have materially reduced due to a sustained global decline in battery prices until 2021.

Battery prices marginally increased in 2022 due to inflationary pressures but there were government subsidies domestically. A high-speed 2W EV vehicle, for instance, costs only 15%–20% more than its ICE equivalent in Delhi with subsidies factored in, the report said.

For commercial vehicles in India, battery electric vehicle (BEV) market penetration will be more modest, with light commercial vehicles (LCV) up to 25%, medium and heavy commercial vehicles (M&HCV) up to 5% and buses up to 20% by FY30, the report added.


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