Frost & Sullivan has announced that it expects hybrid and electric vehicle growth in India to be driven by Government incentives and changing customer attitudes. The analysis firm estimates sales of about 1.4 mn electric vehicles (EVs) in India by 2030, accounting for about 18 % of the new vehicles market. While EVs are expected to account for about 15 %, full hybrid electric vehicles will have about 3 %, Frost & Sullivan said.
Frost & Sullivan, in its report ‘Electric and Hybrid Vehicles Market in India’ finds that the two-wheeler segment will constitute nearly 60 % of the EV market. This sees the electric two-wheeler segment set for a 38 % growth by 2020. The company said it provides a strategic overview of the global, as well as Indian electric and hybrid market, including drivers and restraints, future market, government regulations, technology trends and challenges, and charging infrastructure.
The report found that in order to experience long-term growth of electric and hybrid vehicles in India, players should focus on affordable electric /hybrid technologies and keep a close watch on government plans. In addition they should also reduce the price gap between conventional vehicles and full hybrids, and create better awareness of hybrid/electric technologies to alleviate fears relating to safety and cost of ownership. Integrating technologies like high-efficiency motors and low-cost battery packs with the help of suppliers by jointly investing in R&D for industry consolidation and economies of scale are also needed, Frost & Sullivan noted.
Aswin Kumar, Program Manager, Mobility (Automotive and Transportation) Practice, Frost & Sullivan, said the low speed of technology adoption can be attributed to limited cooperation between OEMs and suppliers. Increased cooperation in the future should improve economies of scale and accelerate the use of technology, he added. Kumar noted that the analysis firm expects a lot of permit-driven business like auto rickshaws and unorganised ones like rickshaw market to lead electrification in terms of last mile connectivity. Sales in electric rickshaws in recent years have been a major double-digit growth contributor in this segment, he observed.