Rs12.5 lakh cr needed to realise electric vehicle targets: Study

Findings of CEEW report

– As per the study, though at the end of March 2020 the total number of registered electric vehicles (EVs) in India stood at only half a million, the cumulative EV sales across segments could cross over 100 million units by FY30

– The study also said realising India’s EV ambition would require an estimated annual battery capacity of 158 GWh by FY30, thereby presenting a massive market opportunity for domestic manufacturers

New Delhi, December 9

Indian electric vehicle (EV) market could be worth around Rs 14.42 lakh crore if the country were to achieve its 2030 EV ambitions but would need cumulative investment of about Rs 12.50 lakh crore for the same, according to a study by CEEW Centre for Energy Finance (CEEW-CEF).

According to the study, an initiative of think tank Council on Energy, Environment and Water (CEEW), although at the end of March 2020 the total number of registered EVs in India stood at only half a million, the cumulative EV sales in all vehicle segments could cross over 100 million units by FY30, 200 times its current market size.

The study also said realising India”s EV ambition would require an estimated annual battery capacity of 158 GWh by FY30, thereby presenting a massive market opportunity for domestic manufacturers.

Citing NITI Aayog’s target, the CEEW-CEF study said India’s 2030 EV ambition “states that 70% of all commercial cars, 30% of private cars, 40% of buses, and 80% of two-wheeler and three-wheeler sales in 2030 would be electric”.

“India’s electric vehicle market could be worth nearly $206 billion (about Rs 14,42,000 crore) in the coming decade, if India were to achieve its 2030 EV ambitions,” it said.

Moreover, it said an estimated cumulative investment of over $180 billion (about Rs 12,50,000 crore) will be needed in vehicle production and charging infrastructure until 2030 to meet India”s EV ambition.

Commenting on the findings, senior analyst at CEEW-CEF Vaibhav Pratap Singh said, “Availability and affordability of capital for OEMs, battery manufacturers, charge point operators, and end consumers would be key to determining the pace, efficiency and cost of India’s transition to electric vehicles.” Consistent policy support would also be critical. The recent announcements by the government to set up EV kiosks across 69,000 petrol stations in the country and permit sales and registration of EVs without batteries can give a boost to the sector, Singh added. — PTI