In its latest report, the International Energy Agency said that more than 30 percent of new vehicle sales in India will be electric by 2030. The agency states that EV deployment in India will mainly be achieved through the electrification of two/three-wheelers, which will reach a sales share of almost 50 per cent.
The report stated – The rate of electrification of buses and light-duty vehicles is lower, below 15 per cent sales share in 2030. In 2020, India increased electric bus registrations by 34 per cent to 600. The lack of government spending under the FAME II policy has hindered EV deployment along with a pressure on domestic automakers to focus on BS-VI innovation instead of EVs.
More than halfway to the April 2022 end- date only 3 percent of the allocated funds under FAME II have been used for a total of just 30 000 vehicles. Significant acceleration will be required to reach both the programme targets and national targets of 30 per cent EV sales by 2030.
Investment by some Indian OEMs focus on ICE models meeting BS-VI standards, thereby delaying investment in battery electric vehicle deployment. These OEMs have indicated that they are facing losses due to slumps in auto sales from reduced demand during the pandemic.
The share of EV sales in India could also reach 50% by 2030 across all road vehicle modes (30 percent excluding two/three-wheelers) in case of more aggressive sustainable development policies.