EV Sales Growth Powered By These Factors In India
Recently Union Minister Nitin Gadkari addressing a webinar on, “India’s electric roadmap post-COVID19” has said that India would transform itself as the manufacturing hub for electric vehicles in next 5 years. He was also certain that there would be rise in sales of electric vehicles.
The Indian automotive market comprises of 76% of 2 wheeler users i.e. 23 crores vehicles, thus it flaunts the potential penetrable market. In 2019, India has seen a record sale of 1.7 crores 2 wheeler.Now the question arises, how do Indians commute? Yes, your guess it right. The answer is Public Transportation. Let us understand the role play of the public transportation & their feasibility.
Everyday around 7 crores people commute in 1.7 lakhs local buses in the county. Approximately 1.5 crores people travel in local /metro every day. Almost 4-4.5 crores people use public transport for daily to & fro. Hence almost, 13 crores are still using some or the means of public transportation for their daily need.
Scenario: Post Covid19 lockdown.
Though the country is moving towards the unlock stage, the impact of the COVID19 has not controlled or eradicate completely. TheCOVID19 has not only impacted the lives on grounds of health but even economically. The decision to unlock was to sustain the economical crisis but the impact of COVID has not yet curbed. Hence, now it becomes the responsibility of every individual to defend themselves & be safe as well as hygienic. The new mantra of Social Distancing would be a critical challenge in the post lockdown scenario. The challenge would be greater while commute, as the statistic speaks, the buses & trains/metro are almost overcrowded 15 times the normal threshold. This shall not allow a generic commuter to use these means of transportation current pandemic situation.
Implication of 2 Wheeler sales & electric mobility in particular
By looking at the scenario of commute after lockdown, there would be certain rise in 2 wheeler sale, owing to need for personal mobility. According to the a study conducted by Frost and Sulllivan – e-rickshaw, e-autos and e-two wheeler are the most promising segments for e-mobility in India are supposed to account 40 lakhs sales by 2025. The study also suggests that 40% of scooters in the country will be electric in next 7-8 years.
Factors for electric vehicle sales growth:
The major factors that will drive the sales in EV segment will be
Personal Commute need The need to maintain the social distancing & scarcity of public transportation services will channelize the daily commuter to purchase/lease self vehicle. The loss of job & shift in the business model in many segments would drive the need of logistic to serve people and thereby direct the consumers to purchase/lease the vehicle for bread earning.
Environment consciousness The COVID19 has brought many self conscious measures like cleanliness, self-hygienic, sanitation & appreciation for cleaner environment. This awareness would be a major drive to choose EV over ICE. The youth & middle class families would like to contribute in their own way for the cause of society.
Fuel Cost The rising price of fuel due to International economic slowdown shall discourage the commuter to purchase the fuel based vehicles. On the other hand, the decrease in the cost of generating renewable energy resources would gain more market & thus make public prefer EV for their personal use as it would be more economical and efficient.
Lower Income Segment Most potential penetrable market in India is the Lower Income Group and this section of society has a major pie in Indian population census. To attract this section, the EV sets a better par in the running cost of the vehicle which is very viable & a good marketing strategy by the EV manufacturer or trader will give a greater edge to keep a competitive selling price with their counter fuel based vehicle.
Though the COVID19 was one of the worst hit crises for the mankind in this half of century, the pandemic has brought even the consciousness of protecting the society in large. The self-realization & self-reliance would become the new mantra post COVID19. The businesses would add-on the benefit that the product or service shall bring to the society over the individual. The businesses like EV business, which from the beginning is striving for the cause of greener society shall flourish & attain the success of being the prominent economic gainer in coming years. There shall be a new purchase & usage behavior among the consumers. New business models in ride-sharing, peer to peer sharing, rentals, leasing are emerging and will offer a boost to this industry in a very big way.