India’s electric mobility sector is on a steady road to recovery, making a lockdown-induced dip in sales, as India struggles to meet the FAME II deadline to add 1 million electric two-wheelers to the roads by March 2022 is.
According to a recent study by the CEEW Center for Energy Finance (CEEW-CEF), an initiative of the Council on Energy, Environment and Water, EVs sold 1.35 lakh units in the last financial year (2020-21). (CEEW), one of the major think tanks in Asia.
Reports state that two-wheeler and three-wheeler EVs are made for sale during this period, about 96 percent. Three-wheeler EVs made up about 65 percent of all EV registrations. Two-wheeler EVs contributed about 30 percent of all EV registrations during the same period. It is to be noted that two-wheelers sold during this period include only those with speeds above or above 25 kmph.
Surprisingly, while Delhi has taken a big decision to promote electric vehicles with its EV policy, it is not yet ranked as one of the top EV markets in India. In fact, the top three places are states like Uttar Pradesh, Bihar and Karnataka.
Meghna Nair, an analyst at CEEW-CEF said, “Uttar Pradesh, Bihar and Karnataka were the top 3 states in terms of EV sales in FY21. Uttar Pradesh alone contributed 23 per cent to the country’s sales, with 31,584 EVs sold in FY15. The top 10 states together accounted for 88 percent of all EVs sold in India. Tripura, however, accounts for the highest share of EVs per 1,000 internal combustion engine (ICE) vehicles, with 52 EVs sold for every 1,000 ICE vehicles in FY21. “
CEO of CEEW, Arunabh Ghosh said, “Electric mobility is promoted to be at the forefront of India’s green recovery. In the coming years, central and state governments need to reduce uncertainty by implementing detailed and clear long-term policies. In addition, the targeted challenges need to solve key challenges such as high upfront costs of EVs, lack of end-user financing, consumer limitation concerns and inaccessible charging. The CEEW-CEF dashboard provides important information on more than 600 public charging stations in the country. “
The report said that during this period 0.88 per cent of all vehicle registrations in India constituted electric vehicle registrations, the highest ever. Since 2011-12, India has added more than 6.38 lakh electric vehicles on the road so far.
The CEEW-CEF report states that the Faster Adoption and Manufacturing of Electric Vehicles (FAME) -II scheme in India has achieved only 4.25% of its sales target so far. The agency believes that one of the major hurdles may be that buyers are not aware of the incentives available, such as user subsidies and significant exemptions from road taxes and registration fees.
Another important aspect in electrical mobility, which remains a concern for all, is the charging infrastructure. The CEEW-CEF report states that India still has less than a thousand EV charging stations across the country. Among them, Andhra Pradesh leads other states with 433 public charging stations. Telangana is placed second and third with 160 public with 126 public EV charging stations and Karnataka with Karnataka. Delhi ranks fourth with only 78 public EV charging stations.