Global consultancy firm Frost & Sullivan expects that electrification of the majority of the vehicles would first occur in two and three-wheelers that are used commercially in India, before trickling into fixed distance operating commercial vehicles and passenger vehicles. It emphasises that government subsidies, Electric Vehicle (EV) Infrastructure, and customer attitude are keys for Large-Scale Powertrain Electrification in the country.
Frost & Sullivan estimates over 21 million EV will be sold globally by 2025, accounting for approximately 21 percent of the total passenger vehicle market. The trend is moving toward battery capacities over 60kWh to increase the range of an electric vehicle up to 200 miles on a single charge.
“EV sales have doubled since 2015. In comparison, hybrid cars took 15 years since launch to reach the 1 million mark”, said Kaushik Madhavan, Director, Mobility (Automotive & Transportation) Practice, Frost & Sullivan.
Global EV market grew over 15 times at a remarkable compound annual growth rate (CAGR) of 72.1 percent from 2011 to 2017.
“Although the Indian government is not too keen on subsidies for EV, it should continue focusing on promoting renewable energy initiatives apart from incentivizing setting up of local manufacturing facilities for EV components such as batteries, electric motors and other peripherals. Fiscal and non-fiscal incentives have helped increase EV penetration in many countries around the world like Norway and Netherlands. While about 75 percent of the customers are aware of Mild Hybrid vehicles majority of the customers are only slightly aware of EV,” Frost & Sullivan said.
Interestingly, the consultancy firm has found out that more than 60 percent customers wanted a minimum 150 km range from EV. Almost 40 percent customers want EVs to be priced below the price of the current vehicles they use. Though they are willing to pay more, only 15 percent are willing to pay more than 30 percent of the price of the current vehicle.