A recent report by Bloomberg New Energy Finance (BNEF) suggests that electric vehicles (EV) will comprise 7% of new car sales in India by 2030. It added that sales of electric cars will reach 28% and electric buses will touch 84% by the same year.
The number is quite far off the mark from the Centre’s aim of having 30% EVs in India by 2030, a scaled-down version of the even more ambitious target of having 100% EVs in India by that year. However, it is a step in the right direction.
BNEF Asia Pacific head of research Ashish Sethia said, “After 2030, we expect EV sales in India to accelerate with increased affordability, as well as the government’s efforts to ensure universal access to electricity.”
However, the lack of charging infrastructure and affordable models may pull back the growth of EVs in India, he added.
Another report by BNEF suggests that by 2040, more than half of all new car sales, which equals 559 Mn vehicles globally, and a third of the planet’s automobile fleet will be electric. It noted that EVs will achieve upfront cost parity with internal-combustion engines starting in the mid-2020s.
This week, India saw many developments around the EV ecosystem. Realising the importance of minerals such as lithium to manufacture EV batteries, the government has directed three PSUs to acquire minerals from abroad. The Centre is also mulling plans to levy higher taxes on diesel-and petrol-fueled vehicles to encourage EV promotion in the country.