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EV Sales To Record Double Digit Growth Rate Annually Till 2020: ASSOCHAM-EY Study

EV Sales To Record Double Digit Growth Rate Annually Till 2020: ASSOCHAM-EY Study

The Study Predicts A Concomitant Growth Of The Telematics Market Alongside The EV Industry

The Electric Vehicles (EV) market is expected to record double-digit growth rates with rise in sales volume annually in India till 2020, according to ASSOCHAM-EY joint study.

The study titled ‘Electric mobility in India: Leveraging collaboration and nascency,’ further said that despite electric vehicles not being mainstream, stricter emission norms, reducing battery prices and increasing consumer awareness are driving EV adoption in India.

At present, electric vehicle industry is at a nascent stage comprising 1% of the total vehicle sales and is dominated by two-wheelers (95%). The study suggests that EVs will be a stepping stone in designing an intelligent transport infrastructure in India.

“The roadmap to electric mobility vision is based on growing collaborative economy and proliferation and success of electric and shared mobility business models,” it said.

Key Takeaways From The ASSOCHAM-EY Joint Study

  • Study highlights the need of charging infrastructure for growth of EVs.
  • Expects share of public charging to grow, as private charging continues to be dominant with nearly 70% share in 2030.
  • Growth of EV depends on battery costs; the cost of Li-Ion batteries to reach $100 per kW/h by 2023.
  • Reuse of Li-Ion batteries in conventional and sustainable ways should be the focus of the government.
  • Need for urgent investment in research and development along with local manufacturing capabilities
  • Long-term supply incentives to attract investments in the sector

How EV Will Lead To Growth Of Telematics In India

The report further emphasised on the growth of telematics market in India, which it expects to grow with increasing demand of electric vehicles.

“Growing use of telematics across multiple services such as EV to grids interaction, fleet/asset management, navigation and location-based systems, insurance, V2V, V2X systems, remote alarm and incidence monitoring, and safety and security, telematics is poised to grow at a compounded annual growth rate (CAGR) of 31.2 % till 2020,” it said.

Telematics supports intelligent transport solutions as it embeds intelligence into vehicles using sensors and chips. The report suggested that embedding telematics in EVs can benefit:

  • Locating nearest charging station
  • Reserve spot at charging station
  • Smart charging
  • Vehicle to grid charging
  • Time of charging
  • Notify people when charging stops or is unplugged
  • Remote heating
  • Ventilating and air conditioning

Furthermore, the report points out that global telematics market is poised to grow exponentially, with 104 Mn new cars expected to have some form of connectivity by 2025.

The global market size of telematics will be around $ 47.6 Bn in 2020 from $ 20.02 Bn in 2015 and 88% penetration of globally integrated telematics for new cars is expected to be achieved by 2022.

Current State Of EV In India

In Union Budget 2018, the government announced the allocation of $40.5 Mn towards the development of electric and hybrid vehicles in the country. India’s automotive industry has been gearing up for the change, and that has been visible at the ongoing Auto Expo 2018.

Major players like Renault, Tata Motors, Honda, Maruti Suzuki among others have presented their electric vehicles.

Tata Motors has showcased its range of six electric vehicles across personal as well as mass mobility categories, while Mahindra and Mahindra unveiled its range of electric vehicles, which includes Treo, a lithium-ion electric three-wheeler, and e-COSMO, a bus.

Ashok Leyland launched its first electric bus, Circuit S, while Maruti Suzuki unveiled the first design concept of e-Survivor. On the other hand, Renault showcased its mini electric car ZOE and the TREZOR, a two-seater electric supercar

However, the automotive industry has been concerned with the EV infrastructure and government policy. Players like Honda, Jaguar etc have emphasised repeatedly on the need for clarification of government policy framework and roadmap.

The suggestions in the ASSOCHAM-EY study highlighted these issues with regards to EV, while also urging the government to take these matters seriously. Amid the innovations coming up in the EV sector, the growth of EV market will be much awaited.

Author

Bhumika Khatri

Inc42 Staff

Hailing from a business-oriented family, Bhumika has always been crunching numbers in her head. Words are her escape and she looks to find hidden startup stories. Reach her on [email protected]

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