India To Become World’s Largest EV Market, Says WEF-Ola Mobility Report

Giving a breather to the electric vehicle (EV) industry players and their concerns of market adaptability of the electric cars, the World Economic Forum has released a report stating that India has the potential to become the largest EV market in the world.

“The role of government is crucial for accelerating adoption. Right now, the uptake of electric vehicles is slow due to the high upfront cost and range anxiety, but a long-term investment in research and development (R&D) will create sustained growth,” said Christoph Wolff, Head of Mobility, World Economic Forum.

The “EV-Ready India- Part 1: Value Chain Analysis of State EV Policies”, which was produced in collaboration with Ola Mobility Institute, analysed the EV policies and programmes of 10 states, including Andra Pradesh, Bihar, Karnataka, Kerala and Maharashtra and union territories (UT) of India.

The report aims “to encourage a holistic approach to EV adoption and acceleration in the country.”

The WEF report, with an aim to encourage a holistic approach to EV adoption in the country, analysed these states based on four criteria — R&D, Production, Services and policies to attract customers — for both EV and its components.

What Did The WEF Report Find?

The report points out that most of these states aim to be the manufacturing hub for EVs and their components. These regions have already been trying to boost the ecosystem by incentivising production of clean-fuel batteries, recycling and storage for EVs.

Even though implemented separately, the state and UT policies are aligned with the national Make in India agenda and can provide case studies for how to set up similar production facilities. The reports also cited examples of Uttar Pradesh and Maharashtra EV policies, which emphasises on promoting EV manufacturing.

The report also highlighted two more trends when it comes to state policies and programmes. First, the anxiousness around EV adaptability has made states focus on EV infrastructure. Most states now have a special provision to install EV charging points in public and private spaces.

Uttar Pradesh, for instance, has set a target to install two Lakh EV charging stations by 2024, while Andra Pradesh plans 100% electrification of buses by 2029.

The second trend emphasised on the states’ efforts to connect EV to consumers through various programmes. For instance, skilling programme in Tamil Nadu, fiscal incentives in Maharashtra and non-fiscal incentives like retrofit services in Telangana.

The report also gives recommendations to further strengthen the EV policies in India for holistic development, which fall on the lines on R&D, production and attracting more customers. The recommendations are based on lessons from leading EV ecosystems such as the US, China, Taiwan and Europe.