With Slow Demand For Electric Cars, Will Commercial Vehicles Drive Indian EV Ecosystem?

With Slow Demand For Electric Cars, Will Commercial Vehicles Drive Indian EV Ecosystem?

SUMMARY

Passenger cars have suffered from weak demand due to infrastructure and pricing issues

Commercial vehicles are expected to drive India's EV transition thanks to large-scale ecommerce and shared mobility adoption

In FY19, commercial vehicles recorded the fastest pace of growth in domestic sales at 17.55%

Even as India hurtles towards green mobility with mega targets for electric vehicles on the road by 2030, electrification of public transport and such, the big question is will India’s businesses and commercial enterprises also back electric mobility. Amazon India, as part of the company’s attempt to reduce the carbon footprint and environmental impact of its operations, has made a commitment to deploy 10,000 electric vehicles (EV) into its delivery fleet by 2025. 

Currently, India holds a share of less than 0.5% in the global electric vehicle market, but that current infrastructure and mode of transportation is set to change dramatically in the coming years. Preparing for a green future and in a bid to reduce reliance on imported crude, the government of India is backing the acceleration towards electric vehicles through policy, but while the primary focus of this transition is on two and three-wheelers and passenger cars but also on commercial vehicles. Currently, commercial vehicles and passenger vehicles together hold just 0.5% share in the total sales of electric vehicles. So what exactly has held back the segment within the electric mobility ecosystem so far and does this class have a bright future in India. 

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