Bloomberg’s recent New Energy Finance report has suggested that electric vehicles will form 7% of the new car sales in India by 2030.
It further stated that “electric buses will surge even faster globally than electric cars as conventional vehicles fade.”
Here are a few other key findings of the report:
- Number of Internal Combustion Engines (ICE) vehicles sold per year (gasoline or diesel) is expected to start declining in the mid-2020s,
- Sales of electric cars will reach up to 28%, and those of electric buses to 84%, of their respective global markets by 2030.
- Sales of electric vehicles will increase from 1.1 Mn worldwide last year to 11 Mn in 2025, and then surging to 30 Mn in 2030 as they establish cost advantage over internal combustion engine (ICE) cars.
- China will lead this transition, with sales there accounting for almost 50% of the global EV market in 2025 and 39% in 2030.
“India is often touted as the next big EV market, set to follow China’s lead,” said Ashish Sethia, head of Research, Asia Pacific, BNEF.
He further said that, low average vehicle prices will inhibit EV uptake for the next 10 years. “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,” he added.
However, it is believed that lack of charging infrastructure as well as lack of affordable models will pull back the growth of electric vehicles in India, so that EVs will make up just 7% of new car sales in 2030 here, the report added.
Electric vehicles in India are slowly gaining traction as states such as Karnataka, Maharashtra, Uttar Pradesh, Andhra Pradesh, and Goa have have started showing commitment to replacing diesel- and petrol-fuelled vehicles with EVs. Meanwhile, Telangana has become the fourth state to have its own electric vehicles policy.
Meanwhile globally, according to the International Energy Agency (IEA) and its latest Global Electric Vehicles Outlook report, plug-in electric vehicles (EV) are becoming commonplace on roads all across the world. It states that the number of electric and plug-in hybrid cars globally exceeded 3 Mn in 2017, a 54% increase compared to 2016.
China continues to be dominant in the electric vehicles market, accounting for half of the total EVs sold globally last year. Nearly 580K electric cars were sold in China in 2017, a 72% increase from the previous year. The US sold the second-highest number of EVs — about 280K — in 2017, up from 160,000 in 2016.
[The development was reported by Financial Express.]