Energetica India Magazine December 2020

EVMarket inIndiatoGrowat44%CAGRbetween 2020-2027: IESA Need to Focus More on Electrification of 3- Wheeler than 4-Wheeler: TERI The electric vehicle (EV) market is expected to grow at CAGR of 44 per cent between 2020 and 2027 and is expected to hit 6.34-million-unit annual sales by 2027, in base case scenario, as analyzed by India Energy Storage Alliance (IESA). IESA in its 2nd annual report titled ‘India Electric Vehicle Market Overview Report 2020-2027’ covers the present scenario and forecast of EV, its batteries and the public charging infrastructure market in India. The EV sales in India stood at 3,80,000 in 2019-20, and the EV battery market stood at 5.4GWh during the year. As per the report, annual battery demand is forecasted to grow at 32 per cent to hit 50GWh by 2027, of this, 40+GWh will be on lithium-ion batteries. The estimated battery market potential is USD 580 million in 2019 and is forecasted to grow to USD 14.9 billion by 2027. The electric two-wheeler (e-2W) market took up the highest share in 2019-20. Currently, low- and medium-speed e-2W (up to 40 kmph) with conventional lead- acid batteries are dominating the market as they are already at par in terms of upfront cost with Internal Combustion Engine (ICE) vehicles, the report added. Secondly, high-speed segment with Li- ion batteries is also gaining momentum slowly. With more companies getting FAME-II certification in 2020, sale of high-speed e-2Ws is also expected to increase rapidly in next two years, it further said. Going forward, for the exponential growth of this segment, the market is demanding for quality 2Ws, which can compete with ICE vehicles in terms of both cost and performance. IESA also predicted that, the electric bus market in India is expected to be driven with subsidy support from the Central Government in phase-1 (2023-24) due to high upfront cost. There’s a need to focus more on the electrification of 3-wheelers, as compared to the 4-wheelers, suggested policy research think-tank The Energy and Resources Institute (TERI) in its report. The report has been released on the Roadmap for Electrification of Urban Freight in India, by TERI with the support of Shakti Sustainable Energy Foundation (SSEF). During the virtual launch of the report, Sudhendu J Sinha, Adviser, Transport, NITI Aayog, said that, “as India’s urban population continues to grow, we have to address the transport sector and its implications. The urban freight sector is no more confined to four and three-wheelers; it also comprises two-wheelers with the advent of e-commerce. One of the most significant challenges in the three-wheeler segment is with respect to finances. However, that cost is now coming down to 25-30 per cent in India.” Citing the success of Public-Private Partnership (PPP) model for the adoption of electric vehicles (EVs) in Kochi, Sinha added, “awareness campaigns should be taken up to promote the uptake of these electric 3W vehicles.” On the findings of the report, Key researcher and author of the report, Sharif Qamar, Associate Fellow & Area Convenor, Centre for Sustainable Mobility, TERI, said that, “our key findings suggest that the total cost of operation is rapidly turning in favour of EV variants, and diesel prices, range of EVs and subsidies play a significant role in overall total cost of ownership (TCO) of EVs.” He also mentioned that “a large proportion of LCVs currently plying in Indian cities are pre-BS-IV emission standards, and focus is needed to upgrade these to newer vehicles.” 10 energetica INDIA- December_2020 NEWS MARKET REPORT