India's Annual EV Sales to Reach 2 Million Mark by 2040: BloombergNEF Report

The sales of electric vehicle units in India will cross two million mark by 2040 on the back of falling prices of lithium ion batteries over the next decade, as per BloombergNEF.

"The cost improvements will help drive annual EV sales to above two million units by 2040, from about 3,500 units in 2019," BNEF said in its latest release, adding that falling lithium-ion battery prices over the next decade will make electric passenger vehicles competitive with internal combustion engine vehicle segments in India.

However, it highlighted that the subsidies available currently for passenger vehicles are inadequate to spur demand from private consumers and attract manufacturers to introduce models with acceptable range and performance for the mass-market. "India has big ambitions for EV deployment, but progress will likely be slow," BNEF said

BNEF added that it expects the passenger vehicle fleet and total passenger kilometers traveled in India to more than double through 2040 with 14 per cent of the total 76 million vehicles on the road becoming electric in that year.

Electrification of two and three-wheelers and buses is expected to go much faster than passenger vehicles in India. "We expect some 17 million electric two-wheelers to be sold in India in 2040, accounting for 65 per cent of all new two-wheelers sold in that year," BNEF said.

As a result, the combined penetration of EVs in total vehicle sales in India by 2040 is expected to reach 59 per cent.

Sustainable Transport | News published on 22/05/2020 by Moulin

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