Electric Vehicle adoption is not a new concept for India

According to industry experts, the year 2020 was expected to be a variation point for EVs, even the 2020 Auto Expo theme was around the electric-powered vehicles. The Indian government has been pushing for a shift towards electric vehicles and has stated that the country will move towards 100% electric cars by 2030.

The government has also encouraged EV brands by dedicating ten thousand crores to boost electrical mobility usage under the FAME II scheme, and a 5% reduction of GST on EVs. But, due to the pandemic, many industries halted waiting for the market conditions to improve. Several segments of production are still contributing to the economy and even looking at this period as an opportunity. The automobile industry’s EV projects look like one of those and promise even better growth post this pandemic.

Due to the lockdown, the entire public transportation stopped due to the risk of spreading the virus. But with lockdown restrictions easing around the globe, many people will still avoid using public transport as a precautionary measure for a long time. The world in general however has undergone a tectonic shift in their outlook towards health and wellbeing.

Looking at the current situation, the future of the EV industry looks promising, especially for the daily city commuters who travel shorter distances within the city. The EV segment is a more economical and safe mode of travel, and it will gain traction in given days with enhanced demand driven also by rising fuel cost and climate concerns.

Based on the Research and Markets report, the two-wheeler market in India is -

• Predicted to expand at a CAGR of 7.33%

• Reach a sales size of 24.89 million units by 2024, from 21.19 million in 2019

• This market will shift to the lithium-ion battery by 2025, as much as 40% of the e-rickshaw market is expected to be li-ion based

With the country's focus drifting towards self-reliance in the wake of the pandemic, large-scale import substitution in the electric mobility space can pick up if there’s enough local demand to justify localization. According to industry, reports e-rickshaw has also developed a large market in India in a short duration even as a large part of this market is still unorganized and based on lead-acid batteries.

IoT solution providers have been working very closely with the electric vehicle ecosystem and providing right-fit connected solutions powered by IoT to OEMs, dealers and battery manufacturers. These value-added IoT offerings are helping companies to meet their aim in order to provide clean mobility solutions. With the help of IoT driven technology augmented with innovative business solutions the company’s able to execute their e-rental model that allows the process of renting the e-vehicle and pay-as-you-go model.

Sameer Mahapatra, Country Manager and VP Sales in India & SAARC at Aeris Communications

For example, E-Blu - an electric mobility provider has successfully delivered 450 e-rickshaws to 28 dealers in 28 cities and 06 states in India. Besides providing employment opportunities to the bottom of the pyramid, they want to encourage society to opt for an electric vehicle. According to a report by Frost and Sullivan, electric cars, especially e-rickshaws, e-autos, and e-two wheelers, will flourish in India and are predicted to account for over four million units in 2025. However, industry experts also believe that the electric vehicle market will recover rapidly from the Covid-19 pandemic as compared to others.

India is getting ready for the concept of electric vehicle adoption in the country. As per a NITI Aayog report, India could save 64% of energy demand for road transport and 37% of carbon emissions by 2030 by pursuing a shared, electric and connected mobility future. Post pandemic it will be an excellent chance for EV brands to connect with their customers from these segments.

Many automobile brands are using this time to get in touch with customers through digital mediums to get better insights and build a robust product roadmap. EV companies can and are using this current lockdown time to get online and virtually connect with their future audience, build a forward strategy based on the changing paradigm and capitalise once the tide turns post-pandemic. The next growth phase belongs to the EV world.