India's EV market likely to grow 36 pc annually till 2026, says report
IESA report says up to one million EV two-wheelers will get subsidy of up to Rs 20,000 each under the Indian government's ambitious FAME II scheme to popularise electric and hybrid vehicles.
The domestic electric vehicle (EV) market is projected to grow 36 percent annually between 2019 and 2026 as the market has gained traction following the implementation of the second phase of the EV incentives scheme in April.
Under the government's ambitious FAME (Faster Adoption and Manufacture of Electric Vehicles) II scheme to popularise electric and hybrid vehicles, up to one million EV two-wheelers, powered by new advanced technology battery of 2KWH, are pegged to get subsidy of up to Rs 20,000 each.
"Total EV sales in 2018 hit 365,920 units and are expected to grow 36 percent annually till 2026. The battery market is estimated to be $520 million in 2018, and is projected to grow 30 percent annually during this period," India Energy Storage Alliance (IESA) said in report.
The base year of the study was 2018 while the forecast period was 2019-2026, it said.
The IESA is an alliance of 96 stakeholders comprising energy storage manufacturers,research institutes/universities, renewable energy companies, and power electronics companies.
Noting that total charger sales in 2018 were under 1,000 units, the report forecasts this to touch 50,000 units by 2026 as public charging points are set to rise with an estimated investment of $520 billion.
It is predicted that the EV market will grow rapidly with support from government as it pushes for greater penetration.
Recently, the government also sanctioned 5,595 electric buses in 64 cities for intracity and intercity operations under the second phase of FAME to push for clean mobility in public transportation, an official release said on Thursday.
The Ministry of Heavy Industries and Public Enterprises had invited expression of interest (EoI) from cities with million-plus population, smart cities, State or Union Territory (UT) capitals, and special category States for submission of proposal for deployment of electric buses on operational cost basis.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Teja Lele Desai)