Page 10 - ITLN November - December 2024

Cover Story
Automotive
Logistics

Looking ahead, passenger vehicles sales increasing from 18% to 54%.
(PVs) are projected to see a 15–20% While EVs gain traction, hybrid vehicles
electrification rate by FY30, with continue to serve as a temporary
anticipated momentum building solution until charging infrastructure is
significantly from FY27 as more fully developed. AB PROFIT HOGA
manufacturers broaden their EV In the commercial sector,
offerings. However, expert opinions electrification is easier due to AUR BHI ZYAADA
diverge on the motives behind predictable travel ranges, particularly
EV adoption. for buses, which are expected to
Pathak mentioned that even though achieve 15–20% penetration by FY30.
his opinion might vary from that of Government policies, such as FAME
other experts, including those of other subsidies, a 5% GST on EVs, and
BCG staff, he personally emphasises declining battery costs, play a critical
the influence of cultural and social role in this shift, supported by rising
factors. "In India, EV adoption for Electric vehicles have environmental awareness. Overall, the
passenger cars often hinges on fewer moving parts and EV market is evolving rapidly, driven by
peer influence and word of mouth. are 70%-85% more innovation and consumer demand.
People buy because their friends or
neighbours do, not necessarily because efficient compared to Competition from Chinese
of a clear cost-benefit analysis," he their diesel counterparts. automakers
explains. However, this reliance on India's transition to the BS6 emission
Harsimran Kaur
subjective motivations makes adoption The International Council on Clean norms, aligning with the Euro 6
fragile, as doubts about EVs' real Transportation (ICCT) standards, positions the country well
advantages could stall growth. in the global automotive market,
The adoption of EVs in India has especially in the EV sector. Both
been largely driven by government subsidies, making EVs more appealing Thakkar and Pathak noted that the
initiatives, particularly the Faster to consumers as their Total Cost of zero emissions from EVs enable India
Adoption and Manufacturing of Electric Ownership (TCO) becomes competitive to avoid many regulatory challenges
Vehicles (FAME) scheme, which began with diesel vehicles. faced by internal combustion vehicles.
in 2015. The second phase, launched Consequently, the share of EVs in This advantage is further enhanced
in 2019 with a budget of ₹10,000 total vehicle sales has risen from 1% by the global standardisation of EV 1916 LPT
crore, has encouraged automakers in FY 2019-20 to an expected 7% in FY emission norms, allowing India to
to produce models eligible for 2023-24, with three-wheeler electric export vehicles to developed countries

Who are Future engine type*
India’s 57%
electric 41% 33%
vehicle 26% All New 1916 LPT
buyers?

Petrol Electric Diesel Hybrid
41% of those Top 5 reasons for purchasing an electric vehicle
planning to buy or 72%
lease a car in next 66% 60%
12 months are
considering an 42% 40%
n

e
g
e
n
i
c
e
l
e electric engine.
c
r
i
t
15%
Economy Environment Technology Future proofing Design/brand Other
Profiles+ India (urban) 2024-08-25, group: electric vehicle buyers, n>3,900.
*Questions allow multiple selections.
For more details, contact your nearest dealership or call on
8
November - December 2024 www.itln.in 1800 209 7979 or visit trucks.tatamotors.com