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By MT Bureau| Apr 22, 2021

Indian Electric Vehicle Industry Reports De-growth in FY21

SMEV reports Indian EV industry has managed to sell 236,802 electric vehicles in the financial year 2020-2021. The COVID-19 pandemic has affected the electric vehicle market in India as the sale of electric two-wheelers (E2W), and electric three-wheelers (E3W) has decreased in FY 2020-21 in comparison to the previous year.

The E2W segment saw a six percent decline in registrations from 1,52,000 units in FY20 to 1,43,837 in FY21. The E3W segment fared no better, with enrolment dropping to 88,378 (Only includes registered E3Ws) in FY21 from 1,40,683 in FY20. E4W segment witnessed growth as registrations increased from 3,000 units in FY20 to 4,588 in FY21.

Some of the critical reason listed by the report for lack of sales are:

•Bank Finance: Lack of a robust finance mechanism has pushed people away from EVs.

•Charging Infrastructure: Though there has been rapid movement in this field, the current number of chargers is insufficient for significant electrification in the country. With corporates venturing into the segment, the next five-six will be crucial in India’s electrification dream.

•Government Policy: The state governments failure to implement EV policies has been a significant roadblock in EV adaptation. Early implementation at the state level will assist in creating a more extensive ecosystem helping the industry grow faster.

•Awareness: Central and State governments should motivate citizens to adopt electric vehicles by creating lucrative offers and raise awareness about the benefits of EVs.

Commenting on the sales report, Sohinder Gill, Director-General, Society of Manufacturers of Electric Vehicle (SMEV), said, “We were anticipating a good growth before the start of FY 21, but sales remained stagnant due to various reasons. The sales in the electric three-wheeler and two-wheeler segment stood low as compared to last year. A good thing has happened that people started moving towards advanced batteries, i.e., lithium. The city speed and high-speed category in the two-wheeler segment have witnessed growth. However, a lot more needs to be done to achieve the target under the FAME II scheme. Timely intervention by the government in the form of policy change is required to fuel the growth and achieve the target by the end of FY22.” (MT)

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