India market for electric vehicles is anticipated to increase at a 77 percent CAGR in valuation terms all through the conjecture period between 2017 to 2025, says a report released by Persistence Market Research.
The most common type of vehicles found on the road, the passenger cars segment is projected to gain nearly 3400 basis points between 2017 and 2025, expanding at a CAGR of 90.7 percent over the forecast period.
The passenger cars segment is expected to create total incremental $ opportunity worth US$ 7,255,686 between 2017 and 2025, the report said. This segment is expected to dominate the India electric vehicles market, with more than 40 percent market revenue share in 2017. The segment is expected to increase by 174X in terms of value, and is predicted to be the most attractive segment in the India electric vehicles market during the forecast period.
The recent trend of growth of hybrid electric vehicles over conventional vehicles to fuel the India electric vehicle market during the projected period
Consumers frequently face the problem of selecting between conventional vehicles and hybrid electric vehicles. Although it has been anticipated that petroleum reserves will dry down in the years to come, owing to the present rate of consumption, consumers still see conventional vehicles as a better option. The reason of this is higher flexibility and practicality that they offer with hybrid vehicles. This has led automobile manufacturers to develop vehicles that offer the benefits of both conventional and electric vehicles. This is the hybrid electric vehicles category. These vehicles come with an internal combustion engine and rechargeable batteries to drive the vehicle.
Apart from this, additional benefits associated with hybrid electric vehicles drive the tremendous growth of hybrid electric vehicles. The batteries of hybrid vehicles can be recharged through an internal combustion engine. Due to this, it has been witnessed that there is growth in the sales of hybrid vehicles which is much higher than pure and plug-in hybrid vehicles.
In 2015, the government of India introduced a scheme – Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) – to promote clean fuel technology cars. This scheme was introduced under the National Electric Mobility Mission Plan (NEMMP) to mobilize a fleet of six million electric vehicles on Indian roads by 2020. For achieving their targets, the Indian government is planning to replace petrol and diesel variants being used by its agencies with electric vehicles. This plan is to be executed by the government in the next three to four years.
For making it possible, the Energy Efficiency Services Ltd (EESL), under the administration of the Ministry of Power and the government of India has taken an initiative by placing an order of 10,000 electric vehicles. Tata Motors has won this tender and is likely to supply these Electric Vehicles (EVs) in two phases; first 500 electric cars will be supplied to Energy Efficiency Services Ltd (EESL) in phase one and the rest 9,500 electric vehicles will be delivered in the second phase.