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Electric vehicle (EV) market is expected to grow in double digits annually in India till 2020: ASSOCHAM-EY

Electric vehicle (EV) market is expected to grow in double digits annually in India till 2020. According to a recent ASSOCHAM-EY joint study, titled “Electric mobility in India: Leveraging collaboration and nascency,” the sector has potential to witness significant growth in coming years.

The important points brought up by the study are:

  • Telematics market in India is still nascent, however, it is poised to grow at a much faster rate till next couple of years as growing consumer demand for electric vehicles (EVs) is leading rising investments in the sector.
  • The absence of an EV supply chain in the country demands an urgent investment in research and development (R&D) and local manufacturing capabilities.
  •  EV industry at present in India is at a nascent stage in India, comprising less than one percent of total vehicle sales and is dominated by two-wheelers (95 percent).
  • The boost in sales is expected to be driven by stricter emission norms, reducing battery prices, increasing consumer awareness and government push.
  • Going forward, EVs will be a stepping-stone in designing an intelligent transport infrastructure in India. The roadmap to electric mobility vision is based on growing collaborative economy and proliferation and success of electric and shared mobility business models.
  • There is an urgent need for creating charging infrastructure at a rapid pace as it is the determining factor for the growth of EVs.
  • The share of public charging is expected to grow, however, home charging would still continue to be the dominant source with a share of nearly 70 percent in 2030.
  • EV adoption will be highly dependent on the pace of fall in battery costs as EVs are significantly more expensive than traditionally propelled vehicles due to the high cost of Li-ion batteries. The battery cost is expected to decline to US$100/kWh by 2023.
  • In order to achieve its electrified mobility target, reclaiming materials from old Li-Ion batteries in a certified and sustainable manner should be a huge priority of the Government of India.
  • Growing use of telematics across multiple services such as EV to grids interaction, fleet/asset management, navigation and location-based systems, insurance, V2V, V2X systems, remote alarm and incidence monitoring, and safety and security, telematics is poised to grow at a compounded annual growth rate (CAGR) of 31.2 percent till 2020.
  • Embedding telematics into EVs can facilitate locating nearest charging station, reserve spot at charging station, enable smart charging, vehicle to grid charging, time of charging (users can charge at off-peak hours when rates are lowest) and notify people when charging stops or is unplugged.
  • The global telematics market is poised to grow exponentially, with 104 million new cars expected to have some form of connectivity by 2025.
  • The global market size of telematics will be around US$47.6 billion (bn) in 2020 from US$20.02 bn in 2015 and 88 percent penetration of global integrated telematics for new cars is expected to be achieved by 2022
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