EV adoption in India to peak: Report

NEW DELHI: The growth in electric vehicle sales in India is likely to continue for the rest of the decade, with two and three-wheelers expected to dominate EV sales in the near future, according to a report.

The jointly prepared report by KPMG and CII, released on Monday, also said that EV adoption is expected to see an inflexion point once all vehicle segments show significant ownership savings over the vehicles powered by internal combustion engines.

The shift to EVs is no longer an uncertainty but only a question of when, the report said. Adoption levels are expected to see exponential growth in future with developing infrastructure, government incentives and the launch of new EV models, KPMG said in a release.

Technology is at the forefront of the EV revolution. The shift from ICE to EV has increased the electronics content from 16 per cent to 55 per cent in a vehicle with the addition of new features and controls, it said.

Many of these technologies are going to become standard offerings in the future and the addition of newer features/ development of new technology is going to be a continual process.

Noting that climate change has become a collective global issue in the last 20 years, and the concerns are only increasing, the release said while many sectors contribute to the ongoing climate emergency, the one that stands out the most is carbon emissions due to the transport sector.

Over the last couple of years, the Indian government has drafted policies and plans like the FAME (scheme) with the aim to achieve 30 per cent EV sales penetration for cars, 70 per cent for commercial vehicles and 40 per cent for buses as well as 80 per cent for two- and three-wheelers by 2030, it said.