With falling EV production costs, the Indian auto industry should jump over to electric mobility soon, says Niti Aayog CEO
Amitabh Kant, CEO of Niti Aayog, believes that two-wheelers and three-wheelers with IC engines will be discontinued in the coming years as manufacturers will likely switch completely to EVs. At a round table conference between central and state governments and heavy industries, he stated that the automobile industry of India needs to “leapfrog to electric mobility”.
Kant also said that the market dynamics and advancements in technology will ensure that the switch to EVs becomes a clear choice. With the fall in battery manufacturing costs, this could indeed be the case. He also pointed out that automobile manufacturers in India have the ability to make such a switch a success. It should be noted that the electric mobility market has seen a lot of growth this year.
Electric passenger cars have seen a massive increase in sales, with Tata Nexon leading the charge. The electric three-wheeler market has also seen a lot of action, but it consists exclusively of commercial vehicles. Other than that, a lot of electric two-wheelers have also been introduced, including the extremely hyped Ola Electric scooters (S1 and S1 Pro).
In fact, Ola Electric’s entry into the Indian market was the highlight of this year in terms of electric mobility. The brand claims to have received confirmed orders for e-scooters worth Rs. 1,100 crore during a two-day sales window, which is extremely impressive. The company is yet to deliver said scooters to its customers though, but the first batch is now ready for delivery.
In response to Ola Electric, other manufacturers like Ather, Bajaj, etc., are also working on more EVs. Apart from that, plenty of EV startups have also entered the fray, and plenty more are on their way. The high level of competition is also expected to lower the prices of electric vehicles in India.
Of course, to sustain electric vehicles, a proper EV charging network needs to be established across the country. Heavy Industries Minister Mahendra Nath Pandey recently revealed that the government will set up electric vehicle charging stations at around 30 per cent of all fuel pumps in India, covering major cities and highways.