Increased EV adoption in Tier-2 and Tier-3 cities to drive clean energy revolution, say experts – EQ Mag
Official data shows that Indians have bought 2.78 lakh EVs since January 2023 at an average of more than 90,000 EVs per month.
It’s World Earth Day and as the world takes more steps towards sustainable way of life, mobility too is seeing a significant evolution. Adoption of EVs in smaller cities can drive economic growth and development. The industry has traversed a steep technology curve in the past 6-7 years, enhancing the familiarity, trust and reliability of EVs in the eyes of consumers.
Electric vehicles (EVs) witnessed strong growth in the Indian market in 2022, with a three-fold increase in sales as compared to the year before. Official data shows that Indians have bought 2.78 lakh EVs since January 2023 at an average of more than 90,000 EVs per month. Significantly, the demand for EVs is not just limited to metro cities such as Delhi, Mumbai, and Bengaluru, but is increasing in Tier-2 and Tier-3 markets as well.
On the occasion of World Earth Day, experts from the International Council of Clean Transportation (ICCT) and The Energy and Resources Institute (TERI) reckon that the increasing awareness of environmental and cost-related benefits of EVs is driving the EV demand in the country.
Amit Bhatt, Managing Director for India, ICCT, said, “Transitioning to EVs in Tier-2 and Tier-3 cities will also help lessen India’s dependence on fossil fuels, cut down on import bills, and reduce air pollution. This shift will create a self-reliant and sustainable energy ecosystem that will contribute significantly to the country’s economic growth.”
He also explained the related benefits of a growing EV ecosystem in terms of economic growth. “Developing local supply chains and manufacturing capabilities is especially important as it can create job opportunities and reduce the cost of EVs, making them more affordable for consumers. If the government provides tax incentives, low-interest loans, and other financial support, like in larger cities, it will also accelerate EV adoption in smaller cities,” he added.
According to Sharif Qamar, Associate Director and Area Convenor, Transport and Urban Governance Division, TERI, there are seven areas of focus for accelerating adoption of EVs across different geographies – institutional and policy readiness; infrastructure readiness; technology readiness; economic readiness; social readiness; environmental readiness; and innovation readiness.
Speaking about the penetration of EVs in the Indian market, Qamar added, “India is one of the biggest two-wheeler markets in the world. Two-wheelers account for about 80 percent of the vehicle population in the country. Non-urban markets account for 50-60 percent of the total sales. With more and more OEMs and models coming into the market, we anticipate that demand for electric two-wheelers will pick up sharply owing to both push and pull factors of demand generation.”
As per the official estimates by ICCT, an ambitious vehicle electrification pathway – under which EVs could reach 95 percent of all new vehicle sales by 2040 – can help in reducing tailpipe emissions by 18-50 percent, depending on the pollutant.
Bhatt further elaborated that, “One of our recent studies revealed that, even with the existing grid, EVs in India currently emit between 19-34 percent less greenhouse gas emissions over their entire life cycle, as compared to traditional internal combustion engine cars. Electric two-wheelers yield an even greater reduction in emissions, in the 33-50 percent range. As India continues to decarbonize its grid, these emissions could decrease even further. This is great news, and reason for optimism, as it indicates a clear pathway to achieving cleaner road transportation.”
The momentum for EVs in India results from a combination of various factors – increasing concerns over air pollution and climate change; central government incentives and policies, including the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles scheme; state-level EV policies; declining costs of EV batteries; advancements in technology; and growing investments by domestic and international players in EV manufacturing and charging infrastructure. Together, these elements are paving the way for a clean, sustainable future of transportation in the country.
Source: PTI
