Share of CNG, EVs and hybrid vehicles likely to reach 30% of total auto sales in 5 years: Icra- EQ Mag

Demand for Electric Vehicles (EVs) has increased exponentially in the last two years with the government’s push, increasing awareness, and new launches, domestic rating agency Icra said in its report.

CNG, EVs and hybrid vehicles may grab up to 30 per cent share in total auto sales in next five years even as petrol cars are likely to dominate passenger vehicle volumes in medium-term, a report said.

Demand for Electric Vehicles (EVs) has increased exponentially in the last two years with the government’s push, increasing awareness, and new launches, domestic rating agency Icra said in its report.

However, the share of EVs in the overall PV (passenger vehicle) industry remains low, at 1 per cent currently, it stated.

On the other hand, CNG vehicles have also gained prominence in recent years, aided by favourable running costs, improving penetration of CNG dispensing stations across the country, and enhanced product offerings by OEMs, Icra said and added, lower emissions in CNG vehicles would also help OEMs (original equipment manufacturers) comply with the impending Corporate Average Fuel Economy (CAFÉ) norms.

Noting that a cohesive approach from all stakeholders is imperative to facilitate the E20 (petrol blended with 20 per cent ethanol) transition within the targeted timelines, the ratings agency said auto OEMs are, however, unlikely to face major challenges to comply with proposed ethanol blending norms.

Source: moneycontrol