Page 21 - The Insurance Times August 2022

energy resources and availability of skilled manpower in the 2021-22 reached 4,29,217 units, a threefold increase
technology and manufacturing sectors. from 1,34,821 units in 2020-21,
2. Total electric three-wheeler sales last fiscal stood at
In addition, multiple production-linked incentive schemes
1,77,874 units, registering an increase of two-fold over
intend to create a local manufacturing ecosystem to support
88,391 units in the preceding fiscal.
goals around greater adoption of electric mobility transport.
3. Electric commercial vehicle sales rose to 2,203 units last
This is sought to be achieved by incentivizing fresh
financial year as compared with 400 units in FY21.
investments into developing indigenous supply chains for key
technologies, products, and auto components. The Indian
government had set up the aim of replacing all internal The level of market maturity
combustion engines with EVs by 2030. In India, the level of market maturity varies according to
the state depending on factors, including demographics,
Market Overview income levels, regulatory landscape, and urbanization. For
instance, the state of Uttar Pradesh, with one of the lowest
The Indian Electric Vehicle (EV) Market is segmented by
urbanization rates, has seen significant uptake of electric
Propulsion Type (Battery Electric Vehicle, Plug-in Electric
two-wheelers. Maharashtra, on the other hand, with a
Vehicle, Fuel Cell Electric Vehicle) and Vehicle Type
higher urbanization rate, has the highest penetration of
(Passenger Cars, Commercial Vehicles, Two-wheelers, and
electric three-wheelers and passenger cars. Delhi is home
Three-wheelers). This electric vehicle market was valued at
to the largest electric commercial vehicle fleet due to a
USD 1,434.04 billion in 2021, and it is expected to reach
higher demand for electric buses and trucks.
USD 15,397.19 billion by 2027. Total electric vehicle (EV)
retails reached 4,29,217 units in 2021-22, a rise of three-
The Indian EV market being in its nascent stages is viewed
fold from 1,34,821 units in the financial year 2020-21. The
as an opportunity waiting to be exploited. Other players who
sale of electric vehicles in the nation increased by nearly
also have products in the EV market include MG Motors,
threefold in the previous fiscal year. Two-wheeler dominated
Maruti Suzuki, Renault, Audi, Volvo, Hero, Ather, etc. An
the sector. 100 percent foreign direct investment is allowed
expansion in the EV industry will also see other associated
in this sector under the automatic route.
industries catch on too. This includes the battery and EV
chargers. Interest has been shown by many companies like
Heavy investments from automakers are expected to cater
Siemens, Schneider, Delta, etc. But unfortunately, these
to the growing demand for EVs and play a major role in the
companies will only move in once a significant demand arises
evolution of the electric vehicle market. OEMs offer electric
in the public 4 wheeler segment. On the other hand, one of
vehicles in different segments ranging from hatchbacks such
the major factors for the EV industry not expanding has been
as Nissan Leaf to high-end sedans like Tesla Model 3. See
consumer concerns regarding the lack of Fast Chargers in
the data of the previous fiscal:
India.
1. Two-wheeler dominated the sector. EV retail sales in
Setting up EV
chargers
Unorganized and small
players are dominating due
to the limited scale of
business. In order to
combat this, the NITI Ayog
is laying a key role in setting
up EV chargers. There are
currently 270 units of
installed EV chargers in
India. NITI Aayog has
partnered with NTPC in
order to set up 100,000 EV
charging stations across

The Insurance Times, August 2022 21