Indian Energy Storage Alliance (IESA) has released its 2nd annual report on ‘India Electric Vehicle Market Overview Report 2020-2027’. This report is aimed at showing the current and future of e-mobility in India. This report also shows the sale details of the charging tools, Electric vehicles across all segments, EV components like motors, power electronics and battery management system are also mentioned in the report.
The report stated that the EV market is expected to grow at a compound annual growth rate (CAGR) of 44% for the year 2020 to 2027. For the year 2019-2020, the total EV sales in India was 3,80,000 units meanwhile the total battery capacity (GWh) stood at 5.4 GWh. By the year 2027, the EV market is estimated to hit 6.34-million-unit annual sales and the total battery demand is expected to grow at 32% to reach 50GwH. The battery market will also be on the rise too, hitting USD 14.9 billion by 2027 whereas, currently it is at USD 580 million.
The demand for electric vehicles is on the rise and it is evident from the fact that the maximum of the automobile manufacturers is now increasing their investment in the e-mobility segment. By the next few years, the cost of owning an electric vehicle will almost be as much as their internal combustion engine counterparts. Further, the price of Li-ion batteries, power electronics and the charging infrastructure is also expected to drop in order to attract more and more people.
The commercial vehicle is also responding in a positive way towards this change of technology. There are numerous reports stating that demand for electric rickshaws is on a rise and a lot of companies like OLA, Mahindra and others have already launched new models. Electric buses are also increasingly becoming popular in major cities like Mumbai, Delhi, Hyderabad, as electric buses are environmentally friendly and thus help decrease the carbon footprint. The e-commerce sector is also upgrading its fleet to go all-electric and has started drafting policies to govern them. The Government of India is also pushing reforms to favour electric vehicles and develop a robust e-mobility infrastructure.