India To Have 87 per cent EVs By 2047 With Policy Boost: FICCI-YES Bank Report

Priyanka Tanwer
Priyanka Tanwer Jun 07 2023 - 3 min read
India To Have 87 per cent EVs By 2047 With Policy Boost: FICCI-YES Bank Report
For cost alleviation and investment drive, the report suggests demand incentives till significant xEV penetration and emissions-based taxation, while also creating credit pathways for financing xEVs.

India has the potential to achieve 87 per cent xEV penetration in new vehicle sales by 2047 where 85 per cent of the value chain can be localized, FICCI- YES Bank’s report on E-Mobility said on Tuesday.

“FICCI's Electric Vehicle Committee and YES BANK, establishes a vision for e-mobility in India for 2047, and an accelerated roadmap to achieve the same. It identifies key aspirations the sector has potential to achieve over the next 25 years - from market development 87 per cent xEV penetration in new vehicle sales, to local industry development where over 85 per cent of the xEV value chain can be localized, and being a key pillar towards India's net zero goals,” the report stated.

According to the report, India will have 90 per cent penetration in two-wheelers segment, 91 per cent in three wheeler segment, 79 in passenger vehicles and 67 per cent in buses by 2047.

Releasing the report, Tarun Kapoor, Advisor to the Prime Minister, PMO said that the government wants to focus on driving the EV sector so it can become a manufacturing hub for the world.

Addressing the gathering here he said, “Time for electric vehicles (EVs) in the country has come and India needs to move in this direction mainly because of our energy security and environmental concerns. "From government side also, we now want to focus on driving this sector so that not only do we have more and more electric cars, buses and two-wheelers on the road, but we also become a manufacturing hub for the world."

The report identified opportunities offered by a 20 million domestic vehicle market, and the global shift towards electrification, supported by tailwinds such as tightening emission norms (CAFEII, RDE, BS6.2), central and state incentives on vehicle purchase, demand aggregation, and growth of the TCO attractive fleet segment.

It recognized local industry developing due to need of products made for the Indian drive cycle, schemes such as PLI and localisation norms for demand incentives. It further noted technology partnerships with advanced markets and starting of R&D focus, especially in the emerging PE/VC funded startup ecosystem.

The report brought the roadman solution to the issues including high upfront cost & constraints on vehicle finance, safety concerns, nascent global inroad,  limited access to key raw materials, R&D and skillsets combined with low order volumes, and issues in charging infrastructure development & utilisation.

The report also suggests mandating charging infrastructure in public parkings, and a greater mandate for electricity utilities for upstream infrastructure creation and green power integration.

Meanwhile, Kamran Rizvi, Secretary, Ministry of Heavy Industries said that Indian automobile industry is a matter of pride for the country. He stated that electric vehicle sector in India has great chance to become a leader and urged the industry to focus on making batteries lighter and reduce the dependence on rare earth magnets which are currently being imported.

“EVs present a great chance for India to compete with the world and let us ensure that the Indian EV story become the global EV story,” added Rizvi.

Industry present at the roundtable also sought extension of FAME II subsidy scheme by another five years when it comes to an end by March 2024.

Hanif Qureshi, Joint Secretary, Ministry of Heavy Industry said that government is looking at feedback from the stakeholders for the future roadmap for EV sector when FAME II comes to an end in 2024. He said that we are discussing what are the technologies and areas to be supported going forward.

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