ASSOCHAM Report: Expanding EV Sector in India Needs Rapid Infrastructure Addition

Electric Vehicle sales in the country are expected to grow in the double digits until the year 2020, according to a joint report by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and global advisory firm EY.

The EV market is expected to gain momentum in the coming years as stricter emission norms are implemented on petrol and diesel vehicles. Moreover, the gradual reduction in the prices of EVs and increasing awareness among the consumers will continue to drive India’s EV market forward, the ASSOCHAM-EY report stated.

In the study titled Electric Mobility in India: Leveraging Collaboration and Nascency, it was highlighted that the EV sector, which is still in its nascent stage in the country, could be a stepping stone in designing an intelligent transport infrastructure for the country.

Currently, the EV industry comprises less than one per cent of the total vehicle sales and is dominated by two-wheelers (95 percent), according to the report.



Calling attention towards the lack of proper and sufficient charging infrastructure for the EVs, the study said, “The required need at this point in time is the presence of related support industry and infrastructure as it will help the charging infrastructure thrive. We expect the government to take active measures to streamline regulatory challenges and provide further policy impetus to drive uptake of EVs.”

However, according to the report, home charging would continue to occupy a dominant part of charging infrastructure with a share of nearly 70 percent in the year 2030. “There is a growing need for a nationally regulated rate that can be applicable to all charging stations across India,” added the study.

Mercom has previously reported that India’s EV market is slowly gaining momentum after three years of relative inaction.

To expand the consumer base of EVs in the country, the Indian government launched the National Electric Mobility Mission Plan (NEMMP) in 2013 with an investment of approximately ~$3 billion (~₹192.8 billion) to promote hybrid and EVs.

India is currently targeting the deployment of five to seven million EVs in the country by 2020 under the NEMMP. Though the country still lags behind other nations when it comes to EVs, several states have stepped in to develop their own policies to promote EV adoption.

In the recent past, Karnataka and Maharashtra launched their own EV policies that provide various subsidies and incentives to consumers.

Recently, ABB, a charging infrastructure provider, installed electric vehicle fast charger station at NITI Aayog in the national capital. In November 2017, NITI Aayog had released a proposal to develop electric vehicle (EV) charging infrastructure in Delhi drafted by AC2SG, a Finland-based Smart Grid Software solutions provider, in collaboration with NITI Aayog.

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