Lockdown constraints amid second wave of Covid-19 a downside risk for electricity demand: ICRA
Lockdown constraints amid second wave of Covid-19 a downside risk for electricity demand: ICRA
11 Sep 2024
As the world marks World EV Day, India’s progress in adopting electric vehicles (EVs) across different categories is notable, though there is still considerable room for growth.
The government's Vaahan Dashboard data reveals a growing shift towards green mobility. The most significant adoption has been in the three-wheeler segment, where 53.61% of new three-wheelers purchased in 2024 are electric, making this category the leader in EV adoption.
The two-wheeler segment also shows positive signs, with electric vehicles comprising 4.97% of all two-wheeler sales this year. Although this percentage is lower compared to three-wheelers, the two-wheeler market, which is a major part of India's vehicle sales, has substantial growth potential as consumers increasingly seek cost-effective and eco-friendly options.
In contrast, EV adoption in the four-wheeler segment remains relatively modest, with electric cars making up just 2.14% of total car sales in 2024. However, the rise in available EV models and government incentives are expected to boost this segment. Interestingly, electric buses have a higher penetration, with 3.20% of all new buses sold this year being electric, underscoring the importance of sustainable public transport.
Samhita Shiledar, Director at RMI, highlighted the benefits of EVs, including zero tailpipe emissions, reduced air pollution, and lower operating costs compared to internal combustion engine vehicles. On a state level, Goa leads in EV adoption with 14.20% of new vehicles sold this year being electric, followed by Tripura and Chandigarh. Delhi also stands out with a 10.72% EV penetration in total vehicle sales, reflecting the capital's commitment to sustainable urban mobility.
Conversely, Himachal Pradesh has the lowest EV penetration, with only 1.09% of new vehicles sold being electric. The two-wheeler category remains the largest segment of the EV market in India, accounting for about 51% of total EV sales this year. While India shows promising progress, there is still much work to be done to achieve widespread electrification across all vehicle segments.
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