EV Sales in India: STATs

EV sales in India

Segment FY2019 FY2018

e-2-wheelers 1,26,000 54,800

e-3-wheelers 6,30,000 NA

e-4-wheelers 3,600 1,200

TOTAL 7,59,000 56,000

1. EV fleet is small -it sold 7.6 lakh vehicles in FY19, dominated

by two-wheelers (16.4%) and three-wheelers (83%), says a PwC
report.
2. Bloomberg’s recent New Energy Finance report has suggested
that electric vehicles will form 7% of the new car sales in India
by 2030.

EV in Global Market: STATs

1. According to the International Energy Agency (IEA), the number of

electric and plug-in hybrid cars globally exceeded 3 Mn in
2017, a 54% increase compared to 2016.
2. Sales of electric cars will reach up to 28%, and those of electric
buses to 84%, of their respective global markets by 2030.
3. Sales of electric vehicles will increase from 1.1 Mn worldwide
last year to 11 Mn in 2025, and then surging to 30 Mn in 2030.
4. In 2018, of the over 86 million passenger vehicles sold globally, just
two million were EVs.
5. There are just 5 million EVs today on the roads.
 DOMINANT in EV GLOBAL MARKET
China continues to be dominant in the electric vehicles market,
accounting for half of the total EVs sold globally last year. It
states that Nearly 580K electric cars were sold in China in 2017, a
72% increase from the previous year. The US sold the second-
highest number of EVs

India Drive
Multiple factors constrain India’s EV journey such as:
 Take cost economics, especially in the crucial passenger car
segment. The world’s largest small car market is also price
sensitive.
 Dependence on China for raw material, competitive disadvantage
in power electronics and battery manufacturing, and lack of
infrastructure—for example, there are fewer than 1,000
charging stations in India.
 Moreover, many consumers remain wary of electric vehicles
because of the cost, range anxiety, and lack of options.
 Expected Battery EV penetration in India?
EV penetration in passenger cars to touch only 6% by 2030
but grow rapidly thereafter to touch 28% by 2040, making India
the fourth largest passenger EV market in the world.

Charging stations
1. The government offers subsidy to states for deployment of
5,000 electric charging stations in cities and highways.

2. Presently, there are 150 charging stations in India.

3. Setting up stations in cities will be open to all companies

4. While only central PSUs will be eligible to deploy such

infrastructure on highways.

5. For deployment of charging stations at highways 100% subsidy

will be given on cost of charger and transformer.

6. The government has de-licensed public charging stations

business, but at a regulated tariff.

7. Private charging at residences and offices will also be

permitted.

8. Companies like ABB, Acme Industries, Fortum India and a few

Dutch firms are actively considering setting up vehicle charging
stations.

9. State-run companies like NTPC, GAIL India, Indian Oil CorpNSE

-1.69 % and Power GridNSE 1.52 % Corp have been exploring
diversification into electric vehicle charging infrastructure
business.
10. The government targets setting up of one charging station every
three km in cities and every 25 km on both sides of highways.

11. Multiple startups like Okinawa Autotech Ltd, Twenty-Two

Kymko, Ather Energy are focusing on e-two wheelers.

12. Magenta Power and Exicom Power Solutions, have entered the
business of developing and setting up fast and slow (DC and AC)
vehicle charging stations.

13. Makers of components such as solar electric charging

infrastructure and lithium storage batteries will be offered
investment-linked income tax exemptions under Section 35
AD of the Income Tax Act, and other indirect tax benefits.

14. The tax on electric vehicle chargers has also been reduced to
5% from 18%.

15. Tata Motors has inaugurated 7 electric car charging stations

in Pune on 03rd August 2019, and aims to set up another 45
across the other four cities over the next two months.

16. Noida-based electric vehicle (EV) startup EV Motors India is

reportedly planning to raise a funding of about $200 Mn to set up
nearly 6,500 electric vehicle charging stations in India in the next
five years.

Direct and indirect value in the EV charging

market
Direct sources of value from EV charging business:

 Subscriptions from vehicle owners

 Per-charge fees
 Energy use fees
 Indirect sources of value that EV charging business models
may generate:

 Increased sales of products or services near EV charging stations

 Increased tourism from electric vehicle travel to popular
destinations
 Advertising sales at EV charging station sites
 Marketing and branding opportunities
 Increased electric car sales

Other potential, market-specific value from:

 Grants and low-interest loans

 Tax exemptions and incentives
 Construction-related incentives from EV-ready buildings
 Carbon credits and other environmental and emissions-related
incentives

EV charging business costs

Of course, as in any business, there are costs to consider:

 Capital costs from equipment, installation and electricity

connection
 Operating costs from electricity, maintenance, inspection, and
damage
 Funding costs, such as interest on debt and equity returns