File photo of an electric vehicle charging station. Moody’s Investors Service has said in a report that the government needs to increase charging station infrastructure to reach the penetration target of 30% by 2030. Photo credits: Moorthy M.
Moody’s has said that government incentives including cuts to consumers, local battery manufacturing, state-level subsidies and GST rates will help increase EV penetration in India.
India is the fourth largest car market globally, but electric vehicle (EV) penetration is currently only around 1%, says a report by Moody’s Investors Service.
The pace of EV sales growth and towards the government’s target of 30% by 2030 will also depend on the country’s charging infrastructure, and the willingness of consumers to switch to EVs from conventional ICE vehicles, or those powered by petrol, diesel, or conventional engines. Will depend on promptness. natural gas.
“We expect various government incentives to drive growth in EV penetration. These include consumer incentives, advanced battery storage to drive local cell manufacturing, Goods and Services Tax (GST) rate cuts, and other state-level subsidies. including production-linked incentives. Moody’s said.
India overtakes Japan to become third largest vehicle market in 2022 after China and US
Read this also | Tata Motors sees increased adoption of electric vehicles in rural India
Last month Union Minister Nitin Gadkari had said that if India could use Lithium reserves recently discovered in Jammu and KashmirIt can become the world’s number one automobile manufacturer in the electric vehicle segment.
Lithium is a key element in making the batteries that power electric vehicles.
The government aims for private cars to account for 30%, commercial vehicles for 70% and two- and three-wheelers to account for 80% of EV sales by 2030.
Moody’s said Tata Motors retains an early mover advantage in the battery EV market in India with 85% share (April-December 2022).
With a presence through 250 dealers in 165 cities and around 4,300 charging points, the company has already given permission to sell some 50,000 EVs, Moody’s said.
Tata said it plans to expand its EV line-up from four models to 10 by March 2026. Tata’s EV business has already raised $1 billion from private-equity investor TPG.
Last year, global battery electric vehicle sales were nearly 8 million, of which 65% were in China. Europe represented about 20%. Moody’s said consumers in those regions benefited from government incentives and expanded product offerings from automakers.
“We expect the share of battery electric vehicles (BEVs) in global light vehicle sales to grow from around 10% of new vehicle registrations currently to more than a third by 2030 and nearly half by 2035.”