Electric 2Ws growth to touch 38% by 2020: Frost & Sullivan

The growth of hybrid and electric vehicles in India will be primarily driven by government incentives and the changing customer attitudes, says a report by Frost & Sullivan’s Mobility team. The company states that electric two-wheeler segment is set for 38 percent growth by 2020.

It estimates sales of approximately 1.4 million EVs in India by 2030, which will account for about 18 percent of the new vehicles market. While EVs are expected to account for about 15 percent, full hybrid electric vehicles will have about 3 percent. 

The Frost & Sullivan’s ‘Electric and Hybrid Vehicles Market in India’ report, finds that the two-wheeler segment will constitute nearly 60 percent of the electric vehicle market with a healthy growth of nearly 38 percent by 2020.

“The low speed of technology adoption can be attributed to limited cooperation between OEMs and suppliers. Increased cooperation in the future should improve economies of scale and accelerate the use of technology,” said Aswin Kumar, program manager, Mobility (Automotive and Transportation) Practice, Frost & Sullivan.

It says for a long-term growth of electric and hybrid vehicles in India, OEMs should – focus on affordable electric / hybrid technologies; keep a close watch on government plans; reduce the price gap between conventional vehicles and full hybrids;  create better awareness of hybrid/electric technologies to alleviate fears relating to safety and cost of ownership; and integrate technologies such as high-efficiency motors and low-cost battery packs with the help of suppliers by jointly investing in research and development for industry consolidation and economies of scale.

“We expect a lot of permit driven business like auto rickshaws and unorganised ones like rickshaw market to lead electrification in terms of last mile connectivity,” noted Kumar. “Sales in electric rickshaws in recent years have been a major double-digit growth contributor in this segment.”