The Government of India is trying its best to move towards green mobility. From adding electric buses to adding electric vehicles to the government fleet, India has come a long way. G20 Sherpa Amitabh Kant said that India should achieve the target of 100 percent electrification of two-wheelers and three-wheelers in the next four years as these segments will lead the country’s green mobility revolution. Speaking at the annual session of the Automotive Component Manufacturers Association of India (ACMA), Kant said the country’s focus should be on a shared, connected and electric transport movement.
“My view is that the green mobility revolution is really knocking at our door, whether we like it or not, and India’s focus should be on a shared, connected and an electric transport movement,” he said. He further added, “I am sure that India’s electrification journey is about two-wheelers and three-wheelers.”
He said it should be two wheelers and three wheelers as 80 per cent of the total sales of vehicles are actually about two wheelers and three wheelers in India. Kant further said, “We need to target in the next four years, in my mind, India needs to target 100 per cent electrification of these two segments, go 100 per cent.”
According to the Society of Societies, in 2021-22, domestic two-wheeler sales stood at 1,34,66,412 units, while three-wheeler sales stood at 2,60,995 units and total sales of vehicles across categories stood at 1,75,13,596 units. Was. Indian Automobile Manufacturer (SIAM). According to the Federation of Automotive Dealers Associations (FADA), electric two-wheeler retail sales stood at 2,31,338 units in the last fiscal, a five-fold increase from 41,046 units in 2020-21.
The dealers body had said that the total electric vehicle (EV) retail reached 4,29,217 units in 2021-22, which is three times more than 1,34,821 units in the financial year 2020-21. Kant said the transition to electric mobility is growing rapidly as the cost of batteries, which account for about 40 to 45 per cent of the cost of an electric vehicle, is falling rapidly. “It has seen a decline of more than 100 percent in the last five to six years. It’s going to come down to $100 per kWh,” he said.
When that happens, he said, the initial cost of acquiring an EV without any FAME subsidy will become cheaper than a comparable internal combustion engine vehicle.
As such, he said the total cost of ownership of an EV is still low. Kant said Indian companies, including in the components sector, should aim to become global champions in new technology. However, he acknowledged that the EV sector still faces challenges when it comes to financing these vehicles.
“First of all, I think there is a very high interest rate and we need to bring down the low interest rates for electric vehicles. There are very high collateral and insurance charges, which need to be brought down,” Kant said.
(with inputs from PTI)