By Dhirraj Agrawal
EV(Electric Vehicle) – Need of The Hour
The total EV(Electric Vehicle) sales in 2018 hit 365,920 Units and grow at a CAGR of 36% till 2026. The EV battery market in India is estimated to be US$ 520 Million in 2018. It is forecasted to grow at a CAGR of 30% by 2026. The total MWh addition in 2018 hit 4.75 GWh and is expected to grow to 28.0 GWh by 2026.
During and after the global COVID-19 pandemic, the world will undoubtedly change the way people move around, especially in a population-dense country such as India. The comprehensive index for ride-sharing platforms could increase by 20% CAGR during the pre-COVID era. From $ 61.3 billion in 2018 to $218 billion by 2025. The Indian electric vehicle (EV) market will be driven mainly by the two-wheeler and three-wheeler segments.
For sure, EVs are going to rock, and it’s full of opportunity for each stakeholder from EV OEM to Charge Point Operators. COVID-19 is just another bump in the road, but at the same time, it indicated that EVs as one option to solve the problem of pollution. The new normal has, for sure, a special place for EVs as well with changing work culture and a person’s mind-set. The moment we overcome some critical issues like cost, range, and availability of Charging facilities, EVs will be in full swing & these issues will surely get a corner in the next 2-3 years’ time as the market is changing very fast. Lots of R &D going on. Just get ready for this EV STORM and make your mind that your next vehicle would be an EV, Mr. Dhiraj Agarwal, CEO & Sr. Vice President of Manappuram Finance Limited Vehicle & Equipment Finance, told Prittle Prattle News.
Source: SIAM Report
What Are the Challenges for The EV Market in India?
- Inadequate charging infrastructure
- Dependence on battery imports and imported components and parts
- The high price of EVs currently in India
- Lack of options for high-performance EVs
- Inadequate electricity supply in parts of India
- Finance Facility
Finance as an option – EV
Investment is the far most factor that is affecting the vehicle to finance in India. Mostly 60% of the EV’s are being financed and mainly through private companies or by Nationalized banks. NBFC’s are not very much interested in funding these risky profiles. It can be of great advantage if the product could get financed with all precautions. We are considering all credit and risk parameters. As already known, they are daily earning customers, so we have to design a way to make the EMI daily, either through branch deposits or through the online platforms.
We have started the finance of the EV 14 months back, and the response was also great and managed to do decent numbers as well with all major manufacturers in India. We work at all India level in all major cities as well. The business with normal TW was as usual, and post-COVID also improve further due to social distancing norms. People will avoid traveling by Metro / BUS and will either buy TW or take on rent, Mr. Dhiraj Agarwal, CEO & Sr. Vice President of Manappuram Finance Limited Vehicle & Equipment Finance, proclaimed in an interview with Prittle Prattle News.
POS COVID
During and after the global COVID-19 pandemic, the world will undoubtedly change the way people move around, especially in a population-dense country such as India. The comprehensive index for ride-sharing platforms grew at 20% CAGR in the pre-COVID era from $ 61.3 billion in 2018 to over $ 218 billion by 2025. The Indian electric vehicle (EV) market will continue to be driven by the two-wheeler and three-wheeler segments.
The time frame will be by next quarter – During the festival season the sales may pick up. And this will be normal by the following year, 2021.
India’s electric two-wheeler market to cross 20 lakh units in the next five years. The expected share of ETWs in total two-wheeler sales in the next five years could vary from 6 percent to 15 percent. The current percentage of sales in the financial year 2019-20 (FY20) was 0.7 percent.
The expected share of ETWs in total two-wheeler sales in the next five years could vary from 6 percent to 15 percent. The current stock of sales in the financial year 2019-20 (FY20) was 0.7 percent.
We all need to see the opportunities and should not let a good crisis go waste.
