New Delhi:
The number of electric vehicles on the road has steadily increased in India over the years, but there are many more petrol and diesel vehicles, according to a report.
Windmill Capital, a research analysis group registered with the Securities and Exchange Board of India (SEBI), said in its report that the rate of electric vehicle adoption is a low 2.9 percent in the current fiscal year.
It further notes that the “exponential” growth in sales of electric cars and electric two-wheelers in the first six months of the current fiscal year (April-September) is due to a lower base.
Electric car sales rose 268 percent in the April-September period to 18,142 units. Cumulative retail sales of electric two-wheelers grew 404 percent over the same period to 2,77,910 units, according to Windmill Capital, a subsidiary of Smallcase Technologies.
The number of electric cars sold in the same period last year was only 4,932 units. The sales figure for electric two-wheelers was only 55,147 units.
Total sales of electric cars and electric two-wheelers in this fiscal year were 2,96,052 versus 1,03,35,204 cars and two-wheelers – an acceptance rate of 2.9 percent, the report said.
The pace of adoption of greener vehicles has steadily increased over the past seven fiscal years, starting at 0.1 percent in fiscal 2017, when total sales of electric cars and two-wheelers were 27,000 against 2,06,37,320 cars and two-wheelers sold.
In fiscal 2021, however, it fell to 0.3 percent.
The reason for the slow adoption of electric vehicles is attributed to their high cost.
“Government support, active industry participation and high fuel prices are all positive for the EV (electric vehicles) industry. The final issue for electric vehicle adoption is the total cost of ownership (TCO) barrier. TCO is the sum of all the costs associated with purchasing, using and maintaining a particular asset over its lifetime,” said Windmill.
The initial cost of EVs tends to be higher compared to combustion engine vehicles. The high cost is a barrier to EV adoption in the price-sensitive Indian market, it added.
The center and state governments have provided incentives to boost the development of the electric mobility ecosystem. For example, EVs are exempt from registration fees and a tax deduction benefit is offered on interest paid on loans used to purchase EVs.
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