Key Messages

The adoption of electric vehicles (EVs) in India has grown significantly over the last few years. There is a three-time jump in EV sales in 2022 compared to 2021. More than 90% of the EVs sold are either two-wheelers or threewheelers. The growth in EV sales could mainly be attributed to policies, such as production-based incentives and the FAME scheme. However, we are still way behind the Government’s target of achieving 70% of all new commercial vehicles and 80% of all two-wheeler and three-wheeler sales to be electric by 2030. Currently, EVs account for only 3% of the total vehicle sales.

The pandemic has changed the purchasing behavior of consumers significantly, and demand for logistics and hyperlocal deliveries is expected to grow significantly. This could play a significant role in the EV revolution in India. Financing should not be a roadblock to the growth of the sector. More financing options focused on EVs and logistics companies are crucial to this growth.

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