It seems that the Indian government is going to focus on electric two— and three-wheelers. Taking these beyond Tier 1 and 2 Indian cities appears to be the talk of the town!
There’s a strong sense of collaboration in the air as various ministries engage in ongoing discussions with key officials from leading automotive organizations and component makers. This concerted effort is a reassuring sign of the meticulous planning and execution of the Automotive Mission Plan 2030.
“The coordinators of various ministries of the Government of India are abuzz with officials of CXO levels discussing the undercover Automotive Mission Plan 2030 (AMP 2030). Also on the agenda is the immediate plan of action for the next few months and how the same would lead to AMP 2030,” the individual told us.
Previously, Automotive Mission Plan 2047 (AMP 2047) was the focus. However, the government now wants to ensure that AMP 2030 serves as the proper ground for AMP 2047. The individual adds that electric two-wheelers and electric three-wheelers are going to be the most significant focus segments for AMP 2030.
“The scooter and auto segment have emerged as the winners in adopting the electric powertrain. It is now evidently clear that these two will continue to switch to electric and are best suited for the technology,” the individual said. He further explained, “A lot of conversations are being held around the availability of finance for these two segments. The government wants to ensure that funds do not become a roadblock in how India is adopting electric scooters and electric three-wheelers.”
According to Vahan Portal, 9,47,087 E2W units were registered in the 2023-24 fiscal year, compared to 7,28,205 units in FY23. Similarly, against 4,04,430 E3W units registered in FY23, 6,32,636 E3W units were registered in FY24!
Also Read: “Electric Rickshaws Minus Batteries Are The New Trend In Tier 3,4 Cities”
Manish Raj Singhania, President of FADA, had recently noted, “The 3W segment demonstrated growth driven by the increasing acceptance of electric vehicles, showing an optimistic trend despite potential challenges from election uncertainties and policy changes.” He had also pointed towards the 2W-EV market share jumping to 9.12% for the first time.”
The logistics sector, primarily the organised one, has been leading the adoption of EVs in India. As per the individual, the focus is also on how to increase this adoption in Tier 3, 4, and beyond cities in the country. Coincidentally, the likes of Revfin, Alt Mobility, AMU Leasing, Chargeup, and more such companies have been enabling financial as well as EV inclusion for these regions in the country.
“How to accelerate the momentum forward is one of the discussions. Separate EV and battery finance, solar-powered charging stations, battery swap stations have been a huge part of the conversations taking place with various senior officials from the government of India,” the individual added. As for more considerable vehicle form factors, the focus of the discussions has been on building a “robust” and localised supply chain of components in the country.
