As per the report released by the India Energy Storage Alliance (IESA) on Tuesday, the Electric Vehicles (EV) market in India is set to see a compounded annual growth rate of 49 per cent between 2021-2030. It has been estimated to cross the annual sales figure of 17 million units by the end of the decade.
The report specified that such a huge growth pertains to a lot of external as well as internal factors, such as continued subsidy support from both the central and state governments, entry of new players, anticipated implementation of emission standards, advancement in EV technology and expensive fossil fuel which is mostly imported in India.
Given the high demand for e-rickshaws, lead-acid batteries led the Indian EV ecosystem in 2021, with 81 per cent coverage. According to the report, among lithium-ion chemistries, mostly Lithium Iron Phosphate (LFP) is preferred for e-three and four-wheelers, while for e2W and e-buses, Nickel Manganese Cobalt (NMC) is preferred.
The IESA stated in the report, “The FAME II incentives scheme, which was launched by the government to look into ways to make EVs cheaper and attractive to the end-users and has now been extended to 2024, has benefited more than 1.8 million automobiles.” It is noteworthy that as the pandemic has receded, the EV industry has been one of the quickest sectors to recover.
