Greener Vehicles: Green vehicles will account for 30 percent of total vehicle sales in 5 years

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Greener Vehicles Future: Due to the focus on Green Energy and the costlier diesel-petrol, the demand for vehicles running on alternative fuel is increasing worldwide. The subsidy being received from the government in India is also increasing the demand for such vehicles. The share of CNG, electric vehicle (EV) and hybrid vehicles in total vehicle sales is expected to reach 30 per cent in the next five years. However, the dominance of petrol cars in domestic passenger vehicles is likely to continue. This information was given in a report.

Domestic credit rating agency ICRA has said in its report that the demand for electric vehicles (EV) has increased rapidly in the last two years with the government’s efforts, increasing awareness and new offerings. However, the share of EV in the overall passenger vehicle industry is currently only one per cent, the report said.

ICRA said that on the other hand, the penetration of CNG vehicles has increased in recent years due to relatively lower cost, improvement in the number of CNG dispensing stations and increased product offerings by OEMs (Original Equipment Manufacturers). According to the rating agency, ethanol blending fuel will reduce vehicular emissions, strengthen energy security, help reduce oil imports and preserve foreign exchange reserves.

ICRA said that ethanol blending in petrol has been increasing gradually over the years and India has achieved the target of 10 per cent ethanol blending in the year 2022. Apart from this, the central government has reduced the target of blending 20 percent ethanol in petrol from 2030 to 2025.

We expect the proportion of CNG, EV and hybrid vehicles to be 20-30 per cent in new vehicle sales in the next five years, said Shamsher Dewan, senior vice-president of ICRA. However, the dominance of petrol vehicles will continue. (with language input)

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