India will become Bahubali in EV sector, if government does this work
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EV Industry News: India is going to become a big market in the coming time in the electric vehicle industry. At present, India has the fourth largest market in the world. Moody’s has released the report saying that government incentives, local battery manufacturing, subsidies at the state level and reduction in Goods and Services Tax (GST) rates will help in increasing the penetration of electric vehicles in the country. Moody’s Investor Services has said this in a report. The report states that India is the fourth largest car market globally, but the electric vehicle (EV) penetration is just one per cent.
The report says that the government’s target of increasing the penetration of electric vehicles by 2030 will depend on the charging infrastructure and the attitude of consumers to shift from conventional petrol, diesel vehicles to electric.
Moody’s said, we believe that various initiatives of the government will increase the penetration of EVs in the country. These also include incentives given to consumers. Apart from this, factors such as production-based incentives for advanced battery storage, reduction in GST and state subsidies will also help in increasing the penetration of EVs. India is set to overtake Japan in 2022 to become the third largest automobile market after China and the US.
Union Road Transport and Highways Minister Nitin Gadkari said last month that if India can use the recently found lithium reserves in Jammu and Kashmir, it can reach the first place in the world in the electric vehicle segment. Lithium is a key element in making the batteries that power electric vehicles.
The government has a target of 30 per cent EV sales for private cars, 70 per cent for commercial vehicles and 80 per cent for two and three wheelers by 2030. Moody’s said Tata Motors leads the battery EV market in April-December 2022 with 85 per cent share. Moody’s said the company has already sold 50,000 EVs with a presence through 250 dealers in 165 cities and around 4,300 charging points. (with language input)
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