'We are seeing a hockey stick growth in the EV sector, and the e2W segment is the base for this growth story. It is very important for us to have a proper e2W strategy,' Naveen Munjal, Managing Director, Hero Electric, has said.
Delivering the keynote address at the Electric Two-wheeler Conference & Exhibition presented by Mobility Outlook in Delhi today, Munjal said the FAME II policy targets will be achieved well before the target time of 2024, and about 80% of the market will be EV by 2030.
At the conference with the theme: Made in India, Made for the World – Creating A Global EV Hub, Munjal further said that the EV sector would witness a 100% CAGR growth in the next three years, while in the next five years, the market will increase by 18-20%. This will bring new opportunities both in terms of hardware and software, making the e2W market reach a valuation of $10-12 million in the next four years.
Portable batteries will play a very important role as they give convenience, though there are challenges. Therefore, OEMs need to be extremely responsible and offer technologies suitable for countries like India, he added.
Giving a global perspective on e2Ws, Barnik Chitran Maitra, Managing Partner, India & South Asia, Arthur D Little, said globally about 50% of the 2/3-wheeler market will convert to EV by 2030. Consumer incentives have played a huge role in the mass adoption of EVs in China.
Talking about the India market, Maitra said that by 2030, 87% of the EV market would be 2Ws, with a yearly sales figure of nine million units. By 2030, 50% of all 2/3-wheelers sold in India will be EV. India will be just behind China, which will be 80%. The country lags behind at 2%, which shows that there’s tremendous potential that lies in the electrification of the 2/3wheeler segment.
The growth story of e2W has already begun in 2022, with sales picking up rapidly, but there are challenges, he said. The complex process of government incentives, slow rollout of charging infra, electricity network reliability and inadequate infrastructure are some of the challenges, he pointed out.
Maitra listed out the plan of action, stating that the Government should ease the process to avail incentives. Besides, there is a need for battery swapping solutions and product innovation, he added.
As part of e2W Summit, Mobility Outlook also unveiled “Indian Automotive Consumer Canvass (IACC) E-Mobility Survey, validated by Frost & Sullivan. According to Kaushik Madhavan, Independent Consultant, Frost & Sullivan, said, the objective of IACC is to assess the customers’ awareness, knowledge and notion on electric vehicles and understand customers’ views on what they think are the advantages and disadvantages of owning an electric vehicle and also learn their preference for, and expectations from future electric vehicles.
Mobility Outlook has also organised an exhibition participated by a few companies showcasing electric 2Ws and solutions provided by suppliers.