The country’s electric vehicle sector will provide a business of about Rs 3 lakh crore to various stakeholders or stakeholders by the financial year 2025-26. This has been estimated in a report released on Tuesday by rating agency Crisil. The report also said that the shared transport system, battery swap policy and interest and government support for converting petrol-diesel powered vehicles to EVs are expected to boost the sector.
These business opportunities include a potential revenue of around Rs 1.5 lakh crore across various vehicle segments for original equipment manufacturers and around Rs 90,000 crore for those who finance more vehicles. Other business opportunities will come in the common transport system and insurance sector. According to Crisil, by the financial year 2025-26, the share of two-wheelers in EVs is estimated to reach 15 per cent, 25 to 30 per cent in three-wheelers and five per cent for cars and buses.
The report said that the acceptance of electric vehicles will continue to accelerate as people are now preferring EVs over petrol-diesel powered vehicles. According to the data available on the VAHAN portal, the share of electric three-wheelers increased to five per cent in the last financial year from less than one per cent in the financial year 2017-18.
According to the report, the share of electric two-wheelers and buses increased to 2 per cent and 4 per cent, respectively, in the last financial year. The analysis also shows that this change is not limited to big cities only. CRISIL said that even in small towns, there is a growing attraction for electric vehicles. The reason for this is the financial and non-financial steps of the government.
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Jagan Narayan Padmanabhan, Director, Rating Agency said, “The advent of EVs has created opportunities for both existing and new entrants in the industry. This opportunity lies in the innovative and fast growing passenger and freight vehicles. To address the challenges faced by the environment of the EV industry, the government is contemplating to formulate a battery swap policy structurally. In addition, improving finance availability will also increase the acceptability of EVs.