EVs to bring new business models in India

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New Delhi: Electric Vehicles (EVs) will bring new Business Models in India as it will make many changes in the industry and environment.

According to a survey done by Feedback Consulting, it will have impact on many industries whether they are polluting the environment or are working for the environment. This will bring new business models in India

The survey said that it will have major impact on regional Equipment Manufacturers (OEM), Auto Component firm, EV Chargers, Charging Infrastructure firm and even Batteries for EVs.

The likely Indian EV market will be very different than the EV markets world wide as the dynamics of Indian economy, market needs and consumer attitudes are going to be very different. This has been summarized below:

The survey said, “For a country obsessed with “Kitna degi”/mileage, EVs will find buyers as the market matures and once the shift starts, it will be difficult to stop.

It added that Indian EV market will be driven by Public Mobility needs first and then the personal vehicle ownership. A public transportation vehicles such as buses, 3-wheeler auto and E-rickshaws and Fleet Cars will be first movers for the EVs than personal vehicles.

The economics of EVs for these applications far outweigh the initial cost disadvantage. Government’s push towards public mobility with some fiscal support and bulk procurement will aid this shift.

The survey further said that unlike other markets, Indian EV story will not be led by Government fiscal incentives while there will be initial and limited support for EV adaption, no large scale support from the Government of India/states for these vehicles for personal ownership.

India is home to one of the largest 2-Wheeler population in the world and this will witness a fast shift to EVs as it has the inherent advantage of easy charging.

According to the survey, personal cars will have a slow shift in the initial 2-3 years till major Auto OEMs come with their range and variety and then the movement will have its momentum. Even in personal cars, there will be space for both the entry level, mid-range sedans and the luxury vehicles at the top end. A lot more investment in charging infra and new business models will have to be looked at before we see a mass adaption here.

Source: United News of India

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