Electric Vehicle: A-Fast Growing Reality

The future of mobility is at a critical point of inflection. Every time oil prices spike or climate change is debated and discussed, Electric Vehicles (EVs) are inevitably mentioned as a part of the solution. Yet, despite several new Indian companies entering various parts of the EV value chain, significant capital infused in the space, and large-scale execution efforts, EVs are not mainstream yet. It is 2021 and it seems we have hit the inflection point for EVs to take off, finally.

Electric car sales took off across major car markets in 2021

Electric car sales reached a record high in 2021, despite supply chain bottlenecks and the ongoing Covid-19 pandemic. Compared with 2020, sales nearly doubled to 6.6 million (a sales share of nearly 9%), bringing the total number of electric cars on the road to 16.5 million. The sales share of electric cars increased by 4 percentage points in 2021. The Net Zero Emissions by 2050 Scenario sees an electric car fleet of over 300 million in 2030 and electric cars account for 60% of new car sales.

Also, it has been 20 years since, and one would have expected electric vehicles to become a norm and a lifestyle in the country. However, the reality seems to be far from this. When we turn to the Indian roads of today, we see that about 1 in 125 vehicles is electric, most being three-wheelers and two wheelers. And the narrative around the factors affecting the success of EVs seem to have seen no change in the past two decades.

Reports

• Revenue in the Electric Vehicles market is projected to reach US$451.60bn in 2023.
• Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 17.02%, resulting in a projected market volume of US$846.70bn by 2027.
• Electric Vehicles market unit sales are expected to reach 15,786.3K vehicles in 2027.
• The volume weighted average price of Electric Vehicles market in 2023 is expected to amount to US$53.68k.
• From an international perspective it is shown that the most revenue will be generated in China (US$179,500.00m in 2023).

 As the race to full electrification continues, China, Europe, and the U.S. account for about 95% of the global electric vehicle sales, whereas the rest of the world seems to struggle with catching up. In addition to government subsidies just getting introduced or still being non-existent, the top reasons cited for the slow progress experienced in those parts of the world include the lack of public charging infrastructure and the premium prices of electric vehicles in these regions.