Positive growth curve in EV segment likely to continue post Corona disaster

Entering into practically all segments of industrial activities, COVID-19 may have inflicted rude blows on the overall global business structure but the EV segment in India is likely to smart out of it in FY21 due to the positive approach of the Central Government towards e-mobility.

In fact, the FY21 is poised to be the most crucial phase of EV segment as it comes immediately after the global economic shakeup due to COVID-19. However, the shape of things to come augurs well as the EV-segment is going to make it out of the recessionary trend gripping the overall economy.

One of the primary reasons for it is the fact that the Central Government which is set to achieve a robust 30% e-mobility by 2030 is likely to stress on the use of non-fossil based green energy to improve the ecology which, in turn, will deter recurrence of virus attacks like the one of COVID-19.

The importance of EV to clean energy

It is in this backdrop that we find that a pro-active stand by the Central Government will help the EV segment spring back at a faster rate than the ailing IC-vehicles segment. COVID-19 made the world realize that clean energy is a must for clean earth and it can be done only with the help of EVs.

We know that the imbalance created in the overall ecology, particularly the urban atmosphere, creates a ground conducive for viral attacks. To do this, we have to check the emission of CO2 from fossil-fuel run vehicles. It is here where the prime importance of EVs comes in. It is also the time to popularize EV four-wheelers accommodating more people. FY21 may also see e-Commerce companies buying EVs for delivery purposes.

Also, one essential fact that has to be implanted in the minds of vehicle buyers is that their fossil-fuel run autos incur regular expenses due to refueling whereas EVs do not need it, thus helping them save daily expenditure.

Electric vehicles witnessed a 20% spike in sales

The Society of Manufacturers of Electric Vehicles has said during FY19-20, the sales of EVs, excluding e-rickshaws, grew by a hefty 20% selling 1.56 lakh EVs compared to 1.3 lakh units of EVs in the previous financial year.

This does not include e-rickshaws. e-Rickshaws, continuing to remain largely with the unorganized sector, reported sales of around 90,000 units in FY19-20. The sales figure of e-rickshaws sold in the previous FY has not been documented.

A comparatively better future of EVs post-COVID-19 attacks can be predicted with realism in comparing the positive growth curve of sales for FY19-20. The tilt of people towards e-scooters can be gauged from the fact that it accounted for 97% of all-electric two-wheelers sold in that FY.

This goes to prove that post-COVID-19, the vision of the Central Government towards the promotion of battery-driven vehicles is likely to grow. Few promotional activities by the Central Government and EV manufacturing companies will result in the large acceptability of this mode of transport. It will also help the EV sector see quantum jumps in sales figures. This will further improve the future of the e-taxi segment. For this, however, a large number of charging stations has to come up across the country.

COVID-19 recession could boost EV sales

Time is ripe when the recession caused by COVID-19 must be seen as an opportunity by the EV manufacturers and all those involved in the green energy vehicle business. The argument behind this is, during the Corona-lockdown period, demand for home delivery witnessed massive quantum jump. The government also allowed e-commerce.

With a little bit of foresight, those involved in the EV segment can certainly find a good future as delivery companies would require more units of transport, which is far more cost-effective as compared to costly fossil-fuel run vehicles. Delivery companies may find EVs help in improving the bottom-line of their profits.

By Rupesh Kumar and Vikrant K Aggarwal, Co-founders, EVI Technologies