Covid-19 coronavirus pandemic has caused a global financial downfall with all major economies falling to 30-40%. All the industries and sectors have been impacted as countries around the world were in complete lockdown for 4-5 months.
For the first time in the history of India, all the major 14 car manufacturing companies had registered 0 unit sales in a month (April 2020). The automobile industry has been worst hit with all major manufacturing units shut for 4-5 months.
It will take around 2-3 years to get the economy back on track and the government has to take major initiatives and provide subsidies, tax deductions etc. to give the automobile sector a much-needed breather.
The automobile industry in India accounts for 7% to its GDP and roughly contributes 22% to the manufacturing GDP, which is nearly 0.22 Trillion USD.
As of 2020, Electric Vehicles contribute to only 1% of total vehicles on road in India, which is predicted to grow to 30% till 2030.
Since the outbreak of coronavirus pandemic, the major concern related to the automobile industry is the impact it is going to have on the manufacturing and implementation of Electric Vehicles in India.
Understanding Covid-19 impact on Electric Vehicles Industry
Government of India is pushing for electric vehicles from last few years and with the phase 2 of FAME being in the implementation stage, promoting BS-6 vehicles, Delhi-Mumbai Electric Highway etc. are going to shift new-age startups towards acceptance of and providing electric solutions.
To get the economy back on track and automobile sector running, the government will take this opportunity to shift the focus of automobile manufacturers towards EV, by providing higher tax breaks and subsidies towards manufacturing of EVs and EV charging stations.
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The major challenge faced by owners of electric vehicles is the limited availability of charging stations. However, in coming years, the number of charging stations is going to increase and the acceptance of EVs by Indian consumers is going to increase exponentially as people are looking for less maintenance, cost-effective (EVs are 80-85% cheaper in terms of running cost as compared to traditional vehicles) and eco-friendly solutions.
Electric Two-wheelers below 120cc are going to dominate the automobile market due to their feasibility and most two-wheelers come with removable batteries which can be charged at ease at home.
Two-wheelers are being used by Indian consumers for day to day commuting and for shorter travels within villages or towns, which makes EVs as the preferred solution due to its ease of driving and saving of almost 90% in fuel cost on a monthly basis.
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Startups in the past 2 years and those wanting to enter the automobile manufacturing sectors are working in providing solutions for EVs or EV charging stations making them the preferred choice of buyers.
China being worst affected by coronavirus and major companies trying to shift their base to India will also put a brake on China’s plan of going all EV and will change the overall global outlook towards India, giving a much-needed push.
Conclusion: One cannot avoid the fact that this COVID-19 coronavirus pandemic has affected the government’s vision of going 30% electric by 2030 and it will take major efforts to get back on track. But considering the overall scenario and comparing with other major economies of the world, India is going to fast track its move towards adopting greener solutions and we are sure the market of EVs is going to increase exponentially in India in coming years.