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EVs, a ₹3-lakh crore opportunity in India, says CRISIL

Emergence of electric vehicles is an opportunity for both existing and new industry participants to innovate and capitalise on the quickly evolving passenger and cargo mobility, says CRISIL’s Jagannarayan Padmanabhan

April 12, 2022 09:22 pm | Updated 09:22 pm IST - Mumbai

Electric vehicles (EVs) present an opportunity of almost ₹3 lakh crore for various stakeholders in India in the five years through fiscal 2026, CRISIL said.

The opportunity includes potential revenue of about ₹1.5 lakh crore across vehicle segments for original equipment manufacturers (OEMs) as well as component manufacturers and ₹90,000 crore in the form of disbursements for vehicle financiers, with shared mobility and insurance accounting for the balance.

Hemal Thakkar, Director, CRISIL, said, “Considering the improving cost parity and the government’s focus on electrification of vehicles, we should not be surprised if EV penetration reaches 15% in 2Ws, 25-30% in 3Ws, and 5% in cars and buses by fiscal 2026 in terms of vehicle sales.”

Jagannarayan Padmanabhan, Director, CRISIL, said, “In sum, the emergence of EVs is an opportunity for both existing and new industry participants to innovate and capitalise on the quickly evolving passenger and cargo mobility.”

“To address ecosystem challenges of the EV industry, the government is considering rolling out a structured battery swapping policy. Such facilitations will go a long way in realising the EV potential. In addition, improvement in availability of finance will push EV adoption,” he added.

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