Park+ began as a purpose to link commuters to safe, secure, and digitised parking places around the country, and has now developed to become a safe space to meet people’s automobile needs. Park+ aimed to help travellers save time when looking for parking places in various locations around the country. However, when Park+ engaged with their consumers, they realised the need to broaden their scope to include additional car-related demands such as insurance renewal, FASTag difficulties, challan payment, and so on. Going by the idea that change will always remain the only constant, we have now extended our services to anything automobile-related and merely go by the one simple guideline, “Simplifying the process of owning a car”.
In a recent interview, Abdullah interacted with Mr. Amit Lakhotia, Founder & CEO, Park+ in which he discussed about the growth of the EV passenger vehicle market globally and in India, consumer preferences shifted towards EV passenger vehicles in recent years, government policies and incentives influenced the adoption of EV passenger vehicles, additional measures could governments take to further boost the EV passenger vehicle market, latest technological advancements in EV passenger vehicles, traditional automakers adapting to the rise of EVs in the passenger vehicle market, future growth of the EV passenger vehicle market over the next decade.
1. What are the key factors driving the growth of the EV passenger vehicle market globally and in India?
The transportation sector accounts for about 24% of global energy-related CO2 emissions. Electric passenger cars, producing zero tailpipe emissions, offer a solution. Government regulations significantly influence consumer behaviour and market trends. India’s FAME scheme aims for 30% EV sales by 2030, driven by rising fuel prices, air pollution concerns, and improved charging infrastructure. As consumers increasingly recognize the benefits of EVs, demand for these eco-friendly vehicles is growing.
2. How have consumer preferences shifted towards EV passenger vehicles in recent years?
A McKinsey Survey reveals that Several factors are fuelling the growing interest in EVs – Prospective buyers highlight the environmental benefits (67 percent), the lower total cost of ownership (26 percent), and the reduced engine noise (26 percent) as the primary advantages of driving an electric vehicle.
3. How have government policies and incentives influenced the adoption of EV passenger vehicles?
The Production Linked Incentive (PLI) Schemes are expected to bring down production costs and make electric vehicles more affordable. The PLI scheme for ACC Battery Storage with a budget of ₹18,100 crore aims to achieve a manufacturing capacity of 50 GWh (Giga Watt Hour) of advanced chemistry cell batteries in India. Private players are expected to add another 95 GWh, bringing the total capacity to 145 GWh, and bringing down battery costs, a major factor affecting electric vehicle affordability.
A 7% reduction in GST on electric vehicles and charging stations has lowered the upfront purchase cost of electric vehicles, making them more attractive to price-sensitive consumers. Reflecting this policy change, electric two-wheeler sales in India increased from 0.09% of total sales in 2018 to 5.28% in the first half of 2023. FAME India Phase-II offered subsidies of up to 40% on electric two-wheelers, leading to a significant increase in sales. However, with increasing market penetration, the subsidy has been reduced to 15% to make the scheme more sustainable. These policies are expected to make electric vehicles more price competitive with gasoline vehicles, which can significantly impact market adoption.
4. What additional measures could governments take to further boost the EV passenger vehicle market?
Governments can boost the EV passenger vehicle market by expanding charging infrastructure, increasing financial incentives like subsidies and tax breaks, and implementing stricter emissions regulations. Investing in public awareness campaigns, supporting battery technology R&D, and ensuring EV affordability and accessibility are also crucial. A comprehensive strategy that includes incentivizing battery manufacturing and providing incentives for small hybrid vehicles could be pivotal for the Indian EV industry, driving significant progress until EVs achieve critical mass.
5. What are the latest technological advancements in EV passenger vehicles?
Recent technological advancements in EV passenger vehicles include the development of solid-state batteries, which offer higher energy density and faster charging times compared to traditional lithium-ion batteries. Innovations in autonomous driving technologies and advanced driver-assistance systems (ADAS) are enhancing safety and convenience. Additionally, improvements in electric drivetrains and regenerative braking systems are boosting efficiency and performance. Enhanced connectivity features, such as over-the-air updates and integrated smart systems, are also becoming standard, providing a more seamless and intelligent driving experience. These advancements collectively contribute to making EVs more efficient, reliable, and appealing to consumers.
6. How are traditional automakers adapting to the rise of EVs in the passenger vehicle market?
Traditional automakers are rapidly adapting to the rise of EVs in the passenger vehicle market by investing heavily in electric vehicle technology and expanding their EV product lines. They are forming strategic partnerships with tech companies and battery manufacturers to enhance their capabilities. Additionally, many are converting existing manufacturing facilities to produce EVs, launching new electric models, and setting ambitious targets to phase out internal combustion engines. These automakers are also focusing on developing proprietary charging networks and offering comprehensive EV-related services to stay competitive in the evolving market.
7. What do you predict for the future growth of the EV passenger vehicle market over the next decade?
EV sales are expected to continue strongly in the next decade. We expect to see around 17 million in EV sales by the end of 2024, representing more than 20% year-on-year increase. National policies and incentives, along with increasing price competition, will help bolster sales.