Two-wheeler fleets and three-wheelers will be the first to witness EV adoption followed by intra city buses, government fleets and corporate cabs. Two-wheeler and three-wheeler segments offer a huge opportunity for electrification in India given it is the world’s largest two-wheeler market as well as one of the biggest markets of three-wheelers, according to a joint Assocham- EY Report.
The primary reason for fleets being early adopters are the economics that EVs offer over combustion engine vehicles and that the fleet owners base their purchase criterion on the Total Cost of Ownership (TCO) and not just the acquisition cost of the vehicle.
Rakesh Batra, Partner and India Automotive Sector Leader, EY said, “In terms of vehicle segment and applications, shared vehicles and fleets will offer a better value proposition for all stakeholders – manufacturers, as higher volumes can help them achieve scale, and for fleet operators as the TCO of EVs is already competing with that of ICEVs.”
A blossoming EV market needs to be accompanied by adequate number of electric vehicle charging installations. India is already witnessing a divergence of business models for operators of charging infrastructure aimed at the users of public and private EVs. Read More
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