According to BloombergNEF sale of electric vehicles in India will cross two million mark by 2040 on the back of falling prices of lithium ion batteries over the next decade.
BNEF in the report said “The cost improvements will help drive annual EV sales to above two million units by 2040, from about 3,500 units in 2019.”
It added that falling lithium-ion battery prices over the next decade will make electric passenger vehicles competitive with internal combustion engine vehicle segments in India.
The report highlighted that to spur the demand of EVs and from private consumers and attract manufacturers the subsidies currently available currently for passenger vehicles are
BNEF said “India has big ambitions for EV deployment, but progress will likely be slow.” However it expects the passenger vehicle fleet and total passenger kilometers travelled in India to more than double through 2040 with 14 per cent of the total 76 million vehicles on the road becoming electric in that year.
BNEF further said “We expect some 17 million electric two-wheelers to be sold in India in 2040, accounting for 65 per cent of all new two-wheelers sold in that year.”
As a result, the combined penetration of EVs in total vehicle sales in India by 2040 is expected to reach 59 per cent.