The festive season is arriving, which will drive the demand for vehicles in the automotive industry. Both for commercial as well as private vehicles industry, this time of year is important as it drives more demand. Experts have given the opinion that this year will see a rise in demand for electric vehicles. The rise of the e-commerce market and the increase in consumer spending is some of the reasons why EVs will remain in demand. Further, the government is pushing to buy electric vehicles with its various schemes. This makes the buying of electric vehicles more affordable.
The recent reports in the industry have shown positive sentiments of buyers for electric vehicles. During the month of July, the demand for electric vehicles witnessed the demand of 26,127 units of electric vehicles in the market. Further, the electric vehicle market is expected to perform 15 times better than the pre-COVID years as per forecasts.
Rising prices of fuel are also one of the other important factors which are contributing to the growth of EVs in India. Further, there are also easy finance options available for electric vehicles. There has also been an increase in demand for small commercial vehicles in the semi-urban areas of the country, which makes electric vehicles their best. The boom of the e-commerce market I the country after the pandemic has given the transporters the cause to limit their cost spending. This has also been a good reason for the increasing demand for electric vehicles in the country.
Initiative schemes like FAME-II have also inspired the purchase of electric vehicles. This scheme provides the incentive of Rs 15000 per kWh for purchasing electric vehicles. Likewise, there are other incentives that will help in bringing down the price of electric vehicles by a large number. The introduction of the PLI scheme will motivate vehicle makers to offer more electric vehicles in the market. Further, the EV battery market is also expected to grow at a CAGR of 30 percent till the year 2026. This festive season will hence provide the foundation stone to EV transformation by 2022.