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NITI Ayog's Report: Cost of Conversion to EVs by 2030 will be 19.7 Lakh Crores

 The transition of the Indian Market to Electric vehicles has well and truly begun. The time required by this transition may start from as low as 2 years to anything about 8 years. While the EVs maybe the need of the hour considering Pollution, Low Fuel Reserves and Costs involved in running a Vehicle on a Fuel, this Transition is not going to be easy.

NITI Ayog

NitiAyog released some numbers highlighting the cost involved in this conversion by 2030. As per the estimates raised by the report "Mobilizing Electric Vehicle Financing" released by the Nitiayog, below are some key points:

1) Finance sector has a key role to play in the transition to EVs with cumulative capital requirement of 19.7 Lakh crore for EVs, Charging Infrastructure and batteries over the next 10 years.

Electric Scooters

2) The report highlights a market size of Rs 3.7 Lakh crore for the financing of EVs which would be 80% of the current Financing for Indian Retail vehicle segment

3) Currently end users face manu challenges in adopting to EVs such as High Interest Rates (2% above the current Fuel based Vehicles), High Insurance rates and loan to value Ratio.

4) Niti Ayog estimates that 50 Million EVs could be plying on Indian Roads by 2030s.. Re-Engineering vehicle finance and mobilising public and private capital will be critical for supporting this transition.

5) Secondary market development needs development as similar in the case of Mobiles. As per NitiAyog, the Electric vehicles buy back is also a critical feature needs to be introduced as in case of Mobiles by Mobile companies.

Therefore challenges for EV development has many challenges by 2030 and Goverment needs to take several measures to accelerate the pace of the same. However we can expect a drastic change in the Indian Autombile market as it took place in case of Andoid and Reliance Jio.

The Indian EV market transition can take pace at any time withn 2 years or upto 8 years. To read the full NITI ayog report click on the link below:

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1703449

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