As we bid adieu to 2023, it’s time to reflect on the dynamic landscape of E-mobility and electric vehicle (EV) charging in India. The past year has witnessed significant strides, propelled by technological advancements, supportive policies, and an ever-growing awareness of sustainable transportation. In this comprehensive year-in-review blog, we’ll delve into the key developments that shaped the E-mobility sector in India during 2023.
EV Two-Wheelers: A Rising Trend in Urban Mobility
2023 witnessed a surge in the adoption of electric two-wheelers, particularly in densely populated urban areas. With increased awareness of environmental sustainability and the cost-effectiveness of electric scooters, many commuters made the switch to zero-emission two-wheelers. This shift not only eased traffic congestion but also contributed to a reduction in carbon emissions, aligning with India’s commitment to a greener future. EV 2-wheeler sales accounted for about 57% of the total EV sales in 2023!
Government Initiatives and Policy Updates: Accelerating the E-mobility Revolution
India continued to be at the forefront of promoting electric vehicles, with the government rolling out ambitious initiatives and policy updates throughout the year. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) II scheme saw further enhancements, providing subsidies for EV manufacturers and pushing for the expansion of charging infrastructure. With a possible FAME III scheme in the works and the extension of subsidies to private EV owners, India is poised for growth in the E-mobility sector in 2024.
While there is a market-accepted charging plug standard in electric 4-wheelers, 2-wheeler charging plug type has been unregulated and different across different manufacturers. 2023 saw a spark of change in this situation with BIS approving the Ather-Developed Connector As the New Charging Standard For Light EVs In India.
If you are looking for a reference on Indian Central & State EV Policies, have a look at our earlier blog here.
EV Charging Infrastructure Expansion: From Cities to Villages
One of the highlights of 2023 was the accelerated growth of EV charging infrastructure across the country. Major metropolitan cities witnessed a surge in public charging stations, equipped with state-of-the-art technology and faster charging capabilities. However, there is a lot of opportunity for EV charging expansion to the rural landscape. Tata Motors- the leading electric 4-wheeler manufacturer shared the data that half of their 2023 sales come from rural areas or small towns, paving light on the opportunities in EV charging infrastructure development to rural areas in 2024 and beyond.
E-mobility in Commercial Transport
Commercial mobility segment spearheaded EV adoption driven by better unit economics in the long run. Some great examples on these lines are big names like Amazon, looking to add 10,000 EVs to their delivery vehicles in India by 2025, Zomato planning to have all its delivery vehicles running on electricity by 2030, and Uber aiming to have 25,000 EVs in action by 2026 through its “Uber Green” project.
There were commendable policy developments also in this space, including the Karnataka e-bike taxi policy- enabling Ola to resume its e-bike taxi services and Delhi government mandating cab aggregators and delivery service providers to completely switch to Electric Vehicles by 2030.
Market Entries and Partnerships: Fostering a Robust Ecosystem
Collaborations between government bodies, private enterprises, and international stakeholders played a pivotal role in shaping the E-mobility ecosystem in 2023. Public-private partnerships aimed at developing charging infrastructure gained momentum, fostering an environment conducive to the growth of electric vehicles.
2023 was an exciting year for EVs- with the government considering reducing the import duty on Electric Vehicles, Tesla looking to set up a manufacturing facility in the next two years, JSW Steel acquiring a 35% stake in the India operations of MG Motors to navigate geopolitical tensions and to expand its operations in the Indian Market were some of the headliners in Indian E-mobility news.
As we look back on the year 2023, it’s evident that India has made significant strides in the E-mobility and EV charging landscape. The collaborative efforts of government bodies, industry players, and the public have propelled the nation toward a cleaner, more sustainable future. With technological advancements, supportive policies, and a growing enthusiasm for electric vehicles, India is well on its way to becoming a global leader in the E-mobility revolution.