ELECTRIC BIKE EXPECT SALES BOOST DURING THE COVID-19 LOCK DOWN
Fears of catching coronavirus on public transportation coupled with a drop in vehicular traffic have led to a spike in Electric Bike Sale, and safer streets to ride on. Amid the uncertainties due to the coronavirus pandemic, there is still a glimmer of hope for electric vehicle manufacturers in accelerating the growth of the electric vehicles market. But that would require a big change in the ecosystem for manufacturing.
Today, most companies that manufacture electric vehicles on a global scale rely on imports from other countries (China, South Korea, and Japan) for many components such as drivetrains and batteries. Interestingly, if one looks at the automakers that are making an internal combustion engine (ICE) vehicle, the big boost for the industry came through domestic manufacturing.
ELECTRIC BIKE SALES ARE EXPLODING DURING THE LOCKDOWN
As the coronavirus pandemic wreaths havoc across India, leading to lockdowns and closure of businesses, sale of electric vehicles (EVs) saw a rise this financial year owing to the expected growth in consumer confidence, the low penetration, the low base of last year, as well as falling prices. This is while the internal combustion engine (ICE) vehicles are bracing themselves for the steepest decline in sales in recent times.
EVs registered a 20 percent year-on-year increase in sales in FY20 (e-rickshaws excluded), with the surge driven largely by two-wheelers, according to the Society of Manufacturers of Electric Vehicles (SMEV). Meanwhile, in ICE vehicles, the overall volumes of the industry fell by 18 percent year-on-year in FY20.
This growth of 20 percent has largely come from two-wheelers. 97 percent of these were electric scooters and a very small volume of motorcycles and electric cycles filled the rest of 3 percent. The sales in cars saw a drop as 3,400 units were sold compared to 3,600 units in the previous fiscal year. The decrease in numbers has been attributed mainly due to the lack of bulk purchase of e-cars this year.
The acceptability of electric vehicles in the top-notch section in the second half of the year was a positive signal of a quantum jump of a much higher volume of E-cars in FY 20–21. According to SMEV, the E-Taxi segment is also beginning to get some traction, though the range of E-cars and lack of charging spots in enough density are a deterrent in the growth of the E-taxi segment. E-Buses went into a Yo-Yo of big commitments by the state governments not converting into purchases.
The Director-General, Society of Manufacturers of Electric Vehicles, Sohinder Gill said
“While the EV industry will surely face the brunt of Covid19 like any other automotive business, the clearer skies, and the cleaner air even in the highly polluting cities is certainly leaving a persistent impression in the minds of the customers about how they can breathe easy and stay healthy if the society moves towards Electric Mobility.”
Final Thoughts
Post COVID-19, market size is anticipated to reach 4.18 million units by 2021 from an expected 3.42 million units in 2020, at a CAGR of 22.1%. The projection for 2021 is relied upon to be somewhere around 34% as compared to the pre-COVID estimation. The rising vehicle range per charge for electric vehicles and the growing sensitivity of multiple governments toward a cleaner and eco- friendly environment are the key factors driving the growth of the worldwide electric vehicles and its infrastructure market.
