Rising fuel prices are in India is at a record high in the history, which has spurred a shift in the nation’s ubiquitous scooter market. With two wheelers accounting for 80% of vehicle sales in the country & with the current trend of rising fuel which accounts for nearly 70% of local gasoline consumption, the stake of owning and running an ICE based vehicle is a very expensive affair. The Indian public transportation as one knows is adequate and cars are quite out of range for the majority segment. So, to beat all the above factors there is a potential for E-scooters in the given situation. With an expectation of about 74% e-mobility in motorcycles and scooters to be sold by 2040, up from less than 1% now.
e-Scooter gaining Traction over rising fuel prices in India
Even the most efficient ride, a 2-wheeler guzzles in about ₹100 for 100 kilometres, while an e-scooter can run the same distance at less than a 6th of that cost. Not only the fuel cost but also the announcement by Prime Minister Narendra Modi at COP26 climate summit stating the world’s third biggest carbon emitter to reach net-zero by 2070, is an added promise to shift gears towards this transition, making the fuel powered scooters redundant.
In accordance with the same, Chief Marketing Officer of Ola Electric, Mr Varun Dubey was quoted saying, “There is no denying the fact that the move to electric is inevitable for two wheelers & I don’t think there is any convincing required to the consumers to make the shift.”
Not just rising fuel prices convince consumers to switch to electric vehicles, though people in India are willing to go electric and contribute to reducing carbon footprint.
Hurdles & Pledge
With a great outlook for a greener revolution, there are still sizeable hurdles for attaining India’s emission goals, lack of nationwide charging infrastructures, lower subsidies as compared to global standards for consumers to name a few in making the needed switch to electric and replacing existing vehicles. The Modi government must raise trillion dollars of investment funds to account for the desired shift.
Even with the fact that global warming stemmed from industrialised nations, India with its huge population is one of the most vulnerable to climate change and extreme weather threats like heat waves and floods. We can already experience the disruptions in monsoon that have been having a major impact on agriculture. The hurdle of the COVID havoc in the economy and otherwise is also something that is not to be forgotten. Nevertheless, Indian refineries have already started shifting away from Gasoline and diesel efforts which will be likely accelerated after Modi’s pledge FGE sees just about 5% of total scooter sales around 2025 to 2030 being electric.
Given the scenario of the rising fuel prices, it is speculated that it is a strategic move created for consumers to make the switch to e-mobility. Government is making the needed efforts by installing charging stations and improving-infrastructure and offering subsidies to make the shift more tempting. Not just that, even the private companies like Hero, Yamaha are aiming to embrace the go-green revolution, while others like Ather Energy are already in the running.
Government not only wants to change private mobility but also wants to push the public transport for which it has already been showing revolution with e-buses and auto rickshaws.
Future & Views
By 2030, e-scooter sales are expected to cross 2 million a year, considering the value for money equation. Having said so, India proposes the same by coming up with a new policy that would aim to incentivise investments in electric vehicle manufacturing, batteries, and smart charging, instead of only giving benefits of sales.
What is your take on the revolutionary move? Are you convinced? When are you making the needed shift? Or are you already a part of the revolution? Let us know in the comment section and help us get a score on the same. Until then, stay tuned for more on the latest and trending news in the vehicle segment.