The advent of electric vehicles is an opportunity for existing and new industry participants to innovate and capitalize on rapidly evolving passenger and freight mobility, says CRISIL’s Jagannarayan Padmanabhan
The advent of electric vehicles is an opportunity for existing and new industry participants to innovate and capitalize on rapidly evolving passenger and freight mobility, says CRISIL’s Jagannarayan Padmanabhan
Electric vehicles (EVs) represent a nearly 3 lakh crore opportunity for various stakeholders in India in the five years to fiscal 2026, CRISIL said.
The opportunity includes potential revenue of around £1.5bn across all vehicle segments for Original Equipment Manufacturers (OEMs) and component manufacturers and £90,000bn in payouts for vehicle financiers, with the remainder going to shared mobility and insurance.
Hemal Thakkar, Director of CRISIL said: “With cost parity improving and the government’s focus on vehicle electrification, we should not be surprised if EV penetration increases in 2Ws to 15%, in 3Ws to 25-30% and in cars 5% achieved and buses by fiscal year 2026 in terms of vehicle sales.”
Jagannarayan Padmanabhan, Director of CRISIL, said, “Overall, the emergence of electric vehicles is an opportunity for both existing and new industry participants to innovate and capitalize on rapidly evolving passenger and freight mobility.”
“To address the challenges of the electric vehicle industry ecosystem, the government is considering introducing a structured battery replacement policy. Such facilitation will go a long way toward realizing EV’s potential. In addition, improving the availability of finance will drive the adoption of electric vehicles,” he added.
