Tens of Thousands of Indians Buy Battery-Powered TransportElectric Scooters Could Take Half of Market
"The near-term potential market for electric vehicles in India is five million per year," says battery-powered-scooter entrepreneur Anil Ananthakrishna, Chairman and CEO of Ekovehicles Private Limited of Bangalore. China already produces 10 million yearly and India will be rapidly catching up. Petrol-powered 2-wheel vehicles sell 10 to 12 million units per year in India, so use of electric vehicles could significantly cut fossil fuel consumption over time.
Ekovehicles is seeking venture capital investment to expand its marketing, distribution, research and manufacturing capacity and to enter additional markets outside India. Two battery companies have already invested.
There are about 65 million scooters on India's roads. Even if some consumers upgrade to cars like the Tata Nano , others will upgrade from bicycles or buses.
Consumers Care About Cost, Not Environment
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Cost savings is the main selling point of electric vehicles in India. There are government programs both at the federal and state level to subsidize electric vehicles for their environmental benefit (tax exemptions and the like). But consumers do not yet attribute much value to positive environmental impacts. The primary direct benefits are to health, since electric vehicles have no street-level emissions, a particular advantage compared to competing 2-stroke vehicles. If electricity generation in India can increase use of renewable energy sources such as solar, waste-to-energy, and wind, electric vehicle emissions will decline correspondingly. Nuclear power could also contribute to reducing the carbon intensity of transportation if electric vehicles become a significant part of the transport mix.
Additional information of electric scooters in India here .