NEW DELHI: In a report, Moody’s Investors Service said India has the fourth-largest car market globally, but electric vehicle (EV) penetration is currently only around 1 per cent. The government incentives, including those to consumers, local battery manufacturing, state-level subsidies, and cuts in GST rates would help drive EV penetration in India.
The pace of increase in EV sales and towards the government’s target of 30 per cent by 2030 will also depend on the country’s charging infrastructure, and consumers’ readiness to switch to EVs from traditional ICE vehicles, or those traditional engines powered by petrol, diesel, or natural gas.
“We expect various government incentives will drive an increase in EV penetration. These include consumer incentives, production-linked incentives for advanced battery storage to drive local cell manufacturing, goods and services tax (GST) rate cuts, and other state-level subsidies,” Moody’s said.
Moody’s said Tata Motors retains an early mover advantage in the battery EV market in India, with a 85 per cent share (April-December 2022).
