India’s EV Market Accelerates With Strong Growth in Car and Two-Wheeler Sales

Under this mechanism, customers do not have to pay for the battery initially, which reduces the cost of electric cars. In exchange, the companies charge rent for using the battery. The rent varies from one company to another, such as at 3 rupees per kilometer, 3.5 rupees per kilometer, and even up to 6 rupees per kilometer.

No rental charge will be charged for less than a certain limit at a time. For example, for MG Windsor, a rental fee of at least 1500 kilometers is required at a time. Car companies say that the cost of the battery accounts for 35-40 percent of the total cost of the car.

If the Battery as a Service (BAS) system becomes operational, car sales will undoubtedly increase. Tata showroom managers stated that electric car sales are increasing since the introduction of this system. Many two-wheeler companies already offer battery swapping or battery leasing.

According to data from the Federation of Automobile Dealers Associations (FADA), the share of electric cars in total car sales increased to 6 percent in April this year, compared to 3.7 percent last year. This share was 5.1 percent in March this year.

Similarly, the share of electric two-wheelers in the market reached 9.8 percent in March this year, compared to 5.5 percent in April last year. According to the Ministry of Heavy Industries, the share of electric three-wheelers in cargo-carrying vehicles has increased to 33 percent, compared to 23 percent a year ago.