India Below Asian Average in Electric Vehicle Penetration; CY 2022 Pegged at Just 1.1%

India Below Asian Average in Electric Vehicle Penetration; CY 2022 Pegged at Just 1.1%

As per a research by S&P Global Ratings, India’s EV penetration is a laggard in CY 2022 when compared against other Asian countries. The percentage of EV penetration in the said year was a mere 1.1%, signficantly lower than the Asian average pegged at over 17 per cent.

Not surpisingly, the penetration of electric vehicles in China is the highest with over 27%. Following it is South Korea, claiming 10.3%. For countries such as Indonesia, Vietnam, Malaysia, the Philippines and Thailand, the penetration of electric vehicles varies between 0.1% to  2.5%. As per the study, Thailand boasts of the fastest adoption of EVs.

In Japan, the rate of EV penetration is 2.2%. There are several factors that have contributed to this rate, such as the governmental support to variants of clean technology like plug-in hybrids, fuel cell vehicles

The global rate of EV penetration is a little over 13%.

Further, the report states that Asia will continue its dominance in battery supply, claiming 90 per cent of the market even in 2025. But India is still far behind others in the region in battery cell production.

Currently, India is mainly dependent on imports to meet demand, but the Production-Linked Incentive (PLI ) scheme, provides that 50 GW of battery capa­city with advanced chemistry cells has to be built domestically in the country within the next two years. This could give major impetus to battery manufacturing in India. FAME has also given the sector a good push.