What Is The Impact Of Transportation Of India

984 Words4 Pages
India’s transport sector has predominantly been driven by the growth of Internal Combustion Engine based vehicles that run on petrol, diesel and compressed natural gas (CNG). The growing middle income class and their increased aspirations, cheaper finances, are some of the key factors that led to increased demand for personal mobility. This led to proliferation of production and sales of two and four wheelers in recent decades. As per recent statistics, India’s annual vehicle production is more than 25 million. Two wheelers has the largest production share of 79 percent, followed by passenger vehicles 14 percent and the remaining 7 percent largely comprising of commercial vehicles that include three wheelers, light commercial vehicles and…show more content…
In order to promote production of electric buses, the government has already declared incentives of 60 percent of the cost of the bus or INR 1 million, whichever is lower for those products that have localisation content of 35 percent and above. Localisation content refers to the parts of the bus made in India.
Given that India has laid strong emphasis on EVs, India has a huge potential of becoming one of the largest electric vehicle markets. This will provide several opportunities for automobile manufacturers, electric vehicle component manufacturers and other players along the electric vehicle value chain. While it is Mahindra’s E2O, the only BEV that is sold in Indian market, companies like Maruti Suzuki, Tata Motors, Nissan, Toyota, have expressed their strong willingness to introduce electric vehicles in Indian market.
Yet there are quite a number of challenges that is impeding growth of electric vehicle sector in India which include high manufacturing costs, lack of sufficient charging infrastructure, unreliability, low performance and high cost of batteries are all strong factor opposing factors that impede the sale of EVs. Minimal scope for innovations in technology due to limited research and
Get Access