Government incentives, including those to consumers, local battery manufacturing, state-level subsidies and cut in GST rates would help drive EV penetration in India, Moody’s has said.
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 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.
