Transition of India’s entire 2/3-wheeler fleet to electric needs financing

The complete electrification of India’s entire fleet of two and three-wheelers, the largest in the world, will require financing to the tune of USD 285 billion (nearly Rs 23 lakh crore), according to a new white paper.

Published in collaboration with NITI Aayog, the World Economic Forum (WEF) paper said the last-mile and urban delivery fleets are leading the adoption of electric two-and three-wheelers in India and are likely the first segments to transition completely to electric.

But driver-cum-owners are hesitant to make the transition to electric due to higher upfront cost of acquisition, lack of confidence in new technology, unassured reliability, and unestablished resale value, it added.