The electric two and three-wheelers volume are expected to account for 8-10 percent and 30 percent of new vehicle sales in the country by 2025, respectively, owing to low operating cost and attractive subsidy support, among others, ratings agency ICRA said in its report on Wednesday.

The penetration levels in cars and trucks, however, are likely to remain low in the medium-term, it said. Globally, EVs now account for 4.4 percent of new car sales during CY2020 and their share is likely to cross 5 percent level this calendar year, as per ICRA. Electric two-wheeler (2W) and three-wheeler (3W) segments have relatively lower dependency on commercial charging infrastructure, owing to the limited span of commute and can also adopt battery swapping to allay charging-related concern for commercial applications.

Furthermore, operating cost metrices continue to favour electric 2W and 3W for commercial operations. In fact, e3W over life of the vehicle will be much more cost economical than its CNG counterparts, it said. India can capitalise on its vast 2W and 3W segment, to emerge as leading manufacturer of e2W and e3W, globally. However, it will continue to lag in the electric car segment, ICRA noted.

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