TL;DR
Nomura's Ashim Sharma states India's EV market is moving towards a 'take-off' phase, driven by two and three-wheelers and government support, but highlights charging infrastructure as a key bottleneck.
India's electric vehicle (EV) market is on the cusp of a significant acceleration, transitioning from an early adoption phase to a 'take-off' phase, according to Ashim Sharma, Senior Partner and Business Unit Head at Nomura Research Institute. Speaking to ET Auto, Sharma noted that while passenger vehicle EV penetration in India remains below 5%, the market is poised for stronger growth in the coming years, driven by increasing adoption of electric two- and three-wheelers, robust government support, and growing interest in electric buses and commercial vehicles.
Despite the optimistic outlook, Sharma highlighted critical bottlenecks such as charging infrastructure and grid resilience that could impact the pace of electrification. He emphasized the necessity for large-scale upgrades in localized power networks to adequately support future EV demand. Additionally, he underlined that India's decarbonization pathway will involve multiple technologies, including hybrids, CNG, flex fuels, and electric powertrains, with the choice depending on specific use cases and consumer preferences.
