The Indian demand for vehicles is undergoing a progressive shift from traditional fuels to alternative energy sources, Asian News International reported on Sunday citing an analysis by Care Edge Ratings as saying.
The proportion of petrol vehicle sales, as part of total vehicle sales, has witnessed a substantial reduction from 86 per cent in 2020 to 76 per cent in 2023. In the same period, the share of diesel vehicles has marginally fallen from 12 per cent to 11 per cent.
India’s alternative fuel vehicle sales have surged by over 400 per cent in 2023 compared to 2020, with electric vehicles (EVs) leading the way due to their lower lifetime costs.
The Indian government is actively promoting EV adoption, aiming for 30 per cent of all vehicle sales to be electric by 2030. Several schemes have been launched to incentivise the development of alternative fuel infrastructure, including charging stations.
Despite higher upfront costs, EVs are becoming more cost-competitive due to lower fuel and maintenance expenses and government incentives.
The recent enhancement of the FAME-II allocation by Rs 1,500 crore is expected to further accelerate EV adoption in India by March 2024.
