EVs Likely To Go CNG Vehicles' Way As New Launches Expected To Accelerate Adoption, Says JPMorgan's Pirani

Electric vehicle penetration in the passenger car market could rise from 2.5% to 5-6% in three years and 10-12% by the end of this decade as automakers roll out new models, according to a JPMorgan analyst.

"Globally there has been a softness in EV demand, but in India the electrification rate is 2.5%. It is because not many companies launched models," Amyn Pirani, head of India automobiles and transportation research at JPMorgan, told NDTV Profit.

He highlighted the share of CNG-powered vehicles had gone up in the last six years, while that of petrol vehicles has declined and that of diesel vehicles has been stable.

"Like in CNGs, we saw new model launches and new technology helping that powertrain, within EVs, the launch of new models with exciting features will also drive electrification," he said.

The analyst shared an interesting trend. In India, first-time buyers are 40-45% of the market, while upgrade buyers are around 25% and close to 30% of customers are those that already own a car in their family.

"For these buyers, new features are important. They also don't have to worry about range as much because that is not their only vehicle. EVs can be used for city travel. In big cities, we are seeing charging infrastructure coming up. The problem lies on highways, but as infrastructure develops, demand can go up," he said.

Automakers have been rolling out EVs that are variants of their existing internal combustion engine models, and as the market matures, reliability, savvy features, and driving experience will enhance in newer models, Pirani said.