With the exception of anomalies brought on by seasonal variations in demand and difficulties with subsidies, India’s electric vehicle (EV) growth narrative has not slowed down, according to Bhavish Aggarwal, CEO of Ola Electric, the country’s largest manufacturer of EV scooters.
Aggarwal emphasised that EV growth is in its absolute early stages. “When we launched our product three years ago, the EV space in India was nascent. Since then, EV penetration, particularly in the scooter segment has surged to nearly 15%.” he highlighted during a pre-IPO press conference held in Mumbai.
“There will be cyclical ups and downs, subsidy changes, or seasonal changes,” added Aggarwal. He was speaking during a pre-IPO conference meeting with the media. Aggarwal’s statement was in response to a question about the apparent slowdown in the EV growth rate as against what was earlier anticipated.
The slowdown in EV growth rate has been exacerbated by the uncertainty over the subsidies offered by the government in the form of FAME-II. This scheme ended on March 31 and the Electric Mobility Promotion Scheme (EMPS) has been launched in its place. However, several sections of the industry feel that the benefits of EMPS do not match those of FAME-II. Also, sensing a slowdown in demand due to these issues, OEMs have apparently slowed down production until the new FAME policy, as anticipated, comes into force.
Aggarwal pointed out that Ola Electric has grown by about 90% in FY24 over the previous fiscal. Furthermore, he suggested that the Q1 FY25 sales numbers show that the growth is “consistent and secular”.
Aggarwal feels that the potential for EVs is immense. Globally, the automotive industry is undeniably transitioning to electric vehicles, although the pace may vary across different segments. “So, “I don’t see any slowing down,” Aggarwal said, explaining that there would be more expansion with more product launches.
Taking a shot at the rivals, particularly with the legacy of ICE vehicle manufacturing, Aggarwal highlighted that incumbents who were hesitant three years ago are now joining the EV race.