As per the latest report by Avendus Capital, the electric vehicle (EV) market in India is likely to reach Rs 50,000 crore by 2025.

Also, as per the report, the total cost of ownership (TCO) of low- and medium-speed electric two-wheelers is already lower than internal combustion engine vehicles.

Talking about Indian Auto sector, Koushik Bhattacharyya, director and head (industrials) at Avendus Capital, said,

“India represents the fourth-largest automobile market in the world and the second-largest two-wheeler market with around 20 million units. It is also a country with massive dependency on oil imports, with a $112 billion oil import bill in FY19.”

Koushik Bhattacharyya also added that pollution in India has increased and in many Indian cities it has reached alarming levels and “All these factors combined make a strong case for EV adoption in India.”

In the report, it is also stated that, penetration in the two-wheeler segment is expected to reach 9% by 2024-25. And also, in the right macroeconomic environment, penetration can further increase up to 16% and market value to grow to Rs 12,000 crore by 2024-25.