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The mobility space has rapidly evolved with electric vehicles becoming an integral part of the overall mobility ecosystem. No longer are the EVs just a novelty, rather they are being viewed as a serious contender while the general public is looking to purchase a vehicle.

Over the past 5 years, the fuel price has increased exorbitantly. From almost Rs. 65.48 per litre in June 2017, it rose to over Rs. 110 in Nov 2022. This rising fuel price has made owning a vehicle unsustainable for many end consumers.

 

EV 5

 

According to BloombergNEF, over the past few years, we have witnessed that increasing use of EVs is actually starting to displace oil.

 

EV 6

 

In 2021, EVs displaced roughly 1.5 million barrels of oil per day, more than double than the figure in 2015. The major contributor for the same has been e-2W and e-3W. This has been especially true for Asian countries, where electric 2/3 wheelers have found mass adoption. In 2021, the share of oil displaced by 2/3 wheelers touched 1 mn barrels per day. Meanwhile, the proportion of electric passenger cars, commercial vehicles and buses is also steadily increasing, hence contributing to overall figure.

However, the amount of oil use displaced represents a small share (3.3%) of the total global demand for transportation fuel, which was roughly 43.7 million barrels of oil per day in 2021.

EVs of all sizes are most important to reduce our fossil fuel dependence. With the increasing macro-economic tensions and the resultant stress on fuels and energy dependencies, electric vehicles provide a much needed boost to help reduce our dependency on scarce resources, while also contributing to the well-being of the planet.

 

Read more insights in the report – “The Future is Electric - Discussion paper on Electric Vehicles in India”

NASSCOM Community https://community.nasscom.in/communities/engineering-research-design/future-electric-discussion-paper-electric-vehicles-india

NASSCOM Websitehttps://nasscom.in/knowledge-center/publications/future-electric-discussion-paper-electric-vehicles-india


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Vandhna Babu
Principal Analyst - Research

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