As demand and investments in the Electric Vehicles (EVs) sector are severely hit due to disruptions caused by COVID-19, FICCI has suggested to the Government, a series of measures to ensure continuity of the EV growth roadmap and achievement of the targets as envisioned by the Government for the sector in the next decade. These suggestions have been submitted to NITI Aayog, Department of Heavy Industry, Ministry of Road Transport and Highways and other relevant authorities in the Government. FICCI apprehends adverse impact on the introduction of this green technology in the country's EV sector due to factors such as reduction in demand for automobiles, higher risk aversion among customers towards new technology, disruption in supply chain, and uncertainty in oil prices due to COVID-19. There is also likelihood of reduction in demand for shared mobility leading to reduced demand for E3W and postponement of investments in EV technology by local component makers. Despite these short term setbacks, FICCI strongly feels that India must continue to encourage EVs along with all other Electrified Vehicle technologies (xEVs), such as Plug-in Hybrid Electric Vehicles (PHEVs), Strong Hybrid Electric Vehicles (SHEVs) & Fuel Cell Electric Vehicles (FCEVs) and electrification of the transport sector due to the long-term vision of our nation towards electric mobility to lessen air pollution, achieve fuel security and technology leadership in this sector.
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