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People around the globe are facing and battling the worst pandemic crisis along with the global economy facing massive downtime. Countries around the globe have posed severe stringent restrictions ranging from days to month of lockdown periods. Many businesses are halted waiting for the market conditions to improve and some have already sunk under the unforeseen brunt of pandemic. But, still there are several segments of industry which are still shining out and even looking at this period as an opportunity. EV Industry projects to be one those and promises even better growth post this period.

Changes in consumer behaviour and public transportation

In many countries, the entire public transportation has been halted due to increased risk of infection given the contagious nature of COVID 19. Once the lockdown will be lifted, many people will still avoid using these public media of transportation, including cabs, metro, and buses, as a precautionary measure. Since normalcy has been restored in Chinese cities, there are visible evidences confirming that private cars, walking, and biking have gained the most share since the pandemic began, while bus and subway ridership declined.

Given this future scenario, it forays a promising picture for the EV industry especially for the daily city commuters who travel shorter distances within the city such as people from service industries, homemakers, students etc. Being safer and more economical mode of transportation, the segment will gain traction in given days with enhanced demand.

Alternative Solution to Fuel Crisis

During the lockdown period, states were discouraging the general distribution of petrol and diesel to discourage city and cross-state commute. In such a situation where fuel supply is not available, this further provides opportunities to the EV industry. While the public is best advised to stay home, they can depend on electric mobility for emergencies such as food supplies or medicines.

Regulatory uncertainty could increase

As per a recent McKinsey report on the future of mobility solutions post-COVID 19. We believe that regulators will react differently across regions. Some might view the crisis as an inflection point to accelerate the transition toward sustainable mobility, while others could loosen regulatory mandates to prop up their ailing automotive industries. In some markets, potential support programs, including cash incentives for trading in old cars, could amplify the industry’s focus on sustainability and increase electric vehicle (EV) sales above projections.

If physical distancing continues, city leaders might relax regulations for private mobility, at least over the short-term, because people feel less vulnerable to infection in individually owned vehicles. We assume that some of those measures might stay in place after the crisis. If they promote improvements, such as fewer accidents and less pollution, cities may decide to make them permanent.

EVs set to emerge stronger than ever

The Indian electric vehicle (EV) market will continue to be largely driven by the two-wheeler and three-wheeler segments as of now. As per EV market forecast by Frost and Sullivan, e-rickshaws, e-autos and e-two wheelers are the most promising segments for electrification in India and are expected to account for over four-million units by 2025.  

The period post-COVID 19 will serve as a perfect chance for EV brands to connect with their customers from these segments. A lot of top brands are using this time to get in touch with customers through digital mediums to improve loyalty and sustain brand awareness. Since e-commerce is on the rise, EV brands may also use this downtime to create a stronger online presence for more visibility. By making the most of on the opportunities, EV companies will be able to recuperate their impetus once the contagion is confined. They will be back in action on the road to EV uprising in the country.

Disclaimer: The views expressed in the article above are those of the authors’ and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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