NITI Aayog, in its report on Forecasting Penetration of Electric Two-Wheelers in India, jointly developed with TIFAC, has proposed that at a certain point of time in future there may be an appropriate ecosystem for enforcement of a regulation towards electric mobility or other clean transport options.
As per the report, improvement in technology and reduction in battery cost are crucial for self-sustenance of electric mobility which is expected to achieve 100 per cent penetration by 2031 with a combination of technological improvement and demand incentives continuing beyond 2024. The report forecasts that in the optimistic scenario, in which the battery cost goes down with a compound annual growth rate of 8 per cent, range and power of the vehicles increase by 20 per cent by 2023-24 (due to technological progress) and demand incentive continue till 2030-31, India is expected to register sales of 22.01 million units compared to 0.23 million units sold in 2021.