- Electric three-wheelers cheaper than gas-based units
- Electric taxis and buses to be competitive by 2025-27
Timeline of EV cost parity in India versus NGV
Natural gas vehicles (NGVs) – mostly used for public transport in India – are seeing stiff competition from electric vehicles. Electric three-wheelers are already cheaper than NGVs on a total cost of ownership (TCO) basis. Further decline in battery costs will improve the competitive position of EVs in the taxis and buses segment from 2025. The threat from EVs is lower in the passenger car segment, where TCO parity with gas vehicles comes only by 2030. We expect EVs to slow down the growth of NGVs from mid-2020s, as charging infrastructure expands. Substantial investment in city gas networks and gas fuel stations is needed to maintain the growth of gas as a transport fuel in the long term.
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