A large number of factors may impact the demand for electric vehicles (EVs) over the next two to three years in a significant way and these may require continued support from the government to create consumer preference towards EVs. This fact was highlighted in the Electric Vehicle Committee meeting of the industry chamber Federation of Indian Chambers of Commerce & Industry (FICCI) on April 30 under the chairmanship of Shekar Viswanathan, Vice Chairman & Whole Time Director, Toyota Kirloskar Motors, and Co-Chairmanship of Sulajja Firodia Motwani, Founder & CEO, Kinetic Green. It was further stated at the meeting that the impact of COVID-19 could make consumers more risk-averse to new technologies and higher-priced vehicles, such as EVs. Further, the downward trend in fuel prices would negatively affect the cost-benefit of EVs in the medium-term. The adverse impact of supply chain disruptions is also more likely on EVs than the internal combustion engine (ICE) vehicles mainly because the supply chain for EVs in India is beginning to get established, vis-a-vis a longestablished supply chain for ICE.
