Shares of companies linked with the electric vehicles segment were in demand on January 17, after the Delhi government on Saturday announced an aggregator’s policy to mandate the use of electric vehicles.
As per the new policy, cab aggregators and delivery service providers in the city will have to mandatorily introduce electric-run two-wheelers and four-wheelers in their fleet. The government said that aggregators will have to ensure that in the next three months 10 percent of new two-wheelers and 5 percent of new cars are electric.
Market participants see the latest move by the Delhi government as another catalyst for spurring demand for electric vehicles, which have captured the imagination of consumers in the backdrop of climate change and their improving affordability.
Shares of original equipment manufacturers like Tata Motors and Greaves Cotton advanced 2.5 percent and 5.6 percent each on the National Stock Exchange in the early trade. At the same time, auto component providers such as Sona BLW Precision and Minda Industries gained 2.1 percent and 1.3 percent, respectively.
Under the new policy, the Delhi government has also mandated that 50 percent of all new two-wheelers and 25 percent of all new cars be electric by March 2023.
Both the central and state governments have been incentivizing consumers to switch to electric vehicles in light of ever-rising air pollution in India’s cities and the country’s promise to become a net-zero carbon economy by 2070 at the COP26 Summit held last year.Electric vehicle sales skyrocketed 240 percent year-on-year in December to 50,866 units, crossing the 50,000-mark for the first time ever, according to JMK Research and Analytics. The bulk of the units sold were two-wheelers and passenger three-wheelers, which account for 90 percent of e-vehicle sales in India.