It cited a slower than expected adoption in the e-passenger vehicle market, select states extending preferential incentives for hybrids and the absence of an upfront subsidy for electric cars in the fleet segment as the key reasons for the cut.
A change in S&P's methodology from a compliance-driven model to a demand-centric one has also triggered a downward revision, Puneet Gupta, director, S&P Global Mobility, told ET.
Gupta spoke on the sidelines of an event in Mumbai where S&P released its first edition of 'India Forward: Emerging Perspectives', emphasising India's projection as a leading global economy. The report highlights that India is on track to become the third-largest economy by 2030-31, driven by a robust projected annual growth rate of 6.7%. This follows an impressive GDP growth of 8.2% in the fiscal year 2024, significantly exceeding the government's earlier estimate of 7.3%.
"Powertrain pluralism has emerged as the dominant narrative, with multi-fuel solutions taking centre stage in India's decarbonisation strategy," said Gupta, alluding to the local arms of Toyota Motor Corp and Suzuki Motor Corp pursuing multi-powertrain strategy, which includes electric, CNG, hybrids and biogas to name a few.
Even the Korean carmakers like Hyundai and Kia are considering introducing hybrids in India. Even plug-in hybrid vehicles (PHEVs) are gaining traction in discussions, while China aggressively advances its outlook on PHEV, he pointed out. Despite steep price cuts, hefty discounts and new model launches, e-passenger car sales in India dropped to the lowest in August, declining 10% over the corresponding period. "Even globally, we have cut the global EV forecast by 10-12 percentage points owing to a change in forecast methodology," he said.
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