Switch Mobility Ltd. is looking to achieve compound annual growth rate of up to 55% in the next 10 years with support from government schemes, according to the company's Chief Executive Officer Mahesh Babu.
Babu's comment comes a day after the Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme that aims to promote electric mobility in India.
The outlay for the scheme is Rs 10,900 crore over the next two years.
“There are plenty of orders in hand for us. We are seeing the next 10 years of CAGR growth of 45% to 70%, depending on the scheme. Even if no other scheme is announced, we are sure we will get about 40% CAGR. If schemes like this come in and we get a push, we are looking at an upside of 55% CAGR," Babu told NDTV Profit.
The PM E-DRIVE scheme provides demand-side incentives of Rs 3,679 crore, under which, it will support 24.79 lakh electric two-wheelers, 3.16 lakh e-three-wheelers and 14,028 e-buses.
Calling it a forward-looking scheme, the Switch Mobility CEO said, “The industry, Ministry of Heavy Industries and NITI Aayog, all of us have been working on a programme which is a continuation of FAME II...I am happy that e-buses and trucks are being covered under the scheme,” he said.
Over the next three years, Switch Mobility aims to focus on all sizes of e-buses—13-seater to 65-seater, Babu said. The EV manufacturer plans to launch two products yearly over the next five years.
The top executive predicted EV penetration would shoot up in the large vehicle segment.
“Today, buses have about 3.5% adoption in the EV segment, while LCVs are less than 1%. We are expecting this to go up, which will benefit the environment, customers and industry,” he said.
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