India's EV adoption nearing inflection point, Nomura says

Ather Energy

22/04/2026 08:25

** Indian consumers moving towards electric and hybrid vehicles, says Nomura; sees internal combustion engine two-wheelers potentially declining from fiscal 2030 onwards

** Believes EV mix can rise sharply as more models are added in the light commercial vehicle segment and charging network expands

** Nifty auto index .NIFTYAUTO up 0.2% in afternoon trading; it has fallen 5.4% so far in 2026

** EV penetration levels have gone up by around 4% in the passenger vehicle segment in fiscal 2026

** EV penetration in scooters at 16.4%, says Nomura and forecasts it could go as high as 38% by fiscal 2030

** "Thus we maintain that the ICE scooter industry can potentially start declining post FY30F onwards and that remains a risk to watch out for," Nomura says

** Expects strong demand for Ather ATHR.NS, raises fiscal 2028 sales estimates; ups TP to 1,111 rupees from 812 rupees

** Ather up 1.6% to 910 rupees on the day

** Nomura says it prefers auto parts makers Sona BLW Precision Forgings SONB.NS and Uno Minda UNOI.NS among auto firms in its coverage

 (Reporting by Abhinav Parmar in Bengaluru)

 ((Abhinav.Parmar@thomsonreuters.com;))