Indian automotive industry, the fifth largest in the world is poised for a big change and expects to be the third largest by 2030. India has abundance of renewable energy sources and availability of skilled manpower in technology and manufacturing.
An independent study conducted by the Centre for Energy Finance (CEEW-CEF), the EV Market in India could be a USD 206 Billion opportunity by 2030. The EV Battery market is also projected for big growth by the same period.
The Federal Government in India is prioritizing the shift towards Clean and Sustainable Mobility. India offers the world’s largest untapped market in the two wheeler segment.
Recent Developments
The American EV company Tesla Inc has already made its entry into India. Its subsidiary company Tesla India Motors and Energy Pvt. Ltd is already incorporated. Ather Energy, India’s first intelligent EV Manufacturer has decided to move its INR 635 Crore factory from Bengaluru (Karnataka) to Hosur (Tamil Nadu). The factory is supported by the Government of Tamil Nadu under its EV Policy.
The Indian states like Andhra Pradesh, Uttar Pradesh, Bihar, Telengana are setting up public charging infrastructure. Sterling and Wilson Pvt. Ltd. (SWPL) which is India’s leading Engineering, Procurement and Construction Company, announced its entry into Electric Mobility sector. In collaboration with Enel-X it is launching and creating innovative charging infrastructure in India.
The German Luxury car maker Audi is on Electric Mobility in India. They expect their EV sales volumes to reach 15% of its total sales by 2025. Mercedes-Benz also plans to invest into Battery Electric Vehicles between 2022 and 2030.
Bajaj Auto the country’s largest two-wheeler exporter is in the process of a wholly owned subsidiary company to participate in the race. These are a few initiatives to list.
Encouragement and Setback
The implementation of FAME India Scheme (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) gave significant momentum for EV Market in India. The Scheme is under the National Mission on Electric Mobility launched in 2011 and National Electric Mobility Mission Plan 2020 in 2013. It is currently under FAME II stage commenced on 1st April 2019.
The Electric Vehicle Market in India has been impacted by the outbreak of Covid-19 pandemic. There are disruptions in the supply chain and halt of manufacturing units due to continuous lockdown and travel restrictions across the country. Amazon and other E-Commerce companies are launching initiatives to use e-Mobility, reducing the carbon footprint.
Source of Information:
- Motor Intelligence
- ET Auto.com from the Economic Times
- Ministry of Heavy Industries, Government of India
