The India electric vehicle market is expected to grow from USD 3.21 billion in 2022 to USD 113.99 billion in 2029, at a CAGR of 66.52% during the forecast period.-Fortune Business Insights
Table of Content
EVs: Driving the Future of India's Auto Industry.
EVs in India: Government's Initiatives Driving the Growth of the Electric Vehicle Market.
"EVs: Driving the Future of India's Auto Industry” - Exploring Growth Prospects and Business Opportunities in the Indian Electric Vehicle Market
Key Policy Initiatives Driving the Growth of the EV Market in India.
10 Reasons Why EVs Will Shape the Future of the Indian Automotive Industry.
How Electric Vehicles (EVs) are Transforming the Indian Automotive Industry.
6 Major Players in the Indian EV Market: Key Players Leading the Growth of India's EV Industry.
The Impact of EVs on Employment and ER&D Growth Opportunities in India: The Development of Ancillary Support Industries in the Indian EV Market.
"Electric Vehicles in India: Growth Prospects, Government Initiatives, Business Opportunities, and Impact on the Automotive Industry" - A Comprehensive Analysis
EVs: Driving the Future of India's Auto Industry
Electric Vehicles (EVs) are fast gaining popularity in India, driven by the government's initiatives and the need to reduce the carbon footprint. The Indian EV market is projected to grow at a Compound Annual Growth Rate (CAGR) of 43.13% between 2021 and 2026, according to a report by ResearchAndMarkets.
In this blog post, we will discuss the topic "EVs: The Future of India's Auto Industry", its growth prospects of EVs in India, the government's initiatives, business opportunities, key policy initiatives, key players, impact on the Indian automotive industry, and the growth of ancillary support industries, employment, and ER&D (Engineering Research & Development) growth opportunities.
EVs in India: Government's Initiatives Driving the Growth of the Electric Vehicle Market
The 2023-24 Union Budget allocated INR 35,000 crore for capital investments to achieve energy transition and net-zero targets by 2070-Invest India
The Indian government's initiatives to promote the adoption of electric vehicles in the country have been instrumental in the growth of the EV market.
The National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in 2015 incentivized EV purchases and promoted infrastructure development.
Reduction in Goods and Services Tax (GST) on EVs from 12% to 5% has made them more affordable for general consumers.
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme provides incentives for EVs, charging infrastructure, and R&D, further supporting EV adoption in India.
The government rolled out FAME - II and PLI to help electric vehicle manufacturers.
The Budget has allocated INR 51.72 billion to FAME-II to promote the adoption of clean energy vehicles.
Govt launched 'e-AMRIT' portal: One-stop platform for information on electric vehicles. It provides information on charging facility locations, EV financing options, government policies, subsidies for drivers and manufacturers, and investment opportunities. (PIB)
"EVs: Driving the Future of India's Auto Industry” - Exploring Growth Prospects and Business Opportunities in the Indian Electric Vehicle Market
India sold 0.32 million electric vehicles (EVs) in 2021, a YOY growth of 168%- IBEF
According to the Fortune Business Insights report, the India electric vehicle market is expected to grow from USD 3.21 billion in 2022 to USD 113.99 billion in 2029, at a CAGR of 66.52% during the forecast period. With the Indian government's focus on sustainability and reducing the carbon footprint, the electric vehicle (EV) market in India is growing at a rapid pace.
In this context, below are some key statistics related to the EV market in India:
India's EV market is expected to grow at a CAGR of 43.13% between 2021 and 2026, reaching $43.29 billion by 2026, and creating business opportunities in charging infrastructure, battery manufacturing, and component manufacturing. (IndBiz.gov.in)
EV sales have surged more than 2,218% over the past three years. As of December 9th of FY 2022, over 442,901 electric cars have been sold, compared to 19,100 sold in FY 2020.(India Briefing)
India's domestic electric vehicle market is projected to grow at a 49% compound annual rate from 2022 to 2030, with 10 million annual sales by 2030. This growth is expected to create about 50 million jobs by 2030. (Invest India)
India's auto industry ranks fifth globally, and its EV market is projected to grow at a 36% CAGR, with potential investments reaching $300B in the next ten years, as per the India Energy Storage Alliance.
By 2030, the Indian government plans to have 70% of all commercial cars, 30% of private cars, 40% of buses, and 80% of two and three-wheelers sold as electric vehicles.
Key Policy Initiatives Driving the Growth of the EV Market in India
The Indian government has set an ambitious target of having 30% private cars on electric mobility by 2030.
The key policy initiatives that have driven the growth of the EV market in India includes:
The National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme have driven the growth of the electric vehicle (EV) market in India.
The Indian government has set a target of having 30% of all vehicles on the road to be electric by 2030.
To promote the development of advanced batteries in the country, the government has launched the National Programme on Advanced Chemistry Cell Battery Storage. (PIB)
Reduced duties on lithium-ion batteries and natural and biogas could result in more foreign electric vehicles being imported to India.
10 Reasons Why EVs Will Shape the Future of the Indian Automotive Industry
There are several reasons why EVs are the future of the automotive industry.
Zero emissions.
Lower running costs.
Lower maintenance costs.
Reduced dependence on fossil fuels.
Noise pollution reduction.
Long-term cost savings.
Lower greenhouse gas emissions.
Improved energy efficiency.
Increased energy security.
Future-proofing.
How Electric Vehicles (EVs) are Transforming the Indian Automotive Industry
The impact of EVs on the Indian automotive industry is significant. The growth of the EV market has created new business opportunities in charging infrastructure, battery manufacturing, and component manufacturing. This has led to the development of new ancillary support industries and has created employment opportunities.
EVs are also driving innovation in the automotive industry, with companies investing in research and development to improve EV technology.
Reduced Carbon Emissions
EVs will reduce carbon emissions and provide a cleaner, more sustainable alternative to gasoline-powered vehicles, resulting in a greener environment.
Increased Energy Security
Reducing oil imports and shifting to EVs can improve India's energy security and cut foreign exchange outflows. EVs can run on locally sourced renewable energy, further enhancing India's energy security.
Increased Domestic Production
Switching to EVs will boost domestic production and create new opportunities for the Indian auto industry by opening up a new market for component manufacturers. This will increase investment, create jobs, and drive technological development.
Improved Technological Innovation
EVs will drive innovation in India's auto industry, requiring new technologies like high-capacity batteries, charging infrastructure, and power electronics. This will foster collaborations between industry players and research institutions, leading to a more innovative industry.
Reduced Operating Costs
EVs have lower operating and maintenance costs than traditional vehicles due to their fewer moving parts and cheaper electricity. This leads to significant cost savings for owners, making them a more attractive option for buyers.
6 Major Players in the Indian EV Market: Key Players Leading the Growth of India's EV Industry
Tata leads in EVs with 86% of the market share from just two models: the Nexon EV and Tigor EV-The Hindu
This is followed by MG’s ZS EV with 9% of the market share, and Hyundai’s Kona with 1.6% of the market share. Mercedes-Benz and BMW posted record sales but represented less than 1% of the total market share.
Major Players in the Indian EV Market:
Tata Motors: India's largest automotive manufacturer that launched its first EV, the Indica EV, in 2000. They have since expanded their EV portfolio with models such as the Tigor EV and the Nexon EV. Tata Motors has also invested in the development of charging infrastructure in India.
Mahindra Electric: A subsidiary of Mahindra & Mahindra, is another major player in the Indian EV market. They launched their first EV, the e2o, in 2013 and have since expanded their EV portfolio with models such as the eKUV100 and the Treo Zor. Mahindra Electric has also invested in the development of charging infrastructure in India.
MG Motor: A subsidiary of China's SAIC Motor, entered the Indian market in 2019 with the launch of its first EV, the ZS EV. The company has since expanded its EV portfolio with the launch of the MG Marvel R Electric in 2021. MG Motor has also invested in the development of charging infrastructure in India.
Ola Electric: A subsidiary of ride-hailing giant Ola, is a relatively new player in the Indian EV market. The company is set to launch its first EV, the Ola Electric Scooter, in 2021. Ola Electric has also announced plans to build the world's largest EV charging network in India.
Hero Electric: India's largest electric two-wheeler manufacturer that offers a range of electric scooters and motorcycles, including the Optima, Flash, and Photon. Hero Electric has also invested in the development of charging infrastructure in India.
Ather Energy: A Bangalore-based EV startup that has made a name for itself with its high-performance electric scooters. The company launched its first scooter, the Ather 450, in 2018 and has since expanded its portfolio with the launch of the Ather 450X and the Ather 450 Plus. Ather Energy has also invested in the development of charging infrastructure in India.
In conclusion, the Indian EV market is witnessing rapid growth, driven by the government's initiatives and policies to promote the adoption of EVs. Major players such as Tata Motors, Mahindra Electric, MG Motor, Ola Electric, Hero Electric, and Ather Energy are investing in the Indian EV market and contributing to its growth. As the Indian EV market continues to grow, it will create new opportunities for employment and investment, driving innovation in the automotive industry.
The Impact of EVs on Employment and ER&D Growth Opportunities in India: The Development of Ancillary Support Industries in the Indian EV Market
Tata Elxsi and KPIT- two of the top Indian design and technology service providers to the automotive and related industries are on a hiring spree.
EV ancillary is the unique concept to be introduced for the first time in India, by WardWizard Innovations & Mobility Ltd. (The Hindu)
Through the creation of EV Ancillary Cluster, manufacturing partners will be invited to set up their production unit for developing ancillaries under one roof to manufacture essential components like Motor, Battery, Chassis, Steel parts, Chargers, Controllers, etc.
The development of ancillary support industries in the EV market will create employment opportunities in India. The demand for charging infrastructure, battery manufacturing, and component manufacturing will led to the development of new ventures in these areas.
Moreover, the growth of the EV market has also led to an increase in ER&D (Engineering Research & Development) investment in India. Companies such as Tata Technologies, KPIT Tech, and Tata Elxsi are major players in the Indian EV market.
Tata Elxsi provides R&D, design, and product engineering services for the automotive and transportation industries. They specialize in connected infotainment, autonomous driving, telematics, powertrain, body & chassis electronics, and digital technologies such as AI, analytics, cloud, and IoT.
KPIT Technologies develops software for the automotive and mobility industry to build software-defined vehicles.
"Electric Vehicles in India: Growth Prospects, Government Initiatives, Business Opportunities, and Impact on the Automotive Industry" - A Comprehensive Analysis
In conclusion, the Indian electric vehicle (EV) market is experiencing a surge in growth, driven by the government's initiatives and policies to promote the adoption of EVs. With the Indian government's focus on sustainability and reducing the carbon footprint, the EV market in India is expected to grow at a CAGR of 66.52% between 2022 and 2029, reaching USD 113.99 billion by 2029, according to Fortune Business Insights.
The growth of the EV market has created new business opportunities in charging infrastructure, battery manufacturing, and component manufacturing, and has led to the development of new ancillary support industries, creating employment opportunities. As the Indian EV market continues to grow, it will create new opportunities for employment and investment, driving innovation in the automotive industry. Major players such as Tata Motors, Mahindra Electric, MG Motor, Ola Electric, Hero Electric, and Ather Energy are investing in the Indian EV market and contributing to its growth. Additionally, companies like Tata Elxsi and KPIT Technologies are investing in research and development to improve EV technology, which will further contribute to the growth and development of the Indian EV market.
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Reference
2) Invest India.
3) Niti Aayog.
4) PIB.
5) IBEF.
6) Ind Biz.
7) India Briefing.
9) The Hindu.
10) Wardwizard.in
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