Do you know that the Indian £automobile industry is the fifth-largest globally and is expected to be the third-largest by 2030?
Despite the Covid-19 pandemic, investors have not missed the opportunity to invest in the EV sector. This is validated by the fact that the Indian EV industry has recorded Rs. 25,045 crore investments during January-July 21. And it is expected that by 2030, the EV market in India will be a US$206 billion (CEEW-CEF) opportunity. Another report (IESA) projects that the CAGR shall be 36% by 2026 for the Indian EV market.
There is a paradigm shift in India’s automobile industry. The electric vehicle industry in India is taking a leap with 100% FDI possible. New manufacturing hubs are being developed, and efforts are being taken to improve charging infrastructure.
EV Industry Buzz
But why is there so much buzz around EV Industry, and how is the Government preparing India to be EV ready country? The burden of oil imports and reliance on fuel isn’t sustainable for a country like India, hence Federal subsidies are coming into the picture. Policies are being developed regarding deeper discounts for Indian-made electric two-wheelers. Apart from this focus is also given to localized ACC battery storage production, since it is a growth driver for the Indian EV industry. Incentive in domestic production of such growth drivers will reduce our dependence on imports. Efforts in the early stage will support the EV industry and significantly reduce the cost of EVs. Recently, in September 2021, the cabinet has approved a production-linked incentive scheme for the automotive sector to enhance the manufacturing of electric vehicles and hydrogen fuel cell vehicles.
Market Players In India
The market players have picked cues from the government incentives and are absorbing this opportunity. Leading players like OLA Electric Mobility Pvt, Ather Energy, and Mahindra Electrics are quickly increasing their market existence. Ola has announced that it shall set up the world’s largest electric scooter plant in Hosur, while Ather Energy’s factory has an annual production capacity of 0.11 million two-wheelers. As we speak about EV, we cannot miss the American electric vehicle and clean energy company Tesla Inc. Tesla has already marked its entry into India by incorporating its subsidiary, Tesla India Motors and Energy Pvt Ltd, in Bengaluru.
All such progress indicates only one thing, the EV phase will come sooner than we are expecting. Currently, we are in the nascent stage in the EV sector and require substantial investments in R&D and product development. With the vision to make India pollution-free and reduce the dependence on petroleum, EVs are the way forward in the automobile industry.