October 28, 2021

Rise of the EV Market in India

For the longest time, the automobile industry has been dominated by Internal Combustion Engine (ICE) technology. However, partly due to environmental concerns and advances in technology, the world is looking to develop and implement a future with electric vehicles as the mainstream. There are obvious benefits to the environment and EVs could also stand to save a large chunk of money out of the everyday man’s pocket. How does the EV market look for India?

There is very good news for all EV enthusiasts and aspirants; India is poised to be one of the largest hubs for electric vehicles. Valued at 5 billion USD in 2020, the IEV market is set to display exponential growth within the coming years. The growth of such an industry has definitely been impacted due to the recent COVID pandemic but the recent actions of the government on pollution and vehicular emissions are key indicators that while the IEV market is still young, it is set to grow and become a major player in the global economy. Alongside Amazon and other e-commerce websites, the actions of state governments are also pushing for an increasingly electric future with the following plans outlined by state governments with regards to EV-

  1. Kerala aims to put one million EV units on the road by 2022 and 6,000 e-buses in public transport by 2025.
  2. Telangana aims to have EV sales targets for 2025 to achieve 80% 2- and 3-wheelers (motorcycles, scooters, auto-rickshaws), 70% commercial cars (ride-hailing companies, such as Ola and Uber), 40% buses, 30% private cars, and 15% electrification of all vehicles.

The push for BSV VI and the price of fuel in the country is also pushing India’s market to an electric future. The actions of a few OEMs is also to be noted, seeing as how their facilities may be expanded and changed to suit the coming market trends-

  1. In January 2020, Ather Energy Pvt Ltd announced intentions to build a 400,000-sq-ft factory in Hosur, Tamil Nadu, which would have an annual output of 1 lakh units. Currently, the company operates one manufacturing plant in Bengaluru, which has a capacity of 25,000 units. The idea of the company behind an additional facility is meeting the rising demand for electric two-wheelers in India.
  2. In the same vein, Okinawa AutoTech Pvt Ltd invested USD 28.4 million (INR 200 crore) for its second manufacturing plant in May 2019. To be developed for electric two-wheeler vehicles in Rajasthan and planned to be commissioned in early 2020–21, the manufacturing plant will have an annual output of 10 lakh units.

India needs to focus on a two-wheeler and auto-rickshaw markets and work on transforming these sectors if EV is to be quickly and properly established in the country. These sectors dominate transportation in our country and as such, these sectors should be targeted.

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