In this decade, India’s electric vehicle market is predicted to develop at a CAGR of 90%, reaching $150 billion by 2030.
The Indian electric vehicle market is still in its infancy, but it is expected to develop at a 90% CAGR from 2021 to 2030. In terms of penetration, electric car sales in India will account for only 1.3& of total vehicle sales in 2021. The market, on the other hand, is fast expanding and is predicted to grow in value. By 2030, India’s transformation to shared, electrified, and connected mobility could save approximately one gigaton of carbon dioxide emissions.
For EV technology to advance in India, significant investment in R&D and product development is required, both in terms of car platforms and battery/charging technologies.
Between January and July 2021, 2W, 3W, 4W, EV component makers, and last-mile delivery firms invested a total of Rs 25,000 crore. Demand incentives offered under FAME II, the implementation of state regulations, rising fuel prices, tougher emissions standards, and growing environmental consciousness are just a few of the causes attracting major vehicle companies and financial investors to the sector.
The surge in EV demand, fueled mostly by a favorable legislative environment, has attracted foreign investment into the sector.
Some of the recent investment in Indian Electric Vehicle Market
- Ola Electric raised $200 million in a new investment round from a group of investors, valuing the company at more than $5 billion.
- TPG Rise Climate and Abu Dhabi’s ADQ have also agreed to contribute nearly $1 billion to Tata Motors’ planned electric vehicle business.
- Over the next 12 months, Bounce plans to invest around $100 million (about Rs 742 crore) in e-scooter manufacturing and extend its battery swapping infrastructure.
India would require around 400,000 charging stations to accommodate the demand for two million electric vehicles on the roads by 2026. To meet this enormous demand, a collaborative effort between the commercial and public sectors is essential. In terms of supplying the much-needed charging infrastructure, PSUs have been active.
Note: The content of this news is taken from BusinessToday