India is at the edge of an EV revolution, soon becoming the sector’s global hotspot. As the country continues to embark upon this journey of electric mobility, ‘Aatmanirbharta’ or self-reliance, will play an integral part in India’s success.
India has the world’s largest and fastest-growing Electric Vehicle two and three-wheeler markets. It will be possible to seamlessly cater for its massive market only if we are self-reliant, especially in the technological aspect of it.
Key Expectations & Growth Trends
The last 5 years have been an encouraging era for the EV (electric vehicle) industry. India’s growing EV enterprise is looking forward to the Budget of 2023. The EV sector is glimpsing into a large number, including extending the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme beyond 2024 and reducing GST. Electric two-wheeler (E2W) adoption is increasing, and India is poised to be one of the world’s largest two-wheeler markets. In November 2022, 18,47,208 two-wheelers were retailed across India, 76,438 (4.1%) E2Ws (Electric two-wheeler).
What EV industry needs?
The budget for 2022-23 focussed on promoting electric vehicles. Financial incentives of Rs. 10,000 crores were provided under FAME-II to boost demand. To support supplies, PLI (Production-Linked Incentive) schemes totalling Rs. 44,038 crores have been announced, including for ACC (Advanced Chemistry Cell) batteries. The current size of the electric market stands at about 3,50,000- 400,000 units and is expected to grow at 7-10% per annum till 2025.
This segment is primarily driven by E-commerce and logistics players electrifying their first and last-mile fleets to reduce costs and meet ESG (Environmental, Social and Governance) requirements.
