India's Stance in the Global Electric Vehicle Market

With over 40 crore customers in need of mobility solutions by 2030, India is the world’s fifth-largest car market and has the potential to become one of the top three shortly.
Keeping in mind the Paris Agreement’s goals, an increase in the number of automotive users does not indicate an increase in conventional fuel consumption. The Indian government is adamant about the introduction of electric vehicles (EVs), which would not only lower India’s oil import expenditures in the long run but will also help to clean up the environment. India’s proposal could inspire many other developing countries to follow suit.

Recently, there has been a growing consensus among automotive professionals and the general public that electric vehicles are the way of the future, and India’s recent agreement with Australia to obtain essential minerals will aid the country’s efforts to manufacture electric vehicles.

India is one of only a few countries to back the global EV30@30 initiative, which aspires to have at least 30% of new vehicle sales be electric by 2030.

At the COP26 in Glasgow, India’s promotion of five factors for climate change — “Panchamrit” — is a commitment to the same.

At the Glasgow summit, India proposed several suggestions, including renewable energy meeting 50% of India’s energy demands, cutting carbon emissions by 1 billion tonnes by 2030, and achieving net-zero by 2070.

The Indian government has taken several steps to develop and promote the country’s electric vehicle ecosystem, including the FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme, the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) for suppliers, and the recently launched PLI scheme for Auto and Automotive Components for electric vehicle manufacturers.

EVs will help to improve the country’s overall energy security status, as the country imports over 80% of its crude oil needs, which total around USD 100 billion.

According to the NITI Aayog, by 2030, 80 percent of two- and three-wheelers, 40 percent of buses, and 30 to 70 percent of cars in India will be electric vehicles. As the country works toward its 2070 goal of being “zero-emission,” cash and attention are being focused on electric mobility.

Minister for Road Transport and Highways Nitin Gadkari stated in Parliament in March 2022 that during 2019-2020 and 2020-2021, two-wheeler EVs increased by 422%, three-wheelers by 75%, and four-wheelers by 230%. In addition, the number of electric buses has surged by approximately 1,200%.

The demand for electric vehicles is also projected to boost job development in the local EV manufacturing industry.

EVs are also projected to reinforce the grid and assist accept increased renewable energy penetration while maintaining secure and stable grid operation through a variety of grid support services.

Battery Manufacturing and Storage Possibilities: In light of recent technological disruptions, battery storage has a significant role to play in encouraging sustainable development in the country, especially in light of government plans to encourage e-mobility and renewable energy (450 GW energy capacity target by 2030).

With increasing per capita income, there has been a huge demand for consumer gadgets such as cell phones, UPS, laptops, and power banks, all of which require sophisticated chemical batteries. As a result, improved battery production is one of the most promising business possibilities of the twenty-first century.

On both sides of the roadways, the Ministry of Power has mandated that at least one charging station be present in a 3 km grid and every 25 km.

The Model Building Bye-laws, 2016 (MBBL) of India’s Ministry of Housing and Urban Affairs mandated setting aside 20% of parking space in residential and commercial buildings for EV charging facilities, and such an example is worth copying by developing countries.
The Indian government has stepped in with a slew of incentives under the FAME 2 Scheme till electric vehicles become cheaper.

Incentives for electric vehicles in India are at an all-time high, with up to Rs 32,000 available for electric two-wheelers, Rs 3 lakh for electric automobiles, and Rs 35-55 lakh for buses. An extra income tax credit is available for loans used to purchase electric vehicles.

According to a study conducted by the CEEW Centre for Energy Finance (CEEW-CEF), the market opportunity is worth roughly USD 206 billion (Rs 14,42,000 crore), with total EV sales in all vehicle segments expected to reach over 100 million units by FY30. Vehicle production and charging infrastructure are expected to require approximately USD 180 billion (Rs 12,50,000 crore) in investment until 2030, presenting a big potential for foreign investors.

Many entrepreneurs have been attracted to this field because of this prospect. The solutions are likewise cutting-edge. For example, Charzer, a one-year-old Bengaluru-based startup, plans to put an electric two-wheeler charging station on every street in every city across the country. Vehicles whizzing down highways, emitting no noise or pollution. Malls, parking lots, overnight at home, parked at a supercharging station, or even your friendly neighborhood Kirana store can all be used to recharge them. A discharged battery can also be replaced with a new one. That is the way transportation will be in the future.