OVERVIEW
· India was the seventh-largest manufacturer of commercial vehicles in the year 2019 and in the year 2020 India stood fifth-largest automaker with 3.49MN units.
· Domestic automobile production increased by 2.36% CAGR between Financial years 2016 – 20 with 26.36 Million vehicles being manufactured in the country in Financial Year 2020.
CURRENT SCENARIO
· The EV market is poised to grow to an Rs. 50,000 crores worth by 2025, according to Energy Storage Alliance estimates the EV market in India is likely to increase at a CAGR of 36% until 2026
· Automobile industry expects to attract US$ 8-10 bn in local and foreign investment by 2023, as per Govt. of India expectations. Several Technology and automobile Industries showing interest to invest in the Indian E.V market.
WHAT’S COOKING WITH THE E.V
· The Indian EV market is expected to grow with the rise in the sale of electric vehicles and installation of solar panels.
· In an immediate response to the climate crisis EV batteries have become an important fuel source for automobiles rather than fossil fuels; projection for EV battery market is forecast to expand at a CAGR of 30% during the same period.
Giant automakers like Mahindra & Mahindra (NS:MAHM) Ltd, Tata Motors (NS:TAMO) Ltd and Ashok Leyland (NS:ASOK) Ltd are making EVs domestically.
Self-reliance and localisation are high on priority, but this needs robust strategies. The government has also rolled out PLI schemes to boost the confidence of the li-ion manufacturers.
· The Government of India aims to achieve 100% electrification of public transport by 2030. Various schemes like providing subsidy and tax exemption policies have been launched by the government to promote EVs.
· According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian automobile industry has attracted Foreign Direct Investment (FDI) worth US$ 25.40 billion between April 2000 and December 2020.
· Self-reliance and localisation are high on priority, but this needs robust strategies. Government has also rolled out PLI schemes to boost the confidence of the li-ion manufacturers
WAY FORWARD…..
· In February 2021 The Delhi government has planned to set up 100 vehicle battery charging points across the state to push for the adoption of electric vehicles.
· The Union Cabinet has announced Rs. 57,042 crore (US$ 7.81 billion) for automobiles & auto-ancillaries through production-linked incentive (PLI) scheme under the Department of Heavy Industries.
· The Government of India has allowed 100% foreign direct investment (FDI) under the automatic route in the automobile sector.
· A recent Study by CEEW (Centre for Energy Finance) recognized 206 billion opportunities for electric vehicles in India by 2030.
The policy initiatives by the government will provide an optimistic future to the Indian auto sector in adopting electronic vehicle technology.
Source: in.investing.com
