The greenhorns are fuelling the growth as the EV sector is growing rapidly, thanks to the worldwide demand for eco-friendly vehicles
Although it has encountered its fair share of challenges, the Indian electric vehicle (EV) market is on the brink of substantial expansion within the EV sector. While the industry remains in its nascent stages, both domestic and international companies, in cooperation with the Indian government, have committed to substantial investments, amounting to over Rs 1 Lakh Cr over the next 5-10 years.
The EV market is projected to become a $266 billion market by 2030. During the first seven months of 2023, India witnessed a robust market for electric vehicles (EVs) with a notable cumulative sale of 8,38,766 units, highlighting its impressive performance. Currently, India boasts around 3 million registered EVs, with projected sales of more than 10 million EVs per year by 2030, which is expected to generate employment opportunities for 50 million individuals. The escalating development path demonstrates India's rising acceptance of electric vehicles, illuminating the substantial economic benefits and employment opportunities within the sector.
Launched in April 2015 as part of the National Electric Mobility Mission, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme was designed to incentivise the purchase of electric and hybrid vehicles through financial support. Its initial phase spanned four years, ending in 2019. The subsequent phase, known as FAME II, is a 3-year subsidy program with a primary focus on promoting the electrification of public and shared transportation. This includes provisions for approximately 7,000 electric and hybrid buses, 500,000 electric three-wheelers, 55,000 electric passenger cars, and 1 million electric two-wheelers.
The Indian electric vehicle (EV) market is currently witnessing intense competition, with a range of players actively engaged in this rapidly growing sector. Among them are newcomers like Eveez, Ola Electric, Ather Energy, ABZO Motors and Okinawa, as well as established household brands such as Tata Motors, Hyundai, and Mahindra.
This sector is set to generate more opportunities for employment and development as it encompasses a wide array of market segments, each teeming with diverse opportunities. These segments range from original equipment manufacturers (OEMs) to EV financiers, deep tech enablers, charging station providers, battery manufacturers, assemblers, BMS (Battery Management System) providers, and numerous other niches.
The Indian government has set an ambitious goal of making 30% of all vehicles in the country electric or hybrid within the next decade. While this target may have seemed challenging in the past, recent news of Taiwanese manufacturing giant Foxconn's plans to establish a new line of electric vehicle production facilities in India has made it more achievable. The push for electric vehicles in India isn't solely driven by a growing affection for EVs. India is among the G20 nations committed to taking substantial actions against climate change, and the transition to electric vehicles is a pivotal component of this global effort. According to industry experts, India possesses the ideal combination of a rapidly expanding market and abundant renewable energy resources needed to support the growth of electric vehicles. With the right infrastructure development and continued commitment to sustainability, India has the potential to become the next major player in the Asian electric vehicle market. In these active markets, new businesses have a great opportunity. Unlike some other new industries like cryptocurrency, the electric vehicle sector is growing, thanks to the unstoppable worldwide move toward eco-friendly transportation. This momentum offers a promising outlook for entrepreneurs venturing into the EV ecosystem who are looking to make their mark in the green transportation industry.
(The writer is a Co-founder, of Abzo Motors, views are personal)
