India's automobile sector's shift to EVs will not solely rely on electric vehicles but will also include hybrids and plug-in hybrids, as per a report by Elara Securities.
The report noted that a combination of electric vehicles (EVs), hybrids, and plug-in hybrids is set to drive the country's transition towards cleaner energy solutions, rather than relying solely on electric mobility.
Global EV sales touched 14 million in 2023
As per the report, the Indian EV market has seen tremendous growth. Global EV sales reached 14 million in 2023, with India experiencing a 90 per cent growth rate.
By 2030, the Indian government aims for 30 per cent EV penetration, with key enablers like expanded charging infrastructure, advanced battery management systems, and the release of new EV models playing a critical role.
The report also added that one of the key trends shaping the future of the Indian automotive sector is the emergence of software-defined vehicles (SDVs). These vehicles rely heavily on the integration of electronics, software, and electrical architecture into a unified system.
OEM's to shitft focus to software
It added that such vehicles offer advanced features and services that can be monetised, pushing OEMs to shift their business models from hardware-focused to software and smart solution-driven operations.
Bevin Jacob, Partner & Co-Founder of Automobility, highlighted this trend, stating that OEMs are extracting value from smart solutions by incorporating cutting-edge technology and providing connected services to consumers.
He said, "On-demand mobility services, powered by internet connectivity, electrification, autonomous driving, and mobility-as-a-service, represent a transformative development for the industry's future."
India's automotive is ready for shift
As per the report, India's automotive sector is poised for a dramatic shift, driven by technological advancements, collaborative efforts, and a strong push toward sustainable mobility.
The transition to clean energy will be multifaceted, with EVs, hybrids, and plug-in hybrids leading the way, supported by a robust ecosystem of localised production and smart solutions.
According to Gaurav Gupta, Chief Growth Officer at JSW MG Motor India, "In the next 5-6 years, around 200,000 chargers will be needed, with 1 charger for every 50 vehicles. By CY30, connected car adoption is expected to reach 75-80 per cent, and ADAS adoption should hit 45 per cent, making BEV acquisition more attractive."
