Electric vehicles (EV) are the future of the automotive industry. Four years ago, the Union Minister of Road and Transport said most vehicles on Indian roads would be electric by 2030. About 9 years left and it seems that the automakers want to fasten the process. Tata Motors made headlines just yesterday when the company reported TPG would invest Rs 7,500 crore in the EV business. Well, the party has just begun!
Gadkari’s Vision Of The Auto-Future
India is at a budding stage of the electric vehicle industry. There’s still a long way to go because less than 1% of cars sold are electric vehicles. Recently at FICCI’s conference, Union minister Nitin Gadkari said that by 2030, the target for electrification of commercial vehicles is 70% while electric vehicles are expected to achieve 80% market penetration. Gadkari’s vision seems rather plausible because the electric 2W market has gone up by 21% in FY20. Once the 2Ws go electric, four-wheelers will catch the pace too. With this hindsight, Tata Motors is already gearing up.
Giants Entering EV Space
Since this week’s beginning, Tata Motors has been the headline of every business media news. The automaker has turned its focus from passenger vehicles to EVs. The company has planned to roll out 7 EVs in the next five years. To achieve this, the carmaker received funds worth Rs 7,500 crore from TPG Group and ADQ. This news made the stock skyrocket and investors went crazy.
ANother company that is going headfast towards the EV era is Hero MotoCorp. The company has partnered with Gogoro to build battery swapping stations across the country. Meanwhile, Ola already has an electric scooter. So, there are many who have already started building their base for the future vehicle.
The government is pushing the auto industry to adapt to the EV ecosystem simply because it would reduce emissions and will reduce reliance on oil and gas. So if you are worried about how you are going to pay Rs 200/litre for petrol in the future, it would be best to buy an EV. Nitin Gadkari has already said that India’s automobile industry has the potential to be number one in the world in the next five years through alternative fuel sources. This is already being worked upon. The government is undertaking ethanol blending as an alternative fuel source for EVs. India is planning to introduce flex-fuel engine vehicles. With the rollout of flex-fuel vehicles on 100% bio-ethanol, the demand for ethanol will immediately jump by 4 to 5 times, which will benefit sugar firms.
Just like a pendulum, the future of the EV market in India is oscillating. Gadkari’s vision is life-changing but one needs to also know that the biggest obstacle for Indians is the cost. Especially in a country where people earn less than $2,000/ year. It is a far-fetched dream, but it could cater deliciously to the upper and high-upper class consumers. For middle-class men, affording an EV would be out-of-hand until the prices are balanced and cater well to the larger chunk of the society.
However, it doesn’t cost a dime to dream of flying EVs on Indian skies. At least, nobody would have to then wait in the traffic for hours. Long way to go but quite possible!
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