The electric vehicle (EV) boom is gradually catching up in India. Auto companies have already invested over Rs 35,000 crore to achieve their EV dream. E-mobility is not far from us!
What’s Happening?
Electric vehicles have been around for a long time, the level of interest has accelerated over the past decade. The fear of global warming melting the Arctic glaciers has made every country adopt clean energy sources. EVs are the future of mobility, but is it affordable for Indian laymen? Yes, because the Indian government is involved in the EV push.
To reduce the dependence on oil imports, automobile manufacturers have sped their processes to launch EVs. A few concerns related to EVs include costs, battery life, battery technology, infrastructure roadblocks etc. That’s where the government comes into the picture. NITI Aayog has specified that Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) and other policies supporting electric mobility may push EV sales penetration to 30% for private cars, 70% for commercial vehicles, 40% for buses and 80% for two-wheelers (2Ws) by 2030.
Automobile makers are concerned about the batteries as they form an EV's crux. The Indian Space Research Organisation (ISRO) has transferred its in-house lithium-ion technology at a nominal fee of Rs 10 million to 10 Indian industries for commercial production. Automakers like Suzuki are setting up a new electric car and battery factory in Gujarat. It plans to roll out affordable EV models by 2025. Tata Motors has plans to invest Rs 15,000 crore in developing EV products in different body styles, price and driving range options. Meanwhile, MG Motors is building capabilities to fund its future growth in India.
Should You Be Concerned?
The government’s target to become carbon neutral by 2075 is taken seriously. Not just India, every nation is working towards adopting clean energy. The rising levels of carbon dioxide are melting the Arctic ice. This can cause catastrophic effects on the world. As a result, automobile companies need to adopt EV development to reduce pollution levels.
What Lies Ahead?
Companies like MG Motors, Tata Motors and many others already plans to invest at least Rs 35,040 crore in the Indian EV industry. As per a recent study by Catapult, EVs currently account for less than 1% of total vehicle sales in India, but the market is growing rapidly. The EV boom will engulf the vehicle market in the next six years.
