With the future of mobility at a critical turning point, EVs are increasingly viewed as a solution to address concerns surrounding fuel prices and climate change. Here is how India is all set to become a significant player in the global EV market.
India is actively pursuing its National Mission for Electric Mobility, which involves promoting the adoption and manufacturing of Electric Vehicles (EVs). With the future of mobility at a critical turning point, EVs are increasingly viewed as a solution to address concerns surrounding fuel prices and climate change. The country has set its sights on becoming a significant player in the global EV market, with traditional automobile manufacturers and start-ups offering new-age products and technologies.
Although there has been significant growth in the Indian EV industry over the past five years, it still has a long way to go in competing with Internal Combustion Engine automobiles on a large scale. However, the transition to EVs has encouraged new players to enter the market, resulting in increased competition and the development of a range of new features.
This has also prompted traditional automobile manufacturers to invest heavily in research and development to keep pace with the fast-changing industry dynamics.
One of the most significant advantages of EVs is their significantly lower cost of ownership throughout their lifespan compared to fossil fuel-powered vehicles. This, coupled with rising petrol and diesel prices, has led to more individuals turning to EVs as a viable alternative. Additionally, EVs have a much simpler construction with far fewer moving parts than their ICE counterparts, making maintenance and upkeep much more straightforward. Numerous state governments have implemented policies designed to encourage the demand and supply of EVs through incentives, discounts and other benefits. These measures have led to a gradual yet steady increase in the adoption of EVs throughout India, positively impacting the environment by reducing harmful emissions and promoting a cleaner, more sustainable future.
The government has set ambitious targets for EV adoption, hoping to have EVs account for 30% of private cars, 70% of commercial vehicles and 80% of two- and three-wheelers by 2030. The EV market is expected to be worth around 475 Bn by 2025. This significant shift towards EVs in the Indian automotive industry is expected to increase the share of EVs in the overall automotive components market to 9%—-11%. However, challenges such as the lack of high-performance EVs, insufficient infrastructure and perceived high capital costs hinder their widespread adoption. The government must address these challenges to ensure the successful growth and expansion of the EV industry in India.
Despite these challenges, the growth of the EV industry has sparked innovation, including the development of driverless cars that could revolutionise how we use automobiles. EVs also boast new and exciting features, such as high-power chargers, advanced batteries with higher energy densities, improved safety features, impressive performance figures and a longer driving range of up to 300-400 miles on a single charge. The emergence of new categories of EVs, such as utility vehicles and personal mobility vehicles, has also injected further diversity into the market. The government has taken several noteworthy initiatives to support the development and growth of the EV market, including the Faster Adoption and Manufacturing of Electric Vehicles and Green Urban Transport Scheme schemes. India is now one of the biggest EV markets in Asia, ahead of Japan and second only to China. If India successfully achieves its target of 50% electrification, the country could potentially establish itself as a global powerhouse in EVs.
India’s journey towards electric mobility has been marked by impressive progress over the past few years, with the government’s initiatives and policies playing a pivotal role in promoting the adoption of EVs. Although challenges like high capital costs, insufficient infrastructure and the lack of high-performance EVs persist, they are gradually being addressed through various means. The growing demand for EVs has also triggered the development of innovative features and technologies, which have improved the driving experience and range of EVs. With the government’s ambitious targets for EV adoption and the growing demand for clean and sustainable transportation, the Indian EV industry is poised to witness substantial growth in the coming years.
The future of mobility in India looks promising, with EVs set to play a significant role in driving the country towards a cleaner, greener, and more sustainable future.
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