India has the potential to become one of the largest electric vehicles markets

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11th December, 2019

News type : Recent news

Apart from investment, government backing and direction will be crucial for accelerating adoption and deployment of electric mobility.

The report says that there are 10 states and Union Territories (UTs) that are leading the way in building production, infrastructure and services to increase the momentum of EV usage in India. These states and UTs are Andhra Pradesh, Bihar, Delhi, Karnataka, Kerala, Maharashtra, Tamil Nadu, Telangana, Uttarakhand and Uttar Pradesh.

“Considering the strong governmental push towards EVs, India has a huge potential to become one of the largest EV markets,” the report notes.

 

Emphasis on value chain

The report, which also highlights the opportunities for the sector, analyses three value chains — production, infrastructure and services — of these states, and finds that most of them emphasise on the production of EV value chain, aspiring to be manufacturing hubs for such vehicles and their components.

In the infrastructure value chain, provisions for installation of charging infrastructure in public and private places were made by most states to address range anxiety.

Besides, many states laid emphasis on the services value chain by creating public awareness, skilling programmes, fiscal incentives such as pollution cess and non-fiscal incentives like retrofitment services, real-time information on charging infrastructure and payment facilities.

“Fuelled by the national agenda of electrification, and bolstered by government-led initiatives, the public and private sectors alike have commenced their respective and joint transitions to electric mobility. However, the uptake of EVs has been slow reflecting their high upfront and lifecycle costs. To overcome these challenges, funding is required for research centres and centres of excellence, which in turn would boost overall R&D in the sector and subsequently manufacturing. Reflecting the nascent nature of the market, government backing and direction is crucial for accelerating adoption and deployment of electric mobility,” the report says.

Christoph Wolff, Head of Mobility, World Economic Forum, said that “for a price-sensitive market like India, developing incentives for electric (clean) kilometres run versus electric vehicles purchased makes economic sense and is suggested to be the guiding principle for the national strategy.”

 

Environmentally sustainable growth

Given India’s role as part of the global big four automotive players (alongside China, Japan and the US), large-scale changes to the Indian market would affect the industry’s global footprint, the report says.

“India has taken up an ambitious target to become a USD 5 trillion economy by 2025. The country has placed equal importance on growth that is environmentally sustainable. Mobility holds significant promise for India to enable low-carbon solutions,” said Anand Shah, Head of Ola Mobility Institute.

The WEF's India Economic Summit was held in October, with the theme “Innovating for India: Strengthening South Asia, Impacting the World”, to focus on innovation and technology.

The two-day meeting convened more than 800 leaders from government, the private sector, academia and civil society, with the aim of accelerating the adoption throughout South Asia of Fourth Industrial Revolution technologies and making the most of the region's distinctive demographic dividends.

Prominently featured in the programme was South Asia's economic outlook, emerging technologies (including artificial intelligence and drones), India's environmental reforms, infrastructure, gender parity, unicorn startups, education and skills.

The programme also underlined South Asia's relationship with the Association of Southeast Asian Nations (ASEAN) and highlighted how the two regions, defined by their demographic and digital dividends, would shape the world's collective future.

 

Source: https://economictimes.indiatimes.com/industry/auto/auto-news/india-has-potential-to-become-one-of-the-largest-electric-vehicles-markets-report/articleshow/71407948.cms?from=mdr

 

 

Keywords: electric vehicles,potential,india,EVs,mobility,e-mobility,electric

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