India’s electric vehicles (EV) market valuation might reach between $76 billion and $100 billion by 2030, making a $8 billion to $11 billion profit, according to a report from Brain and Company.
The Indian automotive market will see a rapid growth in EV, due to the convergence of factors including government incentives, improving cost news and original equipment manufacturer (OEM) investment in the industry along with increased customer readiness and awareness.
” The auto revenue and profit will grow significantly by 2030 different from those in today’s automotive industry.”Deepak Jain, Co-author of the report of Brain & Company said-
“About 40%-50% of total revenue will come from Auto OEMs, it will slowly become true. And the other new business such as battery (13%), charging (8%), mobility (6%) will build up and emerge significantly. Simultaneously new big players look forward or backwards to set up a new e-mobility ecosystem in India”-he added.
About $3 billion investments in the EV sectors in India over the past 3 years and this huge amount of money looks to increase the EV eco-system as well as its market.
As per reports, about 30%-40% of all electric vehicles will be sold in India by 2030 but at that time it is now 2% in 2022.
To reach the $100 billion, we need 14 million to 16 million new EVs sold every year.
Most of the electric vehicle sales in India are two wheeler and three wheeler. The share of two and three wheeler is 40% to 50%.
But the four wheeler electric vehicles like private cars, passenger cars, multipurpose vans etc sales are very low. As per report, the 4W segment will acquire 15%-20% of total EV share from sales by the end of the decade.
Why is the EV market in India increasing?
About 100 years ago this EV journey started in the world. But right now we are following that EVs right now are growing slowly. Lots of companies like Volkswagen, Volvo, Jaguar, Ford will sell completely EV cars by 2030.
1.Oil Price Increased
One of the main reasons is oil price increase. India imports billion dollar oil from outside countries.
Because of this overwhelming oil price, people are gradually coming closer to electric vehicles. Aslo, after the long study EVs save 60% money against the ICE engine vehicles.
2. Environment Pollution
Another EVs growing reason for its environment pollution. Globally people are suffering due to changes in electric vehicles.
For this reason, Many states in India and also people are showing interest in electric vehicles day by day.
3. Government Subsidy
Many states of India and also India’s government are giving subsidies on electric vehicles so that EVs price will be affordable and reasonable for the customers. As a result, people are showing interest in buying EVs.
4. Battery Cell Manufacturing
India electric vehicles manufacturing companies largely import EVs batteries from China and other countries. This is the most costly component in any EVs.
Right now, many automotive industries are making their own battery cell manufacturing set up so that EVs cost will be more affordable.
5. EV Components Manufacturing
Under the FAME-2 subsidy, all the automotive companies have to make 50% of components in India. Recently, the price of Okinawa has been increased, they import most of the components outside India. There is no subsidy on these two wheelers.
So, all the companies are setting up their own plans and hiring their own expertise to make components under Make in India. As a result, EVs’ price will be reduced.
6. Software and Telematics
Asia Pacific is the fastest growing automotive telematics market in the world. As per the CAGR report, about 31% growth has been seen in the next 5 years. India is the third largest telematics provider after China and Japan.
India’s telematics market right now is about $4.5 billion and grew 30% in the next 5 years. For preventive maintenance,driver monitoring, and other vehicle tracking uses it is very helpful.
7. Charging Station
Charging infrastructure is one of the biggest threads on charging stations. Right now charging stations are very low in our country.
Lots of automotive companies are planning to make their own charging stations across the country. So, EVs involvement will increase in the future in India.