The electric vehicle industry in India is a growing industry and is stepping further with 100% FDI possible, new manufacturing hubs, and increased push to improving charging infrastructure. In September 2021, a production-linked incentive scheme for the automotive sector was approved by Cabinet to boost the manufacturing of electric vehicles and hydrogen fuel cell vehicles.
The Indian Electric Vehicle Market has been affected by the outbreak of the COVID-19 pandemic due to supply chain disturbance and halt of manufacturing units due to continuous lockdowns and travel restrictions across the county. However, the electric vehicle (EV) market is still in its nascent stage in India. It is expected to grow at a much faster rate during the forecast period due to various government initiatives and policies.
India is experimenting with e-Mobility for public transport, and the country has electric inter-city buses across some major cities. In addition, state governments are also playing an active role in the deployment of policies supporting the usage of EVs.
The EV market in India has gained important momentum after the execution of the FAME India scheme with its aim of shifting toward e-mobility in the wake of growing international policy commitments and environmental challenges. Moreover, India offers the world’s largest untapped market, especially in the electric two-wheeler segment.
An electric vehicle operates on an electric motor instead of an internal combustion engine, which generates power by burning a mix of fuel and gases. Therefore, an electric vehicle is seen as a possible replacement for the current-generation automobile shortly to address environmental challenges. The report covers the latest trends and technologies followed by the COVID-19 impact on the market.
India is the second most populated country in the world after China, and just like China, which has the largest electric bus fleet in the world. India is also pushing hard for the electrification of buses. Many state governments have already started procuring electric buses from Chinese and local electric bus manufacturers.
With transportation still being a challenge in India, a lot of people in this section look forward to the two-wheeler industry in India. As a result, the national government has launched strict policies to curb vehicular emissions. Specifically, the jump from Bharat Stage V (BSV) to BSVI emission standards is looking forward to benefiting the Indian electric scooter and motorcycle market, by raising the prices of petrol-driven two-wheelers by 7–15%.
The Indian EV market is integrated with the presence of major players in the market, owing to cheap and readily available manpower. However, established players in the market are introducing new models to gain a competitive edge over other players.
The startups are enlarging their existence by raising funds from investors and tapping into new and unexplored cities. Companies are investing a huge amount in R&D and launching new models to mark their presence in the market.