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Automotive Product Finder Magazine | The EV transition in India
The EV transition in India
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New players are entering the electric vehicle (EV) market challenging the status quo and to stay ahead of the game and shape the future of mobility, says Nishant Arya.
The world is witnessing rapid advancements in the field of electric mobility which is transforming the automotive sector like never before. The rising concerns around environmental challenges and oil crisis coupled with rapid developments such as the evolution of prospective technologies, an increase in demand for novel business designs and ever-increasing consumer expectations are revolutionising the automobile sector.
Disruptive innovations – electric mobility in particular – pose great possibilities as well as challenges for not only the automotive sector but also the energy industry. Organisations are upgrading their skills, capabilities and offerings to ensure that these changing times are a chance for innovation. These disruptive forces are bound to reshape the market and we are already witnessing gradual changes needed for electric adoption. New players entering the market are challenging the status quo targeting the established corporates to stay ahead of the game and shape the future of mobility.
According to market reports, the electric vehicle (EV) market is projected to grow at a CAGR of 21.1 per cent between 2019 and 2030. Thus, all sectors in and across are gung-ho about the momentum of electric vehicles. The government has laid out ambitious policies and the auto industry is enthused with utmost energy to see through the successful implementation of these policies. Since the evolution of EV requires a new ecosystem, the component manufacturers are deliberating on mechanisms to seamlessly adapt to this transition.
However, any new shift in the ecosystem does not come without its set of challenges. Similarly, in electric vehicles segment, there can be challenges in the form of higher capital cost for manufacturing and expensive batteries. The cost of batteries is a huge percentage of the vehicle cost, as currently manufacturers are importing these batteries. However, with a robust eco-system that supports the usage of electric vehicles and with strong government policy on setting up of charging infrastructure, these challenges will soon translate into opportunities.
The announcements made under the union budget directly aim towards promoting and faster deployment of EVs. The reduction of GST on electric vehicles from 12 per cent to 5 per cent, exemption in customs duty on EV parts and additional income tax reduction of Rs 1.5 lakh on the interest paid on the loan to purchase these vehicles is a big push to make EVs affordable for the consumers. Additionally, the government’s approval of Rs 10,000 crore for the FAME II scheme is in line with their aim to make India the manufacturing hub for EV and will be a great booster for the industry. All this has set just the right tone towards our Prime Minister’s vision of eco-friendly transportation on Indian roads by 2030.
Moreover, the increasing prevalence and awareness among Indian customers will ultimately lead to the greater adoption of e-vehicles. However, the growth of the EV sector is still in its budding stage and demands a robust framework and support from the public and private agencies to nurture it.
Certainly, some challenges need to be overcome and can only be conquered when all the OEMs collaboratively put their synergies forward in strengthening the electric vehicles industry and the developing infrastructure. The automobile industry is striving to achieve the same as a cohesive unit with the support of the government. The Government of India can be the largest buyer of EV which will eventually lead to the advancement of the industry. We are positive that these challenges will be relegated to history very soon.
About the author:
Nishant Arya is the Executive Director of JBM Group - a diversified company that serves sectors such as automotive & auto components, electric vehicles, renewable energy and education. With his innovative ideas and dynamic leadership traits, Arya has been instrumental in forging technical collaborations and JVs with global majors and taking the group to newer heights.
Electric Vehicles Segment
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