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The brewing market of Electric Vehicles and its components !

Electric Vehicle components- The Brewing Market

The Future Of Automobile Industry

Fossil fuel ( Petrol, Diesel) vehicles increase pollution and India’s oil import bill. Therefore, to control it Government of India(GOI) is emphasizing on developing the electric vehicle industry and making India free from fossil fuel vehicles. GoI’s policy think tank Niti Aayog recommended that only electric models of scooters and motorbikes with engine capacity of more than 150cc must be sold from 2025.  As per the Reuters report, the Niti Aayog panel also suggested that taxi aggregators like Ola and Uber should start to convert their fleets to electric up to 2.5% by 2021 to 40% by April 2026.

The Problem of Electric Vehicle(EV) Industry

The proposal of Niti Aayog for transformation to electric vehicle opposed by some automakers. Because the process of switching to electric vehicles may further slow down the two-wheeler industry. And to switch to Electric Vehicles, India doesn’t have proper and required supply chain management system of EV components – spare parts and EV charging infrastructure. The availability of electric vehicle components and battery suppliers, technology solution providers, expert renewable energy solution providers is not sufficient enough to meet the total requirement of demand arising due to transition to total EV mode.

The opportunity

India’s automobile sector is the largest in the world. Around 20 million scooter bikes and motorcycles are sold last year in India. As Niti Aayog mentioned, India’s electric vehicle mission will create a huge opportunity for “Make In India”. And it can create a $300 billion domestic market for EV batteries by 2030. GOI is also encouraging the sale of EVs through the schemes like FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India). Under FAME scheme buyer is offered a reduction in the purchase price of the EVs. Govt. also proposed waiver of registration fees for EVs.

The automobile sector is going through transformation globally. And the share of EVs sales may reach 50% of the new vehicle sales by 2030 as per McKinsey report.

This indicates the huge potential for business, creating a golden opportunity for Indian Millennials.

What do you think?

The Starterr

Written by The Starterr

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