India holds a lot of potential when it comes to the EV segment. But the industry is still in its early phases, and with very few startups worthy of notice.
So, amidst the push that is being generated by the Make In India scheme towards the Indian EV segment, how will fledgling domestic manufacturing grow into a staple of the vehicle industry?
While there are analytics out there which showcase EV sales in India to hit 15+ million by 2030, as of now it is only a meagre million. Under the Make In India scheme, the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) segment aims to double the production scale of EVs in the next year.
However, to make this truly happen a lot of factors will have to align.
Homegrown Talent Will Lead The Way
There are quite a few players aggressively operating in the Indian EV segment. Eveez, Ola Electric, Ather Energy, and Okinawa, are some of the newcomers alongside household brands such as Tata Motors, Hyundai, Mahindra, etc. also launching EV models.
The FAME India initiative will be launching INR 10k crore worth of investments into these manufacturers, along with those involved in the EV ecosystem. Most of the newcomers, and especially startups such as Eveez are looking forward to this inflow of cash as it may close many gaps that have been holding smaller manufacturers back from making the jump.
The government wants to build a solid foundation with the help of existing manufacturers. Once a sustainable ecosystem is created, it will allow new players to enter a market that is profitable from the start.
Strong Goals For The Government
The government has stated that within the next decade, 30% of all vehicles in India will be electric or hybrid.
While this may have been considered a stretch in the past, with the news of Taiwanese manufacturing giant Foxconn announcing a new line of EV production houses in India, it may well be possible now.
It’s not just love for Evs that’s driving the Indian government to create the FAME India initiative. India is one of the G20 countries that have vouched to take strong steps against climate change, and the shift to electric vehicles is an imminent part of this movement.
According to market experts, India has the perfect expanding market and renewable energy resources required for EVs. So, with the right infrastructure development, the next Asian EV powerhouse can be India.