This publication talks about the growth of the Indian Automotive Industry till date, along with the rise of EVs that will pan out the market dynamics ahead.
The Automotive industry has always been at the wheel, steering towards cardinal advancement in order to address the needs of today’s fast-moving lifestyle. In line with this, India’s automobile sector has accelerated its way over the last decade, with the vision to become one of the top 3 manufacturing hubs worldwide, reaching an industry size of USD 300 mn by FY26. However, the future depends on how well players are able to dynamically change gear as the entire industry stands at the brink of revolution – that is, making the shift to massive Vehicle Electrification.
Rising fuel costs, as well as the degrading health of the environment, have created strong impetus for manufacturers to move away from the traditional Internal Combustion Engine (ICE) to an Electric Motor for Electric Vehicles (EVs). This EV-olution has also gained a strong footing in India, with the government set to cut down on its INR 4.7 lakh crore oil import bill and achieve an all-electric fleet on road by 2030. This has ramped up activity across the country, with companies actively building capabilities in the use of efficient battery packs that ensure strong performance, proper safety and reasonable cost. Meanwhile the government-led FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) Scheme has also been undertaken to carry out extensive R&D and build the right charging infrastructure for these newer type of vehicles.
Ultimately the success on reaching the 2030 target and integrating the electric motor into every vehicle lays in providing cutting-edge products that incentivize consumers to make the switch from long-used ICEs. This means instilling a robust operating framework that oversees the consortium between the government and private players, monitors the channeling of funds towards the production of target fleet & infrastructure, hosts a healthy competitive environment that fosters partnerships across the value chain, and spreads consumer awareness across regions. Mazars has undertaken a possible plan of action the government can take, alongside with its existing initiatives, in order to lead this drive in a systematic manner, analyzing distinct heads that must be considered in the road towards electrification.
Being able to fulfill this goal will bring a multitude of benefits – from huge savings in fuel imports, a stronger stance on building solar energy, as well as a vital contribution towards clean air that benefits the country on an individual level.
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