To aid this growth, the government has implemented policies and subsidies that also include the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme and the National Electric Mobility Mission Plan (NEMMP) 2020.
By Visakh Sasikumar, CEO & Co-founder, Fyn Mobility
India is becoming a major player in the electric vehicle (EV) market, with over one million EVs sold in 2022. The country’s EV manufacturing industry is poised to lead the way in 2 and 3-wheeler EV adoption, thanks to the government’s commitment to increasing the number of EVs on the road to 30% by 2030.
To aid this growth, the government has implemented policies and subsidies that also include the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme and the National Electric Mobility Mission Plan (NEMMP) 2020.
One of the key trends shaping India’s EV future is the growth of electric two-wheelers. As the cost of EVs decreases and the range of electric two-wheelers increases, more and more consumers and businesses are choosing this environmentally friendly and cost-effective mode of transportation.
To reduce dependence on parts and vehicles from other countries, such as China, Taiwan, and Korea, there is a growing need for locally manufactured EVs. There are several trends emerging that are helping to increase the localization of EV manufacturing in India:
Li-ion Cell Manufacturing: India currently imports 70% of its Li-ion cells from countries like China, Taiwan, Hong Kong, and Japan, but the lack of local manufacturing capacity and access to raw materials is hindering the growth of India’s EV industry. Global players like Panasonic, LG Chem, and Tesla have invested heavily in EV batteries and cells, while established Indian battery players have been slower to adopt this technology. However, some OEMs, traditional battery players, and new-age start-ups are now exploring cell and battery manufacturing.
Alternate Cell Chemistry: There is potential for alternative metal-ion batteries, such as sodium, potassium, and aluminium, to be cost-effective and sustainable successors of lithium-ion batteries. As of now these technologies are still in the R&D stage and show a good promise for the future.
Motors without Rare Earth Materials: The use of rare earth materials in electric motors is a growing concern for automakers, as the price of magnet metals such as neodymium has more than doubled in recent years and China controls around 90% of the world’s supply. Some companies and start-ups have developed motors without the use of rare earth materials, but they have yet to be mass-produced.
Battery Capacity Manufacturing: There is a growing demand for Energy storage systems (ESS) for renewable energy integration with the grid, the government projects that India will need an installed capacity of 20 GWh by 2026 and 70 GWh by 2030, requiring an investment of over $10 billion USD.
Integrated Platform: To track the performance and impact of EV fleets on the environment and businesses, a platform that brings together all stakeholders is necessary.
Companies are working on such a platform, using IoT and data analytics to provide regular updates on fleets, deployments, and savings, and help make informed decisions. This will shape the EV logistics industry and ultimately reduce the carbon footprint of the country.
The future of EVs in India is bright, with the government’s support and innovation from Indian startups. The coming years will bring further advancements in the overall ecosystem, making it accessible to the global market.
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