July’s SMMT International Newsletter features guest writer Avnish Malhotra, India Sector Specialist – Future Mobility and Head of British Trade Office in Pune at the Department for International Trade in India. Hear more from Avnish in our upcoming webinar.
Automotive market in India
The Indian automotive industry is the 5th largest in the world with 3.49 million units sold in the passenger & commercial vehicle categories and is predicted to be the 3rd largest, by 2030. The two wheelers segment dominates the market in terms of volume, attributed to a growing middle class and a young population. EV sales, excluding E-rickshaws, witnessed a growth of 20% and touched 1.56 lakh units in FY20, driven mainly by two wheelers. The Indian auto industry is expected to record strong growth in 2021-22 as recovery begins, Electric Buses for urban transport and Electric two-wheelers within EV space are expected to show rapid growth from a smaller base.
Growth trajectory in India
The EV sector in India is at a nascent stage, offering a fairly untapped market for UK companies vying for technical collaborations. According to Indian Prime Minster Narendra Modi, the vision for future of mobility is based on 7 C’s which are Common, Connected, Convenient, Congestion-free, Charged, Clean and Cutting-edge mobility. The Govt. of India has an ambitious target to achieve 100% electrification starting from 2030 and has implemented several fiscal policies and incentives to augment this initiative. The electric vehicle industry in India is growing with a possible 100% FDI, new manufacturing hubs and a massive thrust towards improving charging infrastructure. It is estimated that an investment of INR 12.5 trillion (US$180 billion) in vehicle production and charging infrastructure would be required to meet this ambitious target of 2030. If India maintains steady progress, then the EV market will be a US$206 billion opportunity by 2030. On the sustainability front, EV’s sold until then can cumulatively save 474 million tons of oil equivalent over their lifetime, worth US$207.33 billion.
UK – India EV connect
UK companies such as Jaguar Land Rover, Arrival, Saietta, Tevva Motors, Faradion Batteries and Switch Mobility are strengthening their presence in the EV Indian market. Opportunities for collaboration are centred on development of lighter battery packs & trays, new/ alternate battery chemistries, traction motors, Motor & motor management, power electronics, Lightweight material/ structures and charging Infrastructure.
On challenges India is a price sensitive market, the key policy focus continues to be on locally manufactured options especially for batteries, but also moving to cleaner sources of power in long run.
India will host a virtual event from 29th Sept – 01st Oct. the ‘Symposium for International Automotive Technology’ (SIAT) focussed on Redefining the mobility of Future. UK EV companies will have an opportunity to showcase their cutting edge technology and innovations and interact with potential partner/ customer companies from India. A curtain raiser highlighting ‘Electrification Opportunities in India’ is planned for 15th July. For further details please contact SMMT.
India Sector Specialist – Future Mobility and Head of British Trade Office in Pune at the Department for International Trade in India.