The Automobile sector contributes 49% to India’s manufacturing GDP and 7.1% to India’s GDP. The 2nd AMP (Automotive Mission Plan) released by the government outlines the plan to elevate the Automotive Industry to world class levels. As part of Paris agreement in 2015, India committed to reduce the emission intensity of its gross domestic product (GHG emissions per unit GDP) by 33% – 35% over 2005 levels by 2030..
In order to meet its global commitment and mitigate the adverse impact of automobiles (ballooning oil import expenses and increasing air pollution), the Government is keen to shift the narrative towards electric vehicles. The electric vehicle market in India is expected to be valued at $2bn by 2023.
Contribution to Manufacturing Sector
Contribution to GDP
The global COVID-19 pandemic hit the mobility industry like a multi-car pileup. The crisis has given automakers and suppliers a new revenue and profit mandate: develop a sustainable business strategy that aligns with ‘next normal’ realities.
With battery costs declining faster than anticipated, EV economics become favourable as battery costs decline; the five year TCO becomes favourable over any alternative in most markets. Additionally, consumers benefit from financial (e.g., subsidies) & non-financial incentives (e.g., road access, registration privileges).
With Climate Angels, build your innovation pipeline with companies from India and abroad to bring cutting-edge innovation to your operations. Be presented with the most promising mobility tech and innovators globally across the early and growth stages. Stay connected with global trends and the latest technologies. Connect with leaders across all mobility investors
The electric two-wheeler market in India is emerging on account of increased government policies supporting battery-powered vehicles, the growing awareness toward the environment, increasing petrol prices, and stringent emission norms.
2Ws are expected to be one of the early adopters of electrification. High vehicle utilization and easy home or workplace charging would drive the uptake in the commercial 2W segment
E-rickshaws category stands at 0.7 million units a year and has grown rapidly in the last 5 years. It is primarily based on Lead Acid batteries and close to 50% of this market is completely unorganized and unregulated.
The market is expected to reach $1 Bn 2030 ( 63% penetration). Additionally, it is expected that the typical earnings of an e-rickshaw operator are set to go up as the industry gets organized.