{"id":43086,"date":"2022-05-09T11:15:32","date_gmt":"2022-05-09T05:45:32","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=43086"},"modified":"2022-05-09T11:16:02","modified_gmt":"2022-05-09T05:46:02","slug":"electric-vehicle-business-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/electric-vehicle-business-in-india\/","title":{"rendered":"An Overview of Electric Vehicle Business in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Currently,\nIndia is in its developing phase and surely, it will become a superpower in the\nfuture. As India is developing, the Electric Vehicle Business is also picking\npace with 100% FDI possible, new manufacturing plants and an increased push to\nimprove charging infrastructure. Also, the Government of India introduced\nvarious subsidies and policies favouring deeper discounts for Indian\nmanufactured electric 2-wheelers and a boost for localised ACC battery storage\nproducts for the Indian Electric Vehicle Business. Furthermore, in Sep 2021, a <strong><em>PLI Scheme\nor Production-Linked Incentive Scheme <\/em><\/strong>for the automotive sector was\napproved by the Cabinet to increase the manufacturing of electric vehicles and\nhydrogen fuel cell vehicles. As per the report in 2021, Indian sales of over 3\nlakhs Electric Vehicle units. In this blog, we will discuss Electric Vehicle\nBusiness in India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/electric-vehicle-business-in-india\/#Importance_of_Electric_Vehicles_in_India\" >Importance of\nElectric Vehicles in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/electric-vehicle-business-in-india\/#What_are_the_Growth_Targets_of_Electric_Vehicle_Business_in_India\" >What are the\nGrowth Targets of Electric Vehicle Business in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/electric-vehicle-business-in-india\/#What_is_the_e-AMRIT_Portal\" >What is the\ne-AMRIT Portal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/electric-vehicle-business-in-india\/#An_Overview_of_PLI_Schemes_by_the_Government_of_India\" >An Overview of\nPLI Schemes by the Government of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/electric-vehicle-business-in-india\/#Different_Companies_to_Enter_in_Indian_EV_Market\" >Different\nCompanies to Enter in Indian EV Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/electric-vehicle-business-in-india\/#Development_of_Electric_Vehicle_Business_in_India\" >Development of\nElectric Vehicle Business in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/electric-vehicle-business-in-india\/#Some_Challenges_Faced_by_Electric_Vehicle_Business\" >Some\nChallenges Faced by Electric Vehicle Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/electric-vehicle-business-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_Electric_Vehicles_in_India\"><\/span>Importance of\nElectric Vehicles in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We\nalready know that Greenhouse Effect, which directly leads to climate change, is\nprimarily due to moto vehicle gas emissions. Harmful gases like CO2 and the\ngreenhouse gases like methane and nitrous oxide, and post-electric. The oil is\nalso going to be empty in the future. Therefore, Electric Vehicle is the only\noption left for easy transportation and saving the environment. Also, Electric\nVehicles have some advantages like being highly efficient, low maintenance,\neco-friendly, smooth to drive, cost-effective, etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Growth_Targets_of_Electric_Vehicle_Business_in_India\"><\/span>What are the\nGrowth Targets of Electric Vehicle Business in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nautomotive industry in India is the 5<sup>th<\/sup> largest in the world and is\nslated to be the 3<sup>rd<\/sup> largest by 2030. Catering to a massive domestic\nmarket, the belief that the conventional modes of fuel-intensive agility will\nnot be sustainable. In order to address this, policymakers are developing a\nmobility option, i.e., Connect, Shared, and Electric and have projected an\naspiring target of achieving 100% electrification by 2030.<\/p>\n\n\n\n<p>By\nmaking the shift towards Electric Vehicles or EVs, India stands to benefit on\nmany fronts; it has a related abundance of renewable energy resources and\navailability of skilled manpower in the technology &amp; manufacturing Sectors.<\/p>\n\n\n\n<p>As\nper the study by <strong><em>CEEW-CEF (CEEW Centre for Energy Finance), <\/em><\/strong>the Electric Market\nBusiness in India will be 206 billion US dollars opportunity by 2020 if India\nmaintains steady progress to meet its determined 2030 target. This would need a\ncumulative investment of over 180 billion US dollars in vehicle manufacturing\nand charging infrastructure.<\/p>\n\n\n\n<p>Another\nstudy by <strong><em>IESA or India Energy Storage Alliance<\/em><\/strong> projects that the Indian\nElectric Vehicle Business or market will grow at a CAGR of 36% by 2026. The\nElectric Vehicle battery is also projected to grow at a CAGR of 30% during the\nsame period.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_e-AMRIT_Portal\"><\/span>What is the\ne-AMRIT Portal?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Government of India launched a website called e-AMRIT at the <strong><em>COP26 Summit in Glasgow<\/em><\/strong>, which will work as a one-stop destination for all details on Electric Vehicles. It addresses key concerns regarding the adoption of Electric Vehicles and their purchases like <a href=\"https:\/\/corpbiz.io\/license-for-charging-station-in-up\"><strong>Electric Vehicles charging facility<\/strong><\/a> locations and Electric Vehicle financing options &amp; information regarding government policies, investment opportunities, and available subsidies for manufacturers &amp; drivers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_of_PLI_Schemes_by_the_Government_of_India\"><\/span>An Overview of\nPLI Schemes by the Government of India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\nMay 2021, the Government of India (GoI) introduced a PLI Scheme\n(Production-Linked Incentive Scheme) for ACC Battery Storage Manufacturing,\nwhich will incentivise the domestic production of such batteries (Make in\nIndia) and lessen the dependence on imports. This will support the Electric\nVehicles industry with the requisite infrastructure and will significantly\ncause a reduction in EVs cost.<\/p>\n\n\n\n<p>In\nSep 2021, the Government of India approved a PLI Scheme for the automobile\n&amp; drone industry, which aims to stimulate high value advanced automotive\ntechnology products &amp; vehicles, including Green Automotive Manufacturing.\nThe PLI Scheme has two different components:<\/p>\n\n\n\n<ol><li><strong><em>Champion OEM Incentive Scheme<\/em><\/strong>:\nThis scheme is a sales value linked scheme applicable only to hydrogen fuel\ncell vehicles and battery electric vehicles.<\/li><li><strong><em>Component Champion Incentive\nScheme<\/em><\/strong>: This is also a sales value linked scheme,\napplicable on advanced automotive technology vehicle components, CKD or\nCompletely Knocked Down or Semi Knocked Down (SKD) kits 3-wheelers, 2-wheelers,\ncommercial vehicles, passenger vehicles, and tractors, etc.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Companies_to_Enter_in_Indian_EV_Market\"><\/span>Different\nCompanies to Enter in Indian EV Market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Currently,\nTesla&#8217;s primary focus is on building its manufacturing hubs all around the\nworld and they have already spent billions of dollars in Texas, Germany, Texas,\nAustin, and Brandenburg for that and they have finally arrived in India. Many\nautomobile companies have already started to make their effort.<\/p>\n\n\n\n<p>Shockingly,\nthe popular smartphone company Apple is also going to start manufacturing\nElectric Vehicle cars in the automobile market and not only the giant companies\nlike Huawei but Xiaomi are also coming into this race as per the reports and\nSamsung will provide chipsets and other electronic equipment such as sensors to\nits partner. This will boost business opportunities in this industry for\nsmall-scale industries.<\/p>\n\n\n\n<p><strong><em>Following\nare some business opportunities in Electric Vehicle Business in India:<\/em><\/strong><\/p>\n\n\n\n<ol><li>Battery Swapping Technology;<\/li><li>EV Equipment Manufacturing;<\/li><li>Public EV Charging Stations;<\/li><li>Solar Electric Vehicle Charging;<\/li><li>Home Charging Stations;<\/li><li>EV Dealership &amp; Franchise;<\/li><li>Battery Recycling Business.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Development_of_Electric_Vehicle_Business_in_India\"><\/span>Development of\nElectric Vehicle Business in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Estimations: <\/strong><\/p>\n\n\n\n<p>In\nApril 2019, Niti Aayog published a report termed &#8220;<strong><em>India\u2019s Electric Mobility\nTransformation<\/em><\/strong>&#8220;, which pegs EV or Electric Vehicles sales\npenetration in India at 70% for commercial cars, 40% for buses, 80% for 2 and\n3-wheelers, and 70% for commercial cars by 2030. If these targets are achieved,\nit could lead to a net reduction of 14 ExaJoules (EJ) of energy &amp; 846\nmillion tons of CO2 (Carbon Dioxide) emissions over the deployed vehicles&#8217;\nlifetime. Until 2030, EVs sold can cumulatively save 474 million tons of oil\nequivalent over their lifetime, worth US$ 207.33 billion. This will definitely\nhelp India fulfil its global commitments to lower carbon emissions &amp;\nincrease the use of cleaner sources of energy &amp; transportation as required\nby NDCs under the UNFCCC.<\/p>\n\n\n\n<p><strong>Policy Measures:<\/strong><\/p>\n\n\n\n<ul><li><strong>NEMMP: <\/strong>This plan was launched in 2013 by the <strong>DHI (Department of Heavy Industry<\/strong><sup><a href=\"https:\/\/heavyindustries.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup><strong>)<\/strong> as a roadmap for more rapid manufacture and adoption of Electric Vehicles in India.<\/li><li><strong><em>FAME Phase-1<\/em><\/strong>: As part of this plan, the Faster Adoption &amp; Manufacturing of Hybrid and EVs in India (FAME) Scheme was notified in April 2015 to promote the manufacture of electric &amp; hybrid vehicle technology. It has primarily focused on 4 aspects: technology platform, charging information, demand creation, pilot projects and demand creation.<\/li><li><strong><em>FAME Phase II<\/em><\/strong>: This was launched in 2019 for 3 years; this scheme has an expenditure of US$ 1.36 billion to be utilised for upfront incentives on the EVs purchase and supporting the development of charging infrastructure. This phase primarily focuses on supporting the electrification of public transportation and intends to support via subsidies around 5 lakhs electric 3-wheelers, 55,000 electric 4-wheelers, and 7,000 electric buses. <\/li><li><strong><em>Amendments to FAME Phase II<\/em><\/strong>: In 2021, the Government announced further amendments to the Phase II to give a boost to the demand for Electric Vehicles among customers. In this revised policy, the subsidy per electric 2-wheelers, which is connected to the battery size, has been increased to Rs. 15,000 per KWh from Rs. 10,000, Moreover, electric 2-wheelers manufacturers can now give discounts of up to 40% to customers, which is a significant raise from the earlier cap of 20%. The amendments or changes in the policy have been hailed by industry stakeholders who are now expecting the 2-wheelers Electric Vehicle Business to clock sales of over 6 million units by 2050.<\/li><li><strong><em>Department of Science &amp; Technology<\/em><\/strong>: It has launched a huge challenge for developing the Indian Standards for EV charging infrastructure.<\/li><li><strong><em>Ministry of Power<\/em><\/strong>: It has explained that charging Electric Vehicles is considered a service, which means that operating Electric Vehicle charging stations will not need a license and it has also issued a policy on charging infrastructure to enable the quick adoption of Electric Vehicles. On 14 Jan 2022, the revised united Guidelines and Standards for Charging Infrastructure for EVs were promulgated.<\/li><li><strong><em>Ministry of Road Transport &amp; Highways<\/em><\/strong> (MoRTH):\u00a0 It has announced that both commercial and private battery operated vehicles will be issued Green License Plates. It has also informed that all battery-operated, ethanol-powered, and methanol-powered transport vehicles will be exempted from the commercial permit requirement.<\/li><li><strong><em>Niti Aayog<\/em><\/strong>: The NMTMBS has been approved by the Cabinet, and the inter-ministerial guidance committee of the Mission will be directed by the CEO of Niti Aayog. The Mission intends to create a PMP or Phased Manufacturing Program for 5 years till 2024, to aid in setting up the large scale, export-competitive integrated batteries and cell-manufacturing Giga plants in India. On 20 Apr 2022, Niti Aayog released a <strong><em>Draft <\/em><\/strong><em><a href=\"https:\/\/corpbiz.io\/learning\/battery-swapping-policy-by-nitiaayog\/\"><strong>Battery Swapping Policy<\/strong><\/a><\/em> and invited comments by 05 Jun 2022.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Challenges_Faced_by_Electric_Vehicle_Business\"><\/span>Some\nChallenges Faced by Electric Vehicle Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>High costs;<\/li><li>Lower Mileage;<\/li><li>Higher dependency on imports;<\/li><li>Inadequate charging\ninfrastructure;<\/li><li>Limited options.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nElectric Vehicle Business has not done that much good due to the Cov-19\noutbreak, but it will take a massive jump in upcoming years. Electric Vehicles\nwill be game-changing in terms of environment, post-electric, noise-pollution\nfree, air pollution-free, etc.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Currently, India is in its developing phase and surely, it will become a superpower in the future. As India is developing, the Electric Vehicle Business is also picking pace with 100% FDI possible, new manufacturing plants and an increased push to improve charging infrastructure. Also, the Government of India introduced various subsidies and policies favouring [&hellip;]<\/p>\n","protected":false},"author":35,"featured_media":43089,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2093],"tags":[2327],"acf":{"service_id":"410"},"authorName":"Karan Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/processed-1-150x150.jpeg","authorDescription":"A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.","postViews":6082,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43086"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=43086"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43086\/revisions"}],"predecessor-version":[{"id":43100,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43086\/revisions\/43100"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/43089"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=43086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=43086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=43086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}