Electric Mobility：Strengthening Eco-System Towards Vision 2030

ElectricMobility StrengtheningEco-SystemTowardsVision2030 August2023 TheAssociatedChambersofCommerceandIndustryofIndia DeepakSood SecretaryGeneral,ASSOCHAM MESSAGE TheautomotivesectorisasignificantdriveroftheIndianeconomy,owingtoitsstrongbackwardandforwardlinkages.Globallytheautomotiveindustryhasseenmanytransformationsinthelast50years.However,thecurrenttrendofaparadigmshifttowardsElectricVehiclesisasignificantone.Thissectoraccountsforalargepartofgreenhousegasemissions,whichhasnecessitatedthedevelopmentofsustainablemobilityoptionsforIndiaandtheworldbecauseoftheimpactofcarbonemissionsonourlifestyleandeconomy. AsIndiareliesheavilyonfossilfuelsforitsenergysupply,adoptingEVswillbeparticularlyimportantforoureconomyandfuturegrowthprospects.CountriesacrosstheworldaremovingtowardsEVs,andtheirpaceofdevelopmentisincreasingacrosssegmentsfrompassengercarstoothermodesoftransport.Itis,therefore,importanttofullyunderstandhownewtechnologiesinEVswillinfluencefuturemobility,theassociatedbusinessmodels,andsocialacceptability.Inrecentyears,theGovernmentofIndiahasfacilitatedvariouspolicyreformsandincentivestoencouragethedevelopmentandacceptanceofelectricvehicles.ToencourageEVpenetrationinIndia,severalstrategicpolicyincentiveshavebeenprovidedbygovernmentsbothattheCentralandStatelevel. EVshavethepotentialtotransformtheautomotiveindustryandhelpdecarbonizetheplanet,andIndiacanbenefitonmanyfrontswiththeintroductionofelectricvehiclesinthecountry.TheGovernmentofIndiaisvigorouslypromotingtherapidadoptionofelectricvehiclestoacceleratethetransitiontogreenmobilityandtoachieveIndia’snet-zerotargetby2070.Indiahassetanambitioustargetof30%electricvehiclepenetrationby2030.ToachievethistargetandfacilitateIndia’stransitiontowardsEVdeployment,acoordinatedactionthatincludesacombinationofpolicysupportfromtheCentralandStateGovernments,infrastructuredevelopment,technologyinnovationsandincreasingconsumerawarenesswillbeessential. ASSOCHAMandNRIConsulting&SolutionsIndiaPvt.Ltd.havepreparedastudyonthesubjecttooutlinefactorsthatwouldprovideimpetustothee-mobilitysectortoachievethesettarget.WeacknowledgetheeffortsmadebytheexpertsinpreparingthisreporttobepresentedattheNationalConferenceon‘ElectricMobility:StrengtheningEcoSystemtowardsVision2030’.Wehopeitwillhelppolicymakers,industry,academia,andotherstakeholdersunderstandtheroadmapforfuturegrowthanddevelopmentfortheElectricMobilitysectorinIndia. DeepakSood VineetJain Partner&GroupHead,AutomotiveIndustryConsultingGroupNRIConsulting&SolutionsIndiaPvtLtd. FOREWORD ElectricMobility,togetherwithotheralternativepowertrains,holdsgreatpromiseforIndiaintacklingrisingemissionsandreducingdependencyonoilimports.Inrecentyears,significantpolicymilestoneshavebeenachievedbyboththeCentralandStategovernmentsthroughinterventionslikeFAME,PMP,PLI,andStateEVpolicies.IndustryplayershaveembracedthepotentialofEVsinIndia,withOEMs,startups,andsharedmobilityprovidersexploringnewproductsandbusinessmodels. TheinvestmentcommunityrecognizesEVsasahigh-potentialarea,whileacademiaandpremierinstitutionslikeIITsareactivelyresearchingandrefiningEVtechnologyforIndianusecases.Thiscollectiveeffortshowcasesastrongdeterminationfromthegovernment,industry,andacademiatokick-starttheEVrevolutioninIndia. However,thetransitiontoEVsalsopresentschallenges.Thesupplychainforkeycomponentsisnascentanddependentonimports,necessitatingstableprocurementofrawmaterialsevenwithlocalizationefforts.ProspectiveEVusershaveconcernsaboutrangeanxiety,charginginfrastructure,financing,andvehicleperformance.Addressingtheseconcernswhileachievingtherightvalue-priceequationthroughuniquebusinessmodelsiscriticalinacost-consciousmarket. Inthisreporttitled“ElectricMobility:StrengtheningEcosystemTowardsVision2030”,wepresentthecurrentstatus,trends,andfuturepotentialofelectricmobilityinIndiawhileexploringtheuniquechallengestowardsmakingitsustainable.Ourresearchprovidesvaluableinsightsforpolicyformulationandimplementationbasedontheindustry’svoice. Weextendourgratitudetoallstakeholders,includingthegovernment,industryplayers,academia,andprospectiveusers,whosecollaborationhasmadethisresearchpossible.WehopethisreportservesasavaluableresourceinadvancingsustainableelectricmobilityinIndiaandacceleratesthenation’sjourneytowardsacleanerandgreenertransportationecosystem. VineetJain CONTENTS 1.StrengtheningElectricMobilityEcosystem1 1.1NeedforaSustainableElectricMobilityEcosystem1 2.PolicyOverview4 2.1GlobalEVPolicies&Learnings4 2.1.1VehiclePurchaseSupportPolicies:4 2.1.2ChargingInfrastructurePolicies:5 2.1.3ManufacturingandCriticalRawMaterialSupplyChain:6 2.2HistoryofEVPolicyinIndia7 2.3CentralPolicy7 2.3.2State-wisePolicies12 2.4FAME-IIimpactonEVSales14 3.CurrentMarketUnderstandingofEVs16 3.1ElectricVehicleSalesGrowth-Global16 3.2ElectricVehicleSalesGrowth-India16 3.3MarketPlayers17 3.3.1ElectricTwo-Wheelers(E2W)18 3.3.2ElectricThree-Wheelers(E3W)18 3.3.3ElectricFour-Wheelers(E4W)19 3.3.4ElectricBuses20 3.4ImpactDriversinIndia20 3.5SustainingEVAdoptioninIndia21 3.6India’sEVExportPotential22 4.EVS