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India Poised to Revolutionize Electric Vehicle Market with Growing Demand

Volvo is considering India as its new plant site for electric vehicle (EV) manufacturing due to the growing demand for EVs in the country. The Swedish multinational automobile manufacturer is reportedly planning to set up its new EV facility in India, which aligns with the company’s goal to have climate-neutral manufacturing operations by 2025.

India stands as a trailblazer in the global automobile industry, holding the third-largest market share, surpassing Germany and Japan. The automotive sector plays a crucial role in India’s economy, accounting for 7.1% of its GDP and providing substantial employment.

The 2023 Economic Survey predicts a remarkable 49% compound annual growth rate in the domestic EV market between 2022 and 2030, leading to a monumental 10 million annual sales by 2030. This growth will revolutionize the job market, generating a massive 37 million direct and indirect job opportunities in the EV industry by 2030.

In addition, India’s Ministry of Mines reported that the Geological Survey of India discovered 5.9 million tonnes of lithium resources in the Salal-Haimana region of Jammu and Kashmir’s Reasi district. Reserves of lithium are rare, and India has discovered around 5.5% of the world’s resources. This discovery is the first for the nation and could significantly reduce India’s dependence on imported EV batteries, as Lithium is widely used for EV batteries due to its high energy storage capacity per kilogram, making it an ideal option for electric vehicle manufacturers. This discovery can further boost the EV market in India, as it no longer needs to rely heavily on imports to meet the supply needs. This makes it evident that India has the potential to lead the charge towards a greener future.

Moreover, in recent years, the demand for EVs in India has increased significantly, driven by the government’s ambitious target of electrifying the vehicle fleet on the road. India’s National Electric Mobility Mission Plan (NEMMP) aims to have at least 30% of vehicles in the country electrified by 2030, which has led to a surge in awareness for EVs. The Indian government has also introduced several incentives and subsidies for purchasing EVs, further boosting the sector’s growth.

The recent Auto Expo 2023 in India was a testament to the country’s efforts to adopt EVs. The event showcased a range of new and innovative electric vehicles with several major automobile manufacturers showcasing their latest offerings in the EV segment, signaling the start of a new era in India’s automotive industry. The Auto Expo was a clear indication of the growing importance of EVs in India as it provided a glimpse into India’s green future. As the country looks to embrace EVs and reduce its carbon footprint, the country’s commitment towards sustainable transportation seems much closer.

However, the transition to electrified vehicles requires more than just a boost in electric vehicles but their internal parts –

  • The EV components can be divided into 5-6 groups, with battery cells, motors, and power electronics accounting for over half of the total EV cost, and being the least localized.
  • Apart from these major components, unlike traditional vehicles, electric vehicles require unique components such as busbars, heat sinks, and insulated-gate bipolar transistors, with electronics accounting for a significant part of their make-up.
  • The challenges faced by the EV supply chain include poor R&D and technology intervention, rare earth magnets for motors, and power electronics.

This creates a disparity, as the electric car supply chain is not as developed as the traditional automotive supply chain. With the growing demand for electric vehicles in India and the potential misalignment of demand and supply, the reliability of the EV supply chain is becoming a concern.

Perhaps, a strong and supportive supply chain with a validated supplier network can help mitigate risks. Increased investment in battery research and development could be beneficial to the Indian EV supply chain ecosystem. Government initiatives such as Atma Nirbhar Bharat and Make in India promote localization of the supply chain, which can reduce dependency on imports.

As a result of incentives, leading battery producers such as Amara Raja Batteries have redirected their investments into green technologies, including lithium-ion batteries. In April 2022, a Bengaluru-based battery startup named Pravaig developed one of the world’s most energy-dense batteries with a capacity of 54 MWh. This battery was then acquired by the European renewable energy company Eren Groupe for use in energy storage applications. The high density of the battery provides more power per atom, making it a cost-effective option compared to alternatives such as sodium-ion or aluminum air. This acquisition by Eren Groupe will not only boost domestic manufacturing but also contribute to making EVs more economical.

With Volvo setting up its new EV manufacturing facility in India, the EV industry in the country is set to receive a further boost. India’s commitment towards sustainable transportation, combined with innovative developments in the EV supply chain, positions the country as a leader in the global EV market.

For Hindi Readers:- भारत बढ़ती मांग के साथ इलेक्ट्रिक वाहन बाजार में क्रांति लाने के लिए तैयार।

 

Andrew s

Andrew has been in the online publishing industry. After receiving his degree in professional journalism from the Indian Institute of Journalism and New Media, he contributed to multiple websites as a freelance writer and feature editor. Mostly, Andrew tackles controversies and theories that lead to a specific conclusion that either debunk or justify a particular claim. Further, Andrew participates in social developments that aim to simplify every individual's way of life and fight for peace. He is the new Editor-in-Chief of Pressroom Today.

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