Electric Vehicle Market in India

State policies for E - Vehicles 

• Kerala aims to put one million EV units on the road by 2022 and 6,000 e-buses in public transport by 2025.
• Telangana aims to have EV sales targets for 2025 to achieve 80% 2- and 3-wheelers (motorcycles, scooters, auto-rickshaws), 70% commercial cars (ride-hailing companies, such as Ola and Uber), 40% buses, 30% private cars, and 15% electrification of all vehicles.
• The EV market in India has gained significant momentum after implementing the FAME India scheme with its aim of shifting toward e-mobility in the wake of growing international policy commitments and environmental challenges.
• Moreover, India offers the world's largest untapped market, especially in the electric two-wheeler segment. As 100% foreign direct investment is allowed in this sector, the automatic route market is expected to gain momentum during the forecast period.

Growing Adoption of Electric Buses 

• India is the second most populated country in the world after China, just like China, which has the largest electric bus fleet globally. India is also pushing hard for the electrification of buses. Many state governments have already started procuring electric buses from Chinese and local electric bus manufacturers.
• With the growing need for controlling GHG (Greenhouse gases) emissions emitted by vehicles, the government is encouraging electric-powered vehicles across various states, boosting the demand for electric buses in India. The market is driven by factors such as increased domestic manufacturing, rapid urbanization, and a rise in environmental awareness. For instance,
• In February 2020, the Union Transport minister inaugurated India's first inter-city electric bus service. These buses were manufactured by Mitra Mobility Solution, with a range of 300 km on a full charge.
• Many local bus manufacturers who collaborate with some Chinese manufacturers are trying to cater to the rising demand for electric buses in India. For instance,
• In 2019, Foton PMI planned to invest around INR 500 crore in a joint venture with Beiqi Foton Motor Co. of China to manufacture electric buses in India. The company has already given five electric buses to one of the airlines for internal operations.

Electric Two-wheeler Vehicles Likely to have Optimistic Growth

• With transportation still being a challenge in India, many people in these segments look forward to the two-wheeler industry in India. As a result of the surging pollution, the national government has launched stringent policies to curb vehicular emissions.
• In particular, the jump from Bharat Stage V (BSV) to BSVI emission standards is expected to benefit the Indian electric scooter and motorcycle market by raising the prices of petrol-driven two-wheelers by 7­–15%. From 1st April 2020 onward, automakers can only sell BSVI-compliant vehicles in the nation, driving the push toward electric variants.

For extracting the maximum revenue from the rapidly growing Indian electric scooter and motorcycle market, original equipment manufacturers (OEMs) are expanding their facilities. For instance,

• In January 2020, Ather Energy Pvt Ltd announced intentions to build a 400,000-sq-ft factory in Hosur, Tamil Nadu, with an annual output of 1 lakh units. Currently, the company operates one manufacturing plant in Bengaluru, which has a capacity of 25,000 units. The company's idea behind an additional facility is to meet the rising demand for electric two-wheelers in India.
• In the same vein, Okinawa AutoTech Pvt Ltd invested USD 28.4 million (INR 200 crore) for its second manufacturing plant in May 2019. To be developed for electric two-wheeler vehicles in Rajasthan and planned to be commissioned in early 2020–21, the manufacturing plant will have an annual output of 10 lakh units.

Competitive aspects of Electric vehicles in the Indian Market 

• The Indian EV market is consolidated with major players, owing to a cheap and readily available workforce. However, established players in the market are introducing new models to gain a competitive edge over other players. 
• The startups are expanding their presence by raising funds from investors and tapping into new and unexplored cities. Companies are investing a tremendous amount in R&D and launching new models to mark their presence in the market.

Recent Developments Of India Electric Market 

• In August 2021, Tata Motors has expanded its EV portfolio by unveiling the new Tata Tigor EV. The new Tigor EV gets a host of design updates and Ziptron technology and ensures better performance than the outgoing model.
• In July 2021, Electra Greentech announced that its sister company Evey Trans Pvt Ltd, had won the bid for 100 electric buses. The consortium of both the companies has won the bid to supply 100 electric buses to a State Transport Corporation (STC) in the country under the Government of India's FAME-II scheme, on an OPEX model basis for 12 years. These 100 electric buses are going to be used for inter-city operations.
• In February 2021, Ather Energy, India's first intelligence EV manufacturer, moved its USD 86.5 million factories from Bengaluru (Karnataka) to Hosur (Tamil Nadu) to increase its two-wheeler production capacity.
• In February 2020, JBM Auto launched two Eco-Life e9 and e12 electric buses at the Auto Expo 2020. Powered by fast-charging lithium batteries, buses can run 125-150 km in a single charge, depending on the city's traffic conditions.
• In January 2020, the Department of Heavy Industries (DHI) of India approved 2,636 electric vehicle charging stations in 62 cities across 24 Indian states and union territories (UTs) under the second phase of the FAME program to promote e-mobility.

"Almost 97.5% of all-electric vehicles sold in India were two-wheelers, indicating an especially strong market in the two- and three-wheeler segment."

"To truly improve EV adoption and India's role as a value chain participant, the government cannot rely solely on subsidies; it will also need to attract more private investment to the country."

India Can Play a Key Role in EV Battery Recycling

• About 70% of hazardous waste in global landfills comes from e-waste. Just 94,000 metric tons of lithium-ion batteries (LIBs) were recycled globally in 2019, most from portable consumer electronics.
• In the next decade, however, EV batteries will start flooding the end-of-life battery market. The World Economic Forum forecasts that for half of those EV batteries to be recycled by 2030, recycling capacity would need to grow by a factor of 25.

India's Government work to do

• The success of circular economy policies is not guaranteed, however. It took China a decade of regulatory development to become the market leader in LIB recycling.
• India's government efforts to improve regulations related to battery collection, transport, and storage, to coordinate training programs to handle batteries, from crafting labelling and traceability requirements to clarifying contractual and ownership models.
• It is clear that EVs are set to transform global road transport, and India will be a colossal market for deployment. It is logical and necessary that India also seek to become a manufacturing hub that can contribute to EV value chains and battery recycling.
• However, the government needs to analyze barriers and adjust its regulatory and institutional frameworks to accommodate those barriers and attract private investment on a larger scale.

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