Government’s Rs.18,100cr PLI supports ACC battery manufacturing and investments
India electric car market was valued at US$10,107.18 million in FY2021 and it is projected to grow at a CAGR of 41.02% during the forecast period, to be valued at US$78,190.10 million by FY2027, says a report by ResearchAndMarkets.
The market growth is expected to be accelerated by the Government initiatives to push the improvement of electric charging infrastructure coupled with government’s approval for production linked incentive (PLI) scheme for manufacturing advanced chemistry cell (ACC) battery for an estimated budget of Rs.18,100 crore.
Continuous advancements in technology to upgrade the existing infrastructure and new inventions in automotive industry are fueling the demand for electric car market, said the “India Electric Car Market” released on 12 Nov 2021.
To promote the Make in India initiative, the National Programme on Advanced Chemistry Cell is expected to attract high foreign and domestic investments. Increase in number of manufacturing hubs for electric cars and rising environmental concerns are aiding the growth in demand for electric cars. Burden of oil imports and rising prices of conventional sources of energy are aiding in changing the preference of consumers to adopt green energy fuels.
High demand for automobiles due to rising population and depleting energy sources are creating lucrative opportunities for electric cars market growth. Owing to the production of battery by domestic manufacturers as well as import of batteries from global manufacturers, the demand for electric car market is expected to witness positive growth.
The Indian electric car market is segmented into vehicle type, drivetrain, battery capacity, regional distribution, and company. Based on vehicle type, the market is further segmented into hatchback, sedan and SUV and MPV. Among all, the hatchback segment is expected to witness the fastest growth due to growing affordability of consumers. Also, the presence of battery manufacturing companies is reducing the cost of batteries used in electric cars thereby lowering the cost to buy automobiles.
Backed by huge population, better employment opportunities and high standard of living, demand for electric cars is extremely high in the south region of the country and is the major contributor to the overall demand for electric cars in the country. Moreover, with the rising infrastructural developments and employment opportunities in the region, the demand for electric cars is further anticipated to grow.
Furthermore, the region’s market is anticipated to grow over the forecast period as well, owing to the expanding developments in electric cars which would support the electric car market. South region accounted for over 36% volume share in FY2017, followed by North region, said the report.
Major companies are developing advanced technologies and launching new services to stay competitive in the market. Other competitive strategies include mergers & acquisitions and new service developments.
The industry is led by Mahindra Electric Mobility Limited, Tata Motors Limited, Toyota Kirloskar Motor, Honda Cars India Limited, Renault India Private Limited, MG Motors India, Hyundai Motor Company, Tesla Inc, Maruti Suzuki India Limited and ANI Technologies Pvt Ltd. #investment #technology #manufacturing /fiinews.com
