The electric vehicle (EV) segment in steadily picking up the pace in India. Along with the EV industry, the government's focus has been on the entire green mobility ecosystem considering other cleaner fuel like ethanol powered engines and hydrogen fuel cell vehicles in a bid to achieve 'net zero emissions' by 2070 and reduce India's carbon footprint in the near future. In fact, according to Kenichi Ayukawa, former Managing Director and CEO - Maruti Suzuki Ltd and President- Society Of India Automobile Manufacturers (SIAM), the Indian EV industry is expected to dominated the market share in the global sphere.
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Market share of electric cars in India is expected to rise to 30 per cent by 2030 with India's overall EV market expected to grow at a CAGR of 49 per cent between 2021-2030. It'll reach annual sales of 17 million units and while electric two-wheelers are leading the charge with almost 15 million units' sales estimated, the remaining 2 million units are likely to primarily include electric passenger vehicles. The growth in volume and market share will also spur the development in the entire ecosystem providing opportunities for technological advancement. Advanced Automotive Products (AATs) will widen the scope for existing players along with opening doors for new entrants.
Recent developments like Suzuki Motor Corporation's upcoming lithium battery plant in Gujarat and Vedanta along with Foxconn setting up a 1,000-acre semiconductor plant in the same state are moves in this direction. 'Indianisation' or localisation of these new components is likely to make room for new ancillary component makers and other sectors like the software and electronics industry among others. New players are expected to join the party bringing in more investment and technological advancement in the industry. Ayukawa also pointed out that India will be 100 per cent self-reliant in auto sector and expansion of the industry with new players and more investment is likely to accelerate this development.
While EVs will of course take the lead in achieving bigger market share in the green energy vehicle segment, Flex fuel and hydrogen powered vehicles too will contribute considerably in achieving this feat. Nitin Gadkari, Union Minister For Road, Transport and Highways (MoRTH) has been stressing on launching flex-fuel and hydrogen powered models and is set to introduce India's first flex-fuel car on September 28 this year. Him driving to the parliament in a Hydrogen powered Toyota Mirai was also a statement towards faster adoption of green vehicles. The government has initiated a Rs. 3000 crore mission to make India a county exporting hydrogen, aiming to replace the use of coal and fossil fuel with green hydrogen.
