Current EV Manufacturing Infrastructure In India: Evolution, Challenges And Solutions

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In India, the automobile industry is one of the primary segments driving economic growth; and at the same time, one of the principal contributors to pollution and rising health concerns. The government has set its sights firmly on making India a nation chiefly running on electric transportation. But to achieve this, electric vehicles (EVs) have to make their place despite their share of challenges in terms of manufacturing infrastructure and also the opportunities they can bring in. When it comes to the manufacturing sector, EVs do present umpteen opportunities.

Read on as our experts provide deep insights into how the EV manufacturing sector has evolved over the years in our country along with the challenges and opportunities it brings to the forefront…


The future of the automobile industry is firmly hinged upon electric mobility.  Very recently, the government announced its intention of transforming India into a 30% electric mobility-led country by 2030. This is a realistic and easily-achievable goal for India, with awareness regarding EVs is growing rapidly.

The evolution of India’s EV space

The very first concrete move towards EV adoption was the government’s decision to incentivize EV manufacturers in 2010 with the INR 95 crore scheme launched by the Ministry of New and Renewable Energy (MNRE).  Identifying the need for alternative mobility due to the rising pollution crisis, the government continued to take favorable policy decisions such as the National Electric Mobility Mission 2020 launched in 2012 to launch subsidies and bolster infrastructure or the domain-defining FAME-II policy which laid down an outlay of INR 10,000 Crores to encourage EV adoption in the country.

Addressing the need-gap with self-reliance 

In the ’80s, when India began looking at areas such as micro and regional mobility, we quickly moved from imports to local ecosystem development for automotive manufacturing. Long story short, India became a major automotive manufacturing and export hub and found a place among the top ten automobile markets in the world. 

The answer to our problems, therefore, lies in becoming self-reliant or, as our government has recently put it, in becoming an Atma Nirbhar Bharat.

By PANKAJ TIWARI – CMO, NEXZU MOBILITY


In the situation of COVID-19 pandemic, EV markets are expecting a drop in sales. For the EV charging industry, this will inevitably lead to a slower market in the coming years, with IHS Market anticipates will last up to 5 years.

Moreover, a reduction in EV production and adoption will be a significant contributor to the slowdown in EV charging infrastructure development.

Green Recovery Plan and Investment Around the World

Governments around the world are also implementing policies to encourage the sale of EVs and further development of EV charging infrastructure. The European Green Deal, which focuses on developing green industries, has set out to see installation of 1 million charging points across the continent. Draft documents from the European Union show that countries will be further incentivizing EV manufacturers to produce cleaner cars and investors to put money into EV charging infrastructure.

Key Developments in Commercial and Home EV Charging Infrastructure

Regardless of the fact whether the predictions surrounding an increase or decrease of EV adoption are true or not, the key point remains that EV charging infrastructure must be significantly developed to support future EV adoption. The expected slowdown in EV purchases over the next few years just might well be the perfect opportunity for charging infrastructure to undergo further development so that it can provide better support to any future increase in EV adoption.

By DHEERAJ CHAWLA – BUSINESS HEAD- EVCS, DELTA ELECTRONICS INDIA PVT LTD


As COVID-19 subsides and India enters the next normal, we find the same vehicular congestion in sprawling metropolitan regions leading to catastrophic pollution levels again.

INITIAL STEPS: EVOLVING OF EV LANDSCAPE IN INDIA

Speaking of sustainability, e-Mobility has a big share of responsibility in creating a major shift in India. Even though EV market penetration is only 1% of the overall market, the silver lining is that there is considerable headroom for growth. Also, India is one of the leading players globally in unit EV sales.

INDIAN POLICY FRAMEWORK: ENABLING EV GROWTH

 NITI Aayog is positive that Faster Adoption and Manufacturing of Hybrid Electric Vehicles (FAME II) and other supporting policies will push EV penetration to 30% for private cars, 70% for commercial cars, 40% for buses and 80% for 2Ws and 3Ws by 2030. With the recent announcements by the government to set up EV kiosks across 69,000 petrol stations in the country and permit sales and registration of EVs without batteries can give a boost to the sector & encourage components manufacturers to invest in it.

ON THE WAY TO ELECTRIC FUTURE: CURRENT ROADBLOCKS

Due to the pandemic, the launch of new EVs is delayed, and disruption in the supply chain of components was also reported. As most localization projects are delayed, SIAM’s request to the Government for the extension of the FAME-II scheme & PMP program can be great welcome steps.

EMBRACE CHANGE: WELCOME ELECTRIC VEHICLE ADOPTION

As the global supply chain shifts for many auto companies across the world, we are hopeful that India can swiftly emerge as the world’s next auto manufacturing hub.

By AMIT TYAGI – BUSINESS HEAD- EMOBILITY, PHOENIX CONTACT (INDIA) PVT LTD


 India is swiftly catching up in the e-mobility space, and given its potential, is all set to be the largest EV market globally. FAME II policy has been comprehensively designed post the learnings from the implementation of FAME 1. Under FAME-II, the Indian government has outlined a spending of Rs.10,000 crore and Rs.1,000 crore has been earmarked for deployment of charging infrastructure from 2019 to 2022.

Commercial vehicles, especially in public transportation, have been witnessing the deployment of e-vehicles at a much-preferred pace compared to PV’s. However, the major obstacles in achieving a higher pace have been the absence of indigenous technology and high costs. Today, most of the components such as battery cells, motors and controllers are imported, but domestic manufacturers are working hand in hand with the government to localise these critical aggregates in India.

We understand that there are challenges to be overcome but with almost all major OEMs putting in their best synergies forward in developing EVs and the supporting infrastructure, we are sure that these challenges will be a thing of the past very soon. The industry is working towards achieving the same as a cohesive unit with the support of the government.

By NISHANT ARYA – EXECUTIVE DIRECTOR, JBM GROUP

To read the stories in detail, download the EMobility+ India Feb 2021 Magazine here: https://emobilityplus.com/2021/03/17/emobility-india-feb-2021-magazine/

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