Electric Vehicle Component Market Growth In India

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India is currently focusing on taking a path to renewables and for the same, the state is currently witnessing an increase in the use and also the demand for Electric Vehicles (EVs). The demand, as well as the manufacturing of electric vehicles, are in sync with each other due to various factors. Continue reading the article to understand the angles and prospects of electric vehicles in India. 

Present Status 

Various economic and environmental reasons come into play when we understand and acknowledge the growing market of electric vehicles in India. The transition to electric vehicles has seen a growth in two-wheelers, cars, buses and rickshaws too. E-rickshaws are still driving India’s EV component industry demand. Due to their cost effectiveness and multiple benefits, electric rickshaws are displacing gasoline-powered alternatives. All states have different market shares in the country’s overall EV market share. Due to Delhi’s high pollution levels, the number of electric buses and trucks have increased in the city in recent years. Delhi has the largest Indian electric vehicle part market for commercial vehicles during the historical period. Uttar Pradesh has been the largest buyer of the components of electric two and three-wheelers due to its large demand for electric two and three-wheelers. When it comes to electric vehicle ownership, Maharashtra reigns supreme.

Factors of Growth

The increasing popularity of electric vehicles among the general public, as well as favourable government initiatives such as tax exemptions, purchase rebates, and financial incentives, are driving the growth of the electric vehicle component market in India. The falling cost of electric vehicle components is encouraging manufacturers to choose high-quality components, boosting demand for the electric vehicle components market in India. Furthermore, the high cost of fuel, rapid depletion of fossil fuels, and environmental degradation caused by CO2 emissions from fossil fuel combustion, combined with increasing environmental consciousness among customers, adds to the demand for electric vehicles further driving demand for electric vehicle components in India. 

The Indian government is putting a lot of effort into building charging stations for electric vehicles all over the country. For example, the Ministry of Power published guidelines and standards for installing electric vehicle charging infrastructure every 3 kilometers. The built PCS can have one or more electric kiosks or boards, and public charging station service providers are free to build additional charging hubs. The federal government has authorized the installation of 2,636 electric vehicle charging stations in 62 cities across the country, spread across 24 states and union territories. By taking this measure, the government is encouraging manufacturers to introduce new electric vehicle models with improved performance, which will help the demand for electric vehicle components in India expand even faster.

Future Forecast 

Various multinational automotive companies are heavily investing in R&D to develop advanced technologies for electric vehicles in order to meet the changing needs of end-users in India. In India, the continuous product growth would entice a significant number of customers to adopt electric vehicles. Several transportation companies, as well as the government, are taking initiatives to increase the number of electric cars in shared mobility fleets. Along with this, the passenger car segment is also expected to rise the fastest in the Indian electric vehicle portion market during the forecast period of 2020-2030.

The battery management system (BMS) group in the Indian electric vehicle part market for passenger car battery packs will have the highest CAGR of 61.7% until 2030. This is because a BMS prevents damage to the battery pack, which is the most important and costly part of an electric vehicle, by ensuring that it is not run outside of its safe operating range. A BMS notifies car owners of the current battery status in addition to handling and monitoring its activities, which is why its use in electric vehicles is rapidly increasing.

Conclusion

Electric Vehicles (EVs) will transform India’s transportation sector. The current status and demand prospects of electric vehicles tend to grow in the years to come. With governmental support and innovation, the demand, as well as the supply of these vehicles will witness a boost. With the above statistics and data, it is evident that EVs are here to stay!

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