According to a recent report, the growth of electric vehicles in India will likely continue throughout the remainder of the decade. Two- and three-wheelers are expected to dominate EVs in the near future.
A report jointly prepared by KPMG & CII stated that EV adoption will reach a tipping point when all vehicle segments demonstrate significant savings in ownership compared to vehicles powered by internal-combustion engines. The switch to EVs has become a certainty.
KPMG stated in a press release that the adoption levels will grow exponentially in the future due to developing infrastructure, government incentives, and new EV models.
The EV revolution is a technology-driven revolution. It said that the shift from ICE (internal combustion engine) to EV increased the electronic content in a car from 16% to 55%, with new features and controls.
In the future, many of these technologies will become standard features and the development of newer technology/new features will be a continuous process.
The release noted that carbon emissions from the transport sector are the largest contributor to climate change.
The Indian government, over the past two years, has developed policies and plans such as the FAME (scheme), with the goal of achieving 30% penetration of EVs for cars, 70% for commercial vehicles, 40% for buses, and 80% for two-wheelers and three-wheelers, by 2030.
KPMG stated that to achieve this level of EV adoption it is necessary to have a competitive technological infrastructure.
“Technology plays a major role in driving India’s EV landscape. Many of the innovations will become standard in the future. However, the addition of newer technologies and features is a constant process.
Jeffry Jacob is Partner and Lead Automotive at KPMG India.
The introduction of EVs has brought about a number of technological changes. The engine of traditional ICEs has been replaced with a battery and a Battery Management System. Transmissions have also been replaced with a motor, a controller, and a motor.
KPMG stated that as technology becomes more prominent, new suppliers could enter the market with new and crucial components, taking advantage of new business opportunities.
It stated that next-generation technologies, such as advanced-chemistry cells, are being explored to develop batteries with alternative raw materials, which are abundant in nature and cost-effective. They are also less affected by market volatility.
