The Climate and Sustainability Initiative (CSI), a global research firm dedicated to decarbonizing the economies of Asia and Africa, has announced the launch of its India operations. Alongside this launch, CSI has unveiled a comprehensive report titled “India’s Auto Industry: Mapping the Course to Net Zero by 2070.” This report outlines a detailed roadmap for decarbonizing India’s auto sector, aligning with the nation’s commitment to achieving net-zero emissions by 2070.
The report presents a meticulously detailed scenario for the automobile sector’s decarbonization, focusing on necessary investments, potential gains, and financial mechanisms required to support this transformation. It spans various vehicular categories including two-wheelers, three-wheelers, cars, buses, and trucks.
Key findings include:
- Original Equipment Manufacturers (OEMs) need to invest approximately USD 323 billion to produce electric vehicles (EVs) alongside existing technologies, potentially generating USD 14.1 trillion in revenue by 2070.
- The transition could lead to a market creation exceeding USD 19.7 trillion by 2070, with cars accounting for 63% of this market.
- The automobile sector’s transition could yield USD 4.1 trillion in Goods and Services Tax (GST) revenue from 2020 to 2070.
- India will require vehicle loans worth USD 9.6 trillion by 2070, increasing the volume of auto loans over 20 times.
- Annual battery demand for EVs could reach around 1,716 GWh by 2070, requiring manufacturers to invest USD 196 billion until 2070.
Vaibhav Pratap Singh, Executive Director of CSI, emphasized the economic opportunities of this transition, stating, “The transition to a net-zero auto industry in India is not just an environmental imperative but also an economic opportunity of unprecedented scale. Our report illustrates that with the right investments and policy support, India can lead the global shift towards sustainable mobility while offering a scale for investments to pour in and create opportunities for the entire automotive ecosystem.”
Shri Thiru S. S. Sivasankar, Hon’able Transport Minister, Government of Tamil Nadu, added, “The Indian economy is on a robust growth trajectory with a stabilizing population, leading to a substantial rise in energy needs. Our government is proactively incentivizing manufacturers and consumers to adopt clean energy technologies, fostering decarbonization. Tamil Nadu has positioned itself as India’s premier EV manufacturing hub and a leading renewable energy producer with over 16 GW of installed capacity.”
The report highlights the need for innovative financing solutions to facilitate the transition, such as first-loss guarantees for financial institutions and lines of credit for EVs. It also underscores the critical role of government support in this transition. Continued policy support, including favorable tax regimes and incentives for domestic battery production, will be essential to sustain the momentum.
“India’s Auto Industry: Mapping the Course to Net Zero by 2070” serves as a vital resource for policymakers, industry stakeholders, and financial institutions, highlighting the economic, environmental, and financial benefits of this transition.
