The growth of electric vehicles (EVs) is opening up new business opportunities across various sectors, ranging from large-scale ventures to specialized niches. These opportunities can be grouped into five main themes: connected and autonomous vehicles, Mobility as a Service (MaaS) and ecosystem solutions, EV exports, local manufacturing, and sustainability. Each of these areas offers potential for innovation and market expansion, highlighting the significant disruption and innovation happening in the EV sector.
Connected cars, which are vehicles with internet connectivity, play a key role in this evolution. These cars allow for real-time data sharing and remote control, and when combined with EV technology, they create numerous opportunities for original equipment manufacturers (OEMs) and service providers. For example, manufacturers can offer subscription-based services like remote diagnostics, over-the-air updates to enhance the driving experience, and emergency assistance that can respond quickly in critical situations. The logistics and freight sectors can benefit from connected and autonomous vehicles by streamlining operations and cutting costs. Financial institutions also see potential in offering telematics-based insurance and financing options tailored to EV owners.
MaaS is another area where EVs are making a significant impact. This concept involves integrating different modes of electric transportation, such as cars, scooters, bikes, and pod taxis, into a single platform accessible via a smartphone app. MaaS has the potential to reduce traffic congestion and air pollution in Indian cities by making it easier for people to get around without needing to own a car. Additionally, ecosystem solutions that address EV infrastructure challenges and create innovative services are gaining traction. Large-scale opportunities in this space include smart charging and vehicle-to-grid integration, as well as electrifying transportation beyond roads. There are also niche opportunities in areas like personalization and wireless charging infrastructure. Mid-scale businesses are exploring innovations such as autonomous taxis and ships, urban air mobility, and electrifying utility vehicles for construction, agriculture, and industrial use, as well as shared autonomous vehicles (SAVs).
India’s focus on EVs presents a significant opportunity for local entrepreneurs to expand into global markets. Indian businesses can enhance their manufacturing and export capabilities for EVs and EV components, leveraging the country’s skilled workforce and IT expertise. By exploring cost-effective manufacturing in certain states and taking advantage of government initiatives like the Production Linked Incentive (PLI) scheme, India can become a competitive player in the global EV market. The country’s growing semiconductor and electronics industries, supported by government initiatives and foreign investments, further strengthen its position as an emerging hub for EV manufacturing and exports. India’s strong IT sector also plays a crucial role in developing the software and IT architecture that powers connected vehicles and charging infrastructure. Moreover, India is building expertise in battery lifecycle management, including battery cycling and second-life solutions, positioning the country to be a dominant player in the global EV market.
Government initiatives such as ‘Make in India’ are driving significant changes in the development, manufacturing, and assembly of EV components and batteries. Large-scale opportunities in this area include motor and battery manufacturing, while mid-scale opportunities focus on power electronics and battery pack assembly. Additionally, niche opportunities such as EV retrofitting, blockchain-based supply chain management, and innovations in advanced battery chemistry are also emerging.
Organizations can earn carbon credits by reducing emissions through the use of EVs and renewable energy for charging infrastructure, creating new revenue opportunities. This trend also supports the growth of the sustainable economy, with businesses in battery recycling and the used EV market benefiting. As EV adoption increases, the development of carbon credit marketplaces and mid-scale opportunities in IoT-based carbon credit management and AI-based impact analysis will also gain momentum. The rise of hybrids and plug-in hybrid electric vehicles (PHEVs) is expected to further contribute to large-scale business opportunities in the sector.
