TheEVLane -Wayaheadinnewage AUTOMOTIVE MANUFACTURING

Where do we stand now

The Indian Electric Vehicle ecosystem is currently in inflection stage but has been gaining traction In 2021, EV registrations amounted to 330k units, a jump of 168% from 2020. The sales were led by 2- and 3-wheelers – 48% and 47%, respectively – followed by passenger vehicles at 4% E-rickshaw/e-kart category (top speed less than 25km/ hr) takes the major share among three wheelers with 45% Ebuses are included in others with a share of 0 36% The same has jumped to 2000 times in the 2022 and that’s the clear sign the industry is going to take the mainstream business With the current target to achieve 30 percent of EV penetration by 2030, considering the automotive industry is growing roughy about 30 percent YOY , the volume of electric vehicles will reach the current industry volume by 2030 Now the question , how much the industry has prepared to tackle the new requirements how much the ev ecosystem support this transition and what are the alternative methods to handle the challenges

Convincing the price-conscious Indian consumers about EVs will have to focus on two factors: the cost of ownership and vehicle quality Enhancing demand for EVs and better performing vehicles will be vital to accomplish the 2030 target Additionally, in the longrun, it is more economical to own and maintain an EV

Hence, consumers need to be made aware of the potential of EVs They need to be made understood that the technology to power an EV with solar power is already available and this investment pays off faster when the solar power is replacing much more costly petrol Also, many have the

The auto component industry–where does it stand?

Lets go back to the basic numbers again If we need to reach the 30AT2030 , 8 Million electric vehicles shall be manufactured and used in this country Let us divide this volume further town to the OEMs and their capacity of manufacturing, what is the possibility the supply chain from India meeting this requirement. How quickly we can scale the supply chain and the respective eco system including the battery production and charging units development As the powertrain is major change in electrification all the critical powertrain components to be developed and manufactured at all levels including Tier1, Tier2 and tier 3 there could be approximately 50 Million components at an average to be produced in an year. This is a long way to go At least we should try to start with import substitution

Now let us look at the Business opportunity The total Business by 2030 in motor and controller alone constitutes roughly about 6Billion USD according to the numbers presented here That’s a huge opportunity So its time now for an Indian EV technology company to emerge At least to start with cratering to local markets to begin with As we know the FAME -II subsidy is given on the basis of make in india EV components, I feel this industry has been given the focus it really requires Also the PLI scheme on battery production will certainly motivate the local manufacturing of EV components.

We also now a hear a great news that there is huge lithium deposit found in J&K I think our future battery story looks very strong from now on Of course we need to put the required efforts and investments to convert this demand into opportunity and profitable business model there by we can not only contribute at local level but also at global level