Investor Perspectives on Accelerating Growth in the Indian EV Ecosystem
India is successfully incentivizing consumer demand for electrified two-wheel and three-wheel vehicles.
India has major potential for battery manufacturing and has initiated policy schemes to incentivize battery manufacturing in the country.
India will need to meet challenges other countries have to deal with as well, including supply chain vulnerabilities and guaranteeing enough recharging infrastructure.
The main takeaways from this report can be summarized as follows:
- India is successfully incentivizing consumer demand for electrified two-wheel and three-wheel vehicles and is beginning to scale up demand for electrified four-wheel vehicles and buses, too.
- India remains a minor player in battery manufacturing, which is still dominated by China, but it has initiated policy schemes to incentivize battery manufacturing in the country. Consulted investors and companies see major growth potential for India in this realm, which they believe will help it to expand domestic battery production and EV adoption dramatically.
- For India to achieve the scale of EV growth it desires, however, it will need to address financing challenges for consumers and the country’s insufficient charging infrastructure. Although the government has formulated policy solutions on both fronts, investors and companies consulted for this report identified space for improvement and expansion. Other potential obstacles to this growth include supply chain shortages, lack of complementarity between state and federal policies, and skill gaps in the labor force.
- The country could also embrace battery swapping, which experts believe can help to expand EV demand and adoption and which the Indian government has already begun to support through policy initiatives.
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