India EV profile: $4 bn market in component manufacturing

Electric Vehicle sales in India are expected to grow to ~4 billion in 2025 and ~8 billion in 2030 and this growth is expected to bolster EV component manufacturing in the country.

Highlighting Bengaluru as one of the leaders in the fast-paced adoption of EVs, Gnanendra Kumar, Additional Commissioner of Transport, Government of Karnataka revealed, “There has been a drastic increase in registration of electric vehicles in Karnataka with 1.93 lakh electric vehicles being registered, mostly in Bengaluru.” Post-Covid there has been a 5% increase in registration of electric vehicles in the state, he added.

The growth in EV sales will bolster a rapidly expanding market for Indian component manufacturers presenting a $4 billion opportunity in component manufacturing by 2025, Ashim Sharma, Senior Partner & Group Head Business Performance Improvement Consulting (Auto, Engg. & Logistics) Nomura Research Institute reckoned.

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India has a huge opportunity in cells and battery packs, fast charging infrastructure, affordable electric technology in emerging markets, and battery swapping technologies.

In addition, EV charging stations in India will grow 7x of the current stock of 3,980 to 28,093 by 2025, starting with nine major cities with population greater than 4 million including Delhi, Mumbai and Bengaluru to state capitals and other major population areas, Sharma said on Monday, addressing the EV Summit by Bangalore Chamber of Industry and Commerce (BCIC).

Industry players also recognised challenges in the EV space including a lack of R&D in the electro-transition sector, the need for innovative charging strategies and the mismatch in new skills required for the new jobs.

“The transition of energy is going to be daunting, complex and costly. To be able to transition to new technologies we need more realisation of human potential for which upskilling, and education will play a vital role,” said Kamal Bali, MD Volvo Group India adding that 20 years from now around 20% of global talent will be from India.