Electric Vehicles Business: Opportunity & Challenges

As Indian Auto Industry is one of the world’s largest industry and comprising 7% of national GDP. As per data of Society of Manufacturers of Electric Vehicles, an industry body, only 22,000 units of EVs were sold in India by March 2016, of which 2,000 were four wheelers. At the same time, sales of electric cars grew at a staggering rate of 94% between 2011–15 worldwide, led by China, US, and Europe.

Company’s in China, the largest EV market in the world has set a target of producing 7 million EVs annually by 2025 by forcing all automakers to kick-off manufacturing by 2019.

Further, a Stanford University study predicted that all new vehicle sales in 2025 would go electric and fuel-based vehicles would vanish by 2040. Keeping these things in mind, it is not hard to deduce that we are at an inflection point with regard to EV technology and they are no more a pipe dream.

If India does not immediately start developing its technological infrastructure for manufacturing, there are high chances that we will lose out to big players in China and therefore may end up as an importer of EVs.