Abstract:

The automotive industry in India, with respect to EV implementation is facing issues including economic downturn to the need to improve emissions performance and urgency to shift to electrification. The report attempted to assess the opportunities and probable impacts by comparing a scenario with 30 per cent electric car (EV) sales in 2030 against a business-as-usual (BAU) scenario with limited EV penetration. One of the important point the study reveals that despite the fewer components needed for producing an electric car, the localisation of electric power-train and battery pack assembly can result in a 5.7 per cent higher output value addition for the auto industry in a 30 per cent electric car sales scenario. Further, based on consultations with 28 stakeholders from the EV ecosystem in India, the report identified supply chain, policy, and financing barriers that are impeding the growth of EVs in India today. Overall, while there is a strong case for transitioning to EVs, as identified in this study, a policy package will be needed to address the existing barriers and develop a thriving EV ecosystem in India.