CATL Ltd & Tesla shows interest in India’s plans to build manufacturing hub for EVs
Published Date | 2019 August 19
The Indian government is planning to make India a global manufacturing hub for electric vehicles and their components which will positively impact the growth of electric vehicle battery market in India
India: Tesla and China’s Contemporary Amperex Technology Co. Ltd (CATL) have exposed an initial interest in the Indian government’s plan to construct large factories to make lithium-ion batteries at the capital investment of about 50,000 crores. The robust global interest comes amid a strong push by the government to make India a global manufacturing hub for electric vehicles and their components. This is aimed at making South Asian country’s reputation as the world’s third-largest crude oil importer, saving on precious foreign exchange and also controlling pollution in its major cities.
Aimed at securing India’s energy needs, the plan to set up these 50-gigawatt hour (GWh) factories have been cleared by EFC, with the final tender expected to be awarded by February. Each gigawatt-hour (1,000-megawatt-hours) of battery capacity can power 1 million homes for an hour and around 30,000 electric cars.
According to BlueWeave Consulting, Increasing awareness towards portable and stationary energy storage coupled with the government’s push towards solar and wind projects is expected to contribute to the growth of the Lithium-ion battery market over the coming years. Furthermore, governments’ effort towards the adoption of electric vehicles under Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme as well as tax exemption on EVs are anticipated to provide a much-needed boost to the market. Rising energy fuel bills of the oil-importing countries are one of the major concern which is aiding to grow the Electric vehicle market. Stringent laws and regulations against the pollution and increasing level of global warming are fueling the demand for electric vehicles. Hence, raising public awareness of air quality and increasing diseases due to pollution is pushing the consumers to use an eco-friendly vehicle which is accelerating market demand for the electric vehicles battery market.
According to BlueWeave Consulting Report Titled “India Lithium-Ion Battery Market, By Type (Lithium Cobalt Oxide,Lithium Manganese Oxide, Lithium Iron Phosphate and Others), By Components(Cathode, Anode, Electrolytic Solution, Others) By Application (Consumer Electronics, Industrial and Automotive), By Region; Size and Forecast,2014-2025”
India Lithium-ion Battery market is expected to grow with a CAGR of over 23% during the forecast period 2018-2025. Increasing pollution concerns, rising adoption of electric vehicles, increasing income-levels and surging demand for quality and uninterrupted power are some of the key factors driving the growth of the Lithium-ion batteries market in India. Further, the rising usage of smartphones and other consumer electronics products is increasing in demand for higher energy density and faster-charging solutions.
Global Electric Commercial Vehicles Market by Propulsion Type (BEV, HEV, PHEV, FCEV), By Vehicle Type (Bus, Truck, Van, Others), By Component (Motor, Battery, Others) –Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014-2024.
The Global Electric Commercial Vehicles market is expected to grow at a CAGR of over 13.0% during the forecast period in terms of value. The market is expected to reach over USD 149,316 Million by 2024. Incorporation of telematics & communication capabilities in electrical commercial vehicles is anticipated to boost the market growth. Growing food & beverage industry is another key factor driving industry growth over forthcoming years owing to increasing food trucks and refrigerated vehicles demand.