India: Over a dozen companies, ranging from auto component manufacturers to power and energy solutions providers, have rolled out plans to make lithium-ion batteries locally, to cash in on the rush for green vehicles. The list includes Exide, Exicom, Amaron, Greenfuel Energy Solutions, Trontek, Coslight India, Napino Auto & Electronics, Amara Raja Batteries, BASF Catalysts, Trinity Energy Systems, and Versatile Auto Components. This step will promulgate the future market growth for the Electric vehicles and EV batteries in the near future.
The development has come close on the heels of the Prime Minister’s Office (PMO) directing that most of the incentives of the INR 5,500 crore earmarked for the second phase of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) India Scheme be used to encourage local manufacturing of lithium-ion batteries, which form the core of electric vehicles. There has been a surge in interest (to manufacture batteries locally) given the government’s thrust on e-mobility. More than a dozen companies have started importing lithium-ion cells from countries such as China, Taiwan, and Korea assembling batteries. “The batteries being manufactured locally are costlier, but are superior in quality when compared with Chinese counterparts,” said Sohinder Gill, director general, Society of Manufacturers of Electric Vehicles (SMEV). Though sales of electric vehicles have remained limited due to high costs and lack of charging infrastructure, industry insiders informed, the potential for battery makers is huge going ahead. Even if sales of electric cars for personal use stay muted, batteries will be required by fleet operators running electric cars. Besides, there are more than 2.5 million e-ricks operating with inferior lead-acid batteries that have short replacement cycles. The opportunity is massive.
According to BlueWeave Consulting, India automotive industry is at the flourishing stage, supportive government policies and high public & private sector investment in the region are booming the industry. Over the years the automotive industry will witness phenomenal growth with high investment from foreign investment companies. Increase in per capita income and rise in urban population has surged the demand for automobiles leading to higher revenue generation in the region. Prominent automotive companies are willing to enter into the market through acquisition and partnership, further government supportive policy is positively impacting the market. Companies are focusing on controlling cost, improving efficiency and utilization of alternative energy engines. Electric vehicles (EVs) are the most fuel-efficient reduces emissions and significantly lower energy costs, thus EVs are on high demand, which in turn will promulgate the market growth of EV batteries and charging stations as well in near future.
According to the report by BlueWeave Consulting on “Global Electric Commercial Vehicles Market, By Propulsion, By Vehicle Type, By Component Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2024”, the global electric commercial vehicle is projected to grow over a CAGR of 12% during the forecast period of 2018-2024 by value. The market is expected to reach around USD 149,316 Million by 2024. The demand for electric vehicles and charging station is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles. In addition, the trend of reduction in vehicular emission due to stringent rules & regulations in several countries and growth of public charging infrastructure in China, India, and the other developed countries are fuelling the market growth.
According to the recently published report by BlueWeave Consulting on “Global Electric Vehicle Charging Station Market, By Product Type, By Installation Type, By Suppliers Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the growth is attributed to an increased deployment of charging stations at public places such as shopping malls, commercial buildings, airports, and restaurants. The convenience of being able to use an EV charger while shopping or during office hours is expected to boost the adoption of electric vehicles. Furthermore, government offerings, such as tax credits, on the installation of publicly accessible stations are expected to boost the market.
According to the report by BlueWeave Consulting on “Global Electric vehicle Battery Market, By Battery Type, By Vehicle Technology, By Vehicle Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the global electric vehicle battery is projected to grow over a CAGR of 19.04% during the forecast period. The growing demand for Electric Vehicles (EVs) is primarily responsible for the aggressive growth of EV batteries. The sales of electric vehicles have increased due to the increasing government support in the form of tax credits and lucrative subsidies and consumer awareness of the usage and benefits of these vehicles. Moreover, huge investments by major players to set up EV battery plants are expected to further drive the market.