Greaves Cotton to foray into electric vehicle battery manufacturing
- Published | 28 May 2019
Greaves Cotton is looking to invest in battery manufacturing and supply chain for electric vehicles (EVs) is expected to enhance their business in electric vehicle battery industry which will propel the India electric vehicle battery market in forecast period.
India: The 160-year old Greaves Cotton, which is traditionally known
as a manufacturer of diesel engines, generators, and pump sets, is planning to
invest in the manufacturing of electric vehicle battery and supply chain for
electric vehicles (EVs) in the coming years. The engineering company, which has
in the recent years diversified into marine, defence and construction
equipment, had acquired a majority stake of 67% in Ampere Vehicles, in August
last year, which makes electric scooters. The company had earmarked Rs150 crore
to be spent on Ampere over the next three years as it looks to capitalize on the
government’s thrust on EVs through incentives under the FAME 2 scheme. This
envisages an investment of Rs 10,000 crore in the next three years to develop
the EV ecosystem. Through it, they will be developing a robust local
infrastructure by a partnership or standalone investment, possibly in
lithium-ion batteries.
According to BlueWeave Consulting, there is a rise
in the demand for zero-emission vehicles, decrease in the cost of the electric
vehicle battery system. Also, an increase in global awareness regarding climate
change will fuel the India electric vehicles battery market in the upcoming
timeframe. Battery electric vehicle (BEV) and plug-in hybrid electric vehicle
(PHEV) which are categorical as electric vehicles battery have the potential to
reduce the CO2 emissions of the traffic sector and the dependence on mineral
oil. Higher efficiency of electric power trains and the possibility of using
renewably generated electricity for transportation, also reduce the pollution
in densely populated areas.
The
battery-electric vehicle has a powerful electric motor and a well-dimensioned
battery system. The vehicle is propelled only by the electric motor so that no
combustion engine, fuel tank, or even the exhaust system is needed. The vehicle
is charged either by recuperation or by the power grid. Moreover, these
batteries powering the vehicle with electricity from the grid reduces fuel
costs, cuts petroleum consumption, and reduces tailpipe emissions compared with
conventional vehicles. Increasing prices for mineral oil, decreasing oil and
gas resources and degrading environmental conditions are major factors for the
demand of electric vehicles battery in upcoming periods.
According to BlueWeave Consulting‘s report, Titled-“Global Electric Vehicle Battery Market, by Battery Type (Lithium-ion Battery, LeadAcid Battery, Nickel Metal Hydride Battery, and Others), by Vehicle Technology(BEV, PHEV and HEV), by Vehicle Type (Passenger Car, Commercial Car and TwoWheeler), by Region (North America, Asia Pacific, Europe, Latin America, andMiddle East & Africa); Size and Forecast, 2014-2025”- Global
Electric Vehicle Battery market is expected to grow with a CAGR over 19% during
the forecast period 2018-2025, owing to increasing demand for environment
friendly vehicles. Diseases caused by air and water pollution are epidemic
among minorities. Environmental pollution cause more than three times death
than malaria, tuberculosis, and AIDs, countries such as Indian and China
records the maximum death caused by environmental pollution.
In addition,
governments’
regulations, particularly pollution prone countries have initiated supportive
policies and programs to produce and adopt electric vehicles, which is surging
the demand for global electric vehicles battery market over the forecast span.
According to BlueWeave Consulting‘s report, Titled-“IndiaLithium-ion Battery Market, By Type (Lithium Cobalt Oxide, Lithium ManganeseOxide, Lithium Iron Phosphate and Others), By Components (Cathode, Anode,Electrolytic Solution, Others) By Application (Consumer Electronics, Industrialand Automotive), by Region; Size and Forecast, 2014-2025”- India
Lithium-ion Battery market is expected to grow with a CAGR 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
Lithium-ion batteries market in India.
Further, rising usage
of smartphones and other consumer electronics products is resulting in an
increase in demand for higher energy density and faster-charging solutions.
Additionally, growing consumer electronics market is complimenting the growth
of Lithium-ion batteries market in India owing to its light-weight, high
energy, and power capacity features.
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