India’s EV industry seeks sustainable growth; pursues holistic policy framework

80+ EV industries will be meeting at India Electric Mobility Council’s event recently in New Delhi to discuss proposals for comprehensive demand and supply enablers

India’s automotive sector has emerged as a significant contributor to the country’s economy, accounting for 7.1 percent of its GDP. Surpassing Germany and Japan, India has now become the third-largest automobile market globally in terms of sales. With a vision for a cleaner and greener future, the Indian government has set an ambitious target of achieving 30 percent electrification of the vehicle fleet by 2030. Achieving this goal requires close collaboration between manufacturers, policymakers, and other stakeholders to drive and sustain the demand for electric mobility.

To promote the growth of the electric vehicle (EV) industry, the government has introduced various demand-side and supply-side incentives and policies. Initiatives such as the Faster Adoption of Manufacturing of Electric (FAME) Vehicles Scheme and the Production Linked Incentive Scheme (PLI) have been launched to encourage the adoption of clean energy vehicles.

The India Electric Mobility Council (IEMC) is playing a crucial role in shaping the future policy framework. By facilitating an industry dialogue between policymakers and stakeholders across various EV sectors, including e2W, e3W, e4W, E Bus, Truck, and Construction Equipment, the IEMC aims to incorporate industry insights and feedback for a comprehensive and holistic policy.

Dr. Rahul Walawalkar, President of the India Energy Storage Alliance (IESA) and Chair of IEMC, stresses the importance of considering all demand and supply-related enablers to fuel the growth of the Indian EV market. Drawing lessons from leading E-mobility adoption markets, he emphasises the need for a holistic strategy to decarbonising the transport sector.

FAME II, a key driver for EV growth, will remain effective until 31st March 2024. However, to ensure sustained growth in the industry, key players are urging the government to extend the scheme. The government is open to hearing the industry’s suggestions, and an important consultation meeting was scheduled recently, in New Delhi, where stakeholders will brainstorm inputs and recommendations.

The event will witness the participation of leaders from renowned companies like Volvo, JBM, Tata Motors, Toyota Kirloskar, Mahindra, Reliance, Ola Electric, Gensol EV, Hop Electric, Ather Energy, Matter, Tok Motors, Vello Mobility, Battery Smart, E-Chargeup Solutions, Mooving, EXICOM, Bosch, Sun Mobility, HPCL, JSW, AMARARAJA, Liv Guard, Toshiba, Panasonic, Cummins, John Deere, Action Construction Equipment Ltd, Putsmeister, Caterpillar, among others.

Ecosystem partners like Alliance for Energy Efficient Economy (AEEE), Electric Mobility Financiers Association of India (EMFAI), and International Council on Clean Transportation (IICCT), OMI Foundation, and International Copper Association (ICAI) are collaborating with the India Electric Mobility Council for this significant initiative.

IEMC, an IESA initiative and India’s leading platform focusing on a holistic EV ecosystem, actively engages with automotive partner companies in areas such as manufacturing, components, R&D, charging, swapping, testing, safety, standards, and related domains. Its primary objective is to accelerate the adoption of clean and environmentally friendly transport in India. By working on strategic initiatives like optimising demand/supply incentives, developing the EV ecosystem, strengthening the EV supply chain, expanding charging infrastructure, exploring Vehicle to Grid capabilities, electrifying commercial and heavy-duty vehicles, ensuring battery swapping/safety, addressing financing challenges, retrofitting solutions, recycling mechanisms, and other enabling factors, IEMC aims to provide stimulus and support to this rapidly growing industry.