The Indian Electric Vehicle (EV) industry is surely in its nascent stage as yet but has a long way to go. Looking at the pollution levels in the nation, it can be easily predicted that the EV segment offers a slew of lucrative business opportunities.
The Indian business industry is growing at an exponential rate with Electric Vehicle sector taking the lead. EV brands across the world are focusing on the Indian market to expand their business in-country in the times to come. The Indian market is responding positively to the growing eco-system of EV’s. Businesses in this sector have found the best time to enter and rule.
Electric vehicles (EVs) operate on an electric motor, instead of the presently used vehicles with internal-combustion engine that generates power by burning a mix of fuel and gases. Therefore, the EVs are seen as a possible replacement for current-generation automobiles, keeping in mind the issues of rising pollution, global warming, depleting natural resources and many others. The EV market of India includes all 2, 3 as well as 4 wheeled vehicles which run on an electric motor.
Rate of Augmentation in EV Sector
The current Indian electric vehicle market is buzzing with innovation, advanced technology and a vision for a sustainable future. According to reports by the India Energy Storage Alliance (IESA), the electric vehicle market is expected to grow at a compound annual growth rate of 36 percent by 2026. During the same period, the EV battery market is also poised to witness a CAGR of 30 Percent. These numbers are highly promising, making the EV market perfect for aspiring entrepreneurs trying to make the world a better place on the back of futuristic yet sustainable innovations.
According to India Electric Vehicle Ecosystem Market Outlook 2030, the EV industry is expected to develop at a robust CAGR of 43.13 percent from 2019 to 2030.
As informed by Rajneesh Singh, Chief Marketing Officer, HOP Electric, “There is a goldmine of potential in the EV segment that entrepreneurs can leverage to establish themselves and grow their businesses. Investing in EV mobility is becoming the go-to choice in India because people are consciously making eco-friendly and sustainable choices. We aspire to make the entire EV ecosystem more inclusive, convenient, and cost-efficient so that everyone can become a part of this energy mobility revolution.”
Internal Growth in EV market
India’s nascent EV segment has notched handsome numbers in the last few years. In 2018-19, India sold 7.6 lakh EVs as compared to 56,000 units in the previous year. The segment is dominated by two-wheelers (16.4 per cent) and three-wheelers (83 per cent), as per a recent PwC report. Low-cost e-rickshaws, offering cheap last-mile connectivity, is the humble winner in this race with over 150 small-scale e-rickshaw makers.
While 2 and 3 wheelers will continue to lead the EV market, electric cars are expected to grab 6 per cent share of the new car sales by 2030 and thereafter will touch 28 per cent by 2040, making India the fourth-largest passenger EV market in the world, as per BloombergNEF report.
AmanSinghal, Managing Director, Aman Electricals says, “As India is highlypopulated and most of the population is middle and lower classes, 2-3 Wheeler market has a great scope as there can be source of income as well.” Aman Electricals manufactures E -Rickshaw and E-Carts with a vision to become well-established in the sector.
Rajneesh Singh shares, “Currently, HOP Electric is India's fastest-growing electric vehicle manufacturer. Last year, (in less than one year of commercial operations) we reached 130 retail touchpoints with more than 6200 on-road e-scooters. We recently closed a strategic round of USD 2.6 million as part of an ongoing USD 10 million pre-series fundraiser. As part of the Government of India's (GOI) Production Linked Incentive (PLI) scheme for Auto, we will be investing more than INR 2000 crore in the next five years, which will help boost our manufacturing capacities and accelerate our journey to becoming a global energy mobility pioneer.”
Big Companies Entering the Arena
In a recent development Tata Motors has launched its latest technology ‘Ziptron’in the EV sector to provide the best possible experience to the customers. Ziptron is at the core of revolutionizing the EV sector by encapsulating all the virtues of Tata Motors in the EV segment. Ziptron will prove to the world that Electric Vehicles can be swift, incredibly silent, pocket friendly as well as hassle-free to run.
Another giant company, Tesla (designs and manufactures electric vehicles) is focusing on building its factories around the world. They have already spent over 1 billion dollars in Austin, Texas, Brandenburg, andGermany and have finally arrived in India. And many automobile giants have started to make their respective efforts.
It is believed that the smartphone king, Apple is also going to kick off electric vehicle cars in the Automobile market. Adding to this big companies like Huawei,Xiaomi are also in the race. As per reports Samsung will provide chipsets and other electronic equipment like sensors to its partner. So, the consumers will have several choices. And this will boost Business Opportunities in the Electric Vehicles industry for small-scale industries.
Franchising in the EV Sector
Investing in EV mobility is becoming the go-to choice in India because people are consciously making eco-friendly and sustainable choices. On this Rajneesh Singh shares, “We aspire to make the entire EV ecosystem more inclusive, convenient, and cost-efficient so that everyone can become a part of this energy mobility revolution. As our next milestone, we are targeting to achieve 10X growth this year. We also aim to expand our retail footprint in 300+ Indian cities by the end of 2022 and add ten more outstanding products to our portfolio.”
According to Industry experts due to growing customer awareness, it’s the best time to enter into an EV franchise. EVs will be the mainstay of India vehicle market in the next 2-5 years and beyond. Definitely, people entering this business can leverage the early mover advantage. Typical investment required for an EV franchise ranges between Rs 12-20 lakh for 500 sq, ft area. This includes Rs 4-7 lakh on interiors and the rest on stocks, spare parts and equipments.
The last couple of years were not good for the EV industry due to the devastating hit of the covid outbreak. But it is sure to take a huge jump in upcoming years. The EVs will be game-changing in terms of environment, air, noise pollution-free India.
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