India’s automobile sector ranks 5th in the world and largely contributes to the Indian economy. And as per the Energy Storage Alliance (ESA), India’s EV sector is projected to grow at a CAGR of approximately 36%. Also, big giants like OLA have raised huge dollars, up to 200 million, to invest in their electric vehicle (EV) segment. Even Indian automotive giants have dived into this market after they saw the growth and benefits of the market. Major players like TATA motors and HERO electric have introduced their own EVs in the last few years.
In the last few years, the growing concern about climate change, pollution, environment, and sustainability has been a catalyst in the growth of the Electric Vehicle Industry. The sudden rise in crude oil prices has also contributed to an increase in the sales and popularity of EVs in India. Let us discuss, the reasons for the rise in investments in the Indian Electric Vehicle (EV) industry:
The reason that led to the rise in the Indian EV industry:
- Rise in Crude Oil prices: It is one of the biggest reasons for the growth of the EV industry in India and the rise in its investment. Due to the Russia-Ukraine conflict, the crude oil prices increased drastically. And India is highly dependent on exports for their oil needs. Nearly 85% of crude oil is exported in India. Due to high petrol and diesel prices, people are now switching to Electric vehicles (EV).
- Increased Environmental concerns: Global warming, climate change, non-renewable crude oil, etc. have always been a problem. But, these problems are elevated in the last few years. So, Electric Vehicle (EVs) is the perfect replacement for crude oil cars. EVs are eco-friendly, they don’t pollute the surroundings, and they don’t use non-renewable resources.
- The Financial Benefit: Switching to EVs is not only good for nature but also good for the pockets of both individuals and the government. EVs reduce the use of crude oil, which is costly for the commoners and the government. Also, EVs are low-maintenance vehicles reducing the maintenance cost each year. It results in saving a lot of hard-earned money for the people, making it a major reason to switch to EVs.
- The slow rise of charging stations: The only problem with the use of EVs right now, is its charging issues. But, with a slow rise of the charging stations across the entire nation is happening. Both government and EV companies are making efforts to make this happen. So there is a slow rise in the solution for the charging issue. It makes a reason to invest in EVs in India.
There are many more barriers to the growth of the Electric Vehicle (EVs) sector in India. But, the government is also supporting this industry through various initiatives. And the sector is showing good growth and potential. Ultimately, making it a rise choice to invest in the Indian EVs sector.