New Delhi . The Indian government is emphasizing on localization of production and supply chain of electric vehicles in the country. The government's target is that by 2030, 30% of the vehicles sold in the country should be electric. This information was given in a report released on Wednesday.
“We estimate that Tata and JSW Group alone will invest more than $30 billion in making electric vehicles and electric vehicle components over the coming decade, of which about $10 billion will be in South and South America,” the S&P Global Ratings report said. Will take place in South East Asia (SSEA).
As the world's most populous country, India has immense potential. There is a huge market that attracts investments related to EVs.
EV adoption in India will accelerate over time as models are launched that are priced in line with ICE models and the charging infrastructure also improves.
“We also believe that hybrid and CNGpowered vehicles, light vehicles and passenger commercial vehicle segments will gain significant market share along with EVs,” the report said.
The government has recently launched the PM eDrive scheme, with a financial outlay of Rs 10,900 crore over a period of two years.
PM eDrive scheme will play a vital role in accelerating EV adoption and creating critical charging infrastructure across the country.
According to the report, the transition from ICE in India will be towards other alternative fuels instead of pure electrification. Government policies on imports and foreign investment will play an important role in India's vehicle electrification.
India continues to be important for Korean companies Hyundai Motor and Kia. Which jointly makes its mark as the second largest car manufacturer in India. The Indian market (in 2023) accounted for 12 per cent of the group's global sales volume.
Hyundai is working on investment plans in India, which also includes local EV production. The company will launch its first fully electric model made in India in January 2025.
The company has recently launched IPO in India. A part of the proceeds will be used to further the company's growth and product improvement in the market.
“We believe Tata Motors has sufficient financial headroom to make EV investments given its credit metrics,” the report said. In September 2024, the firm will invest approximately Rs 1 billion in a new EV plant in the south Indian state of Tamil Nadu. Announced plan to invest dollars.”
Its parent company Tata Sons Pvt Ltd has also announced investment in a lithiumion battery plant with an initial capacity of 20 gigawatt hours in the northwestern state of Gujarat. This plant will be helpful in the development of EV supply chain in that area.
The report estimates that major carmakers will spend more than $20 billion on electric vehicle (EV) production in South and Southeast Asia over the next few years.
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Image Credit: KhasKhabar.