Electric Vehicle Road Map Published 7 months ago By SuperAdmin Promoting Clean Energy Usage Through Accelerated Localization of E-Mobility Value ChainAutomotive industry, globally, is at a tipping point. In the last few years, the discussions have shifted from “will Electric Vehicle (EV) become mainstream?” to “the future of transport is electric” By the end of 2021, more than 15 countries had come forward and committed to the complete phasing out of ICE vehicles. Regulatory targets across many countries in the European Union now aim for a ban on ICE vehicles by as early as 2030 and 2035. Responding to climate change, mitigating pollution levels in urban canters, and reducing dependence and spends on fossil fuels have been the primary drivers behind governments pushing the electrification agenda.India has been taking rapid strides towards green energy and electrification in the recent past. At COP26, the Honorable Prime Minister announced a net zero target for India by 2070. With the transport sector being one of the biggest emitters, the electrification of vehicles will be crucial in helping India achieve this goal. As part of the National Electric Mobility Mission Plan (NEMMP) 2020, the government has already started setting the stage for rapid uptake of electric vehicles through launch of various demand drivers and ecosystem enablers. With the development of the required EV ecosystem, increased participation from industry, and supportive government policies, electric vehicles in India are set to grow exponentially over the next decade. Overall EV adoption rates are expected to reach 10-12% by FY26 and 30-35% by FY30. It is estimated that 11-13 million EVs will be sold annually in India by FY30, led by E2W where penetration is expected to reach 35-40% by FY30. E3W, E4W (shared) and E-Buses will also witness substantial EV adoption over the next decade (between 15-25%) driven by favorable economics, increased vehicle options and government push towards electrification.Globally, great strides have been made to drive EV adoption and make EVs the vehicle of choice for consumers. Several policies and regulations have been implemented by governments across the world to build a robust ecosystem that enables EV adoption. To arrive at the appropriate set of learnings for India, best practices across the globe were benchmarked across 11 levers to cover all the three drivers of EV adoption – Demand side, Supply side and Ecosystem enablers. On the demand side, policies cover fiscal incentives, supporting incentives, financing support and consumer awareness initiatives to stimulate demand. Key thrust areas on the supply side include manufacturing and R&D support. Ecosystem enablers include ICE sale restrictions / emission regulations to promote OEM electrification, adoption of charging infrastructure, standards and specifications, upskilling programs for workforce, and creating a circular economy.Correspondingly, to support the EV adoption trajectory in India, the Government of India has recently launched several initiatives with the aim of developing a full-fledged EV manufacturing ecosystem in the country. Each of the three Production-linked Incentive (PLI) schemes – ACC PLI, Auto PLI and Auto components PLI – have seen strong participation from industry and are expected to localize various parts of the EV value chain. Similarly strong localization momentum has been created with the Phased Manufacturing Program (PMP) for EVs, leading to an accelerated development of local supplier base across components. However, these policies address only certain parts of the value chain and structural gaps remain in key areas. Therefore, as part of this report, a comprehensive analysis of the complete electric mobility value chain (detailed in the figure) was conducted to identify these gaps. The entire e-mobility value chain was broken into components and sub-components to identify those areas where additional government thrust is required to drive localization.
