Evolution of the electric vehicle industry in South India

Evolution of the electric vehicle industry in South India

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The global automotive industry is one of the biggest industries, contributing to approximately 3% of the global GDP and accounting for over 50% of global oil consumption. In the context of India, the industry is one of the significant contributors to the country’s growth and supports three important pillars - mobility, industrial and infrastructure development and people development. Further, the EV industry in India is expected to witness tremendous growth in the coming years, owing to the prioritisation of climate action and transition towards green mobility in alignment with the 2070 net-zero targets.

Aided by well-defined EV policies, manufacturing capabilities and a strong focus on research and development, South India is poised for unprecedented growth in the EV sector. The region leads in terms of EV sales, highlighting its substantial impact on the Indian EV ecosystem. The region has been a catalyst in creating synergies within the ecosystem by involving multiple stakeholders. Apart from this, it has been able to garner investments and contribute to substantial development across the EV value chain.

Key highlights:

• The automotive industry in India is on the cusp of disruption backed by sustainability, shared mobility, autonomous and connected vehicles and seamless omnichannel consumer experience.
• Aided by government intervention and private investments, strategic alliances among stakeholders are projected to create synergies and drive value.
• Indian EV market differs from other leading EV markets since over 95% of the EV sales in India can be attributed to the two- and three-wheeler segments. The users within this segment are price-sensitive and do not have easy access to finance.
• High potential investment opportunities in the EV sector can be attributed to customisation, indigenous EV production and value chain integration.