By: Tavaga Research
Indian Prime Minister Narendra Modi at the United Nations Climate Action announced to increase the renewable energy targets. With these fresh targets, it is safe and fair to deduct that the government will focus its acceleration towards the adoption of electric vehicles; which are the flag bearers of renewable sources of energy.
Various government schemes like Faster Adoption & Manufacturing of Hybrid & Electric Vehicles (FAME), initiatives like National Electric Mobility Mission Plan 2020 align with the AtamaNirbhar Bharat mission and pave way for the EV manufacturing and production in India.
According to various government reports the bracketed GST rate on EV vehicles is 12% with no Cess in comparison to 28% GST and Cess up to 22% for regular vehicles make EV a more economical choice for consumers.
With the lockdown and reduced usage of vehicles, people especially in the capital noticed a positive change in the air quality and reduction in pollution. With the ease in lockdown and lifestyle changes, the switch to EVs is not a far fetch thought.
Given the multiple impact-based initiatives by the government, the better economical value of the vehicle in the long run, and switch towards a greener lifestyle the EV market in India is likely to gain attention.
The Tata Group has come together to power up the EV markets in India.
Tata Motors owns iconic global brands like Jaguar and Land Rover in India. Additionally, it also manufactures the world’s first affordable car Nano. The company has plans to focus heavily on manufacturing affordable EV variants of the car. The market size of Tata Motors in the overall passenger car segment is around 6 percent.
Tata Chemicals is an award-winning chemical company, that supplies its basic chemistry to leading global brands. The company is also the largest saltworks in Asia. With its heavy focus on innovation, Tata Chemicals is to launch a manufacturing facility for lithium-ion cells in Gujrat. The company is also going to benefit from the Production Linked Initiative (PLI) scheme.
Tata Power is undoubtedly India’s largest integrated power company. With Tesla entering the Indian market, there is an ongoing dialogue between the company and Tesla on an arrangement on charging infrastructure. Additionally, Tata Power will provide the charging infrastructure for all Tata’s EVs.
Greaves Cotton is a leading engineering company, that manufactures engines and heavy pieces of equipment. The company owns a Coimbatore-based EV manufacturer, Ampere Electric Vehicles. Recently the company also partnered with EV mobility platform eBikeGo. With the new increased investment in the new plant, a head start in the Indian EV market, this company is on the watch list.
Exide Batteries is India’s largest battery-selling company headquartered in Kolkata. In 2018 The company formed a JV to build lithium-ion batteries Android provides energy storage systems for India EV marketed. Exide will be benefited from the EV promotion in India, given its brand value and strong sales network.
India is a developing economy and the government along with the citizen are taking conscious efforts to make India a cleaner nation. Given this and the global push towards climate change, the EV industry is likely to undergo positive changes in the near future.
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