India, a fast-rising country, is on the verge of becoming a manufacturing centre for a variety of industries, including the electric car industry. Under its ‘Make in India’ project, the Indian government aspires to attain 100% local manufacture of EVs.
The Indian government is committed to achieving 30% electrification of total mobility by 2030, and with increasing demand from end users across the EV sectors, both domestic and foreign manufacturers are establishing manufacturing sites in India.
According to Fortune Business Insights, the Indian EV industry is expected to grow to $113.99 billion by 2029, at a compound annual growth rate of 66.52%.
Here are five Industries and Industry related companies that might benefit from EV growth:
Electric Vehicle Manufacturing Industry
In the Union Budget 2023, The budget of Rs. 51.72 billion (about USD 631 million) was allocated for the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme, which will provide incentives to manufacturers to produce EVs and also encourage infrastructure development. Additionally, the budget has proposed multiple steps in order to promote greener and cleaner mobility.
The Indian government has declared custom duty elimination on imports of certain items as well as machinery utilised in the manufacturing of lithium-ion auto batteries for electric automobiles. This is aimed at gradually lowering the overall price of domestically manufactured EVs and their Insurance premiums, including the mandatory third-party car insurance premiums, in the nation.
The Top Stocks that are involved in EV manufacturing include Tata Motors, Mahindra & Mahindra, Olectra Greentech, TVS, and Hero.
Electric Vehicle Battery Industry
The central government has exempted the customs duties on the company that manufactures Lithium-ion cells to benefit domestic companies.
To reduce the dependency on EV battery imports from countries like China and South Korea, the government has launched a production-linked incentive scheme to make batteries that power EVs domestically.
Here are the top electric vehicle battery manufacturers such as Tata Chemicals, Amara Raja Batteries, Exide Industries, and Himadri Speciality Chemicals.
Electric Vehicle Component Industry
The Indian electric vehicle component is predicted to expand at a CAGR of 22.1% by 2030. Some of the electric vehicle components include a powertrain, electronic control technology, Onboard charger, Thermal system (cooling), and many more. The key players in the domestic market include Motherson Sumi Wiring India, Talbros Automotive Components, Uno Mindaand, and JBM Auto.
Electric Vehicle Charging Industry
The India EV charging market size reached a volume of approximately 1.05 million units in 2022. The market is further expected to grow at a CAGR of 22.20 percent between 2023 and 2028, reaching a volume of 3.86 million units by 2028.
According to a paper published by the Confederation of Indian Industry (CII) on ‘Charging Infrastructure for Electric Cars,’ India may require a minimum of 1.32 million charging stations by 2030 to allow for the rapid adoption of electric vehicles (EVs), based on the fact that the industry has huge growth potential.
The stocks which might benefit include Tata Power, IOCL, BPCL, Power Grid, and Motherson Sumi Wiring.
Electric Vehicle Software Industry
The global EV Software Market is a dynamically expanding industry with projections for a value of USD 82.5 billion by 2030 and a CAGR of 17.3% between 2023 and 2030.
The software industry in EVs includes a wide variety of applications, such as battery management systems, driver assistance systems designed exclusively for electric vehicles, vehicle telematics, administration of the charging infrastructure, range prediction algorithms, and driver aid systems.
Here are the major players in this industry include KPIT Technologies and Tata Elxsi
Written by Omkar Chitnis
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