Blitz Bureau
NEW DELHI: The Indian Government continues to push for higher EV production in the country and for greater localisation of supply chains, which will be key to help the country reach the target of 30 per cent EV penetration by 2030, according to a report on October 30.
“We estimate that the Tata and JSW groups alone will be investing over $30 billion into making EVs and EV materials over the coming decade, of which about $10 billion will be in South and Southeast Asia (SSEA),” said the report by S&P Global Ratings.
As the world’s most populous country, India’s vast market potential is attracting substantial EV-related investment. EV adoption in India will progress with model launches that bring prices more in line with ICE models, and with improving charging infrastructure.
“We also believe hybrids and vehicles powered by compressed natural gas will command meaningful market share alongside EVs in the light-vehicle and passenger commercial vehicle segments,” the report mentioned.
The government recently launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme that has a financial outlay of Rs 10,900 crore over a period of two years. The PM E-DRIVE scheme will play a pivotal role in accelerating EV adoption and building critical charging infrastructure nationwide, contributing to a cleaner and more sustainable future.
According to the report, the transition from ICE in India will initially be more about a shift to alternate fuels rather than pure electrification.
