Opportunities – Electric Car Components
The provision of infrastructure for development has gone hand in hand with the introduction of electric vehicles such as the Maruti Suzuki Wagon R, and these will record good sales in the future. NTPC, India’s largest electricity producer, has commissioned its first electric vehicle charging station in Vishakhapatnam, which can charge up to three electric vehicles.
India is building momentum with its rapid roll-out and production of hybrid and electric vehicles through programs to promote the segment by mandating the roll-out of electric vehicles (EVs), with the aim of achieving 30% EV market penetration by 2030. These programs will create demand and incentives for electric vehicles and boost the use of charging technology and charging stations in urban centers.
Currently, the market penetration of electric vehicles in India is about 1% of total vehicle sales, but it is about 95% of electric two-wheelers sales. According to a survey conducted in May 2019 by The Economic Times, 90% of Indian car owners are willing to switch to electric vehicles if the infrastructure is in place.
Factors such as technological progress and proactive government initiatives will complement the growth of the electric vehicle market over the forecast period. Factors such as increased demand for fuel-efficient, high-performance, and low-emission vehicles, as well as strict government regulations and laws on vehicle emissions, will further complement market growth. However, factors such as high manufacturing costs, low fuel consumption, and ease of maintenance are some of the factors likely to hamper the market growth.
Without comprehensive research on all the characteristics and attributes of electric vehicles, such as the nature of their charging infrastructure and electric vehicles production networks, modeling will continue to evolve and constrain.
To achieve the emissions reduction targets needed to mitigate climate change, consumers do not need to be persuaded to buy electric cars or change the composition of parking garages. While China has created incentives for e-mobility through tax breaks, electric vehicles credit, research subsidies, and more, countries such as the United Kingdom, France, Norway, and India are aiming to roll out e-mobility on a larger scale, and have expressed a desire to phase out gasoline and diesel engines in the coming decades.
Government policies and support in the form of subsidies, grants, tax breaks, and other non-financial benefits in the form of car-pooling, lanes, new registrations, increased vehicle range, improved availability of charging infrastructure and proactive participation by automakers are driving global electric vehicle sales. Developed countries such as the US, Germany and the UK promote the use of electric vehicles actively to reduce emissions, leading to an increase in the sale of electric vehicles. Moreover, the increasing sensitivity of various governments to a cleaner environment is increasing the demand for zero-emission vehicles.
India’s market for electric vehicle components is growing rapidly owing to falling components prices and the increasing adoption of electric vehicles due to growing environmental concerns and strong government support.
According to analysts at the diversified financial services company Motilal Oswal, India’s push into electric vehicles creates opportunities for companies in ancillary areas such as battery manufacturing. According to a market research report published by P & S Intelligence, the electric vehicle components market will grow between 2020 and 2030 by a robust 22.1% CAGR.
A battery cell pack, battery management system (BMS), electric motor, heat management system, DC / DC converter, and charging set are some of the components that are built into an electric vehicle. This paper focuses on the manufacture of other core powertrain components for electric vehicle applications such as 2W, 3W, and 4W LCVs, buses, electric motor control, and DC-DC converters.
On a market basis, vehicle types are divided into tricycles, two-wheelers, commercial vehicles, and passenger cars. In the Indian market for electric vehicle components, three-wheeled e-rickshaws topped the list in the historical period (2014-2019) due to the increasing number of such vehicles in major cities. Since e-rickshaws travel more than 100 km per day, the demand for spare parts for these vehicles is high.
As a result, India’s electric vehicle components market, which reached $5361 million in 2019, will grow by 22.1% over the 2020-2030 forecast period. By 2030, the Battery Management System (BMS) category will have the highest CAGr of 61.7% in the Indian car battery pack market. Starting in 2019, Original Equipment Manufacturers (OEMs) will have a large share of the market due to the purchase rate of such cars, the high spare parts quota of OEMs, and the high demand for two-wheeled components.
The Indian government has announced that all cars must be electric by 2030. The Minister is confident that within five years India will be the number one hub for the production of electric buses, cars, and two-wheelers.
In 2017, the Society of Indian Automobile Manufacturers (Siam) followed suit and announced its white paper that electric vehicles would account for 40 percent of new vehicle sales by 2030 and 100 percent by 2047. Manufacturers, government agencies, dealers, and sellers should promote the benefits of electric vehicles in order to increase acceptance.
If governments encourage the introduction of electric vehicles, they should also ensure that existing gas and diesel vehicles from their roads are removed, like New Delhi for example has done, by banning diesel vehicles older than ten years.
Another important way to help meet emissions reduction targets is for the national and local governments to redouble their efforts to develop alternative modes of transport such as public transport and cycling. Governments should also consider incentives similar to the Cash for Clunkers program proposed by Senate Majority Leader Chuck Schumer, an updated version of a 2009 US initiative to convince car owners to put their older, less fuel-efficient vehicles into circulation.
Smart charging of electric vehicles can help to balance supply fluctuations in the grid and provide a buffer against blackouts. As electric vehicles become more widespread, the market for battery recycling will expand. As a result, there are currently few post-consumer batteries for electric vehicles, limiting the extent of the battery recycling infrastructure.
Work on ways to develop battery recycling processes that minimize the impact of the use of lithium-ion batteries and other types of batteries in vehicles. Widespread battery recycling will prevent hazardous substances from entering the waste stream at the end of a battery’s useful life after manufacture.
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