What investors can expect from India's EV market?

The central government provides financial incentives to consumers who purchase electric vehicles through its FAME II policy. The scheme's purpose is to encourage the purchase of electric vehicles nationwide. It has a budget of Rs 10,000 billion and provides a subsidy of Rs 15,000 per kWh for electric bikes. According to a report compiled jointly by Indospace and Colliers in 2021, over the next five years, the EV industry in India is projected to attract investments totalling $12.6 billion along the automotive supply chain. The report also highlighted the fact that automakers will receive 64% of the capital, while battery manufacturers will receive the remaining 36%. After a brief lull in 2020, investing in EV sector in India has picked up significantly due to the high return on investment. According to a report titled 'Electrifying Indian Mobility' compiled by IVCA, EY, and Induslaw, total private equity and venture capital investments in the electric vehicle market segment increased by an investment factor of eight in 2021, reaching $1.7 billion. This figure was just $181 million in 2020. For instance, electric bicycle manufacturer Ultraviolette received $10 million in funding from the Amsterdam-based venture capital firm Exor Capital. Another maker of two-wheeled vehicles, River, was able to secure $11 million in funding through a Series A round managed by Chris Sacca's Lowercarbon Capital that included participation from Toyota Ventures. In the meantime, ride-hailing start-up BluSmart Electric Mobility announced earlier this year that it is getting close to raising $250 million from investors, one of them being BP Ventures.

What are the best stocks in the Indian EV industry?

1. Commercial vehicles 2. Two-, three-, and four-wheelers 3. EV batteries and EV charging infrastructure

EV industry in India: What should the investors expect from India's EV market?

Date : 30/11/2022
Read: 8 mins

According to a report compiled jointly by Indospace and Colliers in 2021, over the next five years, the EV industry in India is projected to attract investments totalling $12.6 billion along the automotive supply chain. The report also highlighted the fact that automakers will receive 64% of the capital, while battery manufacturers will receive the remaining 36%

The automobile industry in India currently ranks fifth in the world, but it is expected to move up to the third sport by 2030. Naturally, when there is such a large domestic market to serve, it is not sustainable to rely on the traditional modes of movement that require fossil fuel. To address this issue, central government legislators are currently developing a mobility choice that is ‘Shared, Connected, and Electric’. In this regard, they have set the lofty goal of attaining complete electrification by 2030. The EV industry - India’s outlook If India were to switch to Electric Vehicles (EVs), it would be beneficial on several fronts. Not only does the country have a relatively abundant supply of renewable energy resources, but it also has a ready supply of trained labour in the tec...

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