India’s electric car ecosystem is rapidly developing and presents enormous investment potential to investors worldwide. The Secretary of the Department of Commerce, Sunil Barthwal, estimates that the EV industry in this country has the potential to draw investments totaling approximately $500 billion.
“I think there is a whole gamut of activities which is going to open up through this energy transition. I feel this is one great opportunity that India is offering to investors worldwide to invest in this whole value chain,” Barthwal said while speaking at the tenth edition of India Energy Storage Week (IESW) in Delhi.
The secretary noted that the electric vehicle ecosystem not just includes vehicle manufacturing, but also batteries and charging ecosystems, which has a huge potential for investments.
Currently, advanced chemistry cell manufacturing is at its nascent stage in India. India Energy Storage Alliance President Rahul Walawalkar said the battery manufacturing capacity in India is likely to reach around 150 GWh by the end of this decade.
Several companies including Ola Electric, Amara Raja, Exide Industries, Reliance Industries and GODI India are setting up Gigafactories in India. Most of the companies are also partnering with foreign players for battery manufacturing technology.
Niti Aayog has estimated India’s annual battery demand, combining electric vehicles, grid-scale and consumer electronics, to be around 250 GWh by the end of this decade with 40 percent coming from electric vehicles.
Limited charging infrastructure continues to be a significant barrier to a wider adoption of EVs in the country. Over 12,000 public EV charging stations are there in India. But India lags behind many matured EV markets in charging infrastructure as it has only one EV charger for close to 135 EVs.
“Indian government is trying to create an ecosystem whereby investments can be encouraged. And I think very close to $500 billion of potential investment exists,” the secretary added. He was speaking in the session titled “India’s Roadmap for Vehicle Electrification.”
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