Nitin Gadkari, Minister of Road Transport and Highways, recently put an official stamp on the entry of Tesla, the US-based electric vehicle giant, with a sales-only model followed by a Tesla India Factory for manufacturing. Tesla is expected to foray into the Indian market with two variants of Model 3 – the most successful car in its portfolio. With assured quality at a justified price, Tesla India partnership could be the first milestone in the country’s journey for a greener future.
Growth in Indian Electric Vehicle (EV) market 2021
Increasing climate change awareness continues to accelerate India’s efforts towards decreasing pollution. Combined with national and state government offerings for green alternatives, the growth of the Indian EV market is expected to pick up pace in 2021. While start-ups continue focusing on EV accessibility, partnerships with international power companies are eyeing sustainability.
According to government data, in 2019, 3,600 electric cars and 1.2 lakh electric two-wheelers were sold. Furthermore, Indian start-ups managed to secure funding worth $376 million from various venture capitals and private equity firms in the same year. This enables Ather Energy, VOGO, Yulu, Tork Motors, and other companies to strive towards a robust electric vehicle ecosystem in the metropolitans.
Adoption of EV in India
BluSmart Electric Mobility is a classic example of India’s first EV ecosystem. Capitalizing on the heavy subsidies offered under the new Delhi government EV policy, the start-up offers over 300 electric cabs for the residents of Delhi-NCR at nominal prices. Its adoption and success rate in the capital can be seen in the strategic partnership between BluSmart and Okaya for charging stations across India.
EV has a conversion rate of 75% from electrical to wheel power. In addition, the Public-Private Partnership (PPP) model for charging networks between companies and state governments poses electricity as a renewable, economic, and feasible alternative for the common man.
With collaborative efforts similar to the upcoming Tesla India Factory, a sustainable green mobility framework holds the potential to pave the way for India to be the manufacturing hub of EV vehicles by 2025.