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The Praxis Global Alliance has released its comprehensive “Electrify 30” report, highlighting the transformative potential of India’s electric mobility market. As the nation faces significant environmental challenges and economic pressures, the shift towards electric vehicles (EVs) presents a substantial opportunity valued at over $250 billion by FY30.
India’s dependence on crude oil imports, which accounts for 85% of its needs, has exacerbated the trade deficit and emphasised the urgency for cleaner mobility solutions. The country also grapples with severe air pollution, with 14 of its cities ranked among the world's top 20 most polluted. These factors, coupled with India’s ranking as the third-highest emitter of greenhouse gases per square kilometre, underscore the critical need for sustainable transportation initiatives.
Opportunities In Clean Mobility Sector
The report projects an exponential growth trajectory for India's clean mobility sector, driven by robust government policies and strategic investments from both public and private sectors. The clean mobility ecosystem is poised to become a $250 billion opportunity, growing at a compound annual growth rate (CAGR) of 38%. Key product opportunities are expected to hit approximately $94 billion, with significant penetration in personal vehicles, including two-wheelers and four-wheelers, as well as commercial vehicles and OEM components. Charging solutions will also see notable growth.
On the services front, the mobility services market is projected to be worth $450 billion by FY24, with transportation and logistics services making up the majority. This ecosystem encompasses a wide range of services such as intra-city and intercity e-buses, cabs, three-wheelers, and logistics.
Infrastructure Advancements
India's current EV-to-charging station ratio stands at 9:1, which the government aims to improve to a globally acceptable standard of 4:1 through initiatives like FAME II and reductions in GST rates on EV chargers. Technological advancements in range, speed, and fast charging are making EVs increasingly attractive and cost-effective. The software solutions market, estimated at $0.37 billion in FY24, is expected to grow at a CAGR of 27%, reaching $1.58 billion by FY30.
Emerging Opportunities
The report identifies several emerging opportunities within the clean mobility sector, including:
- Used Electric Cars
- Air Taxis
- Exports and India as a Manufacturing Hub
- Connected Autonomous Vehicles
- Mobility as a Service (MaaS)
- Battery Recycling
- Sustainability and Carbon Credits
- Investment and Growth Drivers
Foreign direct investment (FDI) and private equity are significant growth drivers in this sector. The report emphasises that technological advancements, supportive government policies, and shifting consumer perceptions are crucial for increasing EV adoption.
The “Electrify 30” report by Praxis Global Alliance offers a roadmap for stakeholders, highlighting the vast economic and environmental benefits of transitioning to electric mobility. As Aryaman Tandon, Managing Partner, Mobility, Energy and Transportation at Praxis Global Alliance, stated 'India's journey towards electrifying its transportation sector is not just a leap towards a sustainable future but also a significant economic opportunity.'
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