Page 26 - The Insurance Times August 2022

storage as well as electric vehicles and auto components
through respective PLI schemes. Besides, several Indian
states have now passed EV policies intending to attract
industry investments and make EV adoption more viable
proposition for the consumer market. One of the major
reasons why countries are forced into adopting an electric
alternative is climate change. India according to
Environmental Pollution Index (EPI) 2020 is ranked 168 out
of 180 in terms of air quality.

The government has also realized that it is best to target
their efforts toward the public transport system in the initial
stages. This is because the purchase of EVs in the private
Positive outlook sector will depend on major other factors like attractiveness
India has been recognized as one of the prominent regions etc. The public transport system being one of the most
in the automotive industry globally. The automotive sector heavily used in a country like India will definitely offer a huge
in India is dominated by two-wheelers (scooters, motorbikes) boost to the sector. The future of EVs in India seems very
and three-wheelers (autos and rickshaws) that play a bright. The Indian government wants to join the Electric
significant role in last-mile mobility in the country. Rising Vehicle Revolution and plan to have 30% of private cars, 70%
government emphasis and focus on private and government of commercial vehicles, 40% of buses and 80% of two-
players' partnership to enhance EV ecosystem in the country. wheelers and three-wheelers go electric by 2030.
Increasing investments and product launches by major OEMs
India plans to make 10 million two-wheelers every year,
into the country and their focus on localizing supply chain
which is about 15% of the world's production. Currently, the
facilities are expected to create a positive outlook in the
majority of electric vehicle (EV) original equipment
market.
manufacturers (OEMs) do not benefit from their sales. High
manufacturing and R&D expenses, raw material supply
The Top Companies that are investing in Electric Vehicles are
restrictions, and poor production capacity all have an
Tata Motors, Eicher Motors, TVS Motors, Bajaj Auto, Hero
impact. Costs are coming down as a result of increased
MotoCorp, Greaves Cotton, Amara Raja Batteries, Exide
expenditures in R&D and manufacturing capacity, as well
Industries, Tata Power, Ashok Leyland, Mahindra &
as an increase in the number of EV sales, thus this promises
Mahindra. Other leading EV stocks in India that are working
a good chance in the industry's economies of scale. With the
on Electric Vehicles or related EV ancillary products are JBM
Indian government aiding infrastructure development, India
Auto, Olectra Greentech, Kabra Extrusion Technik, IOC,
is getting closer to its aim of being an electric vehicle nation.
BPCL, Reliance Industries, NTPC, Power Grid, Tata
Chemicals, Gujarat Fluorochemicals, Neogen Chemicals,
References:
Tatva Chintan Pharma, Motherson Sumi, Suprajit
1. https://www.grandviewresearch.com/industry-analysis/
Engineering, Minda Industries, Fiem Industries, Tata Elxsi,
india-electric-vehicle-market-
L&T Technology, Hindustan Copper, NALCO and Hindalco. In
2. https://www.psmarketresearch.com/market-analysis/
addition, six big Tata Group companies joined hands under
india-evse-market
the name Tata universe to create an EV ecosystem.
3. https://zeenews.india.com/electric-vehicles/demand-for-
electric-vehicles-in-india-picks-up-exponentially-ev-
India buys approximately 25 million autos every year,
sales-triple-in-fy22-2452708.html
according to certain estimates (including two-wheelers). By
4. https://www.india-briefing.com/news/electric-vehicle-
importing batteries, microcontrollers, motors and the ores
industry-in-india-why-foreign-
that account for 60% of a vehicle's cost, India will spend
5. https://auto.economictimes.indiatimes.com/news/
upwards of $65 billion per year to make transportation
industry/indias-electric-story-to-
completely electric.
6. https://tradebrains.in/top-electric-vehicle-companies-
The government is rolling out incentives to boost market india/
demand in priority segments like electric two-wheelers, and 7. IRDAI Annual Report 2020-21
localizing production of key components like ACC battery 8. Newspapers & Journals
26 The Insurance Times, August 2022