At the core of India’s Net Zero target for 2070 is the ambition to reduce vehicle emissions through the adoption of electric vehicles (EVs). India’s rapid EV adoption and market growth, made possible by a combination of government initiatives, new tech, and increasing consumer demand, presents a major opportunity for innovative UK businesses.
ITES has published research to explore the opportunities this market offers to SMEs delivering EV technologies and related solutions.
What’s inside
Available for innovators, ITES funders and partners, the market report covers five areas:
- Policy and regulatory overview
- Industry overview
- Technology overview
- Opportunities and barriers
- Case studies
For SMEs that are part of the ITES support programme, the research has been shared through workshops covering insights on:
- Market size and evaluation of the global potential
- Policy and regulation support
- Investment opportunities
- Technological development and challenges
- Effective collaborations
The context: India’s EV ambition
Set to be a world leader in EV, India has identified the enormous potential for electric mobility solutions and its Net Zero ambitions. Just a 30% increase in EV share by 2030 could radically improve:
- Energy security: by saving up to $14 billion in oil import costs.
- Environmental sustainability: powering a 17% decrease in particulate matter NOx emissions and 18% reduction in CO2 emissions.
- Economic development: sustaining the auto sector in India, which contributes 49% of the manufacturing GDP.
- Social development: absorbing all current automotive workforce, creating 50 million direct and indirect jobs within the EV industry.
Key insights for SMEs
To enable a ‘softer landing’ for innovators in this fast-paced Indian market, the report highlights specific funding, regulatory and support areas, including:
Commercial opportunities in India
Adopting a whole systems view of the EV market, the research sheds light on system-wide areas of interest for SMEs specialising in key elements of everyday EV usage, including:
- Charging infrastructure: With over 12,000 operational public EV charging stations, and more planned under the FAME II scheme, the research shares how SMEs might explore partnerships with charging networks.
- New business models: The research provides SMEs with inputs on innovative business models such as fleet management services, subscription-based EV leasing, or vehicle-to-grid (V2G) solutions.
- Local supply chains: The report reveals growing demand for EV components such as motors and batteries, and an opportunity for SMEs to learn how to establish themselves as local suppliers. Local supply chains can reduce India’s reliance on imports and drive down production costs.
Government-backed support
There are five regulatory and implementation bodies involved in the move towards EVs. Navigating the interaction of Indian government, ministerial, state and local authority policies can be extremely difficult for the uninformed and inexperienced.
The report outlines key government policies for SMEs such as FAME II, the Production Linked Incentive (PLI) scheme, and the National Electric Mobility Mission Plan (NEMMP) that can provide financial support and production subsidies.
Innovation incentives and standards
Key to successful electrification is the development of battery management and charging solutions, plus the need to recycle end-of-life EV batteries. The Indian government has taken the regulatory step towards mandatory collection and recycling of EV batteries, especially lithium-ion chemistries.
Equally, many individual Indian states have created their own manufacturing incentives for businesses. There are multiple subsidies, incentives, loans, tax breaks and reimbursements available for EV projects.
The ITES report identifies what each state offers, allowing SMEs to focus on those that best match their requirements. It also details the testing and certification requirements, allowing SMEs to design within approved standards and configurations.
Highest-potential opportunity areas for innovators
The research highlights key opportunities and potential barriers for SMEs looking to enter the EV market in:
- Electric vehicle manufacturing
- Battery production and management
- Components and parts manufacturing
- Charging infrastructure
- Software solutions
- Reuse and recycling
- Financial services
Access the ITES market research series
ITES market research reports are free to access for relevant SMEs, ITES partners and funders. If you’re an innovator or partner and would like to find out more or receive the full report, please contact us at info@ites.org.
ITES has commissioned a total of six research reports to support SMEs with market intelligence and business strategies in India. These include:
- Green hydrogen (link)
- Charge point operators (coming soon)
- EV fleet operators (coming soon)
- Smart cities (coming soon)
- Stationary storage (coming soon)
