With a focus to lower the harmful emission by the automotive industry and to boost the local manufacturing of automotive in India, the government plans to promote the adoption of electric vehicles (EV), EV batteries, and EV charging infrastructure in the country. For the successful implementation of these, the government must address the five key trends that are expected to influence the electric vehicle ecosystem in India.
Written by BIS Research Analysts Ajeya Saxena
In spite of rapidly increasing adoption of electric vehicles (EVs), their competitiveness in terms of performance and pricing with internal combustion (IC) engine vehicles still seems a farfetched objective. Sluggish developments in the battery chemistry combined with the scarce supply of raw materials have been major roadblocks in the EV market establishment. Stakeholders in the EV market have already invested more than $150 billion between 2014 and 2018 to overcome the challenges faced by EVs. While automotive OEMs have been key contributors in terms of investment, government support in form of subsidies and tax incentives has played a pivotal role in ensuring EV adoption.
The automotive industry is undergoing a transformative shift toward the adoption of electric vehicles (EV) and is investing significantly in the research and development (R&D) of its battery technology and components. The energy density and weight of the battery are the major factors that determine the designing and manufacturing cost of an electric vehicle. The conventional lithium-ion (Li-ion) battery technology has been in existence since 2000s and has found its applications in various sectors, namely electronics & automotive industry, and energy storage systems. However, key limitations of the li-ion batteries such as high flammability, risk of leakage, high cost, and ageing have propelled the researches to develop better battery chemistries such as solid-state batteries (SSB).
Mobility as a Service (MaaS) is the next step in the future of the transportation and commute model globally. The target of the MaaS is to digitalize the operations and bring both providers and users at one single platform. According to a market research report published by BIS Research titled, Mobility as a Service Market - Analysis and Forecast (2018 – 2028), the global mobility as a service market is projected to reach $1759.83 billion by 2028. Also, as per the trends it is suggested that MaaS market will be the leading value generator by the end of 2040. Factors driving the market are on-demand assured ride, integration of multi-modal transportation options, and wide range of options available with the end-user, which include types of commute, duration of service, choice of driver, real-time journey optimization and type of pricing among others. The aim of a MaaS platform is to integrate as many activities related to transportation as possible such as planning a journey, booking the ride, tracking the payment and taking feedback at the end of the service completion. MaaS also aims to integrate the domain of public transportation on its platform.
Global warming and rapidly increasing pollution level are some of the alarming environment concerns that have led the manufacturers in the automotive industry to opt for the alternative sources of energy. Batteries have been used as a secondary source of energy ever since the introduction of the first automobile. According to the market intelligence report by BIS Research titled, ‘Global Electric Vehicles Battery Market- Analysis and Forecast (2017-2026), the market is expected to register a CAGR of approximately 20% during the forecast period. This tremendous market growth is attributed to the increasing demand for electric vehicles, stringent governmental regulations, and high energy density of batteries. Further, the electric vehicle market is driven by the changing paradigms in governmental regulations and increasing environmental awareness among the consumers.
Telematics system is gaining immense popularity globally owing to various benefits provided by the system such as entertainment and information content, cost saving, safety, and security, among others. According to the market intelligence report by BIS Automotive titled, ‘Global Automotive Telematics Market- Analysis and Forecast (2017-2021)’, the market is expected to garner a value of $17 billion by the end of the year 2021. This significant market value is attributed to the increase in the safety and security regulations, rising disposable incomes, lower costs of connectivity, and increased market penetration rates of smartphones which are propelling the growth of the market. The prominent market players are coming up with development strategies and showing an inclination towards the strategies such as partnerships, agreements, collaborations, product launches, merger, and acquisitions, among others.