EV growth in India expected to continue for one decade; KPMG-CII study

HYDERABAD: Technology is playing a key role in driving the EV landscape in India. While many of the current innovations are going to become standard offerings in the future, addition of newer features and development of new technology is going to be a continuous process. And with India becoming a tech hub for the world, it is at a significant advantage, according to Jeffry Jacob, Partner, Partner and Lead, Automotive, KPMG in India

A competitive technology infrastructure is required to achieve this advanced level of EV adoption. To take things a step further, KPMG in India has released a report titled 'Technology at the Forefront of Electric Vehicles' in partnership with the CII.

With the advent of EVs, a lot of technological transformation has also come into play. For instance, the engine from traditional internal combustion engine (ICE) is replaced by a battery, accompanying a Battery Management System (BMS), while transmission has been replaced by a motor and a controller.

As technology takes centre-stage, new suppliers of crucial and new components could enter this domain, leveraging new business opportunities this space has to offer. Next-generation technologies such as advanced chemistry cells are being explored for the development of batteries using alternative raw materials that are abundant in nature, cost-effective, and less impacted due to market volatility.

Climate change has become a collective global issue in the last 20 years, and the concerns are only increasing. While many sectors contribute to the ongoing climate emergency, the one that stands out the most is carbon emissions due to the transport sector.

EV Growth expected for a decade

Over the last couple of years, the Indian government has drafted policies and plans like FAME with the aim to achieve 30 percent EV sales penetration for cars, 70 percent for commercial vehicles, 40 percent for buses, and 80 percent for two- and three-wheelers by 2030.

For India, growth in EVs is expected to continue for the rest of the decade, with 2W and 3W expected to dominate the EV sales in near future. EV adoption is expected to see an inflexion point once all vehicle segments show significant ownership savings over ICE vehicles.

Rohan Rao, Partner, Automotive and Lead Electric Mobility, KPMG in India, said “It is exciting to see EVs become a reality in India. On the demand side while EVs provide consumers with a cheaper, greener alternative, on the supply side, we are seeing a level-playing field with start-ups going toe to toe with established incumbents through rapid innovation and speed to market.” 

The shift to EVs is no longer an uncertainty but only a question of when. Adoption levels are expected to see exponential growth in future with developing infrastructure, government incentives and the launch of new EV models. Technology is at the forefront of the EV revolution. The shift from ICE to EV has increased the electronics content from 16 per cent to 55 per cent in a vehicle with the addition of new features and controls. Many of these technologies are going to become standard offerings in the future and the addition of newer features/ development of new technology is going to be a continual process.