In recent years, there has been a lot of buzz around buying an EV. The major reasons cited for an EV transition include savings on fuel expense and reduction of greenhouse gas emissions. Although these are notable reasons, the question persists — can EVs offer something substantial to the nation as a whole in the coming decades?
India’s auto industry, estimated to be valued at $115 billion, contributes around 7% to the overall gross domestic product (GDP), employing 30 million people. In 2023, it accounted for over 4% of exports, with the components sector export alone being valued at $20 billion. Our analysis anticipates a 50% increase in exports and a rise in the workforce to 100 million, with a sectoral growth of nearly $200 billion, by 2030. Additionally, EV transition will ensure that this growth remains relevant in the long term considering global climate targets.
EV transition will have a sizable impact on the established auto industry, startups, and MSMEs and their future at the global stage through value creation in terms of employment and technological advancement. Thus, it would be a missed opportunity to not transition sooner.
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