The transport system in India is now undergoing fast transportation because technology costs are going down and connectivity is increased. Even so, electric vehicle acceptance in the country was slow, primarily because of selection range, prices, customer awareness and ease of changing. In an attempt to address the listed challenges, the Indian government is now focused on creating a proper infrastructure in rural and urban areas.
Boris Blanche, IRU Managing Director, highlights “Smart Cities” as an example of one of the Indian initiatives. The government used the initiative to allocate funds to 100 smart cities. $7.5 were offered with the purpose of promoting various technological interventions. 4 main technology trends are driving change: shared mobility, autonomous driving, connectivity and electrification. According to Union Minister of Road Transport, Nitin Gadkari, the passenger vehicle sector is going to help save money on oil imports while highly reducing CO2 emissions by the year 2030.
Industry trends experienced can potentially impact automotive companies in various different ways, starting with value chain overlaps to having some components being obsolete. As an example, gasoline vehicles could no longer be a core component for the electric vehicles. Various parts like battery services and e-motors can become much more relevant.
In the following decade it is projected that India’s urban population is going to double to around 600 million, leading to close to 500 million trips every single day. Because of this, the government needs to offer support through effective policies. The forecast is that by the year 2027 we are going to see four wheel EV vehicle sales exceeding ICE (internal combustion engine) vehicle sales. With the desire to make this reality, Karnataka will procure 40 electric busses, 500 three wheelers, 100 four wheelers and charging infrastructures all across Bengaluru.
The FAME II scheme is another great example of a wonderful initiative, with the government trying to reach 100% electric public transportation while promoting e-mobility. The Department of Heavy Industries selected 11 cities and when a tendering process finishes, money is going to be spent as incentives to install charging infrastructures.
Many MNC took stapes to support the e-mobility vision of the government. We saw Uber partnering with Mahindra, Toyota and Suzuki in an attempt to roll out the electric vehicles. There is also a partnership between Panasonic and Toyota to create special electric vehicle batteries. Such companies showed a huge interest in the technology behind autonomous driving, with joint ventures being planned for green investments all around India.
The country is going through several different changes, with mobility truly being a priority for the government. Fortunately, there are many companies that are expected to play a part in the expansion of the services offered. Mobility will surely increase, especially with the electric vehicles sector. However, other parts of transportation can also become better.
India will keep investing money in developing the proper infrastructure for increased mobility. Many different innovations could also appear since we never know what technology is going to change or what will be created thanks to the partnerships mentioned.