Report

India is committed to its goal of becoming a 100% EV market, the timeline may shift ahead by a few years but the commitment is demonstrated in the slew of the announcement made in Union budget under Modi 2.0. With an aim to become a global hub for electric vehicle manufacturing, the government has already moved GST council to lower the GST rate on EVs from 12% to 5%. Also to make EVs affordable for consumers, Govt has extended additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase EVs. The custom duty on electric vehicles (EVs), that are imported in completely knocked down or semi-knocked downstate has been reduced to 10-15% from earlier 15-30%. Exemption in customs duty on lithium-ion cells to 0%, was also announced with an intent to reduce the cost of lithium-ion batteries in India since they are not yet manufactured locally. So, all the steps in right direction are being taken to enable the market stakeholders to pursue the EVization goals and tread along the path set by Government to achieve 100% EVization goal.

The missing link however is lack of indigenization of components required for manufacturing an EV. Almost all the key components like Batteries, Electric Motors, Drive Transmission Parts, Steering, Motor Controller system, Battery cells are all imported and its nearly impossible to think of EV in India that doesn’t have any Chinese component in it. Some of the large Chinese companies like SEG Automotive and Jing-Jin Electric Technologies are eyeing the India’s opportunity across different components of an EV. The InfraInsights report “Electric Vehicles Motor Market in India by 2024-25: Estimating Demand for Electric Motor in Electric 2W, 3W, PV and CV”, aims to provide indepth analysis and insights on the electric motor demand for electric vehicles in India. The report will provide an indispensable source of information that will be useful for local and global electric vehicle component manufacture to assess the demand for electric motors, segmentation of demand by motor rating, segmentation of demand by power class, segmentation of demand by type of motor preferred by EV OEMs in India and the possibility of manufacturing these motors locally to move closer to indigenization of EV components in India. Government is pushing for a full the transition of three-wheelers and scooters and motorcycles with engine capacities of less than 150cc to electric by 2023 and 2025, respectively and hence the demand for the motor is likely to reach scale over the next 2-3 years. One can expect that even in worst-case scenario nearly 40% of the 2W market will be EVized and this alone will translate into demand for at least 10 million electric motor to power 10 million electric 2W.