Indian Car Manufacturers Need To Be Ready For Rise In EVs: Imperial Study

According to a new report from Imperial College Business School, if the Indian automotive manufacturers will not be ready for an increase in electrical vehicles and will solely rely on traditional car manufacturing, they could face financial risk in the near future.

Study in UK: A recent report of the Imperial College Business School has suggested that if sales of electric vehicles increase to 25% and Indian automotive and industrial sectors do not gear up for this, they can face financial risk. The report is titled -'Driving Decarbonisation: Cross-Sectoral Second Order Impacts of High EV Penetration in India'.

Imperial's study has advised that India needs to prepare for the impact of electric vehicles and must not solely rely on traditional car manufacturing. The report also said that if EVs account for 25% of all vehicles on Indian roads, it will also increase the electricity usage of the transport sector of India by 60% and they will need electricity grid upgrades.

Dr Alexandre Koberle, Honorary Senior Research Fellow at the Centre for Climate Finance & Investment at Imperial College Business School said, “India has the opportunity to cut its carbon footprint substantially if large numbers of drivers move to electric vehicles, but there needs to be the right infrastructure and renewable energy capacity in place for the country and the climate to benefit."

“India has already made strong progress in addressing the impact of carbon emissions caused by transport. By working with the Indian government and local partners, we hope our research will provide policymakers with useful insights that could help the country meet its climate change targets," added Dr Alexandre Koberle.

India Needs To Boost EVs Sector

The study said that by 2030, around 6.7 million new charging points will be required to meet the demands of the electric car. The upgradation of the EV infrastructure will need significant investment by the private and government sectors.

Also, they predicted that the rise in EVs will have a different impact on each automotive company in India. The top car manufacturers of India include Tata Motors, Maruti-Suzuku, and Mahindra and Mahindra (M&M). Tata Motors is the market leader in EVs controlling 70% of the electric vehicle market, Maruti-Suzuku controls 5% and M&M controls 10% of this market. Hence, a rise in EVs will benefit Tata Motors most and Maruti-Suzuku is likely to face financial loss if they do not prepare for it.

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