Page 347 - Electrician - TT (Volume 2)

ELECTRICIAN - CITS

Thirdly, in 2021, investment into EV startups reached a record high, rising by about 255 per cent to reach $ 444
Mn. For example, Ola Electric ($ 253 Mn), Blusmart ($ 25 Mn), Simple Energy ($ 21 Mn), Revolt ($ 20 Mn), and
Detel ($ 20 Mn) were the EV firms that received the most financing in 2021. About 500 startups spanning the
whole EV value chain make up the Indian EV ecosystem, with 63 per cent of those startups solely dedicated to
manufacturing.
Fourthly, the Production linked incentive (PLI) scheme (with a $ 3.5 Bn budget) for the automotive industry
suggests financial incentives of up to 18 per cent to encourage domestic production of high-tech automotive
products and draw capital to the industry’s value chain. The PLI scheme promotes the domestic manufacture of
EV batteries and less reliance on imports. This will considerably lower the cost of EVs and provide the necessary
infrastructure to support the EV sector.
India has already achieved one of the benchmarks in the EV sector. The highway between Delhi and Chandigarh
is the first in the nation to be made e-vehicle friendly by Bharat Heavy Electricals Limited (BHEL), successful
commissioning 20 Solar Based EV Chargers. India’s total number of charging stations climbed by 285 per cent
year over year in the financial year (FY) 2022; strong government measures are projected to accelerate the
expansion to 4 lakh stations by FY 2026.

Why is the EV sector in India a good investment opportunity?
The EV industry’s importance and impending growth are already attracting investments in the sector. In 2021, it
had around $6 Bn investments, which is expected to increase to $20 Bn by 2030.
The Automotive Mission Plan (AMP) 2016–26 encapsulates the goals shared by the Indian government and
the automotive sector. According to the AMP 2016-26, the industry is expected to contribute more than 12% of
the nation’s GDP, of which 7.1% has been achieved until now. It also aspires to constitute at least 40% of the
manufacturing sector by the end of 2026. The automobile industry and India will change if these targets are met.
Another essential factor is that the nation’s internal lithium-ion battery production plans could lower EVs’ costs,
reducing dependence and unsettling import duties. Hence, there will soon be a significant market in India.
India’s EVs are considered the key to the auto industry’s future. With the current climate change and worries
about it, EVs are set to take over as the industry’s mainstay in the years to come.

Given that India’s EV business appears to have a bright future. By 2030, India’s focused efforts to promote shared,
electric, and connected mobility may enable our country to reduce carbon dioxide emissions by one gigatonne.
Many private equity and venture capitalist investors have also invested in this sector, which grew from $181 Mn to
$1.7 Bn. Several mutual funds like Mirae Asset Global Electric and Autonomous Vehicles exchange-traded fund
(ETFs) Fund of Fund is an investment opportunity that invests in schemes like lithium and battery technology.

India’s auto industry has had significant growth and is expected to continue experiencing exponential expansion.
In terms of how the market is doing, the pandemic has sparked a demand for goods that help reduce pollution
levels, and EVs are a remarkable way to do so.
India launched the e-AMRIT portal in November 2021 as a one-stop destination for all EV-related information like
charging location, investment opportunities, policies and subsidies in the sector.

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CITS : Power - Electrician & Wireman - Lesson 25