As India stands on the cusp of a transportation revolution, the focus on clean mobility is driving transformative changes across the nation. With the government and private sectors investing heavily in sustainable transportation, India is emerging as a leader in the clean mobility movement.
The Clean Mobility Report by Praxis Global Alliance highlights India's significant advancements in electric vehicles (EVs) and the development of supporting ecosystems. The report reveals that India's transportation sector is undergoing a rapid evolution, with clean mobility solutions paving the way for a more efficient and sustainable future.
In FY 2024-25, India's clean mobility sector is set to experience unprecedented growth, with the government spearheading initiatives to promote sustainable transportation solutions. The Clean Mobility Report by Praxis Global Alliance explores India's dynamic push towards electrifying its transportation network, highlighting key policies and strategies that support the adoption of electric vehicles (EVs) and the development of essential infrastructure. The report provides a detailed analysis of the electric vehicle (EV) landscape, showcasing significant opportunities for EV adoption in the two-wheeler (2W) and three-wheeler (3W) segments, alongside substantial growth potential in personal and commercial vehicle categories.
Despite challenges faced by the global EV market due to geopolitical shifts and fluctuating manufacturing costs, India remains a beacon of resilience. The country's strategic positioning, coupled with favorable domestic conditions and a robust policy framework, creates an environment conducive to rapid clean mobility adoption. India's emphasis on developing an integrated clean mobility ecosystem not only boosts EV adoption but also fosters innovation in supporting industries, such as charging infrastructure, battery technology, and sustainable supply chains.
Key Highlights:
Clean Mobility Market Growth: The clean mobility ecosystem is expected to become a US$ 250B opportunity by FY30, growing at a CAGR of 38 per cent. By FY'30, the overall mobility market in India is expected to reach $1.2 trillion, with clean and electric mobility accounting for about 20 per cent of this market.
Product and Services Ecosystem:
Product Opportunity: Clean mobility product opportunities are projected to hit US$ 94B, with overall penetration rising significantly to 23 per cent by FY30. This includes personal vehicles (PVs), such as two-wheelers, four-wheelers, commercial vehicles, and components for OEMs and aftermarket, as well as charging solutions.
Services Opportunity: Mobility services opportunity in India is worth US$ 450B in FY24, with more than 80 per cent of the opportunity lying in transportation and logistics services. The services ecosystem covers transportation services like intra-city and intercity e-buses, cabs, three-wheelers, and logistics.
India's EV Infrastructure: India has an EV-to-charging station ratio of 9:1. To reach the globally acceptable standard ratio of 4:1, the government has taken multiple initiatives, including significant allocations in FAME II (over US$ 120M) and the reduction of GST rates on EV chargers.
Technological Advancements: Rapid improvements in technology, including range, speed, and fast charging, are making electric vehicles more appealing and cost-effective. The software solutions opportunity size is estimated at US$ 0.37B in FY24, expected to grow at a CAGR of 27 per cent reaching US$ 1.58B by FY30.
Emerging Opportunities: The report anticipates additional multi-billion-dollar opportunities in areas such as:
Investment and Growth Drivers: There is significant FDI and private equity investment in this sector, which is a key growth driver. The report also highlights that technological advancements, supportive government policies, and changing consumer perceptions are facilitating increased adoption.
This comprehensive report delves into various crucial aspects of the clean mobility landscape in India. It begins with an overview of the global climate crisis and the necessity for a transition to electric vehicles (EVs). It further explores the clean mobility ecosystem, highlighting opportunities and challenges in the adoption of EVs. Detailed analyses of clean mobility products and services, including commercial and passenger vehicles, charging infrastructure, and EV financing, provide a thorough understanding of the market.
The report also examines the regulatory landscape, consumer perceptions, and technological trends influencing the EV sector. Additionally, it identifies new business opportunities and strategic choices for stakeholders, reviews recent investments, and outlines key implications for various players in the ecosystem. This report serves as a vital resource for comprehending the current state and future potential of clean mobility in India, offering actionable insights for industry participants.
Commenting on the launch of report, Aryaman Tandon, Managing Partner of Mobility, Energy and Transportation at Praxis Global Alliance, said "India's journey towards electrifying its transportation sector is not just a leap towards a sustainable future but also a significant economic opportunity. Our report highlights that with strategic policies and investments, the electric mobility ecosystem can become a $250+ billion market by FY30."
