EV Start-ups Help Shape India’s 2050 E-Vision
While the Indian EV Industry takes form and expands at an optimistic rate, an astounding rise has been witnessed in the EV start-up ecosystem. Currently, there are more than 350 OEMs, Component manufacturers, Infrastructure developers, and e-vehicle manufacturers, of which more than 70 per cent are start-ups. The EV industry is swelling up today with thriving companies that are not just promising but are also playing a pivotal role in implanting a fresh lease of ideation into the existing automotive economy.
India is renowned across the globe for its conducive, encouraging, and robust environment for start-ups. Hence, the EV Industry is not new to this. EV start-ups are a constructive ideation powerhouse that possesses big ideas, through a fresh looking-glass. Most EV start-ups bring with them an experienced workforce, stronger R&D teams, and technical ability that not only add a crisp perspective but also contribute more so through significant innovations, than larger corporations. As they bring together the best skill sets, they simultaneously create larger job opportunities, in turn helping the Indian economy flourish.
EV start-ups have been significant off late in maintaining a fast-paced environment by promoting healthy competition among themselves, in comparison to bigger organisations. Their agility helps them adapt to the altering market dynamics sooner than others. Given that downturns occur across any economy during different time intervals, larger organisations strive to come back stronger slowly. Whereas EV start-ups have the flexibility to swiftly absorb larger adjustments within a short time during economic downturns, hence keeping the momentum going. This makes start-ups crucial in striking a balance across the EV industry and the automotive industry at large.
Automotive itself has been a very mature domain, with key changes over the years in design, styling, and speed. Start-ups in the EV auto space help look at the whole paradigm ground-up and not just focus on the styling or design or paint jobs. This entails the technology itself blossoming into a more futuristic offering with time and advanced vehicles. These in turn further boost MSMEs that dwelve into delivering products or services on which the whole EV industry stems such as battery developers, EV component manufacturers, tyre manufacturers, auto electrical suppliers, auto components suppliers, charging infrastructure providers, battery swapping service providers, battery charging station manufacturers, digital technology providers.
EV start-ups have been a motivating force in every way in changing commerce and trade. This means a higher digitally enhanced and engaging experience for consumers, dealers, and manufacturers themselves. EVs today are a mini digital world on wheels, providing features like charging location finders, geo-tagging, geo-fencing, anti-theft alarms, gaming, receiving, and making calls, playing music, networking, EV monitoring system, and ride-sharing services.
Start-ups in the EV space have also helped evolve the EV product line on a macro level, from e-2ws to e-4ws. The EVs that we are currently witnessing in the market today are offered by start-ups. These are well-performing vehicles that have helped break monotony in the auto industry, fixed problems, and empowered individuals to build a sustainable future. The evolution of a simple-looking e2w to a futuristic ride, promises an invention that helps meet the needs of the world more than ever. Building an EV by some has not been a new area. These start-ups already possess the required technical knowledge and expertise in building an EV completely.
Most EV start-ups build a product backed by undertaking thorough research, testing, and validating customer pain points in commuting and owning a vehicle. The biggest pain point in owning a vehicle today is its fuel cost. Start-ups rigorously address such pain points by ensuring constant deliverance of a better test drive experience, digitally enhanced experience centres, wider dealer showrooms, improved POS, quicker TAT with after-sales service, on-road assistance, mobile assistance etc.
Understanding the great potential that the EV start-up space holds, the EV industry is pegged as a hot investment zone of USD 206 bn. There have been larger investments in the EV start-up space than any other, along with the strong impetus to move to EVs by the GOI. Investments in EV start-ups by angel investors, corporates, venture capitalists and private equity firms have grown exponentially over the last three years.
Start-ups with their multitude of benefits are an integral part of the EV industry, to achieve India’s larger net zero mission.
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