EV sales in India to cross 9 million units by 2027, report

IVCA hosted an event and launched a report on “Electrifying Indian Mobility” in Mumbai, in partnership with EY and IndusLaw.

EV sales in India to cross 9 million units by 2027, report

The Indian Private Equity and Venture Capital Association event primarily focused on the rise of electric vehicles (EVs), and how investors and founders are viewing the trend unfolding in India and witnessed the launch of the report “Electrifying Indian Mobility” prepared by IVCA in collaboration with EY and IndusLaw.

Talking about the trends and outlook of the EV sector in India, Rajat Tandon, President, IVCA stated that, “$1.7 billion (Rs 13,560 crore) was invested in the EV industry in 2021 by the PE/VC investors. This amount has reached around $666 million (Rs 5,312 crore) in 2022 so far.” 

“While the Indian start-up ecosystem is focused on technological adaptation and environment, social aspects have also topped their themes for innovation. This is likely to give further boost and momentum to the growth in ESG and climate-specific funds. Fast adoption of EVs across all segments is truly the path to the green frontier. The IVCA-EY-IndusLaw report reveals some interesting facts and data as it elaborates on various challenges and opportunities that prevail in the sector,” he added. 

The report also highlights the global best practices for EVs, the current Indian policy environment, and PE/VC investments in this sector so far, investment opportunities in India for both investors and entrepreneurs. The EV industry is likely to create more than 10 million direct jobs and 50 million indirect jobs by 2030. 

Many new and first-time investors are joining the bandwagon. However, experts feel that there is a need for the government and larger investor community to come together and work towards more sustainable solutions.

Srihari Mulgund, New Age Mobility Partner, EY-Parthenon, said that “electrification of Indian mobility presents a once-in-a-lifetime opportunity to reimagine the future of the Indian automotive sector. Electrification has leveled the playing field across the value chain and Indian players must acknowledge this new dynamic and increasingly work towards becoming a global automotive powerhouse of the future. Technology will be a key enabler for a successful transition and given that technology is evolving faster than ever, the players need to make multiple bets to survive and grow during this transition. Hence, capital becomes a strategic lever as we embark on this journey to electrify mobility.”

Kartik Ganapathy, founding partner, IndusLaw, said that “in a world ripe with innovation but rife with various stresses, it appears that the time is right for electric automobiles.”

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