By: Pankaj Gupta, CEO-Mufin Green Finance
The Indian EV market is growing at an unprecedented rate. It has disrupted the traditional automobile market and is continuing to forge its path toward a sustainable future. Valued at $3.21 billion in 2022, the market is expected to grow to $113.99 billion by 2029. This clearly indicates the signs of tailwinds in the sector with policy shifts, cost-efficient battery production and infrastructure growth being the key levers of market growth.
Social media conversations are already attracting customer interest in the luxury EV segment. Luxury automakers have created a ripple in the market with plans to introduce high-end EV car models. While, on the other hand, many people are exploring income-generation opportunities from the EV segment. Therefore, it has become an integral part of the industry, making 2022 a year for electric mobility solutions which are well anticipated to carry a higher zeal in 2023.
Robust change in charging infrastructure
The recent permits given by the government for the installation of private charging stations are anticipated to be implemented in the upcoming year. Creating robust charging infrastructure has been one of the top priorities for the government due to raising climatic concerns. There have been several initiatives taken by them to help an EV owner easily approach the local or state nodal agency for the installation of charging stations. In addition, the directive to permit the installation of EV charging points at public places will increase EV penetration in 2023.
Shift towards EV transmission system
The EV transmission system is expanding due to fluctuating fuel prices. Vehicles owners who once owned petrol, diesel or gas-powered vehicles, now look for clean mobility solutions. As the game-changing OEMs (Original Equipment Manufacturers) are entering the market, the automakers are bringing more cost-efficient options in EV models. In addition, they are capitalizing on technology to create smoother and stronger acceleration with more limited maintenance requirements than fuel-powered vehicles.
IoT-based battery management systems
Artificial Intelligence and the Internet Of Things will play a major role in the EV Industry in the coming future. Green mobility is adopting the IoT trend in battery management systems – monitoring and control. This will allow EV owners to have a remote data logging facility which will help them monitor critical battery activities. The increased EV adoption results in the growing need for a sound battery management system that ensures safety, security and reliability. It is predicted to embed cloud, IoT and Artificial Intelligence in enhancing the effectiveness and utility of battery management systems.
Safer mobility infrastructure
The government is continuing to make amendments to EV battery standards to make them safer for EV owners. It includes stringent safety requirements in battery cells, battery management systems, thermal propagation that leads to short circuits and fire, etc. The transport ministry is taking an active part in creating clean yet safer mobility solutions and the year 2023 is predicted to witness the implementation of government policies that can cause a significant rise in the sale of EVs.
Ease in EV financing
India’s EV ambitions are gaining strong momentum. However, it still lacks EV financing options in rural and semi-urban areas. With the emergence of disruptive EV and fintech startups, the year 2023 is predicted to witness a huge shift in providing digital lending solutions to EV users. The EV market is anticipated to welcome a new trend of green financing that will help rural and semi-urban populace to adopt green technology with easy lending solutions.
Final Thoughts
The future of mobility being Electric and E-mobility is predicted to become one of the most popular automotive trends in 2023. Further, there is no electric vehicle revolution without EV charging, so the key trends in the EV space to look forward to will definitely include Plug & charge, Smart EV Charging and the much-awaited shift to renewable energy. With the Electric Vehicle safety norms in place, superior battery qualities, support from the govt. and initiatives to encourage the purchase of EVs are predicted to enhance EV sales and even trade of EV essentials, bolstering EV financing simultaneously. With such trends anticipated, India can surely aim to become a global transformer in the sustainable electric vehicle space. EV lending & financing should be added to the priority sector and it is much needed to be factored in this forthcoming budget session.
The author is Pankaj Gupta, CEO of Mufin Green Finance
Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.
