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Business Opportunities In The EV Industry

The focus on software development – which includes electric vehicle management and electric vehicle charging network management – has been the prior of most budding businesses. Since electric vehicles are technology-centric, there is a huge scope for growth in the software development space.

There is a prevalent wave of the energy transition, with major economies across the globe embarking on the endeavour to meet the Sustainable Development Goals (SDGs). One of the key challenges to address, in the collective effort to take preventive steps towards containing global warming and climate change as a whole, is to reduce the global carbon footprint. In line with this, electric vehicles can be the only sustainable alternative to conventional automobiles using diesel or fuel.

According to a Niti Aayog report, the growth rate of electric vehicles in India is projected to be 70 per cent for commercial cars, 30 per cent for private cars, 40 per cent for buses and 80 per cent for two and three-wheelers by 2030. Market experts also predict that by 2030, the penetration rate of electric vehicles is projected to save 474 million tons of oil equivalent, worth over USD 200 billion. Hence, electric vehicles are set to emerge as the leading players in the use of cleaner sources of energy and transportation as targeted by the Nationally Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change (UNFCCC).

The Indian automobile industry is the fourth largest in the world and is eying to become the third largest by 2030. Though the Indian road is prevalently dominated by fuel and diesel vehicles, electric vehicles started gaining momentum in 2021, with the total sales increasing by more than 211 per cent from the previous year. According to reports, EV sales grew from 2,982 sold units in 2014 to 455,773 units by 2022.

The ambitious growth of the EV sector has been emerging as a major space to explore for businesses and researchers – which has also led to the opening of significant business opportunities. The organisations dealing with the design, development, manufacturing, marketing, and selling of electric vehicles have witnessed a major thrust in recent years and are expected to grow at a faster rate amidst the energy transition.

Key areas of business prospects in the EV sector encircles around manufacturing, infrastructure, software development, training and skill development, retrofitting, fleet operation, dealership and franchise, maintenance and repair. Startups and emerging players are eyeing to exploit the immense scope of opportunities in various fields of the sector through detailed feasibility studies and extensive market research.

The manufacturing industry in the e-mobility sector has witnessed significant growth in recent years despite the challenges in the accessibility of research facilities, complex power train components, well-established brands, competition, etc. The manufacturing industry holds better prospects for growth as it is mostly multi-faceted, which includes electric vehicle manufacturing, EV battery manufacturing, powertrain manufacturing – which includes developing inverters, motors, transmission, wheels, etc., and supply equipment manufacturing. With a wide array of opportunities, several new business players have been exploring the manufacturing sector to establish their presence in the e-mobility marketplace.

Another key area of growth in the EV sector is infrastructure development, in which the charging stations are of significant relevance. With the e-mobility sector evolving rapidly across the country, there are massive opportunities in developing new charging stations. Also, the government regulations regarding licensing in India are flexible and only require adhering to rules from local authorities.

The focus on software development – which includes electric vehicle management and electric vehicle charging network management – has been the prior of most budding businesses. Since electric vehicles are technology-centric, there is a huge scope for growth in the software development space. The technological aspect of the automotive industry also brings in demand for skilled personnel; thereby making training and up-skilling industry of key relevance. Key training opportunities encircle domains like hardware setup development, software development, electric vehicle design, calculation, maintenance, charging station installation, etc. Training centers have also been focusing on electric vehicle conversion, electric vehicle charging station setup, electric vehicle maintenance, and electric vehicle-related software training center.

With more people opting for greener modes of transport, the fleet operation business, which includes electric car rental, last-mile connectivity, electric two-wheeler for tourists, electric cargo delivery vehicles, etc., has also been flourishing. What makes the fleet operation of EVs more relevant is reduced operating cost, less maintenance, and environmentally friendly operation. 

The escalated demand and purchase of EVs have also opened up opportunities for dealerships and franchises which include online shops for electric vehicle components and online shops for electric car reselling. There is immense opportunity in the maintenance and repair domain too, which requires personnel with special expertise in fields like battery scrapping, workshop, washing service, and software repair.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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Business Opportunity electric vehicles (EVs)

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