Electric Vehicle (EV) Landscape in India: Current Trends, Future Prospects, and Career Opportunities in 2024
India, a rapidly advancing economy, is poised to emerge as a manufacturing hub for diverse sectors, with particular emphasis on the electric vehicle (EV) industry. The Indian government, through its 'Make in India' initiative, aims for 100% localized production of EVs, although the industry is still in its nascent stages, experiencing rapid growth.
To bolster the indigenous production of EVs, the Indian government has introduced initiatives such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India), the Production Linked Incentive (PLI) scheme for Auto and Auto Components, and the PLI scheme for the manufacturing of Advanced Chemistry Cell (ACC). These measures are strategically designed to drive local production and achieve the set targets.
Recent developments include Taiwanese contract manufacturer Foxconn's announcement to establish a production line for two-wheeler EVs in India. Noteworthy brands like TATA Motors, Mahindra, Hyundai, Ola Electric, Ather Energy, Okinawa, TVS, MG, Hero Electric, and others have entered the electric vehicle segment, contributing to the industry's diversification.
Furthermore, the nation's emphasis on developing charging infrastructure and promoting renewable energy sources aligns with the essential requirements of a flourishing EV ecosystem.
India is embarking on an ambitious journey toward a sustainable and electric future, setting targets for significant EV adoption by 2030. In 2024, the EV industry is experiencing substantial growth, fueled by technological advancements, government initiatives, and a shifting mindset towards cleaner transportation.
Government Backing and Market Expansion:
India's commitment to electric mobility is evident in its ambitious targets, including 30% electric private cars, 70% electric commercial vehicles, 40% electric buses, and 80% electric two-wheelers and three-wheelers by 2030. This aligns with the global trend of reducing carbon footprints and embracing eco-friendly transportation alternatives. In 2024, robust government support is driving market growth, with leading automobile manufacturer Maruti Suzuki entering the electric arena with its inaugural EV, the eVX SUV.
Job Opportunities and Employment Surge:
The EV sector has witnessed substantial job growth of 40-45% in 2023 compared to the previous year. In 2024, hiring is anticipated to surge by 15-20%, highlighting the industry's strong demand for skilled professionals. According to a survey by CIEL HR Services, the Indian EV industry has seen a remarkable 108% increase in employment over the past two years. Projections suggest that by 2030, the EV sector could create 10 million direct jobs and an additional 50 million indirect jobs, significantly contributing to the country’s employment landscape.
Market Dynamics and Growth Potential:
The market size of the Indian electric vehicle industry reached approximately USD 5.48 billion in 2023. With a projected compound annual growth rate (CAGR) of 34.7% between 2024 and 2032, the market is expected to reach USD 95.23 billion by 2032, indicating tremendous growth potential.
Challenges and Skill Development:
Despite the industry's flourishing trajectory, it faces challenges requiring careful attention. The shortage of talent in software, AI, connected, electric, shared, and safe (CESS) EV spaces, as reported by Mint, underscores the necessity for skill development. Challenges include a shortage of clean energy, an underdeveloped charging infrastructure, suboptimal battery technology, and resistance to change.
The Economic Survey 2023 projects a 49% CAGR in India’s domestic EV market between 2022 and 2030, with an expected creation of around 50 million direct and indirect jobs by 2030. Notwithstanding positive projections, addressing these challenges is imperative to ensure sustainable growth in the sector.