EV sales in India to cross 9 million units by 2027: IVCA-EY-IndusLaw report
Mumbai, 27 July 2022: The Indian Private Equity and Venture Capital Association (IVCA) hosted an event and launched a report on “Electrifying Indian Mobility” in Mumbai, in partnership with EY and IndusLaw. The 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.
At the event, talking about the trends and outlook of the EV sector in India, Rajat Tandon, President, IVCA stated that, “USD 1.7Bn was invested in the EV industry in 2021 by the PE/VC investors. This amount has reached ~USD 666Mn 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 EV across all the segments is truly the path to the green frontier. The IVCA-EY-IndusLaw report reveals some such interesting facts and data as it elaborates various challenges and opportunities that prevail in the sector. I would like to thank EY and IndusLaw team for collaborating with IVCA in putting together this report and for their detailed work.”
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 10Mn direct jobs and 50Mn indirect jobs by 2030. In every aspect, the sector offers tremendous opportunities.
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.
Sharing his views on the report, 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.”
On the occasion, 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. IndusLaw is happy to be a part of the movement toward cleaner greener locomotion. There are challenges to solve and improvements to be made, and writing this report was a signal of IndusLaw’s intent to be part of an enduring and sustainable solution. It was great to work on this publication with IVCA and E&Y, and we hope this report finds its place in the literature on the subject of EVs.”