April 18 2023 Climate change has become a collective global issue in the last 20 years, and the concerns are only increasing. While many sectors contribute to the ongoing climate emergency, the one that stands out the most is carbon emissions due to the transport sector. Over the last couple of years, the Indian government has drafted policies and plans like FAME with the aim to achieve 30% EV sales penetration for cars, 70% for commercial vehicles, 40% for buses, and 80% for two- and three-wheelers by 2030. To achieve this advanced level of EV adoption, it needs to be supported by competitive technological infrastructure. To take a further deep dive, KPMG in India, jointly with CII, has published a report titled ‘Technology at the forefront of Electric Vehicles’.
Commenting on the report, Jeffry Jacob, Partner, Partner, and Lead, Automotive, KPMG in India said “Technology is playing a key role in driving the EV landscape in India. While many of the current innovations are going to become standard offerings in the future, the addition of newer features/ development of new technology is going to be a continuous process. And with India becoming a tech hub for the world, we are at a significant advantage”.
With the advent of EVs, a lot of technological transformation has also come into play. For instance, the engine from traditional ICEs is replaced by a battery, accompanying a Battery Management System (BMS), while transmission has been replaced by a motor and a controller. As technology takes center stage, new suppliers of crucial and new components could enter this domain, leveraging new business opportunities this space has to offer. Next-generation technologies such as advanced chemistry cells are being explored for the development of batteries using alternative raw materials that are abundant in nature, cost-effective, and less impacted due to market volatility.
For India, growth in EVs is expected to continue for the rest of the decade, with 2W and 3W expected to dominate EV sales in the near future
EV adoption is expected to see an inflection point once all vehicle segments show significant ownership savings over ICE vehicles
Commenting on the findings of the report, Rohan Rao, Partner, Automotive and Lead Electric Mobility, KPMG in India said “It is exciting to see EVs become a reality in India. On the demand side while EVs provide consumers with a cheaper, greener alternative, on the supply side, we are seeing a leveled playing field with start-ups going toe to toe with established incumbents through rapid innovation and speed to market.”
Future of Mobility
The shift to EVs is no longer an uncertainty but only a question of when. Adoption levels are expected to see exponential growth in the future with developing infrastructure, government incentives, and the launch of new EV models. Technology is at the forefront of the EV revolution. The shift from ICE to EV has increased the electronics content from 16 percent to 55 percent in a vehicle with the addition of new features and controls. Many of these technologies are going to become standard offerings in the future and the addition of newer features/ development of new technology is going to be a continual process.