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India's Electric Vehicle (EV) Ecosystem
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India's EV ecosystem has experienced substantial growth, propelled by a global push towards sustainable transportation and a national commitment to reduce carbon emissions.
www.eetindia.co.in/, Jan. 17, 2024 –
In recent years, India's electric vehicle (EV) ecosystem has experienced substantial growth, propelled by a global push towards sustainable transportation and a national commitment to reduce carbon emissions. This transformation goes beyond a simple shift from traditional internal combustion engines to electric powertrains that involves a comprehensive transition towards sophisticated electronics and cutting-edge technologies. The major industry players are playing an instrumental role in shaping the trajectory of the EV sector. The landscape is characterized by noteworthy investments and collaborations, reflecting the collective efforts of both private and government entities. This collaborative approach underscores a dedicated commitment to fostering a robust EV ecosystem in India. At the forefront of these technological advancements are application-specific integrated circuits (ASICs)–the unseen architects of the intricate electronic systems that power EVs.
The EV market in India is estimated at $5.61 billion in 2023, and it is projected to reach $37.7 billion by 2028, marking a substantial compound annual growth rate (CAGR) of 46.38%, according to Mordor Intelligence. In this trajectory, commercial vehicles claim the largest share by vehicle type, showcasing the expanding footprint of sustainable mobility. Additionally, among all the vehicle types, the Indian government has taken proactive measures to promote EV adoption through policy initiatives and incentives. A notable development is the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, specifically FAME II, aimed at boosting the production and adoption of EVs. FAME II provides financial incentives for the purchase of electric two-wheelers, three-wheelers, and four-wheelers, making EVs more appealing to consumers.