India's Transition to Clean Mobility: Investment Landscape and Future Prospects
Published: April 2022Transportation claims a major share in India’s growth story, and factors like technology, accessibility, affordability, and sustainability have been redefining mobility solutions. Technological advancements and efforts to transition to cleaner alternatives, such as by electrification or use of green hydrogen, will impact both automotive manufacturing industry and consumer market choices. We examine these developments in this issue of India Briefing Magazine, followed by a deep dive of the electric vehicle ecosystem and India’s policies guiding this transition to clean mobility.
India has committed to lowering carbon emissions and increasing the use of cleaner sources of energy and transportation. Its electric vehicle industry is also picking pace with 100% FDI possible, a mature automobile manufacturing sector, and gradual spread of charging infrastructure. Federal subsidies and policies currently favor deeper discounts for Indian-made electric two-wheelers and are promoting the local production of ACC battery storage. Last year, in September, a production-linked incentive (PLI) scheme for the automotive sector to boost the manufacturing of electric vehicles and hydrogen fuel cell vehicles was announced, whose beneficiaries were approved in March.
All these trends are indicative of a larger transformation underway to increase the adoption and affordability of cleaner mobility solutions in India. The transportation sector contributes to 6.3% of India’s GDP but is also a major consumer of energy and polluter. Implementing climate positive policies thus open several foreign investment opportunities targeting auto and auto components manufacturing, R&D, logistics, support infrastructure, and associated industries.
In this issue of India Briefing Magazine, we first examine these trends and how they are reimagining mobility in India, followed by a deep dive of the electric vehicle ecosystem and India’s policies guiding this transition to clean mobility.