India is ready to witness a multi-billion dollar EV business

Experts reckon that 35-40 percent of vehicles sold in the country by 2030 will have some form of electric propulsion and that roughly translates to $8-11 billion profit for its makers, writes TE Narasimhan.

- TE Narasimhan

India's electric vehicles (EV) value chain revenue pool is expected to create $76-100 billion by 2030, potentially translating to a $8-11 billion profit pool. The new EV value chain will be materially different from today's internal combustion engine (ICE) value chain: At least six new segments are emerging as promising EV-specific opportunities.

Interestingly, four-wheeler electric PVs will constitute the largest segment of the revenue pool by about 41 per cent by value, despite seeing relatively lower penetration and volumes, followed closely by two-wheelers at 33 per cent, according to Bain & Company's latest report titled 'Electric Vehicles are Poised to Create a $100B+ Opportunity in India by 2030'.

These new EV revenue and profit pools will be significantly different from those in today's automotive industry. Several new EV-specific segments (cell manufacturing and battery packaging, BMS, mechatronics, thermal management, telematics, charging and swapping, e-mobility) will emerge and scale. Existing automotive segments like auto OEM (new players, decrease in service revenues) and components (new EV-specific products, decline of ICE-specific components in powertrain and transmission) will also be significantly altered in the nature and composition of revenue and profit pools.

The report further stated that the Indian electric vehicle (EV) market is expected to see 40%-45% EV adoption for two-wheel (2W) vehicles and 15%-20% for four-wheel (4W) passenger vehicles (PVS) by 2030, with 12 million to 13 million new 2W EVs and 1 million new 4W PVs being sold in India annually by 2030.

EVS at inflection point